HSC Task-2: Managing Financial Resources in Health & Social Care

This report provides a comprehensive overview of managing financial resources within health and social care organizations. It begins by discussing diverse income sources, including public, private, national, and voluntary funding, emphasizing the responsibility of service personnel to utilize these funds appropriately and legally. The report then analyzes factors influencing the availability of financial resources, such as private funding policies, government funding procedures, and donor interference. Furthermore, it examines the effects of different budget expenditures, including material, labor, and overhead budgets, on health and social care homes, highlighting their role in cost management. Finally, the report outlines key factors that care homes must consider when making expenditure decisions, such as cost-benefit analysis and adherence to predetermined budgets. This analysis is supported by references to relevant research in health management and accounting.

Managing Financial Resources in HSC
TASK-2

2.1 Discussing the diverse sources of income which may be
encountered within the health and social care
 There are various sources of income or finance which may be
encountered within the health and social care organization.
 It includes public, private, national or voluntary funding which may
be encountered within the health and social care.
 Health and social care organization receive fund from government,
private institutions and from the people who wants to donate money
to health and social care organization. Thus, it is the responsibility of
the service personnel to make used of this money for the same
purpose for which they are given.
 John and Jill needs to make use of money in the legal activities and
functions. Through this, health and social care organization is able to
build the effective image in the mind of the target market.

2.2 Analysis of the factors which influences the availability of
the financial resources
Factors which closely influence the availability of the financial
resources are as follows:
 In private funding, policies and strategies which are framed
by them have high level influence upon the availability of
the financial resources. For instance: Private institution
wants to attach their name with the care home that it is
sponsored by big institution.

CONTD....
 Besides this, in order to access the government funding
John and Jill have to undertake several formalities and
procedure. This aspect closely affects the availability of
finance within the health and social care organization.
 Further, people who voluntary donate their fund in the care
organization also make interference in the decision making
aspect. It is also the main factor which closely influence the
availability of finance within the care organization.

2.3 Effect of different types of budget expenditure within the
health and social care home
There are various types of budget which place different impact
upon the health and social care organization. It includes
material, labor and overhead budget which are enumerated
below:
 Material budget: It represents the amount of the material
which John and Jill needs to purchase to carry out their
functions such as drugs, instruments etc.

CONTD...
 Labor budget: It contains the number of care personnel
which are required to serve the patients more effectively.
Besides this, labor budget also includes the cost which
John and Jill needs to incur to hire the service personnel.
 Overhead budget: This budget contains the other office
expenses which organization has to incur to deliver the
services to the service users.
All these budget helps health and social care organization to
make expenses as per the budgeted amount and there by
reduces the expenses.

2.4 Stating the factors which care home needs to consider
while making decision about the expenditures
There are several factors which health and social care
organization needs to be taken into consideration while
making the decision about the expenses are as follows:
 John and Jill requires to undertake cost benefit analyst
analysis before making any expenses. It provides assistance
to organization in assessing the benefit which they get by
making expenditure on the product or services.
 In addition to this, they also needs to consider the budget
while they make expenditures. It helps them in performing
their business function and activities as per the
predetermined budget.

REFERENCES
Bowling, A., 2014. Research methods in health: investigating
health and health services. McGraw-Hill Education (UK).
Swayne, L.E., Duncan, W.J. and Ginter, P.M., 2012. Strategic
management of health care organizations. John Wiley &
Sons.
Brignall, S. and Modell, S., 2000. An institutional perspective
on performance measurement and management in the ‘new
public sector’. Management accounting research. 11(3).
pp.281-306.
Walshe, K. and Rundall, T.G., 2001. Evidence-based
management: from theory to practice in health care. The
Milbank Quarterly. 79(3). pp.429.