Financial Management in Healthcare: Addressing Shortfalls and Fraud

This report examines financial management strategies within the healthcare sector, specifically addressing the management of financial shortfalls and the prevention of fraud. The analysis begins by highlighting the importance of effective bookkeeping and resource allocation as key strategies to mitigate financial challenges. The report emphasizes the need for proper fund allocation and encourages collaboration with local government agencies to secure additional funding. Furthermore, the report details the steps required to identify and address fraudulent activities, including the involvement of internal and external agencies, the collection of evidence, the use of forensic accounting, and the utilization of both internal and external auditors to detect and eliminate potential issues. The report references several sources to support its findings, offering a comprehensive overview of financial management in healthcare.

Managing financial Resources in
Health and Social Care
organization
TASK 3

How financial shortfalls can be
managed
There are varied approaches through the means of which
management of St. Patrick Hospital can manage its financial
shortfalls which are as follows:
 In case of health care organisation, shortfall arises due to poor
bookkeeping. Thus, it is important for the senior authority of St.
Patrick Hospital to manage the financial shortfalls by adopting
various methods and approaches of bookkeeping and
maintaining the record effectively.
 Allocation of funds should be carried out in feasible and smart
manner so that optimum utilisation of available financial
resources can be made.

Contd..
 Further, it is essential for top level management of St. Patrick
Hospital to work as per the given guidelines so as to manage
inflow and outflow of cash effectively.
 Management should encourage additional allocation from local
government so as to carry out the activities in the best possible
manner.

Actions to be taken in the event of
suspected fraud
For identifying and evaluating the fraud it is essential for the senior
authority of St. Patrick Hospital to undertake proper actions.
 Firstly, hospital is required to indulge various agencies that consist
of both internal and external so that fraud can be detected.
 It is important for the St. Patrick Hospital to gain information and
evidence regarding fraud so that potential measures can be
employed.
 Forensic accounting and involvement of police is another methods
to detect and eliminate the fraud.
 Inclusion of internal and external auditors, can eliminate the
loopholes in the bookkeeping.

References
 Daly, L. K., 2011. Financial Management Systems: Experience with Prior
Migration and Modernization Efforts Provides Lessons Learned for New
Approach. DIANE Publishing.
 Stolowy, H. and Lebas, M., 2006. Financial Accounting and Reporting.
Cengage Learning
 Stomierowski, P. and Lorette, K.. 2011. How to Open & Operate a
Financially Successful Personal Financial Planning Business. Atlantic
Publishing Company.
 Bhowmik, K. S. and Saha, D., 2013. Sources of Finance. Financial
Institution of the Marginalized India Studies in Business and Economics.
pp. 61-71.
 White, 2006. The analysis and use of financial statements. John Wiley &
Sons. XIX_2013_104.pdf>. [Accessed on 12th Feb 2016].