Healthcare System Analysis & Challenges

This assignment requires a critical analysis of the US healthcare system, examining its structure, strengths, weaknesses, and key challenges. It delves into topics such as access to care, cost containment, quality improvement, and the role of technology. Students are encouraged to utilize provided resources on various aspects of healthcare management, including financial fraud prevention, integrated care models, and human resource allocation for mental health services. The assignment aims to develop a comprehensive understanding of the complexities facing the US healthcare system.

Managing Financial
Resources

Table of Contents
NTRODUCTION.............................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Main principles of costing and role business control systems..............................................3
1.2 Inform which contributes to manage financial resources.....................................................4
1.3 Legal requirement need to follow for managing financial resources....................................5
TASK 2............................................................................................................................................6
2.1 Different sources of income in health and social care..........................................................6
2.2 Factors which impacts the availability of financial resources in health-care........................7
2.3 Analysis of different types of budget expenditures in health and social care.......................7
TASK 3............................................................................................................................................8
Covered in PPT...........................................................................................................................8
TASK 4............................................................................................................................................9
1.4 Systems which helps in management of financial resources................................................9
2.4 Evaluation regarding decisions which are taken in context of health and social care..........9
3.3 Analysis of the budget monitoring systems in health-care ..................................................9
4.1 Identification of resources which helps to make financial decisions..................................10
4.2 Relationship between health-care service delivered, costs and expenditure ......................11
4.3 Impact of financial considerations upon individual using health-care service...................11
4.4 Recommendations of different ways to improve health-care services to make changes in
financial systems.......................................................................................................................12
CONCLUSION.............................................................................................................................12
REFERENCES..............................................................................................................................14

NTRODUCTION
Management of funds is important requirement for every organisation to attain success
and accomplishment of their objectives. It is the duty of top management is to consider the
requirements funds of each and every department and effectively allocate resources to improve
their efficiency. Funds are available in the form of cash and liquid assets which helps in
performance of regular operations. This includes about improvement of the understanding about
accounting principles and techniques which helps to keep the effective record of various aspects.
In health and social care sector there is same requirement of application of accounting principles
to improve the decision making power of internal parties. Kingston Hospital NHS Foundation
Trust is situated 12 miles away from central London (Almalki, FitzGerald and Clark, 2011).
In the present report explain about, business control systems and principles of costing,
information which helps to manage funds, legal requirements which helps in management of
financial resources, sources of income in health-care, different factors which impacts the
availability of financial resources, different type of budgets and aspects which helps to manage
financial shortfalls. Also, information helps in financial decision making in health-care, impact
of financial considerations upon individual using health care services and suggestions which
contributes in improvement of social care service through bring changes in financial systems.
TASK 1
1.1 Main principles of costing and role business control systems
Costs: Money spent by organisation to get something valuable to accomplish their
objectives and achievement of their desired results. There are many aspects which are included
while cost is calculated like efforts, raw material, labour, risks associated, opportunity foregone,
time period etc. All expenses are considered as costs but not all costs are expenses. For ex.,
Kingston Hospital NHS Foundation Trust provides services 12 miles away from central London.
Cost includes amount of every aspect which they incur to take patients from their location to
hospital (Andersen, Rice and Kominski, 2011).
Income: It is amount which is earned by entity within specified period of time. It is an
money received by Kingston Hospital NHS Foundation Trust as return regarding providence of
their services to patients after deduction of all expenses.

