Optimizing Financial Resources for CareTech Plc

The assignment content discusses the importance of financial resources in managing healthcare services, specifically for CareTech Plc. It highlights how considering financial aspects can positively affect consumers and patients. The content emphasizes the need to improve the quality of health care services by increasing capital investment and using updated technology. Strategies such as cost control, employee training and development, employee motivation, and improving insurance firm involvement are recommended to enhance healthcare services. Ultimately, the report concludes that CareTech Plc needs to make higher costs and expenses to produce high-quality healthcare services.

MANAGING FINANCIAL
RESOURCES AND DECISIONS IN
HEALTH AND SOCIAL CARE
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INTRODUCTION
In the company finance playing a key role along with highly significant place because if
there is adequate and proper finance is not available with the firm then cannot comes into
existence in the market. Apart from this at the workplace when there are financial resources are
available then compulsory to manage it in the appropriate method. The current case study of
managing resources like as financials is analysed by taking base to the CareTech Holdings Plc
which is operating in the health and social care industry of the UK. The report shows about the
variety of systems as well as approaches used by the company in order to manage the financial
resources. In context to this, the current study is helpful for the reader in order to know as well as
understand about the planning process that it is up to which extent profitable for the health and
social care to prepare budget. In the third task, it focuses on importance and the significance of
the monitor and manage the budget expenses in the chosen firm. Beside these all in the last part,
the current case study focuses on those factors which lead to hamper and make changes in the
financial resources of CareTech which it has at the working environment.
TASK 1
1.1 Explanation of costing principles as well as various systems to control business which are
used by CareTech Holdings Plc
Financial information- For the every business entity it is highly necessary to assess and
analyse various financial informations which are comes into consideration at the workplace. On
the basis of different types of financial informations such as profit, costing, income etc. the
CareTech company can know that up to which extent it is performing well or poor. Through this
if the management found that cost enhancing against reducing sales then can frame strategies for
control cost and make the CareTech healthier in terms of financials (Bates and et.al., 2014).
Break even point- It is the method at where the management of health and social care
assess that total company will how much require to produce number of units and charge prices.
The respective point shows company's that situation at where cost of production as well as
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revenue both are same and intersect at specific point. On the basis of such analysis it can know
that how much price the firm needs to charge from the consumers.
Competitive analysis- Another system which helps to the CareTech Plc in order to
control cost and several business activities which affects to it in negative way is competitive
analysis (Borkowski, 2015). Through this if the company found that in the market there is huge
and high level of competition then can make the appropriate strategies and implement. By this is
able to survive from he high competition and make it profitable.
Cost benefit analysis- It shows that the company is up to which extent incurring costs
and expenses for producing health care services and against to this how much generating. Here
when the management of CareTech Holdings Plc found that cost increases then easily capable to
control on business activities.
1.2 Identification of information required for CareTech in order to manage financial resources
Finance- It is the very key necessity of every business entity because without this firm
cannot allocate resources to the production process and ultimately unable to fulfill needs of the
customers. On the basis of the finance or capital amount CareTech can know that how many
financial resources are there and on the basis of it further decisions for managing it in proper
manner are to taken (Flynn, 2012).
Competitive firms- By considering the competition factor CareTech Plc determine that
in the market what is the financial condition and what are the actions it needs to take. If there are
competition is up to the higher level in the health and social care sector then management of
CareTech Plc has to charge lower price and here cost aspect is ignored. By this the level and
amount of financial resources at the workplace reduce. Hence, while supervising financial
resources the CareTech Plc requires information regarding competitions.
Legal rules- Further, after using and taking informations about the legal rules,
regulations and legislations the CareTech Plc can efficiently manage the whole financial
resources vacant within business process. It shows that how much amou8nt needs to keep in
reserve and other rules also (Harrison, 2013).
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Costs- Another type of financial data required for the CareTech Plc for administering
resources of financials is related to the cost system. Higher the costing amount leads to make
effectual strategies for manage and administer resources of the firm just like financials.
1.3 Explanation of the different regulatory requirements which are required at the time of
managing the financial resources
Audit requirements- While the firm going to administer resource of financials then it
needs to fulfill all the rules and requirements of the auditing process which is necessary for the
public limited companies. The respective type of regulatory framework and requirements
supports o the CareTech firm for assessing true and fair value of it and then make strategies for
the purpose like as manage the financial resources (McColl-Kennedy and et.al., 2012).
Assessing financial position- Further, by determining position and condition of the firm
in terms of financials then CareTech Plc ca know that up to which level it has such business
resources. Moreover, for determine and assess financial position of the firm balance sheet is
analysed using the liquidity ratios. The liquidity condition clearly shows that CareTech Plc has
money and financial resources up to which kind of level in health and social care.
