Care Tech Plc: Report on Managing Financial Resources (2024)

This report delves into the intricacies of financial resource management within Care Tech Plc, a provider of social care services. It begins by outlining the principles of costing and business control systems, emphasizing the importance of software, cost control, forecasting, and variance analysis. The report identifies crucial information needed for financial management, including income streams, administrative data, legal requirements, and competitive factors, while also highlighting the importance of non-monetary information. Regulatory requirements, such as accountability, codes of practice, and audits, are discussed, along with the roles of financial regulators like HMRC and Companies House. The report evaluates various systems for managing financial resources, including budgeting, auditing, accountabilities, and cost centers. It then explores diversified income sources available to Care Tech Plc and factors affecting financial resource availability, followed by an analysis of budget expenditures and potential financial shortfalls. The report also addresses actions to take when financial fraud is suspected and evaluates budget monitoring arrangements. Finally, it identifies information needed for financial decisions, analyzes the relationship between care services and costs, and suggests ways to improve services based on financial considerations. The report concludes by summarizing key findings and recommendations for effective financial management within Care Tech Plc.

MANAGING FINANCIAL
RESOURCES IN HEALTH
AND SOCIAL CARE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Principles of costing and business control systems adopted in Care Tech Plc................1
1.2 Identification of information that are needed to manage financial resources for Care Tech
Plc...........................................................................................................................................2
1.3 Regulatory Requirements that are needed to be satisfied while managing financial
resources.................................................................................................................................3
1.4 Evaluation of the systems for managing financial resources in Care Tech Holdings Plc 3
TASK 2............................................................................................................................................4
2.1 Discussion of the diversified sources of income available to Care Tech PLC.................4
2.2 Analysing factors that may influence the availability of financial resources in Care Tech
Plc .........................................................................................................................................5
2.3 Reviewing different types of budget expenditure in Care Tech Plc.................................6
2.4 Evaluation of decisions that could be made in Care Tech PLC about expenditure.........7
3.1 Managing financial short fall in Care Tech PLC..............................................................8
3.2 Actions after suspecting occurrence of financial fraud in organization...........................9
3.3 Evaluation of budget monitoring arrangements in Care Tech PLC...............................10
TASK 4..........................................................................................................................................11
4.1 Identification of information that is required to make financial decisions in Care Tech Plc
..............................................................................................................................................11
4.2 Analysing relationship between care services delivered and `costs and expenditure`...12
4.3 Evaluation of impacts of financial considerations upon a service user..........................12
4.4 Suggesting ways of improving the care services............................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Management of Finances have become challenge for the day. Each and every field
irrespective of its business model hires skilled experts and professionals for this task. Private as
well as Public Sector all has been quite strict in the efficient management of Finances. This
project report is prepared on the basis of Care Tech Plc. homes which deals in providing quality
social care services. This report will create understanding and will discuss various principles of
costing and business control systems with information which is required to manage financial
resources accompanied by regulatory requirements. Further, diverse income sources that are
available to Care Tech Plc. and factors that may influence the availability of financial resources
are stated briefly.
This project also puts light on financial short falls by taking its assumptions which is
accompanied by steps after suspecting financial fraudulent and evaluation has been done for
budget monitoring arrangements. In addition, emphasis is also given on identification of
information that is required to make financial decisions. Research will also be conducted to
analyse relationship between care service delivered and costs & expenditure accompanied by
financial considerations of Care Tech Plc.
TASK 1
1.1 Principles of costing and business control systems adopted in Care Tech Plc
Maintaining costing and business control systems is regarded as an internal part of the
entire process which is carried out by an organization. Incurred cost by an organization has its
direct impact upon output and earning of a business (Chen and et.al., 2017). Following are the
principles of cost and business control systems that are required to be implement by Care Tech
Plc.:
 Basic Software: As many organizations are undergoing certain changes in their
infrastructure and are taking their actions electronically. Hence, it would be
advantageous for an organization to take control over those actions and find any
errors that are happening.
 Cost Control: External and Internal process of auditing will assist a firm to
understand the foremost policies and to enable to take control over both the internal
and financial system and working of Care Tech Plc.
1