Cost-benefit analysis: It is an important tool which is used by the management of
Kingston Hospital NHS Foundation Trust to ascertain about the effectiveness of their decisions.
It includes the process where all benefits are added which are going to receive from given
situation and subtraction of all costs which need to incur for accomplishment of such action. This
model helps to analyse potential costs and revenues generates from performance of particular
project (Aveyard, 2014).
Cost centre: One of the separate department performs the function regarding controlling
of costs which are incur upon different aspects. Such centre of Kingston Hospital NHS
Foundation Trust has the main aim to consider the costs not about the capacity of revenue
generation from the use of their assets. It provides the opportunity regarding reduction of
unnecessary costs and contributes in improvement of profitability.
Break-even: This used for monitoring the financial performance of organisation. It the
point where total cost and revenue are equal. It means the situation of no profit or loss. Kingston
Hospital NHS Foundation Trust uses this point to understand about activities need to perform on
regular basis to maintain break-even point and revenue amount.
1.2 Inform which contributes to manage financial resources
For effective management of financial resources need to have information about different
aspects which are directly or indirectly associated with financial performance of Kingston
Hospital NHS Foundation Trust. It is the duty of management is to identity all such information
to improve their decision making and bring effectiveness in management process. The
information need to consider is defined below:
 People: One of the important factor which has direct impact upon costs. Kingston
Hospital NHS Foundation Trust need to identifies the data about patients which are come
per day on average basis. It helps to manage their funds according to such number of
patients (Chartier, 2014).
 Equipments: Kingston Hospital NHS Foundation Trust need to use effective medical
equipments for ensuring proper treatment of their patients. So, they need to arrange their
funds according to such requirements.
 Legal requirements: There are many regulations are provided by government which is
need to follow by Kingston Hospital NHS Foundation Trust which indirectly provides
direction in performance of their actions and also prevents from legal penalties. Such

regulations which helps in management of financial resources includes Health and social
care act. 2012, NHS TDA, audit, accountability etc.
 External factors: There are many external factors which influences working of health-
care organisations. The management of Kingston Hospital NHS Foundation Trust need to
consider there factors like changes in policies, competitive factors etc. It helps in
formulation of effective strategies which improves working efficiency through attainment
of flexibility in their operations. It contributes in reduction of cost and effective
management of funds (Drummond and et. al., 2015).
 Finance: The management of Kingston Hospital NHS Foundation Trust need to identify
the different sources to raise the funds which provides support in performance of
different functions, purchase of medical equipments etc.
1.3 Legal requirement need to follow for managing financial resources
There are many code of conducts which are need to follow by hospitals while performing
their functions. There are many terms which are considered under this for the purpose of
managing financial resources effectively includes health and social care Act 2012, CQC, NHS
improvement, monitor, audit, accountability etc. the provisions of all the term in this regard are
defined below:
 Legislations: There are many legislations are need to follow by health care organisation
which governs their activities. It helps in performance of their functions in more
appropriate manner. One of the most important regulation in this regard includes Health
and social care Act 2012. The provision of this act governs reorganisation of structure of
NHS. It abolished NHS primary care trust and transfer the fund of £60 billion of
commission to clinical commissioning groups. There is also need to apply Health and
safety work act 1974 for fulfilment of various requirements regarding safety at hospital of
patients and medical professionals. It provides the opportunity to take the support from
government or society about funding of their operations.
 Accountability: It is important concept which includes the provisions about accounting
and costing principles. It provides the opportunity to Kingston Hospital NHS Foundation
Trust is to use to such principles regarding keeping the records of different aspects which
improves the strength of internal parties to collect important information and reduce
unnecessary expenses. It helps in proper flow cash in different departments as per their

requirements which improves working efficiency. With the help of such information
budgets are prepared which directs others regarding effective management of funds.
 Care quality commission: It is one of the non-departmental public body of the main
department of health and social care of UK. It is formulated in 2009 with the purpose of
inspection of social care services in England. There main aim is to ensure that all the
hospitals and care home provide their quality services with care to ensure safety of
patients (Fotaki, 2011).
TASK 2
2.1 Different sources of income in health and social care
There are many type of sources from which health care organisation raise their funds.
There is huge requirement to have adequate funds by all care home to provides effective care
services to their patients and fulfilment of legal requirements provided by government of UK and
CQC. Such sources can be differentiate as public, private and voluntary. It provides the
opportunity to build effectiveness in their operations through effective management of financial
resources. Such sources used by Kingston Hospital NHS Foundation Trust are defined below:
 Public: It includes the funds which are comes from governmental authorities for
expansion of their existing structure and services. One of the largest source from which
funds are raised by health-care organisations like Kingston Hospital NHS Foundation
Trust to build effectiveness in their functions. Such funds are either free from interest or
carry less interest rates (Glasby and Dickinson, 2014).
 Private: Important sources if finance which includes raising of amount from banks,
financial institutions etc. It helps the management of Kingston Hospital NHS Foundation
Trust is to easily raise funds without any restrictions on use. But such amounts are
required to pay off within stipulated period of time with addition of interest applicable on
principle amount.
 Voluntary: This includes such amount which is provided by any single or group of
individual through their own interest for the betterment of the services of cited trust.
There is no restriction upon path of such kind of amount it can be come at local and
national levels. The amount received from local entities and persons are in form of
subscriptions and the amount received through national level are considered as donations.