Legal legislations- It is needed for the mentioned health and social care business entity
that to employ as well as execute all the legal requirements along with the legal kind of rules and
the legislations which are framed, made and then imposes by the authority frame workers.
Moreover, with this CareTech Plc entity is capable to manage and then administer such financial
type of resources (Singer and et.al., 2011).
1.4 Evaluating systems for manage the resources within CareTech Plc
Budget- It the system under which variety of the financial resources and their dispose criteria is
to be predetermined. In this all kinds of data are analysed for the future year at the current time
which are such as related to cost, income, margin, disposals, number of production level and
sales amount needs to generate etc. In contrary to this, it is little typical to prepare the whole
budget statement.
Auditing system- As above discussed it is a tool of determining the true, fact, real and fair value
of the firm because all the accounts and financial statements are to be checked and analysed by
external party such as chartered accountant. After knowing the real condition at the health and
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social care segment CareTech Plc easily become capable for manage the financial type of the
resources (Stenberg and et.al., 2014).
Income- On the basis of income or revenue and profit the company CareTech knows that how
much amount are remains with it in terms of yield. By considering this system the firm
administers the financial resources in smooth ways.
TASK 2
2.1 Discussing the diverse income sources which are available to the CareTech firm
While existing in the industry the company wants that it generate higher amount of
income and for which there are several sources are available. Further, such sources are explained
as below:
 Public sources- In this kind of sources there are those aspects are to be comes into
consideration which are related to the public and government. CareTech is a healthcare
services provider at where amount of taxation which is taken by government is one type
of income for it. Along with this at here different national health insurance companies are
also diverse source of income for the CareTech Holdings Plc (Yip and et.al., 2012).
 Private sources- According to this the CareTech firm able to generate and earn income
with the help of private health insurance organizations. Health insurance is the statutory
for the society, local community and public which greatly supports to the CareTech for
earning the income.
 Voluntary sources- In this several charity sectors are mainly comes into consideration at
the workplace of chosen health and social company. The sum of money generates in the
CareTech Plc from the capital and fund provided by the charity sectors and organizations
which are working for social welfare.
 Investment- As per this amount of return which is generated on the investment made in
several avenues is assessed as income of CareTech Plc which used in the business
process (Chen and Luo, 2015).
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 Services providing- When the company provides and offers different health care
services then it charges amount which is also income of it. Further, being a public limited
company it generates income from the services at the very lower proportion compare to
others.
2.2Analaysis of elements affecting financial resources
Giving priority to a project- When there are two or more types of the projects available
with firm and in this condition if CareTech Plc needs to give priority to a particular project
complete it. Then sum of money invested towards to the respective project to which precedence
is given. Due to this overall value of the financial resources affects in the negative or adverse
way.
Government funding- There are several sources which support to the firm for
capitalizing and funding business. In context to this, government is one of the sources which
provide amount to the CareTech by which availability of financial resources will raise. Further, it
not imposes any amount and form of financing costs which is again beneficial for the CareTech
Plc (Clemen and Reilly, 2013).
Private funding- Another sources which are related to the private segments and allow
fund for the CareTech Plc to funding the project. Due to this, the company able to enhance its
financial resources which is positive impact.
Outsourcing- In this the CareTech has to pay amount and money to the external parties
which lead to reduce available financial resources at the working environment.
2.3 Analysing different kinds of expenditures of budget in CareTech Plc
When the business entity make expenses then analys about the budgets which takes
different costs. The expenses are provided as below:
Project management- It is effective and proper tool for make any kind of plan at the
workplace such as financial, production, product launching, marketing etc. By considering the
current system CareTech Plc can known that which are the process needs to follow at the time of
make different expenses. If the firm not uses the project management tool then it will not capable
to determine critical path of the project. On the basis of the project management system the
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CareTech Plc firm determine that how much expenses will be require for the further year using
its cost section (Dekker and Fleischmann, 2013).
Outsourcing- Another cost which associated with the budget within workplace of
CareTech Plc is related to the outsourcing. In this the company hires and takes help of the
external employees and parties who have appropriate and effectual kind of experience. For
example: when the CareTech Plc going to produce and introduce a new health care services then
it will analyse market trend for which market specialization needs to hire which is expenses for
the chosen entity. However, it is little risky for CareTech Plc because control o the overall
business process diluted with the external parties.
Cost responsibility centre- At the workplace there are different responsibility centers
which helps to financial department in order to analyse various informations. By using the
respective center all the expenses are to be recorded and on the basis of it decision to make
expenses in budget are to be easily framed. When the budget is made in CareTech Plc then also
the expenses are occur which included in the cost center (Sala and et.al., 2017).
2.4 Evaluating decisions which are made in CareTech regarding to make the expenditures
At the workplace of every business entity there is several numbers of costs as well as
expenses are associated and these are necessary to bear. Because until and unless if any kinds of
expenses are not made there then the company unable to produce services and products. Further,
when the firm going to make or take decisions about the expenses that it will consider several
elements which are that it will helps to attract customers and enhance sales or not. Apart from
this, while making decisions for doing expenses it analyses that whether the costs which made
that will be improve service level or not. Along with this CareTech Plc must analyse that because
of making expenses the company able to fulfill the higher requirements and demands of the
patients or not. If the business is unable to meet with such kinds of factors then it will not make
expenses within the workplace.
Moreover, if the management of CareTech makes expenses then it will consider
efficiency as well as productivity which are highly necessary to improve within the industry of
health and social care (Managing Financial Resources and Decisions. 2016). In context to this
behind making such huge contribution in the firm CareTech will analyse about the innovations,
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creativity in the services as well as research and development aspect. When there are firm
provides creative as well as innovate health care services then the patients will be attract more.
Ultimately consumption and sales of healthcare services of CareTech Plc will be improve and
then sales as well. Hence, it can be said that such these ways and after considering these all the
aspects CareTech Plc make decision for expending the money and costs.
TASK 3
3.1 Explanation that how financial shortfalls can be managed within CareTech entity
At the workplace of every health and social care there are different kinds of financial problems
come into consideration by which level of profit affects up to the higher extent. When CareTech
Holdings Plc face financial problems then there are different kinds of strategies it needs to adopt.
Moreover, for reducing various number of the obstacles occurs in the firm in financials are
overcome by using below mentioned strategies:
 In the financial shortfalls most of the times cost related causes occur by which the firm
not able to generate the profit in positive and increasing manner. In this the CareTech
needs to adopt different cost management techniques and methods which help to reduce
the total costs (Cambra-Fierro and Melero, 2015).
 The management of CareTech should provide various allowances as well as disocunts for
the patients on some health care services which will improve the sales and revenue level.
Higher the amount of revenue and turnover lead to make financial health of the firm
better.
 In context to this, company should utilize all the financial and non financial resources in
the optimum way. For this it has to give better training to the employees of CareTech by
which cost reduce and quality of services improve. Due to this, revenue will be enhance
and ultimately profit affects favourably.
3.2 Explaining those actions which can be taken at the time of financial frauds
In the business financial fraud occurs due to which reputation and image of the company
hamper in the overall industry. While the management finds that there are any kinds of financial
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frauds take place at the working environment of CareTech Plc then can needs to take various
actions against to it. In this context there are several types of strategies and methods are available
which are shown as below:
 The CareTech Plc needs to evaluate and then analyse the financial transactions over the
particular period of time and on the continuously basis. Because it helps to know that at
where specific problem occurs and then such fraud comes at the workplace (Mason and
Harrison, 2015).
 The management has to use auditing process at the working environment under which all
the financial statements are to be checked by the auditing party and the chartered
accountant. Due to this, actual reason and accountable factors are easily assessed in
proper way.
 Apart from this, the firm CareTech Plc has to make aware to the employees and workers
about the fraud where they can help to reduce and eliminate financial frauds.
 CareTech Plc should appoint an employee who belong from core accounting area by
which the financial transactions are cross checked and analysed in the appropriate ways.
3.3 Assessment of budget monitoring arrangements within CareTech Plc
Budget is a statement which having the key place in every company for determining the
financial data of the next account year. In context to this, at the time of monitoring as well as
evaluating the company must use the costing process where all kinds of expenses are to be taken
into consideration. After making analysis of the costing factor CareTech is greatly capable to
control and manage the total cost of operation and providing health care services. Apart from this
another factor which needs to evaluate at the time of monitoring budget is such as cash flow
(Honan, 2016). By this the managers of CareTech Plc able to know level of net cash flow and
then raise and improve total value of cash receivables at the accounting year ending.