 Forecasting: This technique is regarded as the most important for an organization as
it enables and assists firm in predicting any future contingencies. This information of
future performance, financial aspects and cost profits would be highly beneficial for
Care Tech Plc. to plan its future strategies and policies. Further, it will help in
forming better defence system.
 Variance and cost benefit analysis: This type of information assists in evaluation of
the performance of different characteristic of Care Tech Plc. By comparing pre-set
targets it also determines performance of project (Business Control Systems, 2018).
Cost benefit analysis assists in taking primary decisions which are related to the
management of financial resources of an organization, as it aims at analysing the
received benefits over cost incurred by Care Tech Plc.
Costing method used in Health and social care organizations:
In health and social care sector, costing is done by accumulating fixed cost and variable
cost together and by dividing it with number of patients. For example:
Fixed cost: 5000
Variable cost: 6000
No. of patients: 100
Cost= (Fixed+variable)/no. of patients
= 11000/100
= 110
Costing principles of the NHS:
 Data Accuracy: Increase in the accuracy of data improves confidence in the costs of
resulting patient level. As, data is generally organised into functional units so it is easy to
record data in accurate and timely manner.
 Stakeholders engagement: It is one of the most critical principle for productive use of
costing information. It can help in understanding the audience for costing data, to ensure
costing is more accurate, improves intelligence of business.
Business control systems:
 Budgetary control system: It is system of controlling costs which generally consists of
preparation of budgets, coordinating the departments and comparing actual performance
with the budgeted for future period.
2

 Cost control system: It is a system of identifying and reducing expenses of business in
order to increase profits, and it starts with the budgeting process. It is an important factor
for maintaining and growing profitability. It also provides information for planning and
for determining the efficiency of activities after they are performed.
1.2 Identification of information that are needed to manage financial resources for Care Tech Plc
It is noticeable that health sector has undergone incredible developments in this industry
and projected a steady growth as well (Fortier and et.al., 2017). Following information’s are
needed by Care Tech Plc. for managing financial resources:
 Income Streams: This statement should be prepared by Care Tech Plc, in order to
assess financial performance during a particular time period. This statement also
provides decision makers with information related to profit and losses of the
organizations.
 Administration: This will help in determining its profitability as well as it will help
in tracking and managing its expenses properly. This type of information could easily
be generated by its various system including the costing system and financial
management system.
 Legal Requirements: These legal requirements are needed to be fulfilled in order to
manage financial resources. Company should move forward towards arrangements
for financial resources according the legal obligations which are imposed by
government.
 Competitive Factors: These factors are needed to be measured while managing
financial resources. Company should analyse these factors in order to determine
future need of such resources, so that financial resources could be managed
effectively and efficiently.
Information related to business environment and external influences are also required in
order to enable proper management of the financial resources, such as:
1. Trend Analysis.
2. Change of policies.
Hence, referring the above aspects it can be presented that along with the financial factors
there are some non-monetary information needed by Care Tech Plc for managing financial
resources. Thus, in the context of financial resource management, manager of Care Tech Plc
3

needs to lay focus on evaluating trends, competitor’s policies as well as laws and legislation.
By taking into account all such factors concerned authority would become able to take
appropriate decisions.
Health and social care sector organizations needs information related to business
expenses which includes cost of sales, grocery, wages, bills, overtime, tax, interest on
loans/overdraft. On the other side information related to income is also required to know;
revenue, interest earned from investments, grants, funds, donations. This information is
required by health and social care organizations to prevent financial crisis and conduct free
cash flow to facilitate patients efficiently and effectively.
4
Illustration 1: Financial figures of Care Tech Holdings Plc.

