Managing Financial Resources in Health

Topics: Health care, Generally Accepted Accounting Principles, Health insurance Pages: 13 (3192 words) Published: November 26, 2014

This is a report which is written based on the concept of financial management and the business resources in health care based company (Bryans, 2007). It is aimed to provide emphasis on the impression of costs and control that are available in the social health care settings. It is also required to provide deep examination of the system that are used in the health care industry to provide effective financial and resource management (Groppelli & Angelico, 2000). This ensures that the organization resources are managed effectively to provide adequate returns. 1.1 The principles of costing and business control systems

There are a number of costing principles and business controls which require the company to examine its current costs with the budgeted costs. This ensures that there is good cost control since the company spends its financial resources in accordance with the budget (Mick and John, 2003). Costing methods which the company uses should be the ones which control the company expenditures. The company should use bidding system when purchasing its health care resources since this provides amore legal guideline of procurement procedures (Martin et al, 2010). During the procurement process there should be high level of transparency, integrity and due diligence so that the company manages its expenditures and costs efficiently. 1.2 Identify information needed to manage financial resources There are a number of financial and non financial information which are required in the management of financial resources of the company (Martin et al, 2010). The availability of this information is very important in costs allocation, decision making and cost control so that the resources of an organization can produce high investment returns. Transparent and Accurate Accounting Information

It is important for an organization to have accurate and transparent accounting information which can increase the confidence of their users (Watson and Head, 2012). This provides them with an opportunity to make appropriate decision which can improve the welfare of the company (Martin et al, 2010). Accurate information provides the management 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. Risk Management Information

The business organization must have deep understanding how it can manage both financial and business risks which are likely to affect its returns. This is necessary in health care business organization since it can cause fluctuation in returns which reduce the goodwill of the company. Short and long term forecast

The health and social care company must have short and long term projections on the results which it plans to achieve. This is important in development of goals and strategies since these long and short term forecasts can only be met through establishment of good management strategies (Bryans, 2007). It is also important in the creation and formulation of budgets which reflects future performance of the company thereby allocating resources which is able to achieve the set objectives. Audit Report Information

This 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 properly 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 company. 1.3 Explain the regulatory requirements for managing financial resources Care Quality Commission

This is a very important regulatory body in UK which forces all health...

Bibliography: Bryans, W. 2007. Practical Budget Management in Health & Social Care, Radcliffe Publishing Ltd. ISBN: 978-1-84619-100-8
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Department of Health. 2011. Safeguarding Adults: The role of health services. Publications
Edwards, A. 2012. Putting patients first. British Medical Journal, 344, pp. 233-240.
Groppelli, H. & Angelico, A. 2000. Finance, 4th ed. Barron 's Educational Series, Inc. p. 433.
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. Routledge, ISBN: 978- 0-20385-693-2
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Watson, D. and Head, A. 2012. Corporate Finance Principles and Practice. 6th edition, Harlow: Pearson ISBN: 9780273762874.
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