University Healthcare Organisational Management - Financial Report

This report delves into the financial management of healthcare organizations, examining two case studies: the Feed the Children program and a Community Health Centre. The report analyzes the impact of budget changes, revenue fluctuations, and cost variations on the financial viability of the Feed the Children program, providing recommendations to address revenue reduction and maintain service levels. For the Community Health Centre, the report evaluates the financial implications of different consultation fee structures, comparing the existing fees with proposed increases and analyzing budget variances to determine the most cost-effective approach for low-income patients. The analysis includes flexible budgeting, variance analysis, and recommendations for financial stability and patient access to healthcare services. The report concludes by highlighting key variances and recommending strategies for improved financial performance.

Running head: ORGANISATIONAL MANAGEMENT IN HEALTHCARE
Organisational Management in Healthcare
Name of the Student:
Name of the University:
Author Note

1ORGANISATIONAL MANAGEMENT IN HEALTHCARE
Table of Contents
Answer to Question 1.................................................................................................................2
Answer to Part a.....................................................................................................................2
Answer to Part b.....................................................................................................................3
Answer to Part c.....................................................................................................................4
Answer to Question 2.................................................................................................................5
Answer to part a.....................................................................................................................5
Answer to part b.....................................................................................................................5
Answer to part c.....................................................................................................................6
Answer to part d.....................................................................................................................7
Reference list..............................................................................................................................8

2ORGANISATIONAL MANAGEMENT IN HEALTHCARE
Answer to Question 1
Answer to Part a
As the Chief Executive for the Feed the Children program in a developing country,
the monthly operating budget has been prepared on the basis of feeding 15000 children per
day. The flexible budget has also been prepared by increasing the number of children by
10%. The source of revenue was from the pledge amount received from the Bill and Melinda
Gates Foundation and the Australian Government for feeding the children per day (Davis et
al. 2018.). The costs include direct costs, director fees, security guard fees, track supervisor
fees, employee’s annual salary and fuel, drivers and maintenance expenses. The budget for
15000 children was at a favorable amount of $165794.52. It is a financially viable project as
it has a surplus balance. Upon increasing the budget for 16500 children, it was still in a
financially viable and favorable position (Kiefner-Burmeister et al. 2014). In fact, it was
more suitable as the surplus deficit was more for this budget. The amount received from the
Australian Government increased while the direct cost and fuel, drivers and maintenance fees
increased. The overall impact led to an increase in the surplus balance.

3ORGANISATIONAL MANAGEMENT IN HEALTHCARE
Answer to Part b
The budget for 31 days instead of 30 days leads to an increase in the surplus balance
as compared to the balance for 30 days. The surplus for 30 days amounted to $165794.52
while for 31 days it amounted to $172587.67. This shows a favorable increase in the budget.
The financial performance gets better, as the amount received from Australian Government
increased along with the increase in its expenses by a slight margin (Gundersen and Ziliak
2015). The fuel, drivers and maintenance remained constant with no change in it as it
depends on the number of children fed and not on the number of days. The 31 day budget
increased the revenues and costs more than the margin of its previous year.

4ORGANISATIONAL MANAGEMENT IN HEALTHCARE
Answer to Part c
To
The Executive Director
London
The Feed the Children program is a favorable and financially viable project. However,
the decrease in its source of revenue which was the pledge received from the Bill and
Melinda Gates Foundation that are earlier amounted to $100000 per month was reduced to
$50000 per month and the amount for each meal for a child was reduced to $5 per day per
child from the previously provided rate of $6.5 per day per child from the Australian
government have led to its negative impact. They are major issues for the company as this
will decrease the revenue for the company and increase its costs leading to a deficit in the
budget (van der Horst, Ferrage and Rytz 2014). It will not even be enough to feed 50% of the
children who are currently being provided with the food. Therefore, it is suggested to not
reduce its source of revenues as it will have a devastating impact on a lot of children. The
company will not be able to provide food to a large number of children. Alternatively, the
company will have to find other sources to obtain funds for its project.

5ORGANISATIONAL MANAGEMENT IN HEALTHCARE
Answer to Question 2
Answer to part a
The medical consultations provided by Community Health Centre for low income
patients (Gardner 2015). Due to the increase in costs, the center has been forced to consider
the raise in its charges for the consultations. The flexible budget has been prepared taking
into consideration the option 2 fees for 18000 people, option 1 fees for 20000 people and the
existing fees for 22000 people for the year 2019. The fixed costs of the Centre have been
forecasted to be same for the activity levels which included salary costs, rent, cleaning
expenses and general maintenance. The budget including the existing fees were most suitable
for the Centre as it was most cost effective for its low income patients.
Answer to part b
The Centre is recommended to charge the existing fees to its people as it aims to
provide consultations to the low income patients. The existing rates of $3 per child, $4 for
each adult and $10 for each family is most suitable and less expensive for its patients. If the
fees will be increased the patients will not be able to use the services provided by the Centre
(Green and Thorogood 2018). It will lead to a loss for the Centre as well as to the patients.
The recommendation has been made to benefit the user and the provider. The low fees will
make it affordable for all the patients.

6ORGANISATIONAL MANAGEMENT IN HEALTHCARE
Answer to part c
The actual results of 2019 have been obtained from the data provided. The manager
decided to implement the option 2 fees as its rates for the consultations. The proportions of
the patients were changed from the actual break-up of consultations (Daniel and Cross 2018).
The total number of consultations were 15000 and they were distributed into 10% for
children, 30% for adult and 60% for families. Therefore, a budget variance analysis for the
2019 actual figures was done. The variable cost for family was only seen as favorable and
significant. The variable cost for child and adult both show a negative variance. Therefore,
they are unfavorable and insignificant. The other items show no effect, they remain constant.

7ORGANISATIONAL MANAGEMENT IN HEALTHCARE
Answer to part d
The report is being written to the Manager of the Centre highlighting the main
variances between the budget and actual figures which were most important. Therefore, it is
being recommended to him to not choose option 2 as the fees rates for the consultations
(Campbell 2018). The decision is leading to unfavorable negative balances in its variances of
variable cost for the child and adult. He is being recommended to choose and follow the
existing fee rates for the consultations which is most favorable.

8ORGANISATIONAL MANAGEMENT IN HEALTHCARE
Reference list
Campbell, D., 2018. A systemic approach to consultation. Routledge.
Daniel, W.W. and Cross, C.L., 2018. Biostatistics: a foundation for analysis in the health
sciences. Wiley.
Davis, B., Lockwood, A., Alcott, P. and Pantelidis, I.S., 2018. Food and beverage
management. Routledge.
Gardner, B., 2015. A review and analysis of the use of ‘habit’in understanding, predicting
and influencing health-related behaviour. Health psychology review, 9(3), pp.277-295.
Green, J. and Thorogood, N., 2018. Qualitative methods for health research. Sage.
Gundersen, C. and Ziliak, J.P., 2015. Food insecurity and health outcomes. Health
affairs, 34(11), pp.1830-1839.
Kiefner-Burmeister, A.E., Hoffmann, D.A., Meers, M.R., Koball, A.M. and Musher-
Eizenman, D.R., 2014. Food consumption by young children: a function of parental feeding
goals and practices. Appetite, 74, pp.6-11.
van der Horst, K., Ferrage, A. and Rytz, A., 2014. Involving children in meal preparation.
Effects on food intake. Appetite, 79, pp.18-24.