1.3 Regulatory Requirements that are needed to be satisfied while managing financial resources
This requirement of regulatory is regarded as one of the most important factors that help
business in growth and function in a hassle freeway. It has become mandatory for all managers
of Care Tech Plc. to follow all the provisions that are presented in Health Care Act 2012. Care
Tech is required to match to the following regulative requirements:
11 Accountability: It means a situation in which an individual or department is responsible
for the performance of a specific function.11 Code of practice: In this guidance is provided relating to Northern Ireland Legislation
which is likely to have an important effect on businesses of health care and social
economy sector.11 Audit: It could be defined as an official examination of a company's accounts, typically
through an independent body.11 Policies: It is a course or a rule of action which is implemented or proposed by an
organization or individual.
Financial Regulators in Care Tech:
 HMRC: It stands for "Her Majesty's Revenue and Customs" which is a non-ministerial
department of the UK government responsible for the collection taxes. In Care tech tax is
paid in the form of tariff, VAT and duties, inter state and intellectual property.
 Companies House: It is the UK's registrar of companies and is an executive agency and
trading fund of Her Majesty's Government. Care Tech is also registered under it in order
to file annual financial statements.
 IFRS: It is type of universal business language which is followed by the companies while
reporting financial statements. Care Tech make use of these accounting standards to
prepare and present financial statement i.e. income statement, balance sheet, cash flow
statement, etc.
 GAAP: These are a set of accounting guidelines and procedures which are to be followed
by companies while preparing their financial statements. These guides Care Tech for
recording and reporting financial data with the help of standard ways and rules.
1.4 Evaluation of the systems for managing financial resources in Care Tech Holdings Plc
It is important for Care Tech Plc. to manage its financial resources. Following are some
systems which are stated as helpful in management of the financial resources:
5

 Budgeting: This practice of budgeting helps firm in setting financial targets. Budgets
helps in forecasting future financial performance of Care Tech Plc. As it sets the
future targets and helps in managing financial resources of the organization, also aids
in optimum utilisation of financial resources (Hansson, Höög and Nyström, 2016). If
budgeting is done wrong, then the whole production process and planning can go
wrong and could result in failure.
 Audit Requirements: Auditing assists organization with a check related to the
financial resource's management. To present proper internal and external auditing
system it is essentially required within the organization of Care Tech Plc. If any
company fails to do the same, then it becomes harder to manage financial resources.
 Accountabilities: This system is a type of beneficial system which assists an
organization in the proper management of the fiscal resources of Care Tech Plc. It
also helps in collection and recording of financial information of the organization
which is in turn used to prepare financial statements (Managing Financial Resources
in Health and Social Care, 2018). It is important to implement this system because
without it company won't be able to know financial position of their organization.
 Cost Centres: This system is helpful in controlling cost and manage financial
resources present within organization as it assists in keeping record of the company.
If there happens some mistake in recording financial transactions or costs, company
can suffer great losses and can lead to mismanagement of financial resources.
It is also suggested to Care Tech to avail utilisation of IT infrastructure in order to
manage its financial resources.
TASK 2
2.1 Discussion of the diversified sources of income available to Care Tech PLC.
Income is termed as an internal inbuilt part of every business which is been set up as a
profit making entity. In simple words, it is defined as the revenue earned by an organization
during a specific time period. There are of various kinds through which income is generated for
an organization. Income helps an organization to grow, so it should be taken care off.
Public
6

