Question

What are the main uses of financial information in the health and social care organisation and what types of information you require to do effective decision making in your role as a financial manager? (500-1000 words)

Answer 1

Answer- The main uses of financial information in the health and social care organisation are given below-

The primary role of financial management in healthcare organizations is to oversee cash and danger such that assists with accomplishing the financial objectives of the organization. At the point when a healthcare organization has solid and sorted out financial management plans, they're ready to give proficient healthcare to every one of their patients.

Financial Management Functions

The essential exercises associated with financial management in healthcare organizations incorporate evaluation and planning, long-term investment decisions, financing decisions, working capital management, contract management, and financial danger management. We'll cover these in more prominent detail now.

1. Evaluation and Planning

Financial management includes assessing the financial viability and generally activities of the healthcare organization. This permits the healthcare organization to anticipate what's to come. For instance, suppose that a medical clinic assesses trauma center income and finds that they're losing patients to a neighboring medical clinic with more space. Because of this, they may choose to anticipate an extension of their trauma center.

2. Long-Term Investment Decisions

The financial group has a chain of importance, however by and large, input is taken from all the supervisors at all levels with regards to huge investments in the business. Long-term investment decisions include investigating usage procedures and determining how the investment may influence the financial future - to improve things or for the more awful. Taking the model we took a gander at previously, the financial group at the medical clinic would take a gander at the expense of a trauma center extension and potential income increments and choose if it would be a wise investment.

3. Financing

The financial group should likewise raise assets for expenditures. This may include things like gathering pledges, awards, credits, or utilizing inward assets. They'll take a gander at the expense and advantage of the investment and/or the sort of obligation that they will cause. The ranking director will settle on a definitive decision on financing. On account of the trauma center model, the financial management group will get somebody to determine how much a redesign would cost just as what amount of time it would require. They may choose to utilize inward assets and then take out a little advance to cover the remainder of the costs, realizing that the long-term investment will carry them more income to eventually assist them with repaying the credit.

4. Working Capital Management

The financial management group must deal with their working capital, which is their present resources short their liabilities. Resources may incorporate money, attractive protections, receivables, and inventories. Overseeing capital is imperative to lessening expenses and ensuring that the organization runs viably. In the redesign of the trauma center, for instance, the group determines which resources can be reused and which resources must be bought with working capital.

The types of information I require to do effective decision making in a role as a financial manager are-

A decent information framework should empower managers to pick the game-plan they have the best standard of ideal outcomes. A decent data framework ought to explicitly

1. list conceivable strategy

2. list the functions that may influence the normal outcomes.

3. Show the likelihood that those functions will happen.

4. gauge the outcome precisely given an activity/function blend.