Managing Financial Resources in Health and Social Care - HNC Report

This report, prepared by Alina Cristea for the HNC in Health and Social Care Management Unit 14, focuses on managing financial resources within the context of Silloth Nursing & Residential house. It explores principles of costing, business control systems, information needs for financial management, regulatory requirements, and the evaluation of financial management systems. The report delves into diverse income sources, factors influencing health and social care budgets, and various budget expenditure types. It also examines decision-making tools and strategies to address financial shortfalls, emphasizing the importance of effective financial planning and control for enhancing the efficiency and quality of healthcare services. The report covers key aspects such as cost allocation, budget planning, and risk management within the healthcare environment, providing a comprehensive overview of financial management practices.

HNC/HND Health and Social Care Management
Unit 14:
Managing Financial Resources in Health and Social Care
 Name: Alina Cristea
 Student ID: 14020
 Qualification: HNC In Health And Social Care
 Park Royal Campus

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1.1 ....................................................................................................................................................
1.2 ....................................................................................................................................................
1.3 ....................................................................................................................................................
1.4 ....................................................................................................................................................
2.1 ....................................................................................................................................................
2.2 ....................................................................................................................................................
2.3 ....................................................................................................................................................
2.4 ....................................................................................................................................................
3.1 ....................................................................................................................................................
3.2 ..................................................................................................................................................
3.3 ..................................................................................................................................................
4.1 ..................................................................................................................................................
4.2 ..................................................................................................................................................
4.3 ..................................................................................................................................................
4.4 ..................................................................................................................................................
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
The organisation financial resources (including Cash, Liquidity & Scarcity) which is
usually managed by the systematic management & work is categorised by effectively &
efficiently. This particular report is based on financial resources of management which is for
Silloth Nursing & Residential house. It is basically established to provide the best health $ work
for society welfare. The present organisation gives facilities to millions of patients & help them
to cure then there diseases that improves there health. By the required information for managing
financial resources can be described through principles of cost & business control system. In
other simple words, In this assignment the management for cost effectiveness & reduction
expenditures are reduced in a well manner. Thus, the management of financial resources &
improvement with economic position by preparing budget is to express by tools & their
techniques. This present report is highly helpful to understand the recommendation for the
improvement under health & care of society services & also understand the adequate decision
regarding financial transactions
1.1
Costing is a very essential element in every organisation whether it is a profit
organisation or the non profit organisation. It a system technique which is work for the price
determination for services provided by Silloth home. That affects the organisation(Allred &
Addams, 2013) probability & productivity. Thus, cost is categorised on the basis of the price
determination are as follows:-
Cost relates with its cause: Price is determined based on cost incurred on expenditures on
production of services, forecasting market demand, competitiveness etc. Therefore, cost
for producing, medical services to hospital's patients are set on the basis of expenditures
on tools and other facilities utilised in hospitals (Bundy, Shropshire and Buchholtz,
2013).
Cost is charged after it is incurred: After investment on operation, incurred cost is
determined as expenditure. Thus, it is principle of Silloth home care that after investment
on producing services, price is set for medical and treatment facilities to entity's facilities

Cost incurred for business operations in pastime not in consideration to future cost:
Costing is always based on actual incurred expenses which is not linked with future
operations. Hence, hospital entity sets price on behalf of incurred expenditures in present
time for providing treatment and hospitalisation (Castka and Prajogo, 2013)..
Business control system: There are several systems used for managing and controlling
Silloth home care operations. It is devided in some elements which are, Controlling of
Purchasing, Tracking the customers, Sales point Merchandising etc (Chathoth & etal, 2014). By
this system of controlling are as follows.
Inventory control: Inventory control is a process for monitoring over excess of operations
and managing all activities of business entity. It affects liquidity of organisation as well
profitability related to hospitalisation and treatment services of organisation. It is
considered that inventory control system is to prepare strategies for getting proper
satisfaction from service takers of the organisation (Collier and Bienstock, 2015).
Point of sale: It is one of the essential controlling system where a retail transaction is
finished at a place and in a specific time. However, at this point, service taker pay charge
on facilities provided by entity. Afterwards, entity issues receipt for transaction to present
payment on services.
1.2
The information is required for the adequate cost allocation, decisions making,
investments on the services which is provided by hospital (Dabholkar,2015) which is helpful for
the management in the organisation. There are some information which is highly required in
managing the financial situations in the organisation are as follows:-
Accurate accounting information: It is essential to have true and fair accounting
information of last years' operations including investment and return on it. On behalf of
which, further decisions can be made for organisation's functioning and accounting

