Unit 4 Managing Financial Resources In Health And Social
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Financial resource is very important every organisation it is just like a blood for the business without finance they can not run their business activities (Fortier and et.al, 2017). In this reports explaining all kinds of resources and also manage their fund in order to support their activities.
1.1 Explaining the principal of costing and business control system
These are the Important of costing and discuss in given below
cost is related to its cause – Silloth nursing and Residential care home has implemented these several best costing principal for health and care of patients. These are the principals, cost can be defined as the price to pay in order to bring a finished goods and services to the market. The aim of costing is to help providers manage services and improve working efficiency. Every cost which is obtain a cause (Hansson and et.al 2016). Therefore, there exist a cause relationship the value incurred for a cause must be added up in that item only for which is price is change .
Abnormal costs are charged in costing- it is basically the cost which occurs due to any uncertainty like fire, theft, negligence etc. therefore this types of cost must not be added in the direct costing of item and also this value has no direct relationship with the costing of goods or product items. Silloth nursing company also use this cost if any fire occurs at their go-down than the cost of due to fire will be included in the rest of the items that have manufactured and not with those portion or items who are not yet now manufactured.
Past cost are not taken into consideration to future cost – past costing are never added in the future manufacturing as it will take the price of the product and will not show the true cost of the product. Silloth nursing industry follow this point for advertising and promotions costing , which is considered as deferred revenue expense and it distributed in a specific time.
Stakeholder engagement- it is consist with the accuracy of costing depends on the information providing by range of stakeholder. Silloth nursing clinical staff is bale to giving more accurate information for costing, it is non finance department these department including only those cost which are related non finance department.
Consistency- it is refer with the entity consistent formulation in accordant to all department and unit for measuring the value. Similarly Silloth nursing identifying the need for all department and measuring the cost per unit.
Transparency- this principal showing the cost of health and social care like Silloth nursing care it is clear and easily audit, this company can use this method for controlling the cost.
Per patient cost this principal is useful for the payment of patients after the valuation of per patient, it will calculated by dividing all the variables and fixed cost change over a period of time by number of patients appointed in the Silloth nursing and Residential care home.
1.2 Identify information needed to manage financial resource
Financial resources are very useful for every organisation to run their business for long term without financial resources no any one manage their business as well as not managing these resources, so it is necessary to identifying the need of managing financial resources. Silloth nursing and Residential health care company, required their financial resource to make payment their employees, procurement of material, medicines, bed, equipments and others. These are the requirement giving their whole staff and patients also by make a plan how much revenue on these sources. This industry receive revenue in term of payment which is obtain from their patients. Silloth nursings will managing their financial resources in effective manner when the entity is clear with correct accounting method for measuring the cost of per patients and other items.
Financial resource is very important for identifying and assessing the information of business need in efficient management and taking risk for high return on future so it is very compulsory. It is also related to neglect of staff, death of patients some time failure of operation, this company managing their financial resources in proper way and also tale a possible risk. This organisation also take risk can be seen regarding to miss happening with their employees, death of patient. In addition to this, the budget and auditing reports are related with the procurement expenditure, financial price, administrative expenditure, marketing expenditure, reconstructing of building cost and legal value. All these expenditure are included in financial resources and this industry also managing these resource for full fill their business need and patients need. This care home also follow all the policies and system related with the allocation of resources.
1.3 Explain the regulatory requirements for managing financial resources
Any type of business must apply the basic regulatory requirement to sure the success of that industry. These organisation in function organisation work run in smoothly way within standards of the statutory provisions of that specified country. Silloth Nursing and Residential is the good example in united states which regulates all the financial transaction of health industry. This organisation follow all principles that govern information related with enforceability and arrangement of contract. Some contract add indemnity letters, pledges and agency and it also provide the provision of break of contract. All other regulations concern to the issue of quality management. Government are responsible for enforcing quality standards within the firms that giving the services to their general population.
1.4 Evaluate system for managing financial resource in a health or care organisation
There are the many method for managing financial resources in health and social care. Silloth Nursing can used in functional activities which is concern with best known system and very effective for this organisation management and its financial resources.
