Chosen organisation- Basildon & Thurrock NHS Trust Hospital
Task
For a Health and Social Care organisation of your choice you are required to undertake a critique of the budgetary and financial decision-making processes adopted by that organisation. Chosen organisation - Basildon & Thurrock NHS Trust Hospital.
You should then analyse the changes in Income and Operating costs for your chosen Trust over the period 2016-2019 before comparing patterns of funding and spending across to ,Mid Essex NHS trust Hospital. You should then compare the findings to the patterns of net expenditure of both Trusts to the spending patterns of Essex County Council.
Key areas for your consideration:
1) How are budgets set for a department or function within healthcare organisations (such as a ward, pathology department, catering, dementia
clinic etc ) