Care South Group: Financial Resource Management in Healthcare Report

This report provides a comprehensive overview of financial resource management within the healthcare sector, specifically focusing on the Care South Group. It begins by outlining the principles of costing, emphasizing stakeholder engagement, data accuracy, and business control systems. The report then details the information needed for effective financial management, including managing liabilities, revenue, and potential risks. It also covers regulatory requirements such as those from the Care Quality Commission and GAAP, along with various financial management systems used by Care South, including financial accounting, cost control, and payment systems. Diverse income sources, such as patient fees, investments, and residential services, are examined, alongside factors influencing financial resources, like reputation. The report further explores budget expenditure, decision-making processes, and strategies for managing financial shortfalls and suspected fraud. Finally, it evaluates budget monitoring arrangements, including cash flow projections and budget monitoring to ensure financial stability and effective resource allocation within the organization.

MANAGING FINANCIAL RESOURCES
IN HEALTH AND SOCIAL CARE

INTRODUCTION
Financial resources means proper planing, organizing, directing and controlling all activities
that related with finance. In organization financial management play important role because
through this they make strategy for proper utilization of resources and provide better services
and produce quality product and services with low and cheap cost (MacLeod, 2017). Care
south group is a health care corporation and it was founded in 1995 and headquarter situated in
Augusta, Georgia and USA. That provide home care services to patients. This report will be
cover principle of costing, sources of income, factors that affect resources, budget expenditure
and effects of finance affect service user.

1.1 principles of costing.
 Costing is a process of record all original cost of assets, liabilities and investment. It is use by
care south for manage all information of finance and it helps in operate organization
effectively. It also helps in reduce cost and control for increase profit. Organization compares
actual cost and expected cost and then follow following principles for control.
 Stakeholder engagement :- this principle helps in control cost of health and social care
organization because through this care south group engaged all stakeholders that direct and
indirectly relate with organization so it helps in control cost because it includes all stakeholders
and include cost so that they manage and control for reduce cost and increase profit.
 Data accuracy :- this principle also use by care south corporation because through this they
record accurate data and it helps in get fair result so it makes easy to evaluate real cost and
helps in cost control system. For this they use journal entries, ledger, trial balance according to
staying patients and clinical staff and then take decision.

Business control system
is very important for care south because through this system organization focus on achieve
objective and goal. It includes evaluation of staff and analyze their performance and duty that
they do work proper or not. After evaluation managers and owners of health and social care
system make rules, regulations and standard
Following principles use for business control :-
 Materiality :- this principle helps in control of business and analyze that employees and
staff and cost give proper and expected return or not so after that managers and owners of
care south group make rules and regulation for manage and control work for increase
profitability.
 Consistency :- through this principle all department of organization measure
their cost so it makes easy to evaluate and control. Because all department evaluate their
own cost and record originally.

.2 information need for manage finance.
 Many types of information need for health and social care organization for manage
financial resources.
 Care south group has need financial resources for payment of liabilities like payment of
staff, purchase material, equipment, medicines and bed.
 So all things are managed through finance and for meet objective they have to proper plan
acre of their resources.
 It receives revenues from fee of patients and other revenues so information of finance has
to keep accurately and transparent that helps in manage finance.

CONTINUE
 It also has to make plan for face risk that possible and may occur in future suddenly. So
this risk includes in health and social care like neglect to patient, failure of operation and
death of patient during treatment that is risk for care south. So information include like
preparation of budgets, auditing, administrative expenditure, financial cost and renovation
of buildings and equipment needs in manage finance. All these records and information
helps in manage finance.

1.3 Regulatory requirement for manage
finance.
 In health and social care many departments and authorities make rules and regulations for
proper management of financial resources that reduce cost and provide better services to
patients and care of safety to them. Following authorities like :-
 Care quality commission :- it is a authority that inspect to health and social care
organizations. According to inspection it makes rules and regulation for provide better
services and aware to peoples for get better service about their health. So people also has
choice for take health and social service center.

continue
 Health sector regulate monitor :- this department also has authority to monitor and regulate
health and social care and issue license to organization that provide both services like health
and social. This authority mainly focus on patients safety, determine price and support to
patient and also reduce and prevent their problem that they face due to lack of finance.
 GAAP :- this authority is includes in accounting standard and regulation of this
authority use by health and social care organization like care south for record accurate data
and report of financial information of organization so it helps in keep fair and accurate data
and easy to evaluate for make strategy and plan that helps in manage finance.

1.4 systems of manage financial resources.
 Many methods are use by care south for manage finance and control to all finance that
include expenditure and revenue. So care south use following system for manage finance
resources effectively:-
 Financial accounting system :- through this system managers and owner of care
south health and social care organization evaluate all financial books and records.
Management of finance is very important for improve business and it is only possible
through sound financial accounting. Because it keeps all records and transaction related to
revenue and expenses.

CONTINUE
 Costs control system :- this system very helpful for care south because through this
system cost control possible. It evaluates all costs and through this organization evaluate
and compare expected cost and incurred cost. Organization easily trace their cost and
inspect all things and change according to need for reduce cost and manage.
 Payment system :- this system important for health and social care because
through this it evaluates liabilities of organization and evaluate pending payments and
available funds. After that they make decision for reduce cost and liability.

2.1 diverse source of income.
 Many types of source of income are use by health and social care organizations. All sources are
use by care south for increase income and sufficient funds collect for expenses. So for increase
revenue it provides different offers to their clients for attract. Source of income like fees that
they collect from patients. So they earn revenues from different types of patients like mental
disable, physical disable and young people home care services.
 Care south group also has extra income that they earn from investment for increase
their funding. So it invests capital in different sectors and get earn more income from interest.
It helps in improve and develop health and social care services to patients. Organization use for
pay to their liability.

CONTINUE
 One more source of income is sale shares and equity to peoples and in market it also
increases capital of organization and it also provides home care services post
hospitalization. All things use by care south in improve their services and provide better
treatment with safety.
 Young people residential service provide by care south that main purpose is
reach to children on right path and care to them it mainly generates income. Adult learning
disabilities is source of income because it cares to adult that they suffering from disability.