Report On Health Care|Management Of Financial Resources
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Added on 2020-01-28
Report On Health Care|Management Of Financial Resources
Added on 2020-01-28
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Financial Resources in HSC
Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1............................................................................................................................................11.1 Stating the principles of costing and business control systems.............................................11.2 Identifying the information needed to manage the financial resources of health care home21.3 Stating the regulatory requirements for managing financial resources.................................3TASK 2............................................................................................................................................32.1 Discussing the diverse source of income which may be encountered within the health andsocial care....................................................................................................................................32.2 Analyzing the factors which may influence the availability of financial resources in healthcare home....................................................................................................................................42.3 Reviewing different types of budget expenditure in the context of health and social carehome............................................................................................................................................4TASK 3............................................................................................................................................5TASK 4............................................................................................................................................51.4 Evaluating system which is used in managing the financial resources within the care home.....................................................................................................................................................52.4 Evaluating the ways through which decisions about expenditures are made in health andsocial care organization...............................................................................................................53.3 Evaluating the budget monitoring arrangement in a health and social care organization.....64.1 Assessing the information which Bupa Care Home require in order to make the financialdecision ......................................................................................................................................74.2 Assessing the relationship between care home services and cost and expenditure .............74.3 Impact of quality and access to service upon the individual.................................................94.4 Suggesting ways to improve health and social care service through changes to financialsystem and process......................................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTION Finance consists of fund or money which is available to an organization for spending onits business projects. In each and every organization, finance plays a vital role in implementingbusiness plans as well as strategies in an effective manner. In health care organization, financemanager frames strategies and policies which facilitate optimum utilization of financial resources(Swayne, Duncan and Ginter, 2012). This present project is based upon Bupa which is aninternational health care group which offers its services over 190 countries. It is a private healthcare group which provides health care services to 29 million people who reside in different partsof the world. The present report will discuss the information which finance manager of health carerequires to manage financial resources effectively. Further, it will also develop understandingabout the regulatory requirements which organization needs to follow while managing theirfinancial resources. Besides this, the report will examine the factors which may influence theavailability of financial resources within the health and social care. Along with it, the report willshed light on the relationship which exists between health care service cost and expenditure.TASK 11.1 Stating the principles of costing and business control systemsPrinciple of costing refers to guidelines which help organization in managing thefinancial cost and other aspects in an appropriate manner. Bupa has several departments namelymarketing, research and development, laboratory as well as human resources etc. In order todeliver the health care services and maximize the productivity aspects, care home needs to makeseveral expenditure which imposes high cost in front of the organization (Moorhead, 2013). Inthis, finance manager can control the cost by taking into consideration the principles of costingwhich ensure effective use of the financial resources to a large extent. In accordance with theprinciples of costing, Bupa needs to record each income and expenditure of an organization inthe books of accounts. Besides this, finance manager needs to undertake double entry systemwhile recording business transactions in the accounting books. It provides deeper insight to anorganization about the expenses which are incurred by them. Through this, care home is able toidentify the area of expenses in which they need to make control. Besides this, care home needsto make the entry of expenditure in the books of accounts only when, it is actually incurred by1
the firm. This aspect helps care home in presenting the fair record of cost in front of differentstakeholders.Further, care home can also make control upon the cost with the help of costresponsibility centers. By forming different responsibility centers namely cost, revenue,investment and profit, company is able to control their expenses. It is the most effective waywhich helps organization in controlling the cost of service offered by them (What isresponsibility centre? 2016). In each responsibility center, manager requires to perform theiractivities in accordance with the predetermined instructions. For instance: Investment departmentis highly responsible for the investment made by them. If, investment department conductsresearch and development to identify the better ways to deal with undiagnosed diseases then,manager of such center has responsibility to give desirable output to the firm by making suitableinvestments. In addition to this, revenue center is highly accountable for generating sales throughbusiness activities. Thus, Bupa can control the cost of services by taking into considerationvarious responsibility centers.1.2 Identifying the information needed to manage the financial resources of health care homeThere are several information in relation to costs are required by Bupa to manage themanage the fund of the firm in an effective manner. Health and social care home needs to makeassessment of different types of costs while managing monetary resources. Specifically,business enterprise has to incur several direct and indirect costs while offering services to theirpatients. These are enumerated below:Direct costs: This cost refers to the expenses which care home incurs while deliveringservices to their patients. It includes salary of doctors and nurses, medicine cost,ambulance expenditure, training expenses etc. All these expenses are directly associatedwith the production object (Aveyard, 2014).Indirect costs: It includes both fixed and variable expenses which are highly dependentupon the nature of expenditure which are incurred by the firm (Singh, 2014). Electricityexpenses, rent of the hospital, bed charges etc. represent indirect expenses which are notdirectly attributable to the cost object. Nevertheless, organization has to incur all suchexpenses while serving their patients.By taking into consideration all the above mentioned costs, care home is able to identifythe areas of high expenses. Thus, by identifying such areas, health and social home is able to2
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