information. Thus, accounting information are needed for Silloth home care to provide
satisfied treatment services to patients effectively (Daniels and et.al., 2013).
Audit report information: Audit Reports of organisation show financial and non-monetary
performance of hospital entity should be audited and creating balance for production of
services. Thus, for decision making for Silloth, it is needed to have audited financial
statements including profit and loss account, balance sheet etc. (Deng, Kang and Low,
2013). Therefore, on the basis of these audit information, further strategies and decisions
can made properly.
Risk Management Information: Forecasting for upcoming risks should be done in
consideration of Silloth for reducing them and improving health care services (Deng,
Kang and Low, 2013). In this regard, different strategies can be prepared for managing
risks and further decisions.
1.3
As under the UK book which is based on the regulations & rules of that country which is
based on the hospital services and there care & welfare. These guidelines helpful for the
organisation that includes hospitalisation and treatment of patients which are as follows:-
NHS commission board: This regulatory body is helpful for financial plans and
guidelines for increasing operational activities of Silloth home care. In addition to this, it
provides provisions to be followed on for effective monetary control and improving
healthcare sector (Forrester and Maute, 2013).
GAAP: It stands for 'Generally accepted accounting principles' which remains effective
for adequate financial transactions and ensures that prepared financial statements are
according to principles or not (Gallego, Rubalcaba and Suárez, 2013). However, prepared
accounting principles are used for Silloth and effectiveness in health and social care.

1.4
The organisation management is based on there financial resources which includes notes,
book keeping, accounting, statement of finance on early basis. This will help to improve the
economic position which create and generated the new innovating ideas in Silloth home care
which reduce the excess in expenditure which are as follows:-
Invoicing and bill collection: Business operations' transactions are presented by
invoicing and bill collection as a validation. Therefore, through analysing these bills and
cross checking with financial statements, further investment on services can be decided
effectively (Harris and et.al., 2013). Thus, it is needed for Silloth home care to identify
bills for accuracy of accounting information.
Financial tools: These evolves profit and loss account, balance sheet, financial notes as
journal and ledger of hospital entity are analysed by which further planning and decisions
made for health promotion. Therefore, for providing treatment to patients and forecasting
for further investments is created based on analysing these tools efficiently.
Budget planning: It is appropriate for best use of resources and fund that affects
allocation of goods to achieve proper satisfaction from its patients. In this regard, budget
planning including forecasting and decision making is created for effectiveness Silloth
hospital entity's management efficiently (Liang, Ma and Qi, 2013).
2.1
There are some different essential sources which help to enhance the revenue &
profitability or productivity of Silloth home care are as follows:-
Private health insurance: Hospital entity can increase its revenue through providing
health insurance to people also able to build up society's trust towards social care services
of Sillloth home care. Therefore, economic position of entity can be improved as well
financial aid to country's people efficiently (Meixell and Luoma, 2015).

Voluntary organisation/ private clinic: Through setting up new entity for health and social
care also Shittol can improve its earning capabilities. However, by providing
hospitalisation and treatment services privately to achieve patients' maximum satisfaction
level with services is good option for organisation to improve profitability as well.
Other health care facilities: By providing special services to patients and taking charge on
it is able to increase income level of Shittol home care (Weiss, 2014).. For example;
selling drugs and other emergencies for treatment services can increase effectiveness of
hospital entity and improving its efficiency.
2.2
The financial resources which is basically work as under the different financial factors
which is Ability to allocate the regional negotiation, local demand, political sensitivity, central
government, index of social deprivation, awards of national pay, rates of utilisation &so on.
There are some essential factors the affect the services of the health & care of society are as
follows:-
Central government allocation: It is analysed that allocating fund from government
impacts on financial transactions and operations of Shilloth hospital entity (Weiss, 2014).
In this regard, different strategies are prepared for adequate funding and managing all
financial resources. However, effective fund allocation form government increases
revenue and profitability able to provide better services of hospital entity.
Political sensitivity: Due to fluctuations in government policies including income tax rate,
interest rate affects operations of hospital entity. However, increasing in these rates
affects negatively while decreasing in these rates creates positive impact on health care
and social services of Silloth. Therefore, political sensitivity impacts on organisation's
operations for providing hospitalisation and treatments to entity's patients.

