Evaluating Financial Resource Management in Health and Social Care

This report delves into the critical aspects of financial resource management within the health and social care sector, using CareSouth Group care home as a case study. It explores key principles of costing and business control systems, emphasizing the importance of clear objectives and accurate cost analysis. The report examines various sources of income, including public, private, and voluntary funding, and analyzes factors influencing financial availability. Different types of budget expenditure are discussed, along with decision-making processes regarding expenditures. Furthermore, the report addresses strategies for managing financial shortfalls and preventing fraud, highlighting the significance of budget monitoring. It also assesses the relationship between care services delivered and associated costs, evaluating the impact of financial considerations on service users and proposing ways to enhance care through improved financial systems and processes. The report underscores the importance of regulatory compliance, including guidelines from the Care Quality Commission (CQC) and HMRC, in ensuring financial accountability and quality of care.

Managing Financial Resources in
Health and Social Care

Executive summary
In this report is focus on evaluation done regarding residential homes manage their costs
and economic crises without compromising the health and care plan of patients. This report is
based on health care centres there are some different laws and policies have been implied to
maintain finances that are to be followed by all employees and top medical professional at
workplace.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Principles of costing and business control systems that may be adopted in CareSouth
Group care home....................................................................................................................1
1.2 Information needed to manage financial resources..........................................................1
1.3 Regulatory requirements that are needed to be satisfied while managing financial
resources.................................................................................................................................2
1.4 Systems for managing financial resources.......................................................................3
TASK 2............................................................................................................................................3
2.1 Diverse sources of income available to CareSouth Group...............................................3
2.2 Factors affecting availability of finance for the business firm.........................................4
2.3 Different type of budget expenditure in health and social care organisations.................4
2.4 Way in which decision about expenditure are made by the business firms.....................5
TASK 3............................................................................................................................................5
3.1 Managing the situation of financial shortfall....................................................................5
3.2 For condition in occurrence of financial fraud in organisation........................................6
3.3 Budget monitoring arrangements in CareSouth Group care home..................................6
TASK 4............................................................................................................................................7
4.1 Information required to make financial decisions relating to CareSouth Group care home.7
4.2 Relationship between care service delivered and ‘costs and expenditure........................7
4.3 Impact of financial consideration on a service user.........................................................8
4.4 Ways to improve the care service provided by CareSouth Group care home through
changes to its financial systems and processes.......................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The present assignment is about managing financial resources in health care sectors. In
this chapter, case study of CareSouth Group care home is given to understand the ways to handle
issues regarding finances. Also, there will be an evaluation done regarding residential homes
manage their costs and economic crises without compromising the health and care plan of
patients (Kakuma and et.al., 2011). In addition, it has been elucidated that various control
systems are available to maintain such issues and retain service users by providing them the best
care and support by hospital team and other senior medical professionals.
TASK 1
1.1 Principles of costing and business control systems that may be adopted in CareSouth
Group care home
CareSouth Group (CSG) care home is a residential home which provides proper health
and support to its users. It provides services to all the people regardless of their age and race.
They do so for patients who seek some temporary help in everyday life (Smithand et.al., 2012).
Further, old patients can also find care homes for getting proper care.
By being a manager in care home, it is important to manage finances in hospital so that it
can be prevented by any economic hazards in the future. At CSG, there are some principles that
are followed to control costs. These are given as follows: Developing clear and consistent objectives: In provides care home, targets and aims
developed in prior which are realistic, measurable and those targets that are achievable.
This is made possible by involvement of stakeholders (Millar and Hall, 2013).
 Analysis of true costs: The nursing home should keep in mind the costs that are spent
and then plan about budgets and overall costing.
 Trying to reduce complexity regarding hierarchy and also designation.
I have learned that improve working environment and achieve aims or objective
in organisation. This is help to learned manage finances in hospital so that it can be
prevented by any economic hazards in the future.
1

