Managing Financial Resources in Health Essay

IntroductionThis is a enshroud which is scripted base on the concept of fiscal oversight and the business resources in wellness c ar based union (Bryans, 2007). It is aimed to abide emphasis on the impression of cost and control that atomic image 18 available in the fond wellness heraldic bearing settings. It is also necessitate to provide deep examination of the system that be used in the health condole with industry to provide impressive pecuniary and resource fuckment (Groppelli & Angelico, 2000). This experiences that the organization resources are managed effectively to provide adequate returns. 1.1 The principles of costing and business control systemsThere are a number of costing principles and business controls which require the come with to examine its current cost with the bud jerk offed costs. This ensures that on that point is good cost control since the participation go bys its financial resources in accordance with the figure (Mick and John, 2003 ). Costing methods which the go with uses should be the ones which control the participation expenditures. The participation should use bidding system when purchasing its health manage resources since this provides amore profound guideline of procurement procedures (Martin et al, 2010). During the procurement process in that respect should be high level of transparency, legality and due diligence so that the company manages its expenditures and costs cost-efficiently.1.2 Identify culture needed to manage financial resources There are a number of financial and non financial information which are required in the focus of financial resources of the company (Martin et al, 2010). The avail efficiency of this information is precise(prenominal) weighty in costs allocation, decision making and cost control so that the resources of an organization washbasin produce high investment returns. undersidedid and Accurate Accounting learningIt is important for an organization to fetch perfect and transparent report information which outhouse increase the confidence of their users (Watson and Head, 2012). This provides them with an opportunity to make enamor decision which can improve the upbeat of the company (Martin etal, 2010). Accurate information provides the precaution with a clear picture of the profitability, liquidity and efficiency of the company so that the information that the management have reflect a true state of affairs of the company. run a risk Management InformationThe business organization moldiness have deep understanding how it can manage both financial and business risks which are likely to affect its returns. This is necessary in health oversee business organization since it can cause fluctuation in returns which impose the goodwill of the company.Short and recollective term forecastThe health and social sustenance company must have short and vast term projections on the pull up stakess which it plans to achieve. This is important in development of goals and strategies since these long and short term forecasts can moreover be met by dint of establishment of good management strategies (Bryans, 2007). It is also important in the creation and reflexion of budgets which reflects future performance of the company thereby allocating resources which is able to achieve the set objectives.Audit Report InformationThis is also important information which the company critically needs to manage its financial resources (Watson and Head, 2012). The Audit report information is important is providing an assurance whether the company has been congruously managing its financial resource in the past or not (Martin et al, 2010). This can be used to improve the financial management styles which ensure that there is proper allocation of resources based on the audit report. It also influences external stakeholders to have confidence on the company so that they can provide credit or any financial assistance to the compa ny.1.3 Explain the restrictive requirements for managing financial resources Care Quality CommissionThis is a very important regulatory body in UK which forces all health care settings to provide graphic symbol, effective and compassionate health run and ensure that there is constant improvement in healthy care military service delivery (Watson and Head, 2012). It monitors the operation of health and social care settings and regulates the quality of their services.Health care sectorRegulatory monitorThis is a very important regulatory body which monitors the functions of health and social care settings. This ensures that the health care providers are transparent on their duties and fol unkept certain health care procedures when handling patients (Martin et al, 2010). This is important in establishing high level of transparency and accountability in the management of health and care financial resources.NHS Commission BoardThis a is a very important regulatory body which helps hea lth care settings in developing financial plans, budgets and management of run activities (Bryans, 2007). This ensures that the financial resources are used according to the financial plan so there is effective financial control as set out in the health care act.GAAPThis is a regulatory body which requires the company to use accounting principles which are used in the preparation of accounting records (Jones and Atwal, 2009). These ensure that the financial statements are do in accordance with the honor and they can easily be understood by all the users who are not financial experts. 1.4 Evaluate systems for managing financial resources in a health or care organization monetary management is the efficient use of the financial resources to discover the stated objectives of the company. financial management system involves the use of different tools and procedures that authorizes the control, distribution and investment of scarce resources of the company to produce returns (Mart in et al, 2010).Financial systems are very important in generating current financial position of the company. This is through the use accounting procedures and principles which are used in the preparation of accounting records. The current status of accounts shows changes which had been do foe every disbursement (Watson and Head, 2012). The accounting systems such as automated management system ensure that the company bears instantaneous feedback. This reduces the errors which could have been reflected in the financial statements by correcting accounts which fails to balance or in skid of over distribution of resources (Jones and Atwal, 2009).The availability of financial resource management systems also is important inproducing accurate financial reports which reflects true states of affairs and therefore the users of the financial statements can rely on them for decision making. 