Effect of Financial Management on HIV/AIDs Patients - Essay Example

Effect of Financial Management on HIV/AIDs Patients al affiliation Introduction Details of the project Financial management effects on healthcare. The project is situated in the outskirts of Hongkong. The healthcare facility will be used to serve the people living within the locality; this will also be used in determination of financial effects to the locals. Objectives of the research project. The project will be guided in its main objectives to ensure successful implementation of the project. These objectives include; 1. To generate good use of financial management through the use of high standard of healthcare facility with high qualified personnel in every department. 2. The waste of hospital materials can be recycled and used in the manufacturing again. It prevents both land and air pollution through the recycling of health facility waste and usage of clean energy which doesn’t emit greenhouse gases. Objectives of research The following objectives guided the study: To determine how patients with HIV undergo their feeding programs To assess the perception of the HIV patients themselves on their nutritional well-being, as well as that of the hospital stall concerning their health To identify the expert suggestions and measures for addressing nutritional status of HIV infected persons. To evaluate the government’s involvement in solving the issue of food to the HIV patients Financial management is a decision science. Financial management provides the tools, concepts and theory that play an important role in making a decision in a business entity. For policy, makers to efficiently perform their functions in the nation’s approach to health and medical care neither by improved performance nor by actually targeting cost reduction efficiency a well-redesigned data system for conducting, analyzing, recording, interpreting resources productivity and data should be put in place to enhance the level of performance (Brown 1992) Meanwhile, for better performance and providing highly recommendable services to the nation, advanced strategies are put in place. For instance reformulating the economic accounting of inflows and outflows. Secondly, a well-developed data system that enable efficient coordination on population’s health statistics with the matching information on the determinants of health. The economic area in health care helps in identifying units of measurements under which the required quantities and prices are attached in that the revenue to investments in the health care is estimated, tresses over a particular period of the composition of the population changes and the quantity of care and compared under different planning scenarios (Penner 2004). Under medical care, inputs include energy and materials, labour, capital and research, and development. Financial management helps in giving attention on how expenditure on these inputs is distributed in an accounting structure. The output in health care includes the medical care. Goals, Objectives, and Tasks of the project The health management believes that any chances of successful funding will play an integral part in meeting the tasks that have a financial impact. To ensure that every move the education institution takes thrives, financial goals must be met first. Among the areas that will be streamlined include credit transfers, meeting the safety and security standards and concerns for the patients coming through the hospital programs, streamlining the marketing and communication demands, smoothening the involvement of the patients in various exchange programs, as well as launching campaigns that create awareness to those starved with the information. The solid task faced by the management is to make sure that all the programs undertaken have one objective; the inclusion of all populations to this program which stretch past the borders. Limitations and challenges of the study On condition that, this patients are given foods rich in nutritional thus receiving care and treatment. While this strategy attempts to lay out a comprehensive and effective approach, we distinguish that there are challenges to implementing this policy and that further research must be conducted in sort to address some of the vital issues at hand. Some of the main challenges in providing food and nutritional support to the victims include: Reporting and Monitoring Types of data and analysis for country program reporting on their food- and nutrition related activities; Monitoring the costs and effectiveness of food and nutrition interventions over time; and, Improving inter-agency coordination to develop and report consistently on a standard set of indicators. Coordination Improving harmonization and consistency across food and nutrition interventions and program approaches; Improving linkages and coordination at the country level among agencies and sector programs within agencies; And, improving mechanisms for procurement, distribution, and monitoring of food and nutrition supplements. Costs Clarifying which agencies cover what costs for which components of food and nutrition interventions. Budget and Finances For a successful undertaking of the project above mentioned, the management has come up with a budget of $ 999,845 spread as follows: Budget Item Amount Sub- Total a Revenue Tax Grant Sales of goods and service Interest income Divided and income tax equivalents Expenses Employees expenses $ 14,000 Superannuation expenses $ 11,610 Superannuation interest expenses. $ 270 Other operating expenses $ 6,780 Depreciation and amortization $ 320 Grant expenses $ 1, 590 Other interest expenses $ 12,420 Drugs expenses $ 770,000 Patients kits expenses $6,640 Equipments expenses $ 12,300 $ 