HACM9102: Financial Management and Economics in Health Care Report

This report, prepared for the HACM9102 Financial Management and Economics in Health Care course at Flinders University, analyzes a healthcare case study focusing on financial management principles. The report delves into Activity Based Funding (ABF), examining its advantages, such as providing a scientific method for recording patient details, and disadvantages. It explores the Diagnosis Related Group (DRG) classification system, presenting data on various medical conditions, expected patient numbers, and associated costs. The analysis includes detailed tables illustrating financial calculations, such as the amount of funding based on the number of patients, NWAI, and national efficient prices. Additionally, the report assesses the impact of changes in patient numbers and cost reductions on the ABF budget. The report also provides a discussion on the advantages and disadvantages of the ABF model. The report concludes by presenting the information to the board of directors.