StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Financial Management in Health Care / Health Care Budget - Assignment Example

Cite this document
Summary
Financial Management Practices Name: Institution: Instructor: Subject: Date: Financial Management Practices In an attempt for management to meet their objectives, they are endowed with activities that meet all the financial obligations in an entity to create a lasting organisation…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.2% of users find it useful
Financial Management in Health Care / Health Care Budget
Read Text Preview

Extract of sample "Financial Management in Health Care / Health Care Budget"

Download file to see previous pages

This has followed a breakdown of the various components i.e. revenues and expenses. A final analysis of the projected income is obtained in the end. Inflation has played a major role in this process and has been considered. The projections show an increase in net income which can sustain the running of the organisation (John et al, 2007). Financial drivers A clear indication of financial drivers’ consideration is deduced from this projection. The management has considered the fixed expenses in the running of the hospital e.g. utilities as well the most vital variable expenses e.g. salaries, interest expenses etc.

The breakdown shows a projection of the marketing plan that are intended to increase funds for the hospital. Financial reporting and tracking The management has a clear set of reporting in this hospital. A look at the actual accounts in 2008 and 2009 have aided in the forecast for 2010 budget. The variances and discrepancies are looked into e.g. overstock in 2009 is considered in 2010 that ultimately reduces supplies by 3%. Ineffective financial management practices for Patton-Fuller Community Hospital Financial capacity Some aspects in regards to financial capability of the hospital are brought to light in this projection.

Provision for doubtful debts should not be increasing rather it should be decreased. This is because as the entity continues to run into debts the more risks it has of closure. This being a service offering entity, professional service providers e.g. the physicians will shift to other hospitals. Negotiations on the collection of these debts should be finalized and a team set in to tackle this work. The projection for 2011 should indicate a reduction in doubtful debts. This is definitely likely to increase the financial capacity of the hospital.

On the contrary the management is just projecting an increase in revenues with increase in debts which case is highly unlikely. A look at increase the service contracts and the patients’ revenues is only targeted for the ordinary number of patients who attend the health facility. The management has no plans whatsoever to increase the number of patients attending the hospital. This can be achieved through campaigns and advertisements. Another aspect clearly seen is overstocking the hospital.

The supplies figure has to be reduced by 3% clearly an indication of overestimation and increasing stores activities. The risks of overstock could be detriment with such a set up because of expiration of products, pilferage risks, fire etc. The management should aim to control the stores movement. Benchmarking There is a gap between the projected revenues and expenses and what other competitive hospital of similar set up have. There have to be an initiative for the management to compare their financial management and assess their position.

A comparator can be used in this case. Probably the revenue per patient currently charged could be lower than the comparator. This gap ought to be filled to make the hospital more competitive. Financial tracking One of the notable effective FMP is financial reporting and tracking as discussed above. However, the same lacks enough insights towards value for money aspects. Once the services are offered there are no follow ups done with the patient. An expense can be set aside for this that

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial Management in Health Care / Health Care Budget Assignment”, n.d.)
Financial Management in Health Care / Health Care Budget Assignment. Retrieved from https://studentshare.org/finance-accounting/1444163-finacial-management-in-health-care-health-care
(Financial Management in Health Care / Health Care Budget Assignment)
Financial Management in Health Care / Health Care Budget Assignment. https://studentshare.org/finance-accounting/1444163-finacial-management-in-health-care-health-care.
“Financial Management in Health Care / Health Care Budget Assignment”, n.d. https://studentshare.org/finance-accounting/1444163-finacial-management-in-health-care-health-care.
  • Cited: 0 times

CHECK THESE SAMPLES OF Financial Management in Health Care / Health Care Budget

Financing A Healthcare Organization

Line-item budget: Line item budgets are used in private industry for the comparison and budgeting of selected object groups and their previous and future estimated expenditure levels within an organization.... The line-item budget should include all income and expense associated with the proposed project.... The major advantages of the line-item budget are that is easy to prepare, understand and justify.... The big disadvantage is that there is no relationship between the budget request and objectives and priorities, and it is different to transfer...
5 Pages (1250 words) Essay

Issues in Australian Health Services

The top three issues as noted in the survey of professionals in the system were, in this order, the increasing aging population including the aging of the healthcare workforce itself, lack of adequate funding to meet the needs of the community or to incentivize nurses to join or remain in the system, and access to health care for rural Australians.... It is clear from that comparison… They chose as their top three issues the aging of the public with its increased numbers of patients, the supply of the workforce available to care for this Australia has many problems in the healthcare system of today, very much like many other countries in the world ....
5 Pages (1250 words) Essay

HA 343: Health Care Financial Mgmt

The advantages associated with budget can be summarised as follows: Framework of… Budgeting assists the management to analyse the variance, thereby helping the company to develop the framework of control. Coordination and For example, the sales department and the production department interact with each other to decide on the number of units to be produced.... The same is true for production and HR department in context of planning the human resource as per the production budget....
5 Pages (1250 words) Essay

1996 Health care reform

There is also the pharmaceutical coverage program for the elderly, initial care, countryside wellbeing care and quality advancement (Rutherford, 2004).... This encompasses medical tutoring, destitute care and coverage initiatives for the uncovered.... Thirdly, there are resources for the Bad Debt as well as Charity care.... There is also the destitute care and inconsistent share.... The exemption to this is Medicaid compensation rates from the health department and also Medicare… HCRA also combined the hospital rates reimbursed by employees' compensation and free coverage with the Medicaid segment rates....
4 Pages (1000 words) Essay

Managing Financial Resources in the health and Social Care

There are few principles of costing which significantly exist in the financial management.... care Tech Holdings PLC is an organization which provides support and high quality They will also provide residential support, transition program, visual therapy, special needs education etc for young people and children.... care Tech Holdings PLC has to follow and apply such principles in their costing activities.... Financial resource is… management of any organization can make an effective and secure financial planning after considering the present financial resources....
12 Pages (3000 words) Essay

Variance Analysis Case Study

A solid financial management plan should be enforced.... CIRC (diseases and disorders of the circulatory system) over stated by $1305487, DIGEST (diseases and disorders of the digestive system) over budgeted by 1695702, OB (pregnancy, childbirth, and the puerperium) over budgeted by 2361806, OTHER (unknown) over stated by 6569284 and… After accounting for work load increased, the following product lines were over budgeted: DGEST over budget increased to $2381015, NEWBORN over budget increased to 1285906, OB budget increased to Finance and accounting Hospital's original profit forecast = original revenue forecast – original expense forecast....
2 Pages (500 words) Speech or Presentation

Metropolitan Healthcare Services: Budget Information Problem

The report aims to carry out an investigation on the budget information problem at Metropolitan health care services company, concerned with the delivery of health care of services to the locals.... The report will consider the effect of the availability of budget information to Metropolitan health care services company (Tyler, 2007, p.... In so doing, it is essential be familiar with nature and organizational structure of the Metropolitan health care services company....
6 Pages (1500 words) Essay

Shenzhen Health Care Business Strategies

nbsp;… Shenzhen health care (SHC) will attempt to become the new health screening service provider in Shenzhen.... Shenzhen health care will focus on the rich and working people in Shenzhen as its potential customers.... Per capita income of people residing in Shenzhen is high and they are expected to be able to pay for their health care services.... Most of the working people from Hong Kong are rich and they will also be able to afford health screening services by Shenzhen health care....
14 Pages (3500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us