2.3
Planning and decision making which is basically work under the operations and
investment are the approaches of budget expenditures. (Castka & Prajogo. 2013). In this there
are some following kinds of budget expenditures:-
Operating Expenditure budget: Through this system, cost incurred on expenses for
providing hospitalisation and treatment services are estimated. It affects organisation's
effectiveness and efficiencies regarding systematic planning procedures to be followed on
(Collier and Bienstock, 2015).
Capital Expenditure budget: In this type of planning procedure, cost incurred for
purchasing heavy materials is forecasted. For example; purchasing X-ray machine, CT
scan machine and other equipment for better surgery and operation of patients. Thus,
estimation is created for investment that affects services and profitability of Silloth home
care.
Marketing expenditure budget: It involves activities for advertising for health care
services to aware society with its services and building up their trust (Dabholkar, 2015).
Therefore, estimation for marketing expenditures is created on the basis of having fun at
workplace as well ability for further operations.
Health and safety expenditure budget: For providing additional services of Silloth home
care like; ambulance, emergencies in treatment, CSR activities etc cost is estimated to be
incurred. Therefore, safety related to insurance, mediclaim facilities' expenditures are
estimated in health and social care through this budget expenditure (Daniels and et.al.,
2013).
2.4
The analysation of healthcare services to hospital entity patients are based on the decision
making tools under the operations & investments. Under this, decision making is based on the

choosing the best alternatives which is suitable or reliable for the Silloth home care (Drummond
& etal,2015). The tools which are used under the decision making system are as follows:-
Demand on services: It is recognised that at which level patients demand for treatment
services of entity. However, demand and services both are interlinked with each other in
which for increasing in demand increases price for providing services. Therefore,
decision making regarding incurred cost for expenditure for hospital's services (Forrester
and Maute, 2013).
Rules set by regulatory bodies: For health and social care services, different rules are set
by government and regulatory bodies including planning, budget, specific number of
service providers etc (Harris and et.al., 2013). Hence, on the basis of this tool, further
decisions are made for hospitalisation and treatment services effectively.
3.1
As under the health & social care services the financial shortfalls are usually occurred in
the organisation as due to insufficient fund or the improper activities. The management of the
tools and the techniques are, sourcing of additional financing, taking financial aid from central
government and other specific tools. There are some methods which is highly helpful to the
reduction of the financial shortfalls are as under.
Sourcing additional financing: For efficient funding and proper financial management, it
is needed for Silloth home care to arrange additional fund to satisfy patients at maximum
level (Meixell and Luoma, 2015). Thus, innovations can also be created for health and
social care effectively that affects further operations and public welfare.
Taking financial aid: Management of financial shortfalls is possible through taking
financial aid from central government and bank etc. Therefore, lack of fund can be
reduced efficiently and health promotion can achieve effectively (Weiss, 2014).

3.2
If there is a case of occurrence of suspected fraud occur by Silloth home care can act
against or it can express as follows:-
Fraud detection and investigation: At first, it is necessary for organisation to detect fraud
and reasons behind it. Including this, truth and confirmation about suspected fraud is
required to be determined that affects organisation's operations and its staff's ethics
(Bundy, Shropshire and Buchholtz, 2013). Therefore, organisation at first requires
investigating fraud and causes for it.
If fraud has taken place internally: After identifying fraud, Silloth home care can take
legal action against it through dismissing its suspected service provider. Including this,
rule amended in Enforcement Law against fraud are required to be followed to reduce its
and increasing loyalty in staff for providing treatment and hospitalisation effectively.
3.3
Monitoring of the budgetary system is that process which controls the over excess of the
operation and allocation of resources & fund in the health and care services (Harris &etal, 2013).
There are some following arrangements which can be used by Silloth home care.
 Creation of the internal & external auditing of the entity of hospital as well as taking care
of environmental factors that usually affects the facilities of operation system &
treatments of there patients.
 Preparation and Planning of smart and innovative ideas that help to accomplishment of
the small goals in a certain specific time limit.
 Analysation of the patients which is the base of the home care which make views on the
hospitalisation & the treatment services that are provided for there welfare & care. Thats
why there is and advancement of the innovative ideas on regular basis that will certaily
affect in the satisfaction level which may higher(Liang, Ma and Qi, 2013).

