Managing Financial Resources in Health and Social Care

Managing Financial
Resources in Health and
Social Care

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Explaining the principles of costing and business control system ........................................4
1.2 Identifying information which is required to manage financial resources ...........................5
1.3 Outline regulatory requirements for managing financial resources in HSC..........................5
1.4 Discuss system which can be used in health care organization for managing financial
resources .....................................................................................................................................6
2.1 Discussing the diverse sources of income in the context of health and social care ..............6
2.2 Analyzing factors that affects availability of financial resources in HSC.............................7
2.3 Reviewing different types of budgeted expenditure which are made within Silloth nursing
home.............................................................................................................................................7
2.4 Evaluating the system or manner in which decisions are made within health care
organization pertaining to expenses.............................................................................................8
TASK 2............................................................................................................................................9
3.1 Assessing the manner in which financial shortfall can be managed within the nursing home
.....................................................................................................................................................9
3.2 Explaining actions that need to be undertaken on suspicion of fraud ..................................9
3.3 Evaluating budget monitoring arrangement in the context of Silloth nursing or care home \
.....................................................................................................................................................9
4.1 Identifying information required in health care organization for making financial decisions
...................................................................................................................................................10
4.2 Analyzing relationship which takes place between services delivered, cost and expenditure
...................................................................................................................................................10
4.3 Discuss the manner in which financial considerations have an impact on individual
decision making .......................................................................................................................11

4.4 Suggesting ways to improve services by making changes in the financial system and
process ......................................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Management of financial resources is vital for each and every organization for the
attainment of organizational goals. In the competitive business environment firm can attain
success only when it employs fund in suitable activities. Now, health care organizations are also
placing high level of emphasis on undertaking competent financial; framework which in turn
facilitates optimum use of monetary resources. From R&D to operational level health care
organization also requires huge funds. In this, it is the accountability of manager to allocate
funds in every activity by assessing the level of priorities and outcomes. The present report is
based on Silloth nursing and residential care home which is one of the leading unit of UK. In
this, report will describe principles and control system that is associated with the aspect of
costing. Besides this, report will shed light on the regulatory aspects that ensure effectual
management of funds in health and social care. It also depicts the sources of income and
different types of budgeted expenses which are associated with HSC. Along with this, it also
entails the manner through which shortfalls and level of fraud can be managed.
TASK 1
1.1 Explaining the principles of costing and business control system
Principles of costing are as follows:
1. Cost related to cause-
Every cost is related to its cause. Therefore, exists cause relationship in HSC. The cost
incurred in that cause should only be charged to that cause only not in other costs.
2. Abnormal costs-
Abnormal costs are not added up in the direct cost and also it has no direct relationship
with the costing of the product. Abnormal costs mean that costs which occurs due to fire, theft or
any negligence (Curtis, 2012).
3. Cost should be charged after it incurs-
A cost should be added only after it has been incurred that will give true picture of the
costs.
Business control system is as follows-