1.2 Information needed to manage financial resources
There are numerous financial as well as non-financial information that can be used to
manage financial resources. These information are also essential for cost collection, control and
decision making (Almalki and et.al.,, 2011). This way, care home's resources are able to produce
high returns on investment.
Information related to risk: It is important for nursing care centres to identify all the risks
associated with finances that are most likely to affect economic condition of care home.
Long and short term forecast: The health and social care centres like CareSouth Group is
needed to assess all long and short term projects.
Income statement: It is also known as profit and loss statement which gives records of care
centre's all earnings and profits in a particular time period (Balarajan and et.al., 2011).
Statement of Cash flow: This is essential to determine cash inflow and also outflow in a specific
financial year which is very helpful to manage future financial plans (Farmer, P., and et.al.,
2010). For instance, buying and selling equipment’s, cash that is received from patients etc.
I have learned that all such kind of financial information is help to improve current
market performance and increase productivity and profit.
1.3 Regulatory requirements that are needed to be satisfied while managing financial
resources
Regulations are framework to control and monitor which has been made by government
in the form of legislations and laws and it is helpful to check conduction of hospitals. These rules
are also made implemented to reduce financial crimes and improve protection of care users,
honesty and equality, accountability etc. (Ridde and Morestin, 2010). In health care centres there
are some different laws and policies have been implied to maintain finances that are to be
followed by all employees and top medical professional at workplace. These legislations are
namely Care Quality Commission or CQC, Monitor, HMRC and NHS authority of litigation.
 CQC is to inspect care homes like CareSouth Group to ensure the compliance with all
regulations and the national standards. It also inspects quality of service given by carers
to its users (Basinga and et.al., 2011).
 HMRC is to monitor tax regulations and business collection in residential homes.
According to this, the nursing home has to pay tax accurately on time.
2

I have learned that rules are also made implemented to reduce financial crimes
and improve protection of care users, honesty and equality.
1.4 Systems for managing financial resources
In order to manage finances in hospitals there is a need to have efficient and effective
cost. They also required to create various systems and implement them fairly on a regular basis
so that it can reduce waste and increase productivity in their care homes (Bannister, 2011). These
systems are namely budgeting, IT, auditing system etc.
IT system: Using IT, residential homes can get good information, processing, storage and
sharing etc. through it various departments can get easy access (Yip and et.al.,2012). Its
examples are electronic systems for payments and file transfer systems also make tasks easier.
Budgeting: Through this, staff and top professionals in nursing centres can prevent
excess expenditures and it makes them towards achieving targets and goals related to budgeting.
Auditing: It is used to collect data, produce reports and executing different procedures.
The additional training should be given to staff for secure and also dedicated systems of
computer (Andersen and et.al., 2011). It helps to rectify activities which are illegal or fraudulent
in hospitals.
I have learned that some new system is use at the time of managing financial resources or
improve profit and productivity. This is help to increase the market share.
TASK 2
2.1 Diverse sources of income available to CareSouth Group
In the health and social care homes, there are various sources from which these entities
can earn income and run their hospitals. These sources can be categorised into internal and
external types. Which are given as follows:
Public: Government provides funds which are considered to be grant for business
activities. This is considered to be effective source of income that is received to healthcare
organisation (Kakuma and et.al.,2011). To hospitals, government provides grant so that they are
able to deliver the best treatment facilities.
Private: CareSouth Group care home, get money by applying to bank loan. In order to
borrow money, it is done from financial institutes and banks at prevailing rate of interest.
3

Voluntary: There are individuals who provide donation to healthcare organisation like
CareSouth Group care home (Curtis and Christian, 2012). These are helpful sources that enable
to raise fund for operations.
I have learned that order borrowing money, it is done from financial institutes and banks
at prevailing rate of interest.
2.2 Factors affecting availability of finance for the business firm
There are different type of factors that affects finance of the organisation that work as
health and social care. Below given are the factors that affect availability of finance:
Social deprivation index: Deprivation can be determined as the services that are not
provided adequately for some of the areas of UK. Through social deprivation index, it is helpful
to measure the deprived areas of UK (Ford and et.al., 2010). As per the findings made, rating is
done to each hospital. Government provides grant to healthcare that are deprived from services
(Smith and et.al., 2012).
Government funding: These are the amount that is spend by government for welfare of
people. This is the integrated part of fiscal policy in which entities make heavy investments in
various sectors. When there are conditions of recession, then government increases its public
expenditure on healthcare.
Private funding: Companies like venture capital make their investments on healthcare
sector. These private companies receive huge amount of fund and thus is the factor that large
extent it affects finance of the business.
I have learned that services that are not provided adequately for some of the areas of
UK.
2.3 Different type of budget expenditure in health and social care organisations
Below given are different type of budget expenditure in health and social care
organisation like CareSouth Group care home:
Project management: This can be determined as a project that enables to initiate a group
of activities, control expenses, etc. (Different Types of Budgets, 2016). so as to reduce the cost.
People, resources and communication are the three elements of project and so these needs to be
4