 Government grants: Government takes many initiatives to assist health and social care
sector in earning. It can provide Care Tech Plc. with extra amount of subsidies in taxes
and help organization in maintaining income.
 Health Campaign: Health campaign are organised by government in order to help needy
and poor people by assisting them with medical ailments which in turn results in good
source of income for businesses in health and social care like Care Tech Plc.
 External sources: These sources could be classified further into two categories like; long
term and short term (Hoque, 2017). Some long term sources are; Mortgage, venture
capital, retained earnings, debentures, ordinary shares, investments from third party, etc.
On the other hand, some short term sources are overdraft loans, hire purchase, debt
factoring, stock control, etc.
 Voluntary: These are special types of sources of income which includes charity,
donations, etc. Many people donate high amount of money for wellness of people in
health and social care institutes or businesses which helps firm in maintaining income
generation. In this there are two types; local and national.
1. Local are those sources from which income is generated from local people and people
from that locality.
2. National includes donations and charity amount from people of different locality and
areas.
Private
 Sponsorship: These type of income sources is generally found in big companies and
businesses from where sponsors can get benefit out of their investments. Many big
companies and people sponsor health and social care in order to improve their brand
image with such institution which is working for people. As Care Tech Plc. itself is a
big company or business in this sector of health and social care, many diversified and
well established businesses would like to help them in their business operations in
turn generating income for company.
 Other Sources: These are those type of sources which are generally not considered
as the main source of generating income for the organization. Such as income from
renting, revaluation of assets, interest received from deposits, etc.
7

2.2 Analysing factors that may influence the availability of financial resources in Care Tech Plc
Availability of financial resources completely depends upon certain factors and it
is very much helpful in making an organization function properly. There are several factors
which in turn influences the aspects of resource availability within Care Tech Plc such as:
 Government policies: Government is the regulative body of any nation and its main aim
is to frame modifications and changes in the policies framed by it. Change in governance
regulatory policies may be a reason for modification in availableness of financial
resources.
 Policies of the organization: Different policies are framed by organization according to
the needs to follow them. Income of an organization completely depends upon the
policies framed by it.
 Geographical location: Geographical locations plays a vital role in determining
availability of financial resources as diverse locations have different features. The users
of such services like; funding opportunities, nature of service provided, etc. are set by
nature.
 Legal form: Entity form will decide what all financial resources would be received by
entity (Martin, 2016). Legal documentary formalities also affect financial availability of
resources. For ex., in a case company form of organization can raise huge funds through
the issue of shares but a proprietorship undertaking business cannot do so.
 Private Finance: Credit risk of the company endangers the equivalents cash of the
company in order to make it possible for a company to root funds from financial
institutions. There are chances of reducing prospective customer from getting credit if
credit risk is unmonitored. Due to fear of unclear recovery procedures credit risk will
impose endorsement on investors and capitalist to recover their capital back.
2.3 Reviewing different types of budget expenditure in Care Tech Plc
Budgets are the provinces that assist an organization in forecasting future performance of
a business relating to expenditure and revenue. There are some budgeted expenses also like
ambulance, salaries of personnel, rent material, etc. It would help Care Tech Plc. to pre-set its
fiscal targets to expenditure and income for a particular time period. Following are different
types of budgets:
8

 Sales Budget: This type of budget helps in pre-setting its sales execution. For a
particular period, marked up sales of a company are set and are compared with the
actual sales made by the organization after that time period thereby helping the Care
Tech Plc. to take initiatives in order to increase its sales.
 Capital budgets: These budgets assists in taking essential decisions in making
investments in primary projects. To evaluate the investments made by a company
towards primary assets it helps organization in projecting the financial property of
different proposals.
 Master Budget: It includes number of budgets which are formed in a business such
as sales budget, cash flow, capital budgets, etc. Business performance is projected as
a whole.
 Cash Flow Budget: Cash flow is increased due to cash flow budget and controls the
cash flow of a business. It helps in forecasting future cash outflows and inflows.
 Comprehensive budgeting: It is utilised when there is elimination on spending.
Income proceeds of Care Tech Plc. has been reduced because of acquisition, thus this
form of budgeting is used to reduce unnecessary spending.
 Problem solving budgeting: This type of budgeting is more elaborated than
comprehensive budgeting which has a more generic view (Agarwal and Randhawa,
2015). Utilization of this budgeting is done when an organization has faced some
difficulties in controlling their capital in some sections of the company.
 Cost Centre: It is termed as a process of forcing a cost centre manager to consider
financial effect of a particular type of operational objectives. This type of budgets are
estimation of cost centre's cash receipts and expenses for a budget period. Each
company is unique in terms of its financial and operational goals and its cost centre
budgets.
 Project Management: Managers are facing large numbers of problems in projects
that could be traced directly to the use of inadequate budgeting and administration
techniques. Budgeting is the key to effective project management. It can also be said
that, this is a method to manage improvement projects for international humanitarian
assistance and relief organizations like Care Tech Plc. By implementing this type of
9