2.1 What are the diverse sources of income available to CareTech PLC in the financial year in 2013? There are different sources of income for CareTech PLC which they can use to meet its operating costs.Sale of Drugs and separate health care facilitiesThe company generates revenues by change health care facilities to different health acres settings and clinics (Martin et al, 2010). This makes it to raise income which is used to apply its staffs and purchase early(a) important goods which are used in health care industry.Voluntary OrganizationsSome organizations such as charities can provide investment companys to the company in the form of donors to finance other health care projects (Bryans, 2007). These funds can be used as a source of income to pay operating expenses, pervert health care equipments and other health care facilities.National and Local political relationThe local or national government can allocate funds to the company to enhance the provision of health services (Watson and Head, 2012). This financial resource can be used to finance different health project s and provide other basic health services.Private Health InsuranceThis is a source of income to the company by allowing the patients to get medical services which are paid by the insurance companies (Mick and John, 2003). This therefore acts as a very important source of incomes since the insurance company pays the services offered by the company.2.2 Factors that influence Income of the CompanyCentral politics allocationThe allocation of more financial resource increases the income of the company. This makes it to produce quality services since it has high income. governmental SensitivityThe sensitivity of politics in the region also affects the amount of currency the company develops as income (Steven & Sheffrin, 2003). High sensitivityof politics affects the operation of the business and therefore the company receives low income.Ability to manage regional allocationWhen the company has the ability to negotiate effectively for regional allocation of funds, it will receive high allocation which increases its income annually (Martin et al, 2010). The inability to negotiate properly for regional allocation of funds has an electric shock on income. 2.3 Review different types of budget expenditure in CareTech PLC There are very more different types of budget expenditures which are in health and care settings (Groppelli & Angelico, 2000). These include staffing costs, purchase of fixed assets, costs of consumables, loan repayment interest, long term building expenditure, marketing costs, training and health and safety costs. operate Expenditure budgetThis is a very important type of budget expenditure which the company must use (Mick and John, 2003). It ensures that all the service providers of this company are remunerated and receive different rewards which motivate them. nifty Expenditure budgetThe company must incur costs to purchase fixed assets such as motor vehicle, health equipment and buildings (Steven & Sheffrin, 2003). These are very important in e nhancing the quality of services which are provided by this company. This budget ensure that all capital assets are purchases and allocated to different departments to reduce cost and maximize returns. market Expenditure BudgetThe company must prepare a budget on how it is planning to spend its financial resources during marketing (Bryans, 2007). This makes the company to use its resources efficiently during marketing since it can only spend specie in relation to budget requirement.Health and Safety Expenditure BudgetThe expenses which the company expects to incur give-up the ghost provide health and safety services to employees are also budgeted for (Martin et al, 2010). This ensures that there is appropriate use of health and safety services without misappropriation of funds.2.4 Evaluate how decisions to the highest degree expenditurecould be made in CareTech PLC depot AvailableThe decision on the company expenditure can be made based on the available resources which determine what the company should purchase or not (Groppelli & Angelico, 2000). The availability of financial resources influence the ability of the company to acquire health care resources and therefore inadequate funds limits the expenditure of the company (Mick and John, 2003). The fund available is allocated according to priority in the budget so that most important expenditures are made to provide efficient health services to customers with little resources.Demand on goodThe decision intimately expenditure is also depends on the lead of the service which the company provides. The services which are of high demand should use higher expenditures since there is need for high financial resource. This ensures that there is quality health service when there are enough health care facilities and equipments to enhance quality service demanded.Central Government GuidanceThe expenditure of this company is also influenced by the guidelines provided by the central government so that the company can meet the principles of regulatory bodies (Steven & Sheffrin, 2003). The expenditure for the purchase of capital assets or health and safety equipments should be that improves the quality of health service as required by Central Government guidelines.3.1 Management of Financial ShortfallsThe company should also ensure that there is proper management of the budget deficit or shortfalls. This is achieved by operating within the budget so that there is no over or under expenditure. The shortages can be supplemented by the providing spare allocation from the central or local Government (Bryans, 2007). This will makes the company to purchase all the capital and operating expenditures within the budget. The shortfalls can also be managed by sourcing for additional financing from local stable financial institution to finance other activities which had not been accounted for in the budget (Watson and Head, 2012). 3.2 What action you would take if you suspect occurrence of financial bur lesque in yourorganization? There are a number of actions which the company can take when there is suspicion about fraud.Fraud staining and investigationThe company has to determine the truth about the fraud by conducting an investigation and finding those involves in the fraudulent acts (Groppelli & Angelico, 2000). Before the investigation the possible financial loss which the company has experienced should be know and how it has been happening. Valid evidence should be determined before taking any legal action. The truth about the occurrence of fraud is detected by the nature of behavior of people in the company and the expression of discrepancies in the financial records of the company.If fraud has taken place internecinelyThe determination that the fraud has been committed by one of your employees, the management is required to seek for advice from professional advisors on the possible steps to follow to go on with the problem. The company can also do an overall investigatio n to ascertain the truth of the event or take remedial action to fraudsters (Mick and John, 2003). The company can also take a legal action by reporting the case to the law enforcement agencies only