There is no need to pay off such amounts and used further regarding development of their
existing services.
2.2 Factors which impacts the availability of financial resources in health-care
As discussed above there are three sources from which fund are raise by Kingston
Hospital NHS Foundation Trust called as public, private and voluntary. But there are many
factors which affects the capability of trust to raise the funds from such sources which includes
priorities, objectives and policies, government policies, geographical area etc. The impact of all
factors upon the availability of sources of funds for Kingston Hospital NHS Foundation Trust are
mentioned below:
 Funding priorities: Funds are raised by the management of Kingston Hospital NHS
Foundation Trust as per their priorities. Fixing up of their priorities has negative impact
upon sources of funds. Their priorities are defined as implementation of new equipments,
basic needs, healthy communities, vibrant democracies etc. So, sometimes it is not
allowed to use some sources about raising of funds (Hacker and Walker, 2013).
 Objectives and policies: There is huge impact of objectives and polices which are
framed by care home. The policies which are framed by Kingston Hospital NHS
Foundation Trust provides regulations need to follow while raise finance. This will
impacts upon number of available sources. Another, restriction is build by their
predetermined objectives also. As the raise amount is not for any other purposes.
 Government policies: There are many regulations, criteria and conditions are provided
by government which are required to follow by institutions before providing finance. So,
non fulfilment of such criteria and conditions by care homes impacts their such sources of
finance.
 Geographical area: Kingston Hospital NHS Foundation Trust is situated 12 miles away
from central London. As it is established in outer area there are less sources are available
in comparison to main city for ex., banks, financial institutions etc. This aspect also has
adverse impact upon number of available sources.
2.3 Analysis of different types of budget expenditures in health and social care
There are different kind of budget expenditures in health and social care sector. The main
aim of all budgets is to set standards of working which helps in accomplishment of their
objectives. Such budgets are used as control system which provides the opportunity regarding

measurement of actual performance to determine deviations. It helps in formulation of strategies
which improves overall work efficiency. Different kind of budget expenditures in health and care
organisation is mentioned below:
 Cost centre: It is a unit under Kingston Hospital NHS Foundation Trust which is
responsible for the costs which are incur in performance of different functions in hospital.
The manager of such unit has not obligation regarding generation of revenue from
application of their assets and equipments. The performance of this centre should be
judged through comparison of budgeted with actual costs. Such costs which are incur by
cost centre are aggregated as cost pool and allocates to other business units. The major
examples of cost centre includes accounting department, HR department, IT department,
Research and development etc. They doesn't take any decisions about investing funds in
different projects for the purpose of earning profits. Main objective of this department is
to keep the costs under budget limits (Kakuma and et. al., 2011).
 Project management: One of the effective management team which provides the
opportunity regarding completion of their particular project within given period of time.
In this regard, team members of such team are required to have adequate knowledge,
skills, tools and techniques which helps to meet the different requirements which are
necessary to complete the project. The five different phases which contributes in
accomplishment of project includes:
- Project formulation
- Planning of project
- Execution of project
- Performance of different functions and keep control
- Completion of project
TASK 3
Covered in PPT