budgets project costs could be controlled within the authorised budget and deliver the
anticipated project goals.
2.4 Evaluation of decisions that could be made in Care Tech PLC about expenditure
 Maximising Value: In this concept every individual or organization desires to
maximise the profits and minimize the costs and is the most basic concept of decision
making as well. The cost could only be minimised by the process of choosing the best
brand of the product, or finding the lowest cost suppliers that meet the company's
quality standards. If this is not implemented properly, company might be facing some
difficulties in earning huge profits.
 Rational Thinking: In this concept focus is given on the decision maker in an
organization, the one who takes decisions by using emotions and experiences. Such
decisions may help in avoiding uncertainties. Ignoring this concept may result in
uncertainties for which company is not ready.
 Cost benefit analysis: This concept takes assumption that every decision taken by
any individual or the organisation involves some gain and loss. So the main aim of
this concept is to make expenses which in turn gives huge benefits.
 Environmental Analysis: BY conducting environmental analysis company can make
use of the best available science and other relevant information in making decision.
Company can make decisions to increase the diversity, resilience, health and
productivity of company. The main aim of environmental analysis and decision
making is to reduce time and cost of project analysis.
 Accountabilities: Accountability within decision making means ensuring that all
those who contributed to the decision and all those who are affected by it understand
what decision was made as well as how it was made.
 Priorities: This concept of decision making could be explained form below
illustrated decision making priority matrix.
10

TASK 3
3.1 Managing financial short fall in Care Tech PLC
Financial short fall are very harmful for an organization. It could be termed as a situation
in which expenses are higher than its income (How to solve financial shortfalls, 2018). These
financial shortfalls could be controlled and managed by various factors and varies from
organization to organisation. For managing financial shortfalls following factors should be
considered by Care Tech Plc.:
11
Illustration 2: Decision Making Priorities Matrix.
(Source: Decision making, 2018)

 Reserve funds: These type of funds are kept to counter the situation of financial
shortfalls. To do the same, organization have kept its funds in reserve.
 Alternative external income sources: A business can desire addition of financial in
it through operations from Shareholders or equity holders by marketing extra share to
public. The benefits of this method are that, the money need not to be paid back rather
than it only dividend is paid.
 Implications for individuals within the service: Financial short fall could be
managed by dealing with consumers on the basis of cash in place of credit sales. Or
the time allowed for credit payment should be shortened in order to ensure money is
received at the shortest time possible after sale. In addition to it, increasing the effort
to collect due receivable can increase cash at hand or bank enabling organization to
meet its financial obligations.
 Controlling the financial resources: To avoid any such financial shortfalls, the
organization is required to manage its financial resources. And to gain interest
incomes, Care Tech Plc. should invest the excess funds left. Also, the investment
should be done carefully.
 Managing cash flow: Considerable amount of liquid funds are provided by cash
flows to organization (Shortfall in Finance: Definition & Examples, 2018). Proper
initiatives should be taken by organization to reduce its cash flows and increase cash
inflows.
 Priorities: To prevent huge cash flow, organization should not pay off all its creditors
at a time. Instead, Creditors should be paid according their priority.
 Virement: These are movements of budgetary resources between line ministers,
programs, policy areas or line items. These takes place after the budget has been
authorized by the legislature as well as do not affect the total level of budgeted
expenditure.
 Alternative: Cutting out an expense or changing a habit is lot easier if it is replaced
with some other alternatives. The job is to find out an expense that's taking real bite
out of the budget and find replacement solutions.
It is also suggested to Care Tech Plc. that it's acquiring policy should address this issue of
reckless spending by staff of the company as the cash flow would be reduced.
12