if the fraud is material but unbiased fraud should result into suspension of those involves reducing legal cases which can also make the company to move back substantially.3.3 Monitoring FraudFor the company to monitor how the company uses its financial resources, it should ensure that it conduct both internal and external audits to provides the company with an opportunity to prepare its books in accordance with the law (Bryans, 2007). Internal audit is do throughout the year and it assess if the company prepares its books in accordance with the law and there is possibility that the books can provide a true and fair view of the company states of affairs. These actions ensure that there is no fraud and any other malicious acts which the employees can commit to suspect the occurrence o f frauds (Groppelli & Angelico, 2000). The company can also employ an external auditor to monitor the company expenditure and income (Steven & Sheffrin, 2003). This is able to reveal financial injure and intentional mistakes which reduce financial performance of the company.4.1 Sources of Information for Fraudulent ActsThe company can use management accounts to determine the lapses where the financial proprieties have been taking place. It can also be ascertained through the opinion of actual and projected budgets which is compared with the actual result of the company (Groppelli & Angelico, 2000). When adverse variance is very high and so the company can suspect that there is a financial fraud in the company (Department of Health, 2011). The result of internal or external audit can also provide adequate information which acts as evidence that there is a financial fraud which the management has committed. 4.2 Analyze the relationship between care service delivered and costs and e xpenditure The relationship between care service delivered and costs and expenditure is very important in ensuring that the customers are charged fairly (Steven & Sheffrin, 2003).The costs and expenditure of the company should be incurred transparently by informing the stakeholders on how the company has spent its financial resources. The expenditure of health and care settings should be done in compliance with some legal frameworks which provide guidelines on how the company should spend its funds. The purchase of health care equipment is also done through bidding process where the best bidder is to supply the required materials for health care facilities (Bryans, 2007). This ensures that all the company purchases and expenditure are done in accordance with the law through following legal purchasing framework.The use of financial resources of the company should be used appropriately this is because those involves have financial obligation to account for any finance used in the com pany (Mick and John, 2003). This reduce the level of frauds which are likely to occur in the company since officers who are involves in the purchase is responsible for any financial loss. 4.3 Evaluate how financial considerations impact upon a service user Financial considerations have great effect on the health care service delivered to users.Effect on the mode of Service QualityThe increase of financial resource in the company increases the quality of service delivered to users. This is because high financial consideration is able to pay for quality health care facilities which ensure that the users of health care settings receive quality service (Steven & Sheffrin, 2003). With low consideration, there will be a purchase of low quality health careequipment and facilities which cannot avail quality service.Change in Staffing LevelsWhen there is high financial consideration, the management of this company will be able to pay salaries of many employees who are able to provide effici ent health service delivery (Mick and John, 2003). When the services are offered at a low consideration, the income of the company becomes low and therefore the number of staff members goes down (Day and Wigens, 2006). This also affects the service quality which the users expect to get from the company. handiness of ConsumablesFinancial consideration for health care services also affects consumable (Bryans, 2007). When the service user is allowed to pay high financial consideration, there will be adequate consumable to users since there is enough money to purchase these to users (Day and Wigens, 2006). When there is low financial consideration the company will not have the ability to buy consumables.Reduction of ServicesLow consideration renders the company to be bankrupts and therefore it has to reduce the number of services that it offers to the public (Steven & Sheffrin, 2003). Low consideration also makes the company to pay for additional staff to provide all the service which the company is required to provide.4.4 Improvements of the Company ExpenditureFor the company to improve its expenditure capacity, it has to appraise its expenditure so that the company can minimize its expenditures and maximize it revenues (Bryans, 2007). Before spending the company funds, there should be an assessment of the value of money so that the purchase of any assets or payment of an operating expense matches with the value of the item of expenditure (Mick and John, 2003). It is also required to estimate unit cost of the item so that the total cost of the company expenditure is ascertained before the actual purchase. This ensures that there is no inflation of costs of the assets or any expenditure the company makes (Edwards, 2012).ConclusionFor the company to make appropriate revenues, it must control the use of its finances so that the company can use minimum costs to finance its operation. Cost allocation is also important in efficient management of health care operatio ns. High costs should be allocated to items of expenditures which are of priority so that the company goals can be achieved efficiently.BibliographyBryans, W. 2007. functional Budget Management in Health & Social Care, Radcliffe Publishing Ltd. ISBN 978-1-84619-100-8 Day, J. and Wigens, L. 2006. Inter-professional working An essential guide for health andsocial care professionals. London Nelson Thornes.Department of Health. 2011. Safeguarding Adults The role of health services. PublicationsPolicyEdwards, A. 2012. Putting patients first. British medical checkup Journal, 344, pp. 233-240. Groppelli, H. & Angelico, A. 2000. Finance, 4th ed. Barrons Educational Series, Inc. p. 433. Jones, M. and Atwal, A 2009. Preparing for Professional Practice in Health & Social Care.Chichester Wiley-Blackwell.Mick, B. and John, C. 2003. Managing Financial Resources .A Butterworth-Heinemann 2003,3rd edition ISBN 0750657553.Martin M, et al. 2010. Managing in Health and Social Care 2ndEdition. Routled ge, ISBN 978-0-20385-693-2 Steven, M.& Sheffrin, B. 2003. Economics Principles in action. Upper saddleback roof River, New Jersey 07458 Pearson Prentice Hall. p. 502 Watson, D. and Head, A. 2012. Corporate Finance Principles and Practice. 6th edition, Harlow Pearson ISBN 9780273762874.