Sources, Factors, and Budget in HSC Financial Report

This report provides a comprehensive overview of financial resources within Health and Social Care (HSC). It begins by discussing various income sources, including public, private, voluntary, and local/national funding. The report then analyzes factors affecting the availability of financial resources, such as funding priorities, agency objectives, private finance, outsourcing, inter-agency partnerships, government policies, and geographical considerations. Furthermore, it reviews different types of budget expenditure in HSC units, covering cost centers, project management, and outsourcing contracts. The report concludes by emphasizing the importance of effective financial management for the success of HSC and highlights the impact of various factors on resource availability and expenditure control.

MFRD in HSC
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TABLE OF CONTENTS
INTRODUCTION......................................................................................................................1
2.1 Discussing sources of income that may be encountered within HSC..............................1
2.2 Analyzing factors that affect the availability of financial resources in HSC...................1
2.3 Reviewing different types of budget expenditure in health and social care units............2
CONCLUSION..........................................................................................................................3
REFERENBCES........................................................................................................................4
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INTRODUCTION
Effective financial management is the key of success in the context of HSC. Hence, it
is the accountability of manager to develop competent strategic as well as policy framework
that exerts control over expenses and thereby enhances revenue. In this, report will provide
deeper insight about the sources of financial resource available within HSC. Further, report
also depicts expenses associated with health and social care units.
2.1 Discussing sources of income that may be encountered within HSC
Health and social care units can generate income from several sources are enumerated
below:
Public: Now, for providing patients with high quality and better services government
units also offers monetary support to the health care firms. Thus, government grants and
campaign organized by it recognized as income.
Private: For enhancing market share and brand image companies do CSR as well as
present report of the same at the end of accounting year. Thus, by approaching to private
institutions for specific R&D and other medical practices HSC firm can generate income.
Voluntary: In the present times, both firms and individuals do charity that contributes
in the welfare of others (Hoque, 2017). Hence, contribution made by firms and others in
terms of cash, equipments etc are considered as income source for health care unit.
Local and national: With the motive to improve care services financial support is
also given by the authorities work at national and local level. Thus, by preparing as well as
presenting plan along with the associated benefits care unit can entice the decision making of
such authorities and thereby generate income.
2.2 Analyzing factors that affect the availability of financial resources in HSC
There are several factors that closely influence the availability of financial resources
within HSC such as:
 Funding priorities: On the basis of funding priorities government authorities,
financial and other institutions grant money to others. For instance: Sometimes R&D
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and other projects are considered as highly important over others. Thus, funding
priorities which are setting down by the concerned authorities have an impact on
financial resource availability.
 Agency objective and policies: Some agencies lay high level of emphasis on
providing funds by fulfilling wide range of documentary formalities. In addition to
this, funding agencies also have some objectives and criteria’s on the basis of which
financial resources are allocated or given by them. Hence, referring this, it can be
presented that objectives and policies of agencies highly affect financial resource
availability.
 Private finance: In the case of private funding, care unit is obliged to promote their
name along with the campaign organized or other aspects. Thus, such kind of
situation influences decision making pertaining to funding sources.
 Outsourcing: In the case of outsourcing, care unit has to make payment to the
suppliers or service providers on time (Hansson, Höög and Nyström, 2016). This in
creates deficiency in relation to financial resources and impacts other plans.
 Inter-agency partnership: In the case of partnership, consensus of both the units and
entities are highly required. Hence, conflicts which take place in the decision between
such two also affect financial resource availability.
 Government policies: On the basis of economic condition and level of income
generated government authority develops policies for HSC units. Thus, extent to
which funds allocated by the government for health care sector has greater influence
on the availability of funds within care home.
 Geography: Boundaries related to the geographical aspects also have significant
influence on financial resource availability. Some government grants and other
funding sources are limited to the specific area or boundaries.
2.3 Reviewing different types of budget expenditure in health and social care units
Budget reflects expenditure that care will incur in the near future. Budgeting or
financial framework is highly significant which helps company in deciding the extent to
which funds are available within the firm. Thus, it provides deeper insight about how much
funds need to be generated from other sources for ensuring smooth functioning of activities
or operations. Budgeted expenditure in the context of HSC is as follows:
 Cost centres: It includes departments that area accountable for making improvement
in the efficiency and performance of an organization. In the context of care unit, there
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are several expenses that care unit need to incur such as marketing, R&D,
administration etc (Mitchell, Hammond and Utkus, 2017). Hence, by allocating
responsibilities to several departments care home can control expenditure in relation
to medicines, ambulance, promotional, maintenance of equipments, insurance,
salaries of personnel, electricity and miscellaneous expenses etc.
 Project management: For the attainment of goals care unit undertakes and
manages several projects. Budget pertaining to project management mainly
includes three aspects such as cost estimation, contingencies and reserves. In the
context of R&D project management, some funds are allocated as contingency
reserve for coping up with the undesirable events that will occur in the near future.
In relation to project management, budgeted expenses include resources,
researcher’s fees etc. Thus, estimating all associated expenses suitable budgeting
framework can be prepared.
 Outsourcing contract: It implies for the activity in which process and work done by
others. Hence, outsourcing contracts include evaluation of cost related with the
concerned services. Along with this, in-house services are considered as cost effective
rather than outsourcing. Thus, for avoiding high cost of outsourcing, care unit has to
organize training session for personnel or nurses. Moreover, both satisfaction of
patients and quality of services influences from the extent to which nurses as well care
personnel are skilled. Thus, training sessions also imposes cost in front of HSC.
CONCLUSION
By summing up this report, it has been concluded that all public, private and
voluntary sources contributes in income generation. Besides this, it can be inferred that
funding priorities, agency and government policies etc have high impact on financial resource
availability. Further, it has been articulated that budget helps in making estimation about
different types of expenses and thereby helps in controlling cost.
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REFERENBCES
Books and Journals
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.
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