Health Financial Management Assignment - University Name

This assignment solution addresses key concepts in health financial management. It begins by defining expenditure as investments made to achieve business goals, improve patient care, and generate profit, contrasting it with revenue, which represents total earnings from patient payments and other sources. The solution then explores the funding of the NSW health system, outlining the responsibilities of federal, state, and local bodies, and how funds are allocated to various healthcare programs and services. Finally, it explains the Casemix and Australian DRG systems, highlighting their role in classifying patients based on treatment and associated costs, aiding in resource allocation within the healthcare industry. The assignment incorporates references to support the explanations.

Running head: HEALTH FINANCIAL MANAGEMENT
HEALTH FINANCIAL MANAGEMENT
TITLE
Name of Student:
Name of University:
Author’s Note:

1HEALTH FINANCIAL MANAGEMENT
Answer number 1.
The expenditure is refer to the part of investment that is been done by heath
administration with objective to meet the goal of business for long run and giving quality care to
the patient. It is also done to earn profit in the practice as mean of long term assets. The
expenditure is mainly done in purchase of health equipment, development of infrastructure,
medications and resource in order to better assess the patient, improve health status and earn
profit from it (Economou et al., 2015). Looking into revenue, it is regarded as the total earning
made by health care system with respect to the total investment. The health care system make the
revenue from payments made by the patient, retail pharmacist, fitness centres, billing from
patient medication, surgery, set up of cafeteria and through other mean (Bertone, Lurton &
Mutombo, 2016).
Answer number 2.
The funds invested in the NSW health system comprise of four level of responsibilities
which includes federal, state, territory and local body. The flow of funds by state and federal
government involve investment in the public hospitals for the purpose of medical and surgical
goods, drugs, salaries and it is allocated to the health service provider. The funds by the federal
and state government is delivered to the population health program, indigenous population,
medical research and community health service (Naccarella et al., 2017). They direct the grant
and expenditure for local hospital network, dental service. Even the NSW health care system
including the health, treasury and many other department make specific payment like national
health funding pool for service of public hospital. Such funds is flowed through the state and

2HEALTH FINANCIAL MANAGEMENT
federal government to make direct grants to their specified area of investment (Thackway,
Campbell & Loppacher, 2017).
Answer number 3.
The Casemix and Australian DRG system of classification are done with the common
objective of proper functioning of health care system. The Casemix classification helps the
health care industry in classifying the patient with relevant methods on the basis of treatment and
its associated cost. This method of classification is useful as it aid in the explaining the
connection between the costs and health care activity (Halter et al., 2018). It is used by the
Australian acute care hospitals in order to define their products as AN-DRGS. The Australian
DRG system is used to classify mainly the acute admitted patients with the type of resource that
is needed to for their treatment. The patient is classified on the basis of diagnosis, surgical
procedure that is conducted, and other routinely gather information and data. They are given
specific code by the clinical coding staffs which carries information about the age, sex etc. and
are utilize to allocate the admission of patient into AR-DRG class (Hasanova et al., 2018).

3HEALTH FINANCIAL MANAGEMENT
Reference
Bertone, M. P., Lurton, G., & Mutombo, P. B. (2016). Investigating the remuneration of health
workers in the DR Congo: implications for the health workforce and the health system in
a fragile setting. Health policy and planning, 31(9), 1143-1151.
Economou, C., Kaitelidou, D., Kentikelenis, A., Maresso, A., & Sissouras, A. (2015). The
impact of the crisis on the health system and health in Greece. In Economic crisis, health
systems and health in Europe: Country experience [Internet]. European Observatory on
Health Systems and Policies.
Halter, M., Joly, L., de Lusignan, S., Grant, R. L., Gage, H., & Drennan, V. M. (2018).
Capturing complexity in clinician case-mix: classification system development using GP
and physician associate data. BJGP open, 2(1), bjgpopen18X101277.
Hasanova, R., Mentzakis, E., Paolucci, F., & Shmueli, A. (2018). Beyond DRG: The effect of
socio-economic indicators on inpatient resource allocation in Australia. Health Policy
and Technology, 7(3), 302-309.
Naccarella, L., Southern, D., Furler, J., Scott, A., Prosser, L., & Young, D. (2017). SIREN
project: systems innovation and reviews of evidence in primary health care: narrative
review of innovative models for comprehensive primary health care delivery.
Thackway, S., Campbell, D., & Loppacher, T. (2017). A long-term, strategic approach to
evidence generation and knowledge translation in NSW, Australia. Public Health Res
Practice, 27(1), 2711702.