MANAGING FINANCIAL RESOURCES

Managing Financial Resources

Name of Writer

Name of Institution

Managing Financial Resources

Introduction

The paper is based on the concepts of managing financial as well as businesss resources in a health care or social care setting. The paper emphasizes on the concepts of costs and controls that are place in the health or social care industry. Moreover, the paper provides indepth analysis of these systems that are placed in health or social care industry to manage financial and business resource, and evaluates all these resources.

Task 1

Q: Explain the different costing and business control systems that are used in managing finance in health and social care (AC 1.1)

Most medical center accounting techniques have a strong charging and selections component, but a very poor cost accounting system. In fact, this is due mainly to the history of compensation. Financial rewards were in place to increase compensation, not to manage expenses. Now that the environment has changed, providers have discovered it progressively important to know their accurate expenses. As a result, there has been a major activity to individual cost accounting techniques from financial accounting techniques, and to move away from traditional allocation-based cost techniques to activity-based cost techniques. Though an expensive project, decreasing compensation is pushing medical centers to invest in more innovative cost accounting techniques (Chan, 1993).

Given the variety initiatives to management expenses, medical care staff is progressively confronted with moral challenges trying to balance cost with quality and accessibility. Many studies have discovered a direct connection among income, accessibility, and health position. Directors must keep in mind that they do not produce icons, but rather an essential service, often to insecure communities. There are lots of questions with moral overtones that occur because of demands to cut expenses (Ramsey IV, 1994).

The extraordinary escalation of medical health care expenses throughout the 90s has drawn critical attention to the efficiency of Business Control Strategies (BCS) in containing medical health care organizations' expenses. The operational homogeneity of medical health care organizations, the difference in management program choice of these organizations, and the availability of management program data combine with other factors make to medical health care an empirically attractive setting in which to study BCS design. While the medical health care literary works generally advocates use of TQM and adopting of more sophisticated cost techniques, it is not clear that such techniques can be used to improve efficiency in medical centers or any organizations. I find that the use of specific TQM and advanced cost program techniques is positively associated with financial efficiency (Walkner, 2004).

Q: Identify information that you will need to manage financial resources in health and social care (AC 1.2)

With the fast developments in components and programs, many institutions have spent in the newest details technology in an effort to obtain the most precise details as quickly as possible. Most programs revolve around components management, cost management, records due, pay-roll, and human resource needs. It is essential for organizations to monitor the circulation of components through their organizations, and to purchase and pay ...