835,930 Rental expenses $ 30,000 $30,000 Transportation expenses $ 3, 500 $ 3,500 TOTAL EXPENSES $ 869, 430 Miscellaneous @ 15% $ 130,415 TOTAL REQUEST $ 999,845 Expenses in the healthy sector include some of the activities that where money is spent in order to maintain the day-to-day activities of the business. The activities involved include Employee expenses comprising of wages a salaries and acquiring cost associated with the government employees. Superannuation expenses that comprise of service cost excluding the superannuation interest. In addition, expenses are accompanied with Superannuation interest expenses Other operating expenses include non-labour costs of supplies and services that are incurred because of repairing and maintained, communivcation, equipments, consultants, sundary expenses, marketing and consultants and contractors. Depreciation and amortization involves the systematic distribution of the depreciable amount of an asset over the normal required useful life. Depreciation is mostly used under the table assets and amortization is always involved ob intangible assets. Other interest expenses involve interests incurred by the health company incurred on borrowings including the finance leases to have capital assets and infrastructure. Other expenses include Fiscal balance, Operating results, grant expenses, Fiscal balance and non-operating balance. Risk and Quality management in health services organizations Risk management refers to strategies or plans structured to reduce the chances of a particular loss. For this possibility to be quickly put in place systematic and utilization of data are essential. Programs of risk management consist of both reactive and procreative organs. Reactive components are the actions in response to adverse occurrences while proactive components are the structures put in place to prevent adverse incidents. For both reactive and proactive components the risk management process should Identify the risk, then calculate the degree of adverse effect on the risk identified, approximate the impact of the risk and lastly a proper solution controlling the risk is found out. As per the proactive side, risk management plans and structures will help in improving the quality of patient handling and reducing the adverse outcomes from the medical malpractice claim (Koeberle 2006). Expenses Forgone costs Employees expenses $ 14,000 $17,000 Superannuation expenses $ 11,610 $10,000 Superannuation interest expenses. $ 270 Other operating expenses $ 6,780 Depreciation and amortization $ 320 Grant expenses $ 1, 590 Other interest expenses $ 12,420 Drugs expenses $ 770,000 $900,000 Patients kits expenses $6,640 $8,200 Equipments expenses $ 12,300 $14,000 $ 835,930 Rental expenses $ 30,000 $30,000 Transportation expenses $ 3, 500 $ 3,500 TOTAL EXPENSES $ 869, 430 Miscellaneous @ 15% $ 130,415 TOTAL REQUEST $ 999,845 Are always required in any health organization due to scarcity of the resources some of the costs had to be forgone. This is because the estimated costs were higher as compared to the budget constraint. For instance under the employment expenditure a cost of $17,000 was forgone for the expense of the budgeted expense $14,000. Nevertheless, the decision taken it is accompanied with some risks each t-reduced number of employees and this will significantly affect the normal running of the organization since some of the employees need to over work in order to accomplish the day-to-day activities. As a result, the patients will be poorly attended to due to poor patient: employee ration this will significantly lead to increased rate of deaths hence hindering the quality of the health services to the public. In a health organization we require professionals like doctors who are highly paid, hence cutting down employee’s expense will autoimatically lead to hiring less skilled and inexperienced professionals? Poor payment within the organization always leads to frequent turnover that may result to more expenditure like regular training of new employees. Morale within an organization helps to improve the productivity of the company. Cutting down of employees expenses will lead to job insecurity within them and this can lead to low morale thus j=hindering the performance of the company (Penner 2004) The major function of health facilities is to provide medical attention to its patients as faster and as efficient as possible to reduce the rate of transfers from one hospital to another .this makes drugs to be the very vital in any health facility. Expenditure in drugs was estimated to be $900,000 in order to meet the health companies’ demand but was lowed to 770, 00 US dollars due to budget limitation. A differential cost of $130,000 supposed to purchase more drugs is experienced .This will lead to drug shortage. Because of drug deficiency, the services of the health company are highly hindered, since it cannot meet the required threshold of giving the required quality and quantity of the drugs required to the patients (Ka Ho Mok, 2013). In a health organization, modern efficient and effective machines are always the backbone in the function of performing some of the complicated disease. Hence, for any company with the required devices help in reducing the death rate on patients and can easily handle some complicated cases.AS this machines will asset the professional to identify the various diseases and administered the required medication. (ASHRM), 2011,pg 289) But due to the constraints of the budget the equipments purchased are in adequate also else the machines purchased be of low quality .For instance the estimated forgone equipment cost was $ 14,000 where as the budget constrain is $12,300a s the result a differential of $1,700. Opportunity cost