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TASK4
4.1 Identification of information which needed for making the financial decisions
While making decisions of any kind and any aspect then it is very necessary to collect
data and informations about such criteria. When the firm going to make decision regarding any
case such as finance, marketing, HR, research and development then it highly requires several
types of informations. With the workplace of CareTech Plc there are numerous stakeholders are
associated which plays a lead role. When they are going to make decisions for attaching with
business then use several criterias and information. Apart from this in the CareTech there are
different kinds of decision makers which are such as nurses, nutritionist, surgeons, doctors,
therapist, pharmacist, physicians, snipers etc. At the time of entering in CareTech then these all
the members needs to know that it generates profit and income up to which extent. Because the
firm provide salary according to the financial condition and situation of it (Brown and et.al.,
2015). In addition to this while taking financial decisions such as increasing fund from external
sources then also they require liquidity as well as profitability position in the health as well as
social care services. Moreover, it can be said that when internal or external parties take financial
decisions then key information which they need is related to profit and financial condition.|
4.2 Analysing relations between health care services and the expenses
In the health and social care company there are services as well as expenses both are
interrelated because in any organisation until and unless cost is not bear then it unable to offer
products and services up to the consumers. In this context when the CareTech Plc spend amount
behind the various services then able to give greatly effectual services to the patients. Further,
through the costs and expenditures the CareTech Holdings Plc able to organise various
campaigns which helps to deliver messages about different health related problems along with
the diseases. By this making such expenses the patients try to use health care type of services of
the CareTech Plc. Apart from this, when the chosen firm makes expenses on its potential
employees for giving training, motivation etc. then they able to provide higher quality of the
services with greater appropriateness. In this condition the consumers and patients automatically
wants to take treatment from the CareTech firm. Hence, it can be said that as the firm make more
costs then able to give better treatment and health care services (Bates and et.al., 2014).
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4.3 Evaluation about the financial considerations which can affect to the health care services for
consumers
Within the working environment of the business of health and social care there are
finance plays an important role. When the CareTech is going to taken into consideration to the
financial aspects then those health care services which it provides to the consumers that will be
affected. There are mainly two things will be affects which are related to the services quality and
access. Further, impact of the financial consideration on services analysed as below:
Access of health care services- Higher the use of financial resources in the firm lead to
produce wide range of the services by which the consumers able to use more health care
services. On the other side if the CareTech not has adequate amount the financial resources then
cannot invest in the production process. Further, the patients as well as health care service users
will not able consume wide number of services (Borkowski, 2015). Hence, it can be said that
because of considering financial aspects by the firm the consumers easily affects in positive
ways.
Quality of health care services- Moreover, level of the quality of all the health and
social care services will be affects which are consumed by the patients. In this context when the
firm CareTech uses more amount of the capital then produce higher quality of the health care
services. Ultimately the potential and new patients will become healthier in few times and it lead
to attract other patients for using its services.
4.4 Recommending to CareTech Plc about those methods which help to it for increase health
care services
At the workplace it is compulsory to increase various types of products as well as
services by which it able to become a leader in the sector where it operates currently. In context
to the CareTech Plc when it will improve such services and provide higher quality then capable
to amplify more customers along with the boosting sales and revenue. For boost up the financial
resources and position the company needs to take and assess various methods and strategies
which are analysed as below:
 Cost is the very significant and sensitive element of every company and by controlling
and reducing this from workplace it able to enhance sound of entity in terms of financials
(Flynn, 2012). Further, CareTech Plc able to provide wide range of the health care
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services easily. Hence, the key strategy for improve the health care services is handle cost
factor in effectual ways.
 Management of CareTech Plc needs to give and arrange effectual training and
development programs which lead to enhance skill level along with the efficiency of
individuals at the workplace.
 The company should give motivation to the employees and organizational workers in
terms of financial as well as non monetary which lead to improve involvement of
individuals towards the CareTech Plc. Further, they provide make higher efforts in the
firm for delivering health care service which is beneficial and enhance attraction of the
patients also.
 Apart from such above strategies the CareTech Plc require to improve the level of
involvements of those firms who provide insurance services. In the current era, every
patient wants to use the insurance amount and after implementing such mentioned
method CareTech management improve the health care services (Harrison, 2013).
 Moreover, it can be suggested to the managers of CareTech Plc firm that it requires to use
and adopt updated technology and buy high features of the medical instruments and
machineries which lead to improve quality of the health care services up to the higher
extent.
CONCLUSION
It can be articulated by summing up the project of managing financial resources and
decisions within the health and social care segment is that such resources are greatly required to
administer in proper method using various regulatory frameworks, requirements and legislations.
For manage the financial resources several types of systems and rules are required for the
CareTech Plc up to better extent. Further, different source are there with the health social care
which helps to generate income like s public, private, sales, investment, voluntary etc. Different
types of methods and then strategies are there by which the potential management of CareTech
Holdings Plc proficient to reduce and overcome financial frauds and shortfalls from the working
environment. From the end part of the current report it can be concluded that as CareTech make
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higher cost and expenses within the firm then able to produce and improve high quality of the
health care services.
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