3.2 Actions after suspecting occurrence of financial fraud in organization
There are many cases of financial frauds which are found in different organizations
(Agarwal, 2016). It is a type of criminal activity which make different organizations to face
criminal litigations. Actions that should be taken after suspecting financial fraud in organization:
 Analysing financial information for reliability: Before suspecting any kind of
financial fraud, financial information should be analysed thoroughly in order to check
its reliability. After confirming, manager should report complain of fraudulent to top
level managers and police to investigate this situation properly.
 Evidence of fraud: Company should take several steps to authenticate the fraud
(Take Action to Recover from Financial Fraud, 2018). These steps could include
implementing in-depth research to give the assurance of the existence of fraud.
Inquiry should involve all applicable people involved in the activities that lead to the
fraud.
 Validity and sufficiency: After suspecting financial fraud, its validity and
sufficiency should be determined in order to know background of fraudulent.
 Reporting: Determined fraud should be reported to top level management or higher
authorities for implementing its solution.
Further, in health or social care organizations to deal with fraudulent cases there is a
Health Insurance Portability and accountability Act. Fraud is a crime, and this legislation
punishes fraudulent individuals through a criminal charge penal code that issues a government
prison term of up to ten years. These kinds of fraud affect government and individuals, as it is a
severe criminal offence. It excels the aim of health care services, which is to maintain a healthy
population.
3.3 Evaluation of budget monitoring arrangements in Care Tech PLC
Budget that are formed by Care Tech could be monitored in the following ways:
 Cash Flows: These provinces should be used by administration in order to detect
amount of cash inflows and outflows by an organization. The periods of negative cash
flows could be estimated and cash flow position of the business can be detected.
 Training Requirements: Training should be provided to the employees and
management personnel of the organization relating with control of price, management
of cash and budget setting process.
13

 Spread sheet data: The managers are assisted to detect the conflicting areas of the
measuring process while keeping an observation upon the costs of concern, which
could help in monitoring arrangements of budgets.
 Controlling costs: Monitoring budgets can also result in controlled costs which can
prevent unnecessary expenditures.
The monitoring and controlling budgets are very important for management and to keep
proper tract of actual to planned activity and along with this, expenditure should be controlled. In
the similar aspect, it must ensure about availability of fund. If there is requirement to take
corrective action, then it should be implied for resolving significant variations among these
planned and actual activity. Care Tech Plc must establish budget for each unit, division,
departments and whole business entity as well. It would be facilitating effective control,
communication and coordination among all departments.
Note: - The performance of the organization in various areas is tracked by budget monitoring
through capital expenditure and the ongoing development projects (Linnemayr and Rice, 2016).
Any variations in Care Tech projects would be indicated in it such as overruns, thus allowing
corrective action by the management in addressing matter.
TASK 4
4.1 Identification of information that is required to make financial decisions in Care Tech Plc
Information that is required to make better financial decisions in Care Tech Plc. are as
follows:
 Information Available: - Available information is needed to be analysed firstly, in order
to make better financial decisions and implement it. As the information already stored in
databases can help Care Tech Plc. to cope up with changes in financial environment of
business and to understand same more efficiently. Company sets a suitable path for
planning financial decisions.
 Responsibility for decision making: It is very important for an organization
providing services in health and social care sector of the economy to consider various
costs involved in health and social care. These costs could be related to daily fixed
costs of medicines, maintenance and equipment repair, cafeteria maintenance, etc.
Variable costs such as; cost of buying of new equipment’s, etc.
14