analysis Prospect price is the loss (sacrifice) accrued by means of making a decision to look at one activity instead of an alternative solution. However, so prospect price evaluation is the review associated with possible rewards as well as hazards connected with having this activity as opposed to the alternate activity so that you can figure out in the event the possible rewards could be worth those hazards. In a health organization we require professionals like doctors who are highly paid, hence cutting down employee’s expense will automatically lead to hiring less skilled and inexperienced professionals? Poor payment within the organization always leads to frequent turnover that may result to more expenditure like regular training of new employees. Depreciation is mostly used under the table assets and amortization is always involved ob intangible assets. Other interest expenses involve interests incurred by the health company incurred on borrowings including the finance leases to have capital assets and infrastructure. This will be noticed after which the project has experienced some delays in production. Under medical care, inputs include energy and materials, labour, capital and research, and development. Financial management helps in giving attention on how expenditure on these inputs is distributed in an accounting structure. The output in health care includes the medical care. As an example, the choice associated with planning to buy an x-ray machine to assist in services related to its course may be weighed against the choice associated with skipping to buy the said machine as well as going into HID/AIDS prevention projects. In this case, the ability price associated with planning to buy x-ray machine could be the income anyone lose spending during the service rather than entering your projects quickly. Opportunity charges increase further more than this financial charges of a choice, but it really incorporates just about all actual charges of getting one alternative in excess of one more, which includes loosing moment, strength and also a extracted pleasure/utility. This appraisal connected with resources is absolutely no industry that exist out there, including everyday attention, or even affected individual time period costs, needs approaches to uncover precisely what economists call “shadow prices”—the true societal importance (or chance cost) connected with non-marketed resources, including time period and everyday attention. Health economists argue that the regarding way of computing an opportunity charge of their time is the best valuation in the option charge in the time pertaining the job age groups. Moreover, grownups could be the wage these are, or even could be making, inside paid do the job one that is numerous in line with whether or not the moment involves doing the job or even leisure time and it is likely that becoming out of work. In case means can be assigned correctly, then it is important regarding using most of these means throughout all the approaches that are ought to be built very enlightening. In spite of this incredible and relevancy of this particular notion, the difficulties regarding its advance shows that handful of scientific tests are perhaps entirely very revealing about their own rates regarding opportunity expenses. Conclusion Poor budgeting will automatically lead to poor planning and eventually leading to poor managing and ending up running the organization into a ditch. As poor planning will automatically lead to inappropriate setting of objectives. As this will significantly reduce the ability of a business identifying its appropriate performance for any necessary precautions to be taken in any case of failure in a particular department (Kraus, 2000). Financial management analysis on Healthcare is sometimes rewarding and fascinating. In that for the fascinating side, many of the concepts accompanied with it have implications for personal behavior and professional behavior. However, it is rewarding since it enables the managers in making decisions based on current and future financial interpretation process (Freedman 2005). References Ashrm, A. S. (2011). Risk Management Handbook for Health Care Organizations, 3 Volume Set. John Wiley & Sons. Andrew Stevens, J. R. (1996). Health Care Needs Assessment: The Epidemiologically Based Needs Assessment Reviews. Second series. Radcliffe Publishing. Anthony Scott, A. M. (2005). Advances in Health Economics. John Wiley & Sons. Brown, M. (1992). Health Care Financial Management. Jones & Bartlett Learning. Hancock, C. (2008). Issues in Healthcare Risk Management. Lulu.com,. Ka Ho Mok, M. K. (2013). Managing Social Change and Social Policy in Greater China: Welfare Regimes in Transition. Routledge. Kraus, G. P. (2000). Health Care Risk Management: Organization and Claims Administration. Beard Books,. Lynn P. Freedman, U. M. (2005). Whos Got the Power?: Transforming Health Systems for Women and Children. Earthscan,. Mooney, G. (2009). Challenging Health Economics. Oxford University Press. Nick Black, R. G. (2005). Understanding Health Services. McGraw-Hill Education (UK),. Penner, S. J. (2004). Introduction to Health Care Economics & Financial Management: Fundamental Concepts with Practical Applications. Lippincott Williams & Wilkins. Stefan Koeberle, Z. S. (2006). Budget Support as More Effective Aid?: Recent Experiences and Emerging Lessons. World Bank Publications. Stefano Paternostro, A. R. (2005). How Does the Composition of Public Spending Matter? World Bank Publications,. Xavier Martinez-Giralt, P. B. (2003). Health Economics: An Industrial Organization Perspective. Routledge. Youngberg, B. (2010). Principles of Risk Management and Patient Safety. Jones & Bartlett Learning,. Read More