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Healthcare in the UK - Essay Example

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Task 1 711718 HSC To: Everton HSC Trust Manager From: City Management Accountants Subject: Healthcare in the UK Date: August 10, 2012 Report Healthcare in the UK is funded by UK taxpayers (Nuffield Trust 2011). It is undoubtedly the ‘world’s largest publicly funded health care system’ and is known as the National Health Service (NHS)…
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Healthcare in the UK
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Download file to see previous pages HM Collector of Taxes is the main collecting agency for the tax. The fees and private insurance are paid to the hospitals. The statistical data for the financing of health care in developed countries shows that expenditure on health as a percentage of GDP for the UK was 8.4%; U.S 16% and France 11% in 2009 (BBC 2009). The expenditure from the private sector for that same period was 12.9% for the UK, 52.8% for the U.S. and 20.8% for France (BBC 2009). The expenditure per capita on health in the United States dollars (US$) was $2,992 for the U.K; $7,290 for the US and $3,601 for France (BBC 2009). At the same time, the infant mortality per 1,000 live births in 2009 was 4.8 for the UK; 6.7 in the US and 3.8 in France (BBC 2009). NHS is negatively affected by increasing cost pressures despite the freeze on pay for people employed in the public sector (HJMA 2010). Although spending on healthcare is expected to increase each year, all the trusts operated by the NHS (inclusive of Everton HSC Trusts) will have to find ways of doing more with limited funds. The factors that may influence the availability of financial resources for trusts include: the contribution made to the fund by each citizen; the amount of taxes collected; and the use of the facilities supported by the trusts. The current contribution per person – The amount contributed per person is low in comparison to that of the United States and France. That amount can do so much and no more and while some of the trusts may end up with a surplus others end up with a deficit. Whether the trust has a surplus or a deficit is dependent on how patients view the services offered. Funding is based on the number of patients served. A decline in the demand for service at a particular health facility will result in a decline in the income earned by that facility and therefore the income of the fund will decline. The amount of tax collected – this will influence the amount available for health care in general. It will affect the health system and may result in a further increase in waiting times for some medical procedures. Use of facilities – If the facilities are not utilised they will not receive much from the fund as the amount dispersed is dependent on the number of patients that use the service. The current pressures in healthcare costs and spending has forced the NHS to looks for others means ensure the effective operations of healthcare system in the UK. The Trusts play a useful role but funding is inadequate. Most of the taxes that are collected by the government are direct taxes from the income of individuals and company tax. Indirect sources include value added tax (VAT), custom and excise duties, and air passenger taxes. Creative ways have to be found to increase government revenues. This is the only way in which the pressures on healthcare funding can be alleviated. Task 2 To: CEO Hampstead NHS Trust From: City Management Accountants Subject: Zero-based versus incremental budgeting Date: August 10, 2012 Report Introduction According to Noreen et al (2010), budgets are used for both planning and control. Planning entails setting goals and preparing budgets to guide the process. Control entails taking the necessary steps to ensure that the goals that have been set are achieved. The budgeting process for HSC entails setting targets in relation to both income and expenses. Benefits of Budgeting Noreen et al (2010 ...Download file to see next pagesRead More
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