Financial Resource Management and Control at BUPA Care Home

This report, focusing on financial resource management within a BUPA Care Home, delves into various aspects of financial control and planning. It begins with an introduction to the importance of financial management in the healthcare sector and then explores costing principles, business control systems, and regulatory requirements relevant to BUPA. The report examines factors affecting the availability of financial resources, different types of budget expenditure, and methods for managing financial shortfalls, including actions to be taken in cases of suspected fraud. It also analyzes the information required for financial decisions, the relationship between BUPA care home services and financial considerations, and ways to improve healthcare services. The report provides insights into the evaluation of financial considerations and their impact on service delivery within BUPA Care Homes.

Managing Financial Resources in
Health and Social Care

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 & 1.2 Costing principles and business control systems...................................................1
1.3 Regulatory requirements for managing financial resources.............................................3
1.4 Evaluating systems for managing financial resources......................................................4
TASK 2............................................................................................................................................5
2.1Covered in PPT..................................................................................................................5
2.2 Factors affecting the availability of financial resources ..................................................5
2.3 Various types of budget expenditure................................................................................5
2.4 Evaluating factors that influence decision about expenses made in context to healthcare6
TASK 3............................................................................................................................................7
3.1 Financial shortfalls in BUPA can be managed.................................................................7
3.2 Actions taken in the event of suspect fraud......................................................................7
3.3 Budget motioning in BUPA.............................................................................................8
TASK 4............................................................................................................................................8
4.1 Information required for financial decision for BUPA....................................................8
4.2 Relationship among Bupa care home service delivered...................................................8
4.3 Evaluation of financial consideration and its impact.......................................................9
4.4 Ways and recommendations to improve health care services..........................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management of finance has become an effective task in the present scenario. Every field
irrespective of its business required a well organised and skilled professionals who are capable
enough to manage their work in an effective manner. Both private and public sector
organisations are becoming stricter in efficient management of finance. In this report, being
appointed as a manager in BUPA care home, various methods of controlling expenditure as well
as budgets for the organisation are required to be analysed (Swayne, Duncan and Ginter, 2012).
Different costing and business control systems are being discussed in this project. It consists of
financial resources that are required to be managed in an effective manner. It also covers various
aspects of legal needs in order to manage financial resources of care home. Various types of
budget expenses related to healthcare also understood here. The way financial shortfalls can be
controlled in an organisation and analysis of information collected to make financial decision in
context of BUPA Care Home is done are discussed clearly here as well.
TASK 1
1.1 & 1.2 Costing principles and business control systems
BUPA care home is a health care group which is working for delivering superior services
and serving needy people. It covers a wide area of more than 190 countries and serving around
15 million customers. It is a private limited company. The best part of this firm is that they don't
have shareholders so whatever profit is generated by the organisation is spent totally over the
health and social care purpose. It develops clear and identifiable objectives for company. It uses
essential techniques for the management of finance (Singer and et. al., 2011). In order to manage
the cost, it uses electronic software and customised techniques for recording their daily
transactions. It will be helpful for company to detect actual costs spent and consumed by
organisation during the year. By using effective costing methods, they can plan to invest in new
franchise and will be able to earn maximum profits.
Costing principles: It is considered as one of the important underlying policies used in
accounting purpose. This principles needs that assets to be recorded at the cash amount when the
time assets is acquired. It means that any of the assets collected company are recorded with its
actual cost. Some important principles are:
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 Cost is mainly related to its cause: It has been seen that a cost related as possible to it
causes. The value of costs which is collected and determine as per the nature or resource
allocated to the business concern (Kakuma and et. al., 2011).
 Abnormal costs are charged in costing: This is cost which are arises because of loss by
fire, riot, theft or any accidents is termed as abnormal costs. It does not have any relation
with the production part.
 Cost is charged after it is incurred: If any of the cost is incurred, it is termed as no cost
and it can't be changed to a cost centre.
 Past costs are not taken into consideration: In general terms, costs which have been
made in earlier times are not to be considered for any decision making. Because, By that
overall burden of company will be increased.
 Keeping accounts for cost which is based on double entry principles: The ledger
balance and cost control accounts are recorded on the double entry principles.
Business control system: It is used to determine the cost, income, profit benefits
analysis, expenses, budget required to formulate new venture, capital needed, cost control and
other aspects which are related with monitoring the financial data within organisations.
