Managing Financial Resources in the Health Care Sector

MFRD in HSC

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Principles of costing and business control systems...............................................................3
1.2 Identifying information which is required to manage financial resources............................3
1.3 Assessing the regulatory requirement for the management of finance..................................4
1.4 Evaluating the system for managing financial resources in the health care sector................4
TASK 2............................................................................................................................................4
2.1 Identifying the diverse source of income in the context of health care sector.......................4
2.2 Analyzing the factors that have impact on the availability of financial sources...................5
2.3 Different types of budgeted expenses associated with health care sector.............................5
2.4 Evaluating the manner in which decisions are made about budgeted expenses....................5
TASK 3............................................................................................................................................5
3.1 Ways to manage financial shortfalls......................................................................................5
3.2 Explaining the action that can be undertaken to suspect fraud..............................................6
3.3 Evaluating the budget monitoring arrangements within the health and social care
organization.................................................................................................................................6
TASK 4............................................................................................................................................6
4.1 Identifying the information which is required to make monetary decisions.........................6
4.2 Finding relationship between the services delivered, cost and expenses..............................7
4.3 Evaluating the impact of financial aspect on individual using health care services..............7
4.4 Suggesting ways to improve health care services..................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Management of finance is one of the main tasks of organization because without it
business entity is not in position to implement strategies on time. In the competitive business
environment, for the attainment of success it is highly required for the firm to deliver quality
services to the patients. For this purpose, health care organization needs to invest money in R&D
activity for finding the best alternatives ways to offer services to people at affordable prices. The
present report is based on Silloth Nursing and Residential care home whose main objective is to
provide patients with high quality services. In this, report will describe the manner through
which care organization can manage financial shortfalls and thereby would become able to make
optimum use of monetary resources.
TASK 1
1.1 Principles of costing and business control systems
In accordance with the cost principle, manager of care home is required to gather
information about the amount spent on each activity. On the basis of this aspect, it is the
accountability of higher authority of Silloth care home to identify the cost level and thereby
drafts suitable budge. Hence, by making evaluation of budgeted figures in against to the actual
spending level manager of care unit can easily assess the deviations (Martin, 2016). Hence, by
making assessment of causes of deviation firm can take suitable action within the specified time
for further improvements. Hence, by practicing control system firm can achieve success to the
significant level.
1.2 Identifying information which is required to manage financial resources
Information is required by care home for managing the financial resources more
effectually includes cost, activity etc. To deliver better services to the patients Silloth care home
has to incur direct and indirect cost. Direct cost associated with the care unit includes ambulance,
bed charges, medicines etc. All such costs are related to offering services directly to the patients
(Finkler and et.al., 2016). On the other side, indirect cost includes promotional, maintenance,
depreciation on equipments etc. all such expenses are the one which Silloth care home has to
incur for serving patients in the best possible way. In this, by identifying the cost effective way