Managing Financial Resources in Health and Social Care: A Case Study of CareTech Holding PLC

Unit - 14 Managing Financial Resources in Health and Social Care
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Contents
Introduction.................................................................................................................................................3
LO1..............................................................................................................................................................3
1.2 Information needed to manage financial resource for CareTech Holding PLC......................................4
1.3 Regulatory requirements need to be satisfied while managing financial resources..............................5
1.4 Evaluating the systems for managing financial resources in CareTech Holding PLC..............................6
LO2..............................................................................................................................................................7
2.2 Analyzing the factors that may influence the availability of financial resources...................................8
2.3 Review different types of budget expenditure in CareTech PLC............................................................9
2.4 Evaluating the manner in which decisions about expenditure could be made....................................11
LO3............................................................................................................................................................11
3.1 The way situation of financial shortfall can be managed in CareTech.................................................12
3.2 Action to be taken in the event of suspected fraud.............................................................................12
3.3 Evaluate budget monitoring arrangements in CareTech PLC...............................................................13
LO4............................................................................................................................................................14
4.1 Identifying information required to make financial decisions relating to CareTech PLC.....................14
4.2 Analyzing the relationship between a health and social care service delivered, costs and expenditure
.................................................................................................................................................................. 15
4.3 Evaluate the way financial considerations impact upon a service user...............................................15
4.4 Suggesting ways to improve the care service provided by CareTech PLC............................................16
Conclusion.................................................................................................................................................17
References.................................................................................................................................................18
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Introduction
Caretech holding plc is a social care service provider situated in UK. The company believes in
providing Healthcare services with the aim of achieving good market share. Productive
management of financial resources is very important when it is concerned that the industry is a
Health and Care Service Provider. The company believes in the Welfare of all by providing
services relating to health for every kind of people. The company welcomes the various types of
customers/ patients as their resources and believes in developing good customer relationship with
them. The report provided completely focus is on the proper utilization of financial resources and
how decisions are made for the Welfare of the company (Report, 2017).
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LO1
1.1 Principles of costing and business control systems
The various costing and business control system Principles are the part of every organization as
they are the very important necessity for running their current business. There are 6 best costing
principles which shall be adopted for the company provided which is related to health care.
The participation in every company shall not be restricted to the management but also should
involve the stakeholder’s engagement in the company's important decisions. According to this
principle the Healthcare industry has to analyse the various costs by determining the various
costs which are related to the department which do not involve finance. (Tech, 2018)
While adopting any costing approach the company should consider consistency as the most
important amongst them. Consistency states that every organization should work upon consistent
approach towards making various decisions for all the various departments situated within the
entity or outside the entity.
Every entity should understand the various material cost which are related to the procurement of
the material which is situated in the company so as to consider the only material costs and to
ignore such other costs.
For a company like caretech there should be proper transparency between the costing and the
business control systems of the company so that there should not be any confusion amongst
anybody in the company. (healthknowledge.org.uk, 2018)
The most important aspect of every company is to control its unnecessary cost expenditures that
the company is incurring. The various management of the company should focus to emphasize
towards reducing the cost which are unnecessary for the company and to limit the cost of the
company within the allocated expenditure budget that the management of the company has
provided. It is very simple that higher the cost and lower the profit of the company, so as to
increase the profit of the company the cost of the company has to be controlled and have to be
fixed as per the expenditure budget that has been allocated.
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