(a) Analyse the recent developments with regards to the legal, financial and regulatory environment of health and social care.
As part of the formal assessment for the programme you are required to submit a Financial Control and Budgeting assignment. Please refer to your Student Handbook for full details of the programme assessment scheme and general information on preparing and submitting assignments.
Learning Outcomes: After completing the module, you should be able to:
1. Explore and evaluate the legal, financial, regulatory and structural environment under which health and social care services are provided.
2. Understand and explain the importance of governance and accountability and the manner in which financial aspects of health and social care services are managed and communicated to a range of stakeholders.
3. Produce, present and communicate budgets and product and service costs and make decisions based on sound financial and management accounting theory and practice.
4. Reflect on and demonstrate awareness of, the impact of financial constraints, costs and budgets on health and social care service managers, their clients and other stakeholders.
Graduate attributes: FIN5003 Financial Control and Budgeting
Discipline Expertise - Knowledge and understanding of chosen field. Possess a range of skills to operate within this sector, have a keen awareness of current developments in working practice being well positioned to respond to change. Your assignment should include: a title page containing your student number, the module name, the submission deadline and a word count; the appendices if relevant; and a reference list in Arden University (AU) Harvard format. You should address all the elements of the assignment task listed below. Please note that tutors will use the assessment criteria set out below in assessing your work.
Maximum word count: 4000 words
Please note that exceeding the word count will result in a reduction in grade proportionate to the number of words used in excess of the permitted limit. You must not include your name in your submission because Arden University operates anonymous marking, which means that markers should not be aware of the identity of the student. However, please do not forget to include your STU number.
Read the following case study and answer the questions that follow.
Case Study: UK to Spend Funding well
In 2018 NHS completed 70 years of its establishment. The UK’s National Health Service celebrates its 70th anniversary. NHS has received an additional £20bn a year for England by 2023. Now the hard work begins: how to spend the funds well. The “spend” bit is easy, the “well” is not. Around the world, health systems are grappling with similar problems: how to get better care, for more people, from less money. Internationally, the NHS is of interest because reforms following investment have been faster paced and more numerous than elsewhere. What we can achieve may serve as a pointer to other health systems. Yet the NHS’s record on progress resulting from large-scale reform and investment is mixed. So what do we need to do differently this time? Given the NHS is almost entirely funded through central taxation, the reforms over the past 30 years have pivoted on questions of ownership, determining the proper balance between state control and incentives. Defining the problem in this way has produced big “bazooka” reforms, such as a large and deeply unpopular structural shake-up five years ago. These changes intensified the challenges the service needed to address, encouraging competition when what was needed was far more collaboration between different parts of the system. A real revolution to improve care must begin on the frontline of the NHS: with staff and patients. Change in any industry is hard. And the health service is by far the UK’s biggest, most complex, high-profile and inherently risky organisation. The past 20 years have not been without merit. The numbers tell the story: 10,385 fewer people dying from heart attacks now than a decade ago; 8,390 fewer from strokes; 634 fewer from cancer. Productivity growth has averaged 1.4 per cent a year during the past five years. Now, however, the challenge and the opportunity are of a different order and need a more radical and imaginative approach. The demands on the NHS are intensifying and diversifying at speed. The number of older, frail people, with multiple chronic conditions, is rising. Significant technologies are on the horizon, such as artificial intelligence, and genomic and personalised medicine, that will revolutionise care. Some, such as apps and devices helping people to manage chronic illness themselves, may bypass NHS care completely. They must become part of the solution to preventing ill health, an area where the NHS — as well as other public agencies and, indeed, business — has been too passive.
Historically, reform has been transmitted from government, or NHS central command, through to institutions via their managers. This route will be too slow by itself to be effective. Quality of care, costs and productivity are determined at the front line. And the front line is now moving upstream as public agencies recognise the value of improving health and wellbeing rather than just treating the already sick. But when it comes to supporting staff on the shop floor — where most of the NHS talent is — there is a long way to go. Safety and efficiency were improved by identifying blockages, designing and testing solutions using data, and insights from staff and patients. Reform must now be turned on its head. Improving workers’ skills to test innovation, boosting data analysis, and stronger management must be front of the investment queue. Staff and patients need support to design improvement. For politicians, here’s the paradox: the best way to sustain the UK’s favourite institution to a healthy centenary may well be to let go.
You have been asked to prepare a 1500-word internal memorandum for the senior management team covering the following points;
(a) Analyse the recent developments with regards to the legal, financial and regulatory environment of health and social care. (10 marks)
(b) Discuss the usefulness of alternative funding options such as Private Finance Initiatives (PFI), resources, financial aspects of agency partnerships, competition, pricing, tendering and outsourcing in the health and social care sector. (10 marks)
(c) Identify the key stakeholders within the social care sector and explain the ways of communication with the stakeholders. Discuss the agency theory, corporate governance and accountability issues within the sector. (10 marks) (1500 words) (30 marks) (LO 1 & 2)
ABC Care Home ltd. has the following costs with regards to providing adequate care for a patient; Direct materials £150 per month Direct labour £180 per month Other Variable overheads £220 per month Fixed overheads £45,000 per month The care home charges £18,000 per annum per patient. The capacity of the care home is 60 patients and the capacity usage average was 90% during the last three years.
a) Determine the break-even capacity usage rate for ABC Care Home ltd. (5 marks)
b) Calculate the targeted profit if the care home achieves 90% and 95% capacity usage. (10 marks)
c) Explain how the break even analysis could be used in short-term and long-term decision-making. (10 marks) (500 words) (25 marks) (LO 3)
Required Write a 2000 word briefing document covering the following points;
(a) Discuss the advantages and disadvantages of the various budgeting approaches such as incremental budgeting, zero based budgeting, activity based budgeting, rolling budgeting. (10 marks)
(b) Discuss the particular difficulties encountered when budgeting in public sector organisations. (5 marks)
(c) Prepare a cash budget for a health and social care organisation. (10 marks)
(d) Reflect on and demonstrate awareness of, the impact of financial constraints, costs and budgets on health and social care service managers, their clients and other stakeholders. (10 marks) (2000 words) (35 marks) (LO 3 & 4)
NOTE: Your final submission must include all three questions (with calculations) in a SINGLE document in MS Word or as an Adobe Acrobat .pdf document. Ten additional marks are allocated for presentation, referencing and academic writing.
100% Plagiarism Free & Custom Written,
Tailored to your instructions