 Priorities: Various expenses like payment of wages to employees or salaries to staff,
these costs are termed as fixed costs that Care Tech Plc. has to pay every month and
are on priority. The company can manage its cost in the form of variable and fixed
expenses when the plan is executed well and it will only happen when organization is
aware of all its incurred costs. For effective management and control over them
various areas that involve the expenditures and should prioritize them in order to
know them.
 Sources of Income: - To make better financial decisions it is highly required to
understand and analyse all sources of income that are available to company for
preparing a base for planning financial decision.
 Balance Sheet: This provides company with details on the movement of the money
which creates various assets, extent of liquidity of funds and liabilities in business. From
the balance sheet Care Tech Plc. planning can easily be done for the next financial year
accordingly for cost reduction and elimination of unnecessary expenses.
4.2 Analysing relationship between care services delivered and `costs and expenditure
There is a strong relation between the two; care services delivered and cost &
expenditures. There are various costs and expenditures which are involved in delivering various
kinds of services in health and social care for the patients and people staying at Care Tech Plc. It
could be said that health and safety cannot be achieved without any costs or the expenditures
involved in various activities. As, the number of employees correlates with services offered by
an organization like Care Tech Plc. is showing considerable increase by number of employees
each year including patient’s turnout (López-Bastida, 2016). This lead to increase in cost and
expenditure of the organization to counter the excess number of patients and services they
require.
In Care Tech Plc. cost is directly depending on expenditure. It should consider cost
benefits both intangible and tangible asset, as health care is a service provider management. Care
Tech tangible assets other than goodwill are acquired as part of a business combination and are
capitalised of fair value, whereas intangible assets are acquired separately and are stated cost less
assembled amortisation & impairments.
 Purchasing Arrangements: It is a way in which financial resources are linked to the
provision of health services. Strategic purchasing can facilitate progress towards
15

universal health coverage by using mechanisms that op[optimise quality, efficiency,
responsiveness and equity of health care service provision.
 Pricing Policies: Pricing policies should be made according to the cost and expenditure
of that product and services. Mainly pricing is done on the basis is incurred cost and
expenditure. Care Tech Plc. should take care of the fact that businesses in this sector are
needed to be very particular regarding pricing policies which in turn means they need to
control their cost and expenditure.
4.3 Evaluation of impacts of financial considerations upon a service user
There are many considerable impacts upon an individual using health & social care
service:
 Quality of service: As there are so many competitors in health care service user as
compared to each other and they may leave and go to another business that is why it
is termed as the most important factor of health care service. Quality of service
includes many factors such as; security, choice, equality, respect, independence,
rights, dignity, etc. If the quality of service is not maintained, then the company can
face great losses in terms of patients loyalty and profitability. So it is very important
to maintain quality of service with such competitors in the market.
 Access to the service: This is another most important factor. Because unfortunately,
many patients cannot afford to pay high fees for the health care and treatment that
they actually need. This could be the biggest disadvantage for a health and social care
organizations like Care Tech. Organizations should take care of poor segment of
patients.
Financial considerations that might have influenced individuals from using Care Tech
Plc. health and social care services. It also includes affordability, level of seriousness,
individual's income, associated costs of delivered service at hospitals and living standards. It also
possible that expensive services' delivery may block people who cannot afford services which
are offered by the organizations. Although, both plays an important role of maintaining proper
and affordable services to patients; organizational and individual financial considerations. There
are a lot more considerations that Care Tech Plc. can take into account before taking the services:
Cost of services, In case better alternatives available at lower costs, Choice of the priority
service that has to be taken, Level of income of the service User, Coverage of Insurance for the
16

