Report: Managing Financial Resources in Health and Social Care Module

This report provides a detailed analysis of financial resource management within health and social care organizations. It begins by explaining the principles of costing and business control systems, emphasizing the importance of accurate cost allocation and stakeholder engagement. The report then identifies the information needed to effectively manage financial resources, highlighting the significance of budgeting, auditing, and risk assessment. It also explains the regulatory requirements for managing financial resources, referencing relevant standards and government regulations. The report evaluates various systems for managing financial resources, including open systems and specialized software like Caresys. It discusses diverse income sources, such as those from adult learning disabilities and mental health services, and analyzes factors affecting financial resource availability. Different types of budget expenditure, including fixed and variable costs, as well as administrative costs, are reviewed. The report also evaluates how expenditure decisions are made and discusses strategies for managing financial shortfalls, addressing fraud prevention, and monitoring budgets. Finally, the report presents information required for financial decision-making, demonstrating the relationship between health and social care services and the impact of financial considerations on those services, concluding with ways to improve health and social care.

MANAGING FINANCIAL RESOURCES IN
HEALTH AND SOCIAL

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Explaining the principal of costing and business control system .......................................1
1.2 Identify information needed to manage financial resource...................................................2
1.3 Explain the regulatory requirements for managing financial resources...............................3
1.4 Evaluate system for managing financial resource in a health or care organisation..............3
2.1 Discuss the diverse sources of income that may be encountered in health and social care . 4
2.2 Analyse the factors that may influence the availability of financial resource .....................4
2.3 Review different types of budget expenditure in health and social care organisation.........5
2.4 Evaluate how decision about expenditure are made within a health or social care
organisation.................................................................................................................................5
3.1 Explaining how financial shortfalls can be managed ...........................................................6
3.2 Explain the action to be taken in the event of suspected fraud ............................................6
3.3 Evaluate budget monitoring arrangement in a health or social care organisation ...............6
TASK 4............................................................................................................................................7
4.1 Presenting the information required for the health and social care in financial decision: ...7
4.2 Showing the relation between health and social care service...............................................7
4.3 Impact of financial consideration on health and social care services...................................7
4.2 Presenting some ways which help in improving thehealth and social care..........................8
REFERENCES............................................................................................................................9
Books and journals .....................................................................................................................9

INTRODUCTION
Financial resource is very important every organisation it is just like a blood for the
business without finance they can not run their business activities (Fortier and et.al, 2017). In this
reports explaining all kinds of resources and also manage their fund in order to support their
activities.
TASK 1
1.1 Explaining the principal of costing and business control system
These are the Important of costing and discuss in given below
cost is related to its cause – Silloth nursing and Residential care home has implemented these
several best costing principal for health and care of patients. These are the principals, cost can
be defined as the price to pay in order to bring a finished goods and services to the market. The
aim of costing is to help providers manage services and improve working efficiency. Every cost
which is obtain a cause (Hansson and et.al 2016). Therefore, there exist a cause relationship the
value incurred for a cause must be added up in that item only for which is price is change .
Abnormal costs are charged in costing- it is basically the cost which occurs due to any
uncertainty like fire, theft, negligence etc. therefore this types of cost must not be added in the
direct costing of item and also this value has no direct relationship with the costing of goods or
product items. Silloth nursing company also use this cost if any fire occurs at their go-down than
the cost of due to fire will be included in the rest of the items that have manufactured and not
with those portion or items who are not yet now manufactured.
Past cost are not taken into consideration to future cost – past costing are never added in the
future manufacturing as it will take the price of the product and will not show the true cost of the
product. Silloth nursing industry follow this point for advertising and promotions costing ,
which is considered as deferred revenue expense and it distributed in a specific time.
Stakeholder engagement- it is consist with the accuracy of costing depends on the information
providing by range of stakeholder. Silloth nursing clinical staff is bale to giving more accurate
information for costing, it is non finance department these department including only those cost
which are related non finance department.
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Consistency- it is refer with the entity consistent formulation in accordant to all department and
unit for measuring the value. Similarly Silloth nursing identifying the need for all department
and measuring the cost per unit.
Transparency- this principal showing the cost of health and social care like Silloth nursing care
it is clear and easily audit, this company can use this method for controlling the cost.
Per patient cost this principal is useful for the payment of patients after the valuation of per
patient, it will calculated by dividing all the variables and fixed cost change over a period of time
by number of patients appointed in the Silloth nursing and Residential care home.