followed. There are certain set of expenditure that are incurred in these aspects (Andersen, R.
M., and et.al., 2011).
Cost centre: This is a part of company in which cost is incurred. On different type of
departments cost is charged. Further, there is a profit centre that is the part of the firm in which
cost and revenue is assigned.
Outsourcing: This is a process in which firm entrust other to perform activities of the
business. It is possible for health care firms to outsource their financial and accounting
department activities.
I have learned that project that enables to initiate a group of activities,
control expenses, etc. In addition, profit centre that is the part of the firm in which
cost and revenue is assigned.
2.4 Way in which decision about expenditure are made by the business firms
There is various type of ways that are helpful enough to take appropriate decision
regarding expenditure is made about the business firms:
Consult: This the process in which stakeholders is consulted and on this basis decision
related with finance is taken.
Command: There will be one person who will be responsible to take decision. However,
it is important to decide on expenditure that is incurred and decisions are taken (Yip and et.al.,,
2012). In this context, administrative and managers of CareSouth Group care home will not
involve employees in making decisions.
Consensus: In this way, consensus is obtained from all stakeholders so that decision can
be taken. In order to carry out this aspect brainstorming section is conducted. This way, it
becomes helpful enough to determine the type of perception that is carried out.
I have learned that, stakeholders consult is one of the most important part
and improve decision making and increase productivity of organisation.
TASK 3
5

3.1 Managing the situation of financial shortfall
There are different types of strategies that can be applied in order to overcome the
situation of shortfall. In this context, below given are the strategies:
Optimum use of resources and assets: When proper use of resources and assists are
done, then it becomes helpful enough to deliver services at people in an effective manner
(Basinga and et.al., 2011).
Training and development: When employees have proper understanding of the roles and
responsibilities that has to be played by them, then it becomes favourable enough to make use of
them in appropriate manner.
Making maximum number of negotiation: It is important that proper consideration has
to be made in which all the issues or problems faced are effectively negotiated.
I have learned that resources and assists are done, then it becomes helpful
enough to deliver services.
3.2 For condition in occurrence of financial fraud in organisation
In order to overcome the condition of financial fraud at CareSouth Group care home,
there is various type of steps that needs to be taken and they are as follows:
Preventing any further loss: When any type of fraud is identified then, it requires to
taken up appropriate steps with the help of which it is not repeated again. All the employees
should be well aware of the consequences that can be faced so that it is not repeated (Ridde and
Morestin, 2010).
Trying to recover the losses: The person who caught in such activities need to be made
responsible for all the losses that are incurred to the firm. In order to overcome this situation
strategies need to be developed so that the losses can be recovered.
Gathering necessary evidence: Appropriate information needs to be gathered so that the
person involved in criminal activities can be caught.
I have learned that employees should be well aware of the consequences
that can be faced so that it is not repeated. On the other hand, overcome this
situation strategies need to be developed so that the losses can be recovered.
6

3.3 Budget monitoring arrangements in CareSouth Group care home
Main focus of CareSouth Group care home is to deliver appropriate care and service to
patients in which within the amount that they have can be used for their care. Budgets that are
developed by health care consist of organisational and cultural changes for patients. This is
helpful enough to examine making use of budget related with health care for maternity and end
of life care (Farmer and et.al., 2010). Through the evaluations that are made enables to determine
whether health budgets provides better outcome for patients when compared with conventional
heath service. All the services which are received before the offer of social health care, there are
factors that provide responses to and their expectations towards it. With the help of budget
monitoring it enables to indicate the expenditure and income level in the period.
I have learned that, Budgets that are developed by health care consist of organisational
and cultural changes for patients.
TASK 4
4.1 Information required to make financial decisions relating to CareSouth
Group care home
To make financial decisions in relation with CareSouth Group care home, below given
are the information that are required:
Actual budget: Preparation of budget is considered by taking estimated and current
demand for the services. Different type of activities can be set out when the actual budget the
firm has is identified.
Current and projected demand for service: All the care homes can make projection
regarding current demand of the firm (Almalki and et.al., 2011). When the requirements of the
firm are identified, then it becomes helpful enough to set plan for making rough financial
decision.
Management accounting: This can be used by health care as an effective source of
information for decision making as it provide details regarding cost of service that are delivered
to customers. Further, it enables to determine the extent of which services should be provided.
I have learned that effective source of information for decision making as it
provide details regarding cost of service.
7