Open system- Silloth Nursing are also following this system it is refer with computer softer ware which is most important and common in health and social care because of it is applicability of use and software gather all financially information at one place by importing all financial and tax information in to their system. This organisation use open system software it is very helpful for collect all the financial information and tax information also in to their system. After collecting the information , data and then evaluating their income and expenditure of the entity. This software help in making decision related to busying and selling their customer services.
Caresys software- This is also computer software is made by considering all the financial and non financially activities done in Silloth Nursing organisation and it also includes all the information of employees like salary, holidays, time, attendances means collecting all the date which is relating with the service as well as whole staff.
2.1 Discuss the diverse sources of income that may be encountered in health and social care
Silloth Nursing and Residential is focused on giving the services related to specialist social care. This organisation main motive to providing the quality services which is meeting commissioners whole requirement. The entity is dealing with four segments which is generating the revenue.
Adult learning disabilities- it is related with adult residential care homes, independent supported living and community giving the full support for their services. Silloth generating their revenue in 7.39 million in year 2013 from this segment. This organisation also raising their dividend per every year and developing their business and it also include other sources secured bank loans and profit shares in the previous years.
Mental health- this segment help to made increase their revenue in every year, Silloth Nursing also giving community based hospitals, adult residential care homes also and independent supports living so this organisation also generating their revenue every year for their growth of the hospital and giving a quality services mental patients.
2.2 Analyse the factors that may influence the availability of financial resource
A business entity is enclosed by several factors which influence the availability of financial in organisation such as payment of tax, free health check-up, charitable activities and so on. Silloth Nursing also influence the primary affairs which is considered with factors of availability of financial resources in their work. The objective and strategies of this hospital to prodding lot of benefits their patients. The management of this hospital is to make efficient plan for the growth and development of their enterprise then it will affect the availability of financial resources with their hospital business. This organisation also establishing the strong position in the market through acquired EQL solutions which increased the care pathway of the entity. This hospital also acquired assets for providing better services their customer and extending their business activities. Government also make plan to enhance the heath and social care of nations, it also providing funds related with health and social entities for increasing their services in best way and expand their reach through heath care services. This organisation also providing best services to people through with the help of higher authority.
2.3 Review different types of budget expenditure in health and social care organisation
Silloth Nursing and Residential care home are used different kinds of method for prepared budget. The types of budgets which can be made in this organisation.
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Fixed cost and variable cost budget- In this budget , the Silloth Nursing can be prepared to monitors and control the fixed cost and variables cost in proper manner. They estimated the actual cost of this budget it will need to incur to giving services (Sweeney and et.al 2015). Fixed cost is refer with cannot be reduces or not change it will be fixed but variable cost change according to change in out put . It is very help full budget for reducing the cost of operations.
Administrative cost budget- it is related with all those expense or cost which are incurring indirectly in availing of services. It also include cost affiliated with payment of salaries to clinical and non clinical employees , managers, use of stationary and etc. Silloth Nursing also make their administration cost budget including all those expense which are refer with payment of salaries to clinical and non clinical staff.
2.4 Evaluate how decision about expenditure are made within a health or social care organisation
The expenditure of Silloth Nursing and Residential care home enterprise is not always fixed as their business activities is covered by different way which could be come up at any time. This organisation add their business entities and make plan for the enlargement of working activities by inculcating new product or services in its portfolio (Hoque, 2017). This organisation make a effective plan and identifying availability of finance. This care home use their appropriate funds for running their work and then it make fast decision about further expense but if these funds are not in capable quantity then its entity identifying the different sources of finances from which it can obtained their monetary resource. Further , decision about expenditure could be made by assessing appropriate places for the business, demand for care services, numerous of existing competitors, coming a new polices which is made by government through and other regulatory framework. This company take right decision for coming new opportunities and main motive to make a perfect budget for earning more profit and providing the qualities of services their patients.
3.1 Explaining how financial shortfalls can be managed
Financial shortfalls is consist with curse of business entity as it can advantage of organisation to become extinct from the market. Financial shortfall put some barrier on their operational activities of the business because every company want to overcome from with out any deal with all types of conditions in effective manner, Silloth Nursing can also following these practise. Working within estimated cost this is very full for eliminating extra cost burden from the entity (Rothenberg and et.al 2017). It also include additional obtaining of funds from the government this organisation can also obtain their extra funds from the higher authority when the situation of financial shortfall and it will help for stimulate their working activities. The entity can end up those services which is destructive huge availability of cash or funds. So this organisation will able to face this situation if in case patiences are not sanctified with this hospital services so company focus on improve their services and divestment their services or stopping existing services another new types services providing their customer in effective manner.