Methods of business control system:
There are some essential methods those are useful in managing cost those are incur by
company. Like:
 Visual control: It consists of checklists, scorecard and budgets. It will be helpful in
monitoring right things those are happening in an organisation. If any issues related with
health-care are analyse and resolve by using effective techniques.
 Procedures control: These consists of a systematic involvement of two parties in flow of
money. Such kind of control is effective in case of securing results those are arises in an
organisation.
 Embedded control: It refers as all those things that are related with standardised list of
contract, automatically backup of patient information and essential health-care
requirement.
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There are some other effective aspects those are related with managing business in health
and social care are mention underneath:
Balance sheet: It refers as one of the effective and crucial financial statement that can
provide information about BUPA total assets, liabilities and shareholders equity for a specific
period of time.
Income statement is use to determine total profit and losses a company is incur during the
time. The earnings and profitability for an accounting year is been identify on monthly as well as
yearly basis.
1.3 Regulatory requirements for managing financial resources
Regulation is a control and monitoring system made by legal bodies in the form of rules
and laws to analyse operations of organisation. . It is used to reduce the financial issues, promote
honesty and equality, consumer protection, accountability and maintaining integrity in an
organisation (Chartier, 2014). There are various legal requirements that are required to be
complied with in order to manage financial resources of BUPA which are as follows:
 It will help to organise internal as well as external auditing committee to regulate their
prior permission to gain franchise of BUPA.
 In the ways to manage financial risks, it will take lawful insurance for the company..
 If trainers, grow and develop its team in the order to formulate financial department they
need to take complete look over the new project and costs which are going to be
incurred.
 It has a perfect regulation of monitoring and review processing techniques such as
expenditures regulation and other business control system in order to control deviation.
 With the changes in an organisation’s rules and resources, operational risks can be
managed.
The HMRC is responsible for tax obligation and collection from sole traders and
corporation. It is the primary role of BUPA to file in fair and correct tax return and to make
payment of all necessary taxes. Company houses can asked from BUPA to provide accurate
financial report of the company. The CQC can monitors or overseers the quality of services that
provide professional care to necessary people.
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1.4 Evaluating systems for managing financial resources
Framework for managing financial resources is said to be one of the crucial aspects of an
organisation. They are evaluating different risks factors or issues that have emerged in recent
time period with the health care.. By the use of finance cost of new ventures could be arranged.
They take this as competitive strategies in well-being and social care so that capacity to
improve the condition. (Almalki, FitzGerald and Clark, 2011). The procedures are delivering
positive responses and even the representatives working in home care are well qualified and
trained. There are various method which can be used in taking effective decision about the
financial information based on budgets, IT, auditing and other business accounting system. The
interested parties and other members of BUPA home care are responsible for taking effective
actions to manage their resources. By using cost reduction methods, the organisation can attain
its efficiency by pursuing its plan in order to provide social care to a large part of the society. By
using various management data and decision making systems of BUPA home care, financial
resources can be managed. It will help them to attain their long term objectives effectually.
There are some specific systems that can help in managing financial resources of an
organisation. Such as,
 IT system is used to facilitate positive information, sharing and access by certain
departments. Like for examples, electronic payment system, exchanging easy file
transfer.
 Budgeting can guide BUPA to avoid over spending and motivate staffs to attain
estimated targets and goals.
 Audit system is another useful system that can help in recording of patient information
and other medical detail those are crucial for the BUPA. It will be easy techniques to
rescue fraudulent activities in an organisation.
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TASK 2
2.1Covered in PPT
2.2 Factors affecting the availability of financial resources
There are various factors which are arises in front of BUPA during taken a new franchise
of the business. Some of them are:
 Price: It has been seen that BUPA is highly competitive market in the UK. It has almost
6830 home agencies that are working for the benefits of serving society. Government
funds for nursing homes are more so that they can develop and manage their services.
Therefore, the local authorities are looking to utilise maximum capital in an effective
manner.
 Profitability: A healthy profit can make BUPA to raise capital in the market. It makes
investors interested in investing more in BUPA organisation so that they can get
maximum return in coming future (Aveyard, 2014).
 Brand: It has been working for many years and have secure contracts from the other
local bodies to provide home and other care services.