TASK 4
1.4 Systems which helps in management of financial resources
There are several system which gives better opportunity to manager of Kingston Hospital
NHS Foundation Trust to manage all financial resources in an effective manner. With the help of
execute all these system, firm can increase its productivity and get many advantages. Various
systems given below as above:
Sources of income- There are some income sources which are used through firm to
enhance funds in future. These sources are segmented in to different categories such as private,
public and voluntary.
Accountabilities- It consists accounting principles application as well as provisions in
order to identify information regarding those departments which are working in Kingston
Hospital NHS Foundation Trust. Various types of reports of different fields helps in improving
performance level (Reddy and et. al., 2011).
Budgets Formulation – It is helpful in proper funds allocation to various departments in
an organisation. Departments can use those funds in order to get better results.
2.4 Evaluation regarding decisions which are taken in context of health and social care
Kingston Hospital NHS Foundation Trust provide quality medical services with a motive
of maintaining healthy lifestyle of every individuals. Thus, in order to perform business
functions the management ned to make an effective decisions and plans related with
expenditures, current facilities, perception of patients etc. Managing funds becomes the
important factor which need to be considered by management to bring new and effective
technologies in order to provide quality services to customers. Therefore the main decision taken
by management relate with controlling expenditures are as follows:
Financial risk: It is important for management to first identify the risk which affects
their various activities and accordingly formulate contingency provisions with a motive of
reducing future expenditures.
3.3 Analysis of the budget monitoring systems in health-care
To take effective decisions regarding controlling of their expenditure need to collect
information about different aspects. Such information is gathered by the management of
Kingston Hospital NHS Foundation Trust through different sources like cash-flows, controlling

costs, spreadsheet data, training needs etc. It provides the opportunity to attain success in their
operations through formulation of effective strategies. Role of such different kind of tools and
techniques about monitoring of their expenditures are mentioned below:
 Cash-flows: It is part of financial statements which is need to formulate every
organisation irrespective of their nature and sector. This statement provides the
information regarding inflow and outflow of cash which represents the operating
activities of organisation. It calculated for three different type of activities includes
operating, financing and investing. It is considered as one of the important tool which
helps in effective management of cash within Kingston Hospital NHS Foundation Trust
for performance of their day to day functions effectively.
 Training needs: It includes identification of cost incured due to unprofessional
behaviour of representatives of trust. It provides the opportunity regarding identification
of training needs and development of programmes. It helps in improvement of skills to
effectively handle equipments. In health-care sector there is no chance to repeat mistakes
as it results in financial penalties.
 Implementation of control system: This system is implemented in Kingston Hospital
NHS Foundation Trust to ascertain the expenses earlier which provides opportunity
regarding determination of their profitability. It helps in preparation of future policies
which through understand about their expenses for reduction in the amount of their
expenditures (Singer and et. al., 2011).
4.1 Identification of resources which helps to make financial decisions
To make effective decisions need to collect appropriate information about their concerns.
In present report, management of Kingston Hospital NHS Foundation Trust need to make
financial decisions then required to know about their financial performance of past year. In this
regard, financial statements plays an important role to provide information about various aspects.
Annual financial statements includes income statement, balance-sheet, cash-flows etc. There are
many issues which impacts their capacity about achievement of cost reduction targets. Different
resources need to consider for making financial decisions are mentioned below:
 Available information: From the available information about Kingston Hospital NHS
Foundation Trust, noticed that staffing issues are present which increase their costs. In
this regard, management need to build policies which helps in effective workforce

planning. Financial performance is attained with the help of income statement which
helps in identification of unnecessary expenses.
 Sources of income: The number of available sources of income also impacts the
financial decision making power of management. Is large number of sources are available
then it is easy to take decisions and perform their functions. But in actual limited sources
of income are present which has adverse impact upon decision makings.
4.2 Relationship between health-care service delivered, costs and expenditure
Kingston Hospital NHS Foundation Trust deals in offering various health related services
to the large number of people. For this, the management need to examine different aspects which
affects in delivering their services (Swayne,Duncan and Ginter, 2012).
Cost-benefit: It is important for the management of Kingston Hospital NHS Foundation
Trust to understand the rules and regulations over all expenses which are incurred during
delivering service to customers. It can done through analysing various tools which help them in
managing cost and benefits received by an organisation.
Pricing policies: The management should required to adopt an effective pricing policies
after considering their main objectives which help them in maximising the satisfaction level of
customers as well. They need to focus on increasing cost of services and provides concession to
old age people while delivering services.
Purchasing arrangements: The management are wholly responsible to provide quality
health related services to patients after purchasing an effective techniques and tools in order to
maximise the satisfaction level of customers.
4.3 Impact of financial considerations upon individual using health-care service
Consideration of their services by health and social care organisation has positive impact
upon the individuals using their services. Individuals feels more secure if there is development in
basic medical facilities provided Kingston Hospital NHS Foundation Trust. In this regard, large
number of funds are raised by management to bring expertise in their operations are mentioned
below:
 Quality of service: It is observed that funds are raised from private sources which helps
in making development of their buildings and existing equipments. It provides the
opportunity regarding accomplishment of the different needs of patients and which

