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Productive management of financial resources has gained significant concern in health and social care entities after the amendment of The Health and social Act 2012. The act specified that the health practitioner and social care manager have to be more innovative, productive and accountable related to quality, safety and patient experience while delivering the NHS, Adult social care and Public health services. This report was made to construct the deep understanding about planning and management of financial resources need to be done in the social and health care and for this purpose CareTech Holding Plc, a leading Social care services provider of UK was taken. The report will explain how monitoring and controlling of financial resources and decisions can be done in health and social care.
1.1 Principles of costing and business control systems
NHS has approved six best costing principles which can be implemented in health and social care like CareTech Holding Plc. These principles are
According to this principle, CareTech Holding Plc can estimates its cost by including cost related to non-finance department. The cost which are considers in non-finance department are related to clinical staff and non- clinical staff.
This principle states the entity should adopt consistent approach in its all departments and unit for measurement of cost.
This principle states the entity like CareTech will able to compute right cost when the different data are properly recorded. To make this possible, the entity should maintain a proper recording system related to journal entries, ledgers accounts, trial balance, staying period of patient, time spent by clinical staff and other to make appropriate decisions.
It states the entity should accurately record the cost related to material procurement and other activities for the right calculation of cost.
Causality and Objectivity
This principle entails the costing should be based on an understanding of causality to minimize its subjectivity. It means analysis of causality should be done before measuring the cost as it will help in reduction of causality.
This principle expresses that the costing of health and social care like CareTech should be transparent and easily auditable.
CareTech Holding Plc can use underneath methods for controlling of cost-
Cost Centered Approach
In this, the manager of CareTech will give emphasis to keep the cost within the expenditure budget. It is because if the cost will increase then it will wipe out profits of the business.
Per Patient cost computation
The entity will able to set the fee of patients after valuation of cost per patient. It will be computed by dividing all variable and fixed cost incurred over a period of time by number of patients appointed in the organization.
1.2 Information needed to manage financial resource for CareTech Holding PLC
In social and health care, a entity requires financial resources to make payment to staffs, procurement of materials, equipments, medicines, beds and others. They can meet this requirement by careful planning of its revenue sources. A health and social care receives revenue in terms of fee which it receives from patients. CareTech will manage its financial resources in the best manner when the entity is practicing transparent and accurate accounting method for the measurement of cost.
Further, the efficient management of financial resources will be possible by implementation of effective management of risk will be done by identification and assessment of possible risk. In health and social care risk can be seen related to negligence of staff, death of patient due to failure of operation etc. In addition to this, preparation of budgets and auditing of reports related to procurement expenditure, administrative expenditure, financial cost, marketing expenditure, renovation of building cost and legal cost will also assist in management of financial resources in CareTech.
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1.3 Regulatory requirements need to be satisfied while managing financial resources
In health and social care, due diligence is must required for the safety of patients. There are various authorities or regulators who make rules and regulations for health and social care.. Following are the regulators who specified regulatory requirements for health and social care-
Care Quality Commission
It inspects whether the health and social care entities are meeting national standards or not. On the basis of this inspection, they issue their findings to aware people about the degree of services provided by the particular entity. This helps people to make better choices for selecting appropriate health and so