 The productivity & profitability of hospital entity which is based on the allocation of
available resources & the funds.
 Enhancing the health & social care at the higher level organisation provide some several
strategies which can be applied.
4.1
There may be collection of the information for the proper treatment in hospital entity that
are required with the financial decisions. The information which includes the capability of
earnings are taking from last years which help to increase the satisfaction level of the patients of
Silloth home care by the performances of the evaluating & advancement of the hospital staff
(Weiss,2014). There some important information which are required for financial decisions that
improve the hospitality & treatment services of hospital.
Analysis of organisation's performance: Performance of hospital entity is analysed
through this method by which decisions are made for improving its services. It generates
idea for investment to adopt technologies and innovations in improving services to satisfy
patients at maximum level with its facilities (Castka and Prajogo, 2013). Therefore,
financial decisions can have made efficiently.
Market research and creating innovations: It is needed for Silloth to conduct market
research by which earning capabilities and competitiveness of entity can be analysed.
Including this, identifying income political environmental tools such as income tax rate,
interest rate etc (Collier and Bienstock, 2015). Financial decisions can be made
efficiently. Thus, on behalf of analysing these tools, further financial decisions can have
made that affects hospitalisation and treatment services.
4.2
The relationship between the health & social care of Silloth home care are based on the
expenditures & incurred cost. This aspect is so much understandable by the associated of costs
which is analysed the services of hospital entity on the behalf of the price which is determined

for production of the health care services. The expenses is incurred for the marketing, operations
& hospitalisation which is identified by organisations decision making of price
determination(Huang & etal, 2014) This is actually, a set based competitive marketing demand
that affects the society trust for the hospitalisation which is effectively done. Some terms are
linked with each other for making the place in the health 7 care social welfare sectors for
treatment & giving the hospitality services.
4.3
The valuable financial consideration of Silloth home care with the enjoyable benefits and
with the working strategies that providing the price for the health & social care services
(drummond & etal, 2015). There are some essential points which create the high impact of the
financial consideration are as follows:
Improving in services of hospital entity Considering financial tools as well economic
position of hospital entity remains able to improve its services to satisfy its patients at
maximum level. In addition to this, it can increase effectiveness of entity and improving
its efficiencies (Allred and Addams, 2013).
Enhancing working efficiencies of hospital staff: Silloth home care organises training and
development for enhancing working efficiencies and encouraging them for effective
contribution in team building. However, motivate services providers deal with patients
more effectively also fulfil patents' needs. Thus, staff can perform their work with more
dedication remains helpful to maximize patients' trust towards its services (Health and
social care services, 2016).
Therefore, the requirement of the financial considerations are improving with their effectiveness
and efficiencies of hospital entity (Daniels & eatel, 2013) which entirely make impact and effect
the hospital environment. Thus, the financial considerations remain beneficial for effectiveness
of Silloth can allocation of resources which are adequate & the funds which effectively work
over the organisation. This remain beneficial to improve the services & maximizing patients &
there trust for the hospital entity & there treatment services.
4.4

The essential element for the organisation to implementing the strategies for the
promotion basis of hospitals care & welfare for the society. This will increase revenue & reduce
the expenditures of Silloth home care on the health & social welfare & care services. According
to this feature there may be changes in the systems of finance which creates & affects the
patients satisfaction level with the treatment & the hospitality of the hospital entity. There are
some several paths with the aspect of effectiveness of the health & care which is set price basis
of the services which is provided by the hospital entity will affect the revenue incurred,
expenditures marketing & operation system. The changes in financial systematic approach are
helpful to implementation of the useful strategies in a proper health & social care services
(Bundy, Shropshire & buccholtz, 2013). Regarding this additional facilities are provided are like
foods services, as well as accommodation in systemic way which remains effective to maximize
taking care & trustworthiness towards the health & promotion system. The cost efficiency &
effectiveness will require to analyse the incurred cost on the production of services as well ass
the public welfare efficiently. Thus, the financial set price consider all the planning procedure
which is essential for the hospital entity with there effectiveness as well as the health &^ social
care.
CONCLUSION
On the basis of this report, the financial resources managed by the adequate & the
systematic decision making procedure & health promotion for Silloth home care. Under this,
Principles of costing for production of there services. There are so many variates of the tools 7
techniques which is presented with there strategies and helpful to maximization of the patient &
there trust. There are some budgetary expenditures which are expressive for the set the adequate
investment procedure on the hospitals services. Thus, there is thwe deep understanding which is

created for the improvement which is getting through the sources which is produce the welfare
related services are more quantitatively worked.. The management system of the financial
resources & their decision making in the aspect will be in more understanding way that usuaslkly
affects the health promotion strategy & increasing the promotion with the efficiency in the social
welfare & care services by this assignment.

REFERENCE
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maximization: Evidence from mergers. Journal of Financial Economics. 110(1). pp.87-
109.
Drummond, M.F. and et.al., 2015. Methods for the economic evaluation of health care
programmes. Oxford university press.
Forrester, W.R. and Maute, M.F., 2013. The impact of relationship satisfaction on attributions,
emotions, and behaviors following service failure. Journal of Applied Business Research
(JABR). 17(1). pp.89-138.