 Costs: The maximum cost is used in managing their staffs in order to get more effective
outcome from them. It will directly increase the productivity and performance of BUPA
home care.
Business ownership is an important aspects which is useful at the time when it comes
allocation of resources that are provided by government or other financial institution. A private
home caring working with 15 services people, 4 employees is entitle to delivery there best effort
than NHS.
2.3 Various types of budget expenditure
There are various types of budget prepared by BUPA in order to manage their daily
operations. One of the important budgets is Master budget it will consists of all the information
about organisation performance that are incur by the company during the year. It consists of
various functional budgets such as:
 Sales budgets: under this sales made by company will be the key aspects of budget.
They are working in that competitive environment where more health care and nursing
home are operating. BUPA need to secure the clients firstly, prior making other budgets.
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 Direct labour budget: The number of customers are known to be serviced in coming
time. For this purpose, BUPA prepare the direct labour budget. It is done so to determine
total number of labour are working and at what rate are getting paid. Once BUPA
identified the total number of hours those are going for the patient and the cost of staff
used they plan this budget.
 Material budget: It will be related with catering of each patient, normal medicinal cost,
the laundry and other item like linen, towel and soap etc.
2.4 Evaluating factors that influence decision about expenses made in context to healthcare
In relation to make decision regarding expenditure incur by BUPA, they need to follow
various investment tools in order to earn maximum revenue. Some of them are:
Payback period: It is related with that amount that BUPA investment in the
development of their services. The recovery period is determine by using this techniques. It is
difficult for analysing cash-flows for the company.
NPV: Net present values of the company can be said that difference amount they are
getting from its cash inflows and outflows. It is discounted rate used by which cash-flows
invested can be determine to bring its present value.
Profitability analysis: It is a kind of profitability analyses done in order to determine
whether management should incur various expenses in development of healthcare business.
Cost benefits analysis is an essential methods which is use helpful for an organisation
especially related to BUPA home care services. In order to evaluate total expenses incur by the
company they need to use investment appraisal techniques.
Adjusting strategies: It is more effective planning which is done in order to analyse actual
performances of the investment to analyse if the set objectives are fulfilling in appropriate
manner.
TASK 3
3.1 Financial shortfalls in BUPA can be managed
In the mention case, it has been found that because of fraudulent in accounts department
they performance of BUPA is getting hamper (Andersen, Rice and Kominski, 2011). It is done
because partners of BUPA are not comfortable with the care home business accounts segment.
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For this they are conducting a training session for present employees. These issues can be
managed by using following measures:
 Discounts: BUPA is having sufficient amount of worth. A discount can be offered in
order to pay up earlier dues. Getting cash early will help them to over make their
operation more effective and shortfalls in short term can be managed efficiently.
 Bank overdraft: In order met out current need to meet out cash shortfalls. It can be
managed with the bank in more easy ways. It can be used at the time of financial
distressed. It mostly carries a hight rate of interest.
 Debenture and loans: These are another important measure to fulfil need to necessary
funds requirement for BUPA. It is mainly used to get long term funds.
3.2 Actions taken in the event of suspect fraud
In situation like fraud or any misconduct can affect the profitability of an organisation.
Like it was seen in case of BUPA that there accounts departments are not operating in well
organise manner. In order to control and stop fraud a separate department can be setup for
handling these issues (Drummond and et. al, 2015). It mostly arises when the monitoring system
of departments are is not working in well organised manner. In case of BUPA a team has been
established for detecting and evaluating immoral practise those are arises in an organisation.
They used to prepare a well organise fraud report by analysis following factors:
 Identification of incident enquiry
 Development of accurate process in order to detect fraud within the organisation so that
future goals can be achieved (Financial Frauds of All Time, 2011)
 Determination of culprits those are associated with occurrence of misconduct
 Identifying the process of incident in summarised manner and report them to higher
authorities
 By using above steps managers of BUPA can control its financial frauds. It will help
them to increase their growth and profitability.
3.3 Budget motioning in BUPA
According to manage their daily business transaction of BUPA in well effective manner a
perfect monitoring system can be required. It can be fulfil through preparation of budgets.