Service taken, Return on Investment by the Service User, Quality of the service obtained,
Various indirect costs involved in the service.
4.4 Suggesting ways of improving the care services
Care Tech Plc. is one of service provider of Health and social care who are maintaining
good business performance level in the relevant fields and have good goodwill. Company should
put emphasis on individuals using increasing level of investment, cost benefits analysis where
needed, good advertisement to face competition, maximising profits, reducing costs, minimising
wastage to take extra benefits and financial risk assessment. Company also need to focus on
customer needs & wants and delighting them.
Care Tech Plc. can bring following changes in its financial systems and processes in
order to improve its health and social services:
 Company can get funds from government and private individuals and agencies aids.
 Payment to the service providers as per their quality and performance.
 Can bring creativity and innovation in providing patients with services.
 A comprehensive approach should be developed in order to discuss on various financial
concerns with service users.
 Associating with the other agencies which could help the company in growing its
revenues and effective management of resources of finances. By tying up with these
companies, Care Tech Plc. will not be left with any kind of financial constraint.
 Established payment system should be clear, transparent and stable.
Company is also suggested maintaining general accounting principles and required legislations
to handle its fiscal systems and procedure. In addition, the organization should employ effective
and efficient control systems.
CONCLUSION
In the above report, it is suggested that all directors must be responsible to control
business resources in organization and was concluded that managers have the responsibilities of
identifying financial resources & managing shortfall of financial resources. It was also known
that manager's main aim is to take decisions in accordance with achieving ultimate possible
profit for the organization. Financial planning, controls and monitoring assists in achieving
desired goals, but often it is dependent upon services user's evaluation of the service they
receive.
17

Company was suggested to assure the usage of GAAP and required legislations to handle
its fiscal systems and procedures. In addition, it was also suggested that the organization should
implement efficient and effective control systems and should undergo changes which are
required on the basis of patients and service users without trouble to serve various patients with
minimal time accuracy. Outcomes from the above research says that, Care Tech Plc. should
improve their modes of collecting data and storage. Further, organization can improve this by
employing software which helps a branch of medicines dealing with children and their diseases
in collecting relevant data and storage.
18

REFERENCES
Books and Journals:
Chen, Y. and et.al., 2017. Variance analysis of unbiased complex-valued ℓ p-norm minimizer.
Signal Processing. 135. pp.17-25.
Fortier, C. and et.al., 2017. Strategies for the Clinical and Financial Management of Drug
Utilization. In Utilization Management in the Clinical Laboratory and Other Ancillary
Services (pp. 273-278). Springer International Publishing.
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.
Martin, L. L., 2016. Financial management for human service administrators. Waveland Press.
Agarwal, N. and Randhawa, G., 2015. Management practices in Australian healthcare: can NSW
public hospitals do better?.Journal of health organization and management. 30(3).
pp.331-353.
Agarwal, R., 2016. Benchmarking management practices in Australian public healthcare.
Journal of health organization and management. 30(1). pp.31-56.
Linnemayr, S. and Rice, T., 2016. Insights from behavioral economics to design more effective
incentives for improving chronic health behaviors, with an application to adherence to
antiretrovirals. JAIDS Journal of Acquired Immune Deficiency Syndromes. 72(2). pp.e50-
e52.
López-Bastida, J., 2016. Social/economic costs and health-related quality of life in patients with
Prader-Willi syndrome in Europe. The European Journal of Health Economics. 17(1).
pp.99-108.
Online:
Business Control Systems. 2018. [online]. Available Through:
<https://www.inc.com/profile/business-control-systems>
How to solve financial shortfalls. 2018. [online]. Available Through:
<https://nowfinance.com.au/how-to-solve-financial-shortfalls/>
Managing Financial Resources In Health And Social Care. 2018. [online]. Available Through:
<http://www.academia.edu/15915322/Managing_Financial_Resources_In_Health_And_
Social_Care>
19

Shortfall in Finance: Definition & Examples. 2018. [online]: Available Through:
<https://study.com/academy/lesson/shortfall-in-finance-definition-examples.html>
Take Action to Recover From Financial Fraud. 2018. [online]. Available Through:
<http://www.finra.org/investors/highlights/take-action-recover-financial-fraud>
Decision Making. 2018. [online]. Available Through:
<http://faculty.msb.edu/homak/homahelpsite/webhelp/Content/Decision%20Making%20-
%20Priorities%20Matrix.htm>
20

21