1.2 Identify information needed to manage financial resource
Financial resources are very useful for every organisation to run their business for long
term without financial resources no any one manage their business as well as not managing these
resources, so it is necessary to identifying the need of managing financial resources. Silloth
nursing and Residential health care company, required their financial resource to make payment
their employees, procurement of material, medicines, bed, equipments and others. These are the
requirement giving their whole staff and patients also by make a plan how much revenue on
these sources. This industry receive revenue in term of payment which is obtain from their
patients. Silloth nursings will managing their financial resources in effective manner when the
entity is clear with correct accounting method for measuring the cost of per patients and other
items.
Financial resource is very important for identifying and assessing the information of
business need in efficient management and taking risk for high return on future so it is very
compulsory. It is also related to neglect of staff, death of patients some time failure of operation,
this company managing their financial resources in proper way and also tale a possible risk. This
organisation also take risk can be seen regarding to miss happening with their employees, death
of patient. In addition to this, the budget and auditing reports are related with the procurement
expenditure, financial price, administrative expenditure, marketing expenditure, reconstructing of
building cost and legal value. All these expenditure are included in financial resources and this
industry also managing these resource for full fill their business need and patients need. This care
home also follow all the policies and system related with the allocation of resources.
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1.3 Explain the regulatory requirements for managing financial resources
Any type of business must apply the basic regulatory requirement to sure the success of
that industry. These organisation in function organisation work run in smoothly way within
standards of the statutory provisions of that specified country. Silloth Nursing and Residential is
the good example in united states which regulates all the financial transaction of health industry.
This organisation follow all principles that govern information related with enforceability and
arrangement of contract. Some contract add indemnity letters, pledges and agency and it also
provide the provision of break of contract. All other regulations concern to the issue of quality
management. Government are responsible for enforcing quality standards within the firms that
giving the services to their general population.
1.4 Evaluate system for managing financial resource in a health or care organisation
There are the many method for managing financial resources in health and social care.
Silloth Nursing can used in functional activities which is concern with best known system and
very effective for this organisation management and its financial resources.
Open system- Silloth Nursing are also following this system it is refer with computer softer
ware which is most important and common in health and social care because of it is applicability
of use and software gather all financially information at one place by importing all financial and
tax information in to their system. This organisation use open system software it is very helpful
for collect all the financial information and tax information also in to their system. After
collecting the information , data and then evaluating their income and expenditure of the entity.
This software help in making decision related to busying and selling their customer services.
Caresys software- This is also computer software is made by considering all the financial and
non financially activities done in Silloth Nursing organisation and it also includes all the
information of employees like salary, holidays, time, attendances means collecting all the date
which is relating with the service as well as whole staff.
TASK 2
2.1 Discuss the diverse sources of income that may be encountered in health and social care
Silloth Nursing and Residential is focused on giving the services related to specialist
social care. This organisation main motive to providing the quality services which is meeting
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commissioners whole requirement. The entity is dealing with four segments which is generating
the revenue.
Adult learning disabilities- it is related with adult residential care homes, independent
supported living and community giving the full support for their services. Silloth generating their
revenue in 7.39 million in year 2013 from this segment. This organisation also raising their
dividend per every year and developing their business and it also include other sources secured
bank loans and profit shares in the previous years.
Mental health- this segment help to made increase their revenue in every year, Silloth Nursing
also giving community based hospitals, adult residential care homes also and independent
supports living so this organisation also generating their revenue every year for their growth of
the hospital and giving a quality services mental patients.
2.2 Analyse the factors that may influence the availability of financial resource
A business entity is enclosed by several factors which influence the availability of
financial in organisation such as payment of tax, free health check-up, charitable activities and so
on. Silloth Nursing also influence the primary affairs which is considered with factors of
availability of financial resources in their work. The objective and strategies of this hospital to
prodding lot of benefits their patients. The management of this hospital is to make efficient plan
for the growth and development of their enterprise then it will affect the availability of financial
resources with their hospital business. This organisation also establishing the strong position in
the market through acquired EQL solutions which increased the care pathway of the entity. This
hospital also acquired assets for providing better services their customer and extending their
business activities. Government also make plan to enhance the heath and social care of nations, it
also providing funds related with health and social entities for increasing their services in best
way and expand their reach through heath care services. This organisation also providing best
services to people through with the help of higher authority.
