Mid Stanfford Hospital: Financial Shortfall Management Report

This report focuses on managing financial shortfalls, particularly within the context of Mid Stanfford Hospital. It emphasizes the importance of effective financial resource management and outlines strategies for mitigating shortfalls. The report suggests various methods for managing financial resources, including adhering to guidelines, securing additional funding from local governments, obtaining loans from financial institutions, and utilizing charity donations. Furthermore, it addresses the issue of potential fraud, recommending the involvement of internal and external agencies for detection, implementing appropriate penalties, conducting audits, and adopting precautionary measures. The report references several publications on financial management, accounting, and human resource costing. The report highlights the importance of proactive financial management and risk mitigation to ensure the financial stability and operational effectiveness of healthcare organizations.

Managing Financial
Resource
Task 3

Managing Financial Shortfalls
Looking at the present corporate environment it is important for every firm to manage its financial
resources in effective and efficient ways so that desired results and outcomes can be generated. In
this regard, it is important for the manager to compute the financial shortfalls and undertake potential
measures to manage the available resources appropriately.
• There are several situations in which shortfall arises due to the reasons of bookkeeping. Thus, it is
important for Mid Stanfford Hospital to manage the financial shortfalls by employing different
methods that can assist in mitigating the issues.
• Along with this, it is also essential from the environmental point of view because management
shortfall helps in transferring the funds and allocating them in effective and appropriate way.
• There are several methods through the means of which management of Mid Stanfford Hospital can
manage the financial resources in suitable way and carry out operations in the best possible
manner.
•

Contd..
• Working within guidance: It is important for the cited hospital to carry out
operations as per the stated guidance and principles.
• Additional Allocation from local government: Local government has been
assisting the health care entities in terms of providing services related to
additional amenities.
• Loan undertaken by approved institutions: Assistance can be acquired from
different financial institutions for the purpose of managing cash and other
aspects. This is also essential for minimizing all the issues related to financial
shortfalls.
• Charity donations: Financial assistance can also be acquired through charities
and donations and that can further be utilized for managing expenditures.

Suggested activities during
suspected fraud
• In order to overcome all kinds of malpractices, the Mid Stanfford care home should
decide suitable course of action.
• It is through assistance of various external and internal agencies that the fraud can be
detected.
• An adequate punishment and penalties need to be decided so as to avoid chances of
fraud in future.
• The audit needs to be conducted as per adopted accounting policies and procedures.
This in turn results in identifying variances and loopholes into records.
• Mid Stanfford hospital need to appoint different internal and external auditors so as to
avoid chances of fraud.
• The hospital unit should adopt precautionary measures so as to avoid implementation
of all kind of fraudulent practices.

References
• Teruya, J. and Pourajali, H., 2009. The Effect of Statement of Financial
Accounting Standard 125 on Repurchase Contracts. Review of Accounting and
Finance. 2(2). pp. 88-98
• Theeke, H. and Mitchell, B. J., 2008. Financial implications of accounting for
human resources using a liability model. Journal of Human Resource Costing
& Accounting. 12(2). pp.124 – 137.
• Elearn, 2013. Financial Management Revised Edition. Routledge publication.
• Gibson, C., 2008. Financial Reporting and Analysis: Using Financial Accounting
Information, 11th edition, p. 260.
• Grieve, I.,2013. Microsoft Dynamics GP 2013 Financial Management. Packt
Publishing Ltd.