Exploring Revenue, Expenses, and Funding in the NSW Healthcare System

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HEALTH FINANCIAL MANAGEMENT
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Table of Contents
Question 1...................................................................................................................................................3
Question 2...................................................................................................................................................4
Question 3...................................................................................................................................................5
References...................................................................................................................................................6
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Question 1
Revenue v/s Expenses
1. Revenue is the word that states about the income that can be earned from the business
transaction done by the health care system. The expenses show that the cost that is
incurred by the business for performing any activity or for making the revenue for the
business (Duckett, and Willcox, 2015).
2. Revenue is earned by the company when the company starts providing their services to
all the services receivers or the individual who want the health service. The difference
between revenue and expense shows the profit of the company(Evans, and Stoddart,
2017).
3. Expenses include various types of costs that are incurred into the business such as labor
cost, all the expenses that affect the company such as rent, electricity expenses insurance
expenses, interest expenses, and depreciation expenses. There may be many more
expenses that may be covered under it. Revenue can be classified an anything that is
received because of providing the service is revenue(Evans, and Stoddart, 2017).
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Question 2
The flow of Federal and State funding through the NSW Health System
The fund flow helps in producing the financial statement of the health care organization every
quarterly. It also includes all the books of accounts that include all the information regarding the
assets as well as the liability of the health service company. It also helps in research on all the
issues that are related to the financial market as well as the economic sector(Duckett, and
Willcox, 2015).
Basically, the health reforms have the main aim of focusing on the providing the better system of
health so that it may be accountable and also it can be easy to measure the outcome and also the
performance of the system. There are many reforms that are to be implemented by the NSW
health system at all the state level as well as the local level(Evans, and Stoddart, 2017).
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Question 3
Casemix and the Australian DRG system of classification
DRG system helps in providing the information related to the classification of the patient that is
treated into the hospital. The information or the classification can be made on the minimum 700
patients so that every patient can be classified based on the performance, diagnoses and surgical
procedures and also based on the information that is collected on a daily basis of the
patient(Duckett, and Willcox, 2015).
Casemixis one of the classifications that can be very much useful which helps in showing the
relationship between the cost that is incurred with the activity that is related to health care. It uses
the data of the patient so that it can be easy to understand the variation in the resources that are
used. It also used provides the various methods that are used to classify the patient as well their
respective cost and treatment (Evans, and Stoddart, 2017).
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References
 Duckett, S. and Willcox, S., (2015). The Australian health care system (No. Ed. 5).
Oxford University Press.
 Evans, R.G. and Stoddart, G.L., (2017). Producing health, consuming health care. Why
are some people healthy and others not? (pp. 27-64). Routledge.
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