2.3 Review different types of budget expenditure in health and social care organisation
Silloth Nursing and Residential care home are used different kinds of method for
prepared budget. The types of budgets which can be made in this organisation.
Fixed cost and variable cost budget- In this budget , the Silloth Nursing can be prepared to
monitors and control the fixed cost and variables cost in proper manner. They estimated the
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actual cost of this budget it will need to incur to giving services (Sweeney and et.al 2015). Fixed
cost is refer with cannot be reduces or not change it will be fixed but variable cost change
according to change in out put . It is very help full budget for reducing the cost of operations.
Administrative cost budget- it is related with all those expense or cost which are incurring
indirectly in availing of services. It also include cost affiliated with payment of salaries to
clinical and non clinical employees , managers, use of stationary and etc. Silloth Nursing also
make their administration cost budget including all those expense which are refer with payment
of salaries to clinical and non clinical staff.
2.4 Evaluate how decision about expenditure are made within a health or social care organisation
The expenditure of Silloth Nursing and Residential care home enterprise is not always
fixed as their business activities is covered by different way which could be come up at any
time. This organisation add their business entities and make plan for the enlargement of working
activities by inculcating new product or services in its portfolio (Hoque, 2017). This
organisation make a effective plan and identifying availability of finance. This care home use
their appropriate funds for running their work and then it make fast decision about further
expense but if these funds are not in capable quantity then its entity identifying the different
sources of finances from which it can obtained their monetary resource. Further , decision about
expenditure could be made by assessing appropriate places for the business, demand for care
services, numerous of existing competitors, coming a new polices which is made by government
through and other regulatory framework. This company take right decision for coming new
opportunities and main motive to make a perfect budget for earning more profit and providing
the qualities of services their patients.
TASK 3
3.1 Explaining how financial shortfalls can be managed
Financial shortfalls is consist with curse of business entity as it can advantage of
organisation to become extinct from the market. Financial shortfall put some barrier on their
operational activities of the business because every company want to overcome from with out
any deal with all types of conditions in effective manner, Silloth Nursing can also following
these practise. Working within estimated cost this is very full for eliminating extra cost burden
from the entity (Rothenberg and et.al 2017). It also include additional obtaining of funds from
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the government this organisation can also obtain their extra funds from the higher authority when
the situation of financial shortfall and it will help for stimulate their working activities. The
entity can end up those services which is destructive huge availability of cash or funds. So this
organisation will able to face this situation if in case patiences are not sanctified with this
hospital services so company focus on improve their services and divestment their services or
stopping existing services another new types services providing their customer in effective
manner.
3.2 Explain the action to be taken in the event of suspected fraud
Some time fraud and intentional errors are the main problem of the Silloth Nursing
organisation where the higher authority money is infused through government grants and public
donations (Medway and et.al, 2015.). This organisation regular inflow of money through several
number of sources is explaining and generally the expenditure are not segmented. So it refer with
the leakage of incomes this health care home. This company find out the fraud and following
major steps to be taken in effective manner. They create investigation and find out that persons
who behind the frauds in their hospital. These fraud are very harmful to the organisation as some
time employees are responsible for fraud so in case any work creating some problems in work
so company has to right to take action against particular person. This organisation main motive
to solve their problem and remove their fraud which is create problem in service in hospital and
fin out the optimum solution for maintaining the reputation of their hospital.
3.3 Evaluate budget monitoring arrangement in a health or social care organisation
The method and techniques Silloth Nursing and Residential care home company can use
to overcome the chances of over budget premise (Giles-Corti and et.al, 2016). This organisation
making an effective and efficient budgetary plan it is very helpful for deciding in advance for
future activities in their hospital business. They maintain all record and managing their financial
resource by making better environment in their company and they prepare health care budget in
proper way and covered all the possible budget. They also motivating their staff, employees in
the budget formulation activities. Budget is very important part of every organisation it is depend
only employees work performance according to time.
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TASK 4
4.1 Presenting the information required for the health and social care in financial decision:
In health and social care the financial decision play an important role. The main aim of
the financial resources is to provide proper health care and social care and it is important to have
the information in accurate and clear form. There are many resources available which may be in
the form of financial and non financial .The accurate information gives us the idle way to present
the welfare of the company and to take a good decision which improve our welfare for the
company (Mitchell, O. S., Hammond, and et.al 2017). The company should present their audit
reports in the best way so that they can properly manage the past and the previous records and
compare the result. The budget information should also be given to achieve the better goals in
future and there should be proper numbering which is easily understand by the reader and can
analyse the outcome and fill the needs of the consumers.