ensures higher safety of the health of patients. Implementation of new equipments helps
in improving the quality of their existing services.
 Access to services: Kingston Hospital NHS Foundation Trust us 12 miles away from
city. So, it is need to have effective ambulance facilities which helps in easy reach
towards their patients at different locations. This will have direct impact upon the
individual behaviour that they feel secure by taking the facilities of such hospitals. There
is also need to develop elevators and ramps for easy access of the patients which are
disabled.
4.4 Recommendations of different ways to improve health-care services to make changes in
financial systems
There are many ways which helps Kingston Hospital NHS Foundation Trust to improve
their services through bring changes in their financial systems. Recommendations of different
ways in this regard are mentioned below:
Utilisation of finance
There is need to use their finance in leadership programmes which helps in development
of the skills and knowledges of representatives with the support of other professionals. It also
helps to bring effective management and administration skills.
Investing in innovations
It includes investing in innovate techniques of working and purchase of new medical
equipments which bring effectiveness in their medical operations. It provides opportunity to
utilise their given resources in optimum manner (Weisfeld, 2011).
Structure of finance plan
Forecasting helps in determination of objectives in advance and issues related to it. It
contributes in preparation of effective financial plans which directs in effective allocation of
resources in more appropriate manner.
CONCLUSION
From the above mentioned report it can be concluded that financial resources will play an
important role in health and social care for maintaining all services and facilities in effective
manner. Kingston Hospital NHS Foundation Trust is an organisation that works for the benefit of
people in order to upgrade the living standard of an individual. In order to manage the financial

resources, it is one of the essential factor for an organisation. There are different types of budget
which has been prepared by Kingston Hospital NHS Foundation Trust for managing and
controlling their regular business operations and its functions. For making correct decisions
which regards to the expenses that incurs by Kingston Hospital NHS Foundation Trust so they
required to follow different investment techniques and methods for earning maximum income for
an organisation. There are different measures which includes priorities, Virement, managing cash
flow procedures, controlling financial resources, credit facility management and some other.

REFERENCES
Books and Journals
Almalki, M., FitzGerald, G. and Clark, M., 2011. Health care system in Saudi Arabia: an
overview/Aperçu du système de santé en Arabie saoudite. Eastern Mediterranean
health journal. 17(10), p.784.
Andersen, R. M., Rice, T. H. and Kominski, G. F., 2011. Changing the US health care system:
Key issues in health services policy and management. John Wiley & Sons.
Aveyard, H., 2014. Doing a literature review in health and social care: A practical guide.
McGraw-Hill Education (UK).
Chartier, Y. ed., 2014. Safe management of wastes from health-care activities. World Health
Organization.
Drummond, M. F and et. al., 2015. Methods for the economic evaluation of health care
programmes. Oxford university press.
Fotaki, M., 2011. Towards developing new partnerships in public services: users as consumers,
citizens and/or co‐producers in health and social care in England and Sweden. Public
Administration. 89(3). pp.933-955.
Glasby, J. and Dickinson, H., 2014. Partnership working in health and social care: what is
integrated care and how can we deliver it?. Policy Press.
Hacker, K. and Walker, D.K., 2013. Achieving population health in accountable care
organizations. American journal of public health. 103(7). pp.1163-1167.
Kakuma, R and et. al., 2011. Human resources for mental health care: current situation and
strategies for action. The Lancet. 378(9803). pp.1654-1663.
Reddy, K.S and et. al., 2011. Towards achievement of universal health care in India by 2020: a
call to action. The Lancet. 377(9767). pp.760-768.
Singer, S. J. and et. al., 2011. Defining and measuring integrated patient care: promoting the next
frontier in health care delivery. Medical Care Research and Review. 68(1). pp.112-127.
Swayne, L. E., Duncan, W. J. and Ginter, P. M., 2012. Strategic management of health care
organizations. John Wiley & Sons.
Weisfeld, V. D., 2011. Jonas and kovner's health care delivery in the united states. Springer
Publishing Company.
Online

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