3.2 Explain the action to be taken in the event of suspected fraud
Some time fraud and intentional errors are the main problem of the Silloth Nursing organisation where the higher authority money is infused through government grants and public donations (Medway and et.al, 2015.). This organisation regular inflow of money through several number of sources is explaining and generally the expenditure are not segmented. So it refer with the leakage of incomes this health care home. This company find out the fraud and following major steps to be taken in effective manner. They create investigation and find out that persons who behind the frauds in their hospital. These fraud are very harmful to the organisation as some time employees are responsible for fraud so in case any work creating some problems in work so company has to right to take action against particular person. This organisation main motive to solve their problem and remove their fraud which is create problem in service in hospital and fin out the optimum solution for maintaining the reputation of their hospital.
3.3 Evaluate budget monitoring arrangement in a health or social care organisation
The method and techniques Silloth Nursing and Residential care home company can use to overcome the chances of over budget premise (Giles-Corti and et.al, 2016). This organisation making an effective and efficient budgetary plan it is very helpful for deciding in advance for future activities in their hospital business. They maintain all record and managing their financial resource by making better environment in their company and they prepare health care budget in proper way and covered all the possible budget. They also motivating their staff, employees in the budget formulation activities. Budget is very important part of every organisation it is depend only employees work performance according to time.
4.1 Presenting the information required for the health and social care in financial decision:
In health and social care the financial decision play an important role. The main aim of the financial resources is to provide proper health care and social care and it is important to have the information in accurate and clear form. There are many resources available which may be in the form of financial and non financial .The accurate information gives us the idle way to present the welfare of the company and to take a good decision which improve our welfare for the company (Mitchell, O. S., Hammond, and et.al 2017). The company should present their audit reports in the best way so that they can properly manage the past and the previous records and compare the result. The budget information should also be given to achieve the better goals in future and there should be proper numbering which is easily understand by the reader and can analyse the outcome and fill the needs of the consumers.
4.2 Showing the relation between health and social care service
If the cost is saved by the doctors then the patient when comes for check up then doctors were not provide proper treatment to them as they don't have the machines to operate them and this creates a wrong impact on the patient and the goodwill is also affected. There should be transparency and clear about the services as it provide the long run and the have goodwill for the company (Hansson, and et.al, 2017.). The expenses they occurred during the operations, if that will be adjusted during the time then the services are not proper for the hospital and it will also create a wrong impact on the goodwill of the company. The delivery which is done during the period is not reach on time then it creates a negative impact.
4.3 Impact of financial consideration on health and social care services.
Financial management is that area where an organisation can be achieve the set goals and find the objective of the firm (Hoque, 2017.). The services related to hospital such as the nurses, staff and the operation items should be provided and be in a good quality. The budget should be in the benefit of the consumer need or patients need as if increase the budget on the medicine will decrease the budget of advertisement . There should be avoid to the extra facility provide to the staff like should not pay higher salary to the unnecessary staff and should have a focus on the main thing only.
4.2 Presenting some ways which help in improving thehealth and social care
The health care should make budget but in the form of adjusted form for the future needs and forecasting. Expenses budget must be created but to see what is the usage in the upcoming time (Pastore, and et.al 2017). The money should be use in proper way as it is received by the donation and NGO so there should be proper usage of the money to attain the maximum sources. Proper old age home should be make for the health care of the old age persons. Proper managers were appoint to lead the team in right direction in effective manner and they should keep the eye on reducing the extra expenses. Proper take care of the health and old age homes by the management team. Proper management team should be allotted to the team in getting the work comes fast and in accurate way.
In the end it can be concluded that health and social care home also need to manage their financial resources as with use of Monterey funds they perform many task that make explaining of their salaries, maintaining their services or relationship with patient and other important expenses.
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.
Pastore, R., Pesce, G. and Caggioni, M., 2017. Differential Variance Analysis: a direct method to quantify and visualize dynamic heterogeneities. Scientific Reports, 7.
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