Budget monitoring procedures is related with the various policies which are approved by
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financial advisory board of UK (Fotaki, 2011). Under it different aspects of performance
monitoring can be used which help the company increase its efficiency and effectiveness. By
using this process financial record can be analyse to detect problems and other irrelevant aspects
in the balance sheet. Managers can make use of financial data in order to correct its future
implication of business profitability. The suggestion during the review of financial records are
shown with the help of various graphs, colour and related provision of simple results associated
with future problems.
TASK 4
4.1 Information required for financial decision for BUPA
As per the instruction of Ms Juliet who is working as manager in BUPA care home.
Different information related with home care are need to be presented to them so that prefect
decision can be taken. It can be collected from the past financial activities that are done in the
absence of her. The financial statements are one of the important tools for gathering various
information to make proper interpretation (Hacker and Walker, 2013). Some of the crucial
documents which are prepared by BUPA consists of cash-flows statements, cost sheet, income
and expenses and BEP analysis and many more. Those information which is associated with
expenses and operational processing can more useful in making effective financial decision for
care home in an organisation.
4.2 Relationship among Bupa care home service delivered
In Bupa care home, the major target of formulating the structure service it consists of
provisions related with optimum level of satisfaction and delivering superior quality to its
customers. The centre of relation regarding health and social care would be improves if they are
following suitable structure for an organisation. It has been found that maximum investment is
done on serving elderly patient and more handicap people so that they can manage their life in
more effective manner. If unnecessary enrolment in the hospitals are avoided then the cost of
expenses made by organisation will be automatically come down up to an extent (Reddy, K.S
and et. Al 2011). Some other aspects of cost reduction in health issues are related with constant
changes in technology (Glasby and Dickinson, 2014).
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4.3 Evaluation of financial consideration and its impact
It has been seen, in part few months that healthcare issues has recorded a continuous
issues in relation to cost management. Hence, the service quality is varied and improve, the
health care is facing issues related with cost and expenses which are incur over management of
staffs and other parts of organisation departments. It will directly impact the expenses over cost
of purchase to the end customers. The various private sector firms are were target to improve
quality of service delivery by using excess expenditure and by this cost of healthcare service are
increased consistently. Because of high cost customers are more concern about superior quality
and more effective standard of services delivering from the company's.
4.4 Ways and recommendations to improve health care services
In case of Bupa care home, identification of financial system and various process can
help an organisation to make modification in the system and at that particular time improve
quality and increase effectiveness of service delivery (Weisfeld, 2011). The composition of
interrelationship among financial bodies and their processes. Such as shareholders, creditors,
banks, other accounting bodies. There are various ways of improving the quality and service
standard of healthcare. Some of them are:
Payment by results: under this risk and responsibilities is transfer from the legal bodies
to that of healthcare services providers. The objective of this is to make sure that services are up
to the required standards which help to produce effective results for an organisation.
Equity and feature: It is considered as perfect fundamental innovation at nationwide in
NHS. This help them to formulate new ideas and innovation in pharma sectors.
There are various new measure that can help healthcare sector to grow at international
level by serving people of the country.
CONCLUSION
From the above project report, it has been concluded that managing finance for healthcare
sector is very important to fulfil their needs and wants. This project summarise various aspects of
BUPA care home. It explains information about costing principles and how financial
requirements can be managed. Various factors which are affecting financial requirement of
BUPA. Information about types of expenditure and how financial shortfalls can be controlled are
discussed under this project. This report also explain information about budget monitoring and
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decision related with BUPA heath care. Certain implication and impacts related with financial
consideration are discussed clearly.
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REFERENCES
Books and Journals
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organizations. John Wiley & Sons.
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frontier in health care delivery. Medical Care Research and Review. 68(1). pp.112-127.
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.
Chartier, Y. ed., 2014. Safe management of wastes from health-care activities. World Health
Organization.
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.
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.
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.
Hacker, K. and Walker, D.K., 2013. Achieving population health in accountable care
organizations. American journal of public health. 103(7). pp.1163-1167.
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.
Weisfeld, V. D., 2011. Jonas and kovner's health care delivery in the united states. Springer
Publishing Company.
Aveyard, H., 2014. Doing a literature review in health and social care: A practical guide.
McGraw-Hill Education (UK).
Online
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Financial Frauds of All Time. 2011. [Online]. Available through:
<https://www.cbsnews.com/media/top-14-financial-frauds-of-all-time/>. [Accessed on 7th
November 2017].
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