4.2 Relationship between care service delivered and ‘costs and expenditure
There are many number of factors that get influenced by service and its cost. In this
context, it includes cost benefits and compliance. It is important for the firm to meet the
standards that are determined by regulatory authorities (Millar and Hall, 2013). When the quality
of services increases, then cost also increases. Another factor that reflects relationship between
services and cost is related with the benefit of cost. The rate of cost is generally high and this
causes people to face many issues. The cost can be reduced by making optimum use of resources
and when care providers are able to perform their full efficiency. When the rate of cost
decreases, then it enables to attract more and more people but it is important to make sure that
quality of services is not effected.
I have learned that quality of services increases, then cost also increases.
Another factor that reflects relationship between services and cost is related with
the benefit of cost.
4.3 Impact of financial consideration on a service user
The quality of services that are delivered by health care has high positive impact on
patients. However, when the rate of cost increases, then patients are not able to get benefited of
the services due to lack of money. The impact of high cost is negative on people especially for
the individuals whose financial condition is not stable (Smith and et.al., 2012). There are some
of the factors of financial considerations that are made by HSC like delivering high quality of
medical treatment and services. This is done by making patients accessible to get services and by
changing the level of staffing. It is important for the hospitals like CareSouth Group care home
to understand the condition of patients and to take up appropriate steps so that they are able to
make sure that appropriate care and support is delivered to them.
I have learned that quality of services plication, then cost also crimp.
Another factor that reflects human relationship between services and cost is related
with the benefit of cost.
8

4.4 Ways to improve the care service provided by CareSouth Group care
home through changes to its financial systems and processes
There are different ways that can be adopted in order to improve the service of the
hospital. In the context, one of the ways that can be applied is in relation with the cost of the
services. Cited firm should consider that proper steps need to be taken so that the cost of services
can be reduced (Kakuma and et.al., 2011). When the cost of services is low, then it becomes
favourable enough for the patients to get proper care and support. Among set of aspects that can
be followed in in relation with quality of services. Proper consideration is required to be made so
that quality of the business can be focused on.
CONCLUSION
From the analysis made, it can be stated that quality of services need to be focused so
that patients are able to overcome the health issues faced. Further, care providers should be
delivered with proper training so that the roles and responsibilities that are played by them can
be performed in an effective manner and patients can be satisfied. Add your own judgement of
argument at the last paragraph
9

REFERENCES
Books and Journals:
Almalki, M., and et.al., 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., and et.al., 2011. Changing the US health care system: Key issues in health
services policy and management. John Wiley & Sons.
Balarajan, Y., and et.al., 2011. Health care and equity in India. The Lancet, 377(9764), pp.505-
515.
Bannister, M. A., 2011. A pre-reader for the foundation degree in health and social care
practice. M&K Update Ltd.
Basinga, P., and et.al., 2011. Effect on maternal and child health services in Rwanda of payment
to primary health-care providers for performance: an impact evaluation. The Lancet,
377(9775), pp.1421-1428.
Curtis, R. and Christian, E. eds., 2012. Integrated care: Applying theory to practice. Taylor &
Francis.
Farmer, P., and et.al., 2010. Expansion of cancer care and control in countries of low and middle
income: a call to action. The Lancet, 376(9747), pp.1186-1193.
Ford, K., and et.al., 2010. Preventing and reducing aggression and violence in health and social
care: a holistic approach. M&K Update Ltd.
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.
Millar, R. and Hall, K., 2013. Social return on investment (SROI) and performance
measurement: The opportunities and barriers for social enterprises in health and social
care. Public Management Review, 15(6), pp.923-941.
Ridde, V. and Morestin, F., 2010. A scoping review of the literature on the abolition of user fees
in health care services in Africa. Health policy and planning, 26(1), pp.1-11.
Smith, S.M., and et.al., 2012. Managing patients with multimorbidity: systematic review of
interventions in primary care and community settings. Bmj, 345, p.e5205.
Yip, W. C. M., and et.al., 2012. Early appraisal of China's huge and complex health-care
reforms. The Lancet, 379(9818), pp.833-842.
Online
10

Different Types of Budgets. 2016. [Online]. Available through: <
http://www.yourarticlelibrary.com/budget/types-of-budgets-6-important-types-of-
budgets-explained/25775 >.
11