4.2 Showing the relation between health and social care service
If the cost is saved by the doctors then the patient when comes for check up then doctors
were not provide proper treatment to them as they don't have the machines to operate them and
this creates a wrong impact on the patient and the goodwill is also affected. There should be
transparency and clear about the services as it provide the long run and the have goodwill for the
company (Hansson, and et.al, 2017.). The expenses they occurred during the operations, if that
will be adjusted during the time then the services are not proper for the hospital and it will also
create a wrong impact on the goodwill of the company. The delivery which is done during the
period is not reach on time then it creates a negative impact.
4.3 Impact of financial consideration on health and social care services.
Financial management is that area where an organisation can be achieve the set goals and
find the objective of the firm (Hoque, 2017.). The services related to hospital such as the nurses,
staff and the operation items should be provided and be in a good quality. The budget should be
in the benefit of the consumer need or patients need as if increase the budget on the medicine
will decrease the budget of advertisement . There should be avoid to the extra facility provide to
the staff like should not pay higher salary to the unnecessary staff and should have a focus on the
main thing only.
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4.2 Presenting some ways which help in improving thehealth and social care
The health care should make budget but in the form of adjusted form for the future needs
and forecasting. Expenses budget must be created but to see what is the usage in the upcoming
time (Pastore, and et.al 2017). The money should be use in proper way as it is received by the
donation and NGO so there should be proper usage of the money to attain the maximum sources.
Proper old age home should be make for the health care of the old age persons. Proper managers
were appoint to lead the team in right direction in effective manner and they should keep the eye
on reducing the extra expenses. Proper take care of the health and old age homes by the
management team. Proper management team should be allotted to the team in getting the work
comes fast and in accurate way.
CONCLUSION
In the end it can be concluded that health and social care home also need to manage
their financial resources as with use of Monterey funds they perform many task that make
explaining of their salaries, maintaining their services or relationship with patient and other
important expenses.
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REFERENCES
Books and journals
Fortier, C. and et.al., 2017. Strategies for the Clinical and Financial Management of Drug
Utilization. In Utilization Management in the Clinical Laboratory and Other Ancillary Services
(pp. 273-278). Springer International Publishing.
Hansson, J., Höög, E. and Nyström, M., 2016. Action research for multi-level facilitation of
improvement in health and social care: Development of a change facilitation approach for a
local R&D unit. Action Research. p.1476750316650928.
Hoque, M. Z., 2017. Mental budgeting and the financial management of small and medium
entrepreneurs. Cogent Economics & Finance. 5(1). p.1291474.
Mitchell, O. S., Hammond, P. B. and Utkus, S. P., 2017. Financial Decision Making and
Retirement Security in an Aging World. Oxford University Press.
Pastore, R., Pesce, G. and Caggioni, M., 2017. Differential Variance Analysis: a direct method to
quantify and visualize dynamic heterogeneities. Scientific Reports, 7.
Giles-Corti, B., Vernez-Moudon, A., Reis, R., Turrell, G., Dannenberg, A.L., Badland, H.,
Foster, S., Lowe, M., Sallis, J.F., Stevenson, M. and Owen, N., 2016. City planning and
population health: a global challenge. The lancet, 388(10062), pp.2912-2924.
Hansson, J., Höög, E. and Nyström, M., 2017. Action research for multi-level facilitation of
improvement in health and social care: Development of a change facilitation approach for
a local R&D unit. Action Research, 15(4), pp.339-356.
Medway, M., Tong, A., Craig, J.C., Kim, S., Mackie, F., McTaggart, S., Walker, A. and Wong,
G., 2015. Parental perspectives on the financial impact of caring for a child with
CKD. American Journal of Kidney Diseases, 65(3), pp.384-393.
Sweeney, J.C., Danaher, T.S. and McColl-Kennedy, J.R., 2015. Customer effort in value
cocreation activities: improving quality of life and behavioral intentions of health care
customers. Journal of Service Research, 18(3), pp.318-335.
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Rothenberg, S., Hull, C. E. and Tang, Z., 2017. The impact of human resource management on
corporate social performance strengths and concerns. Business & Society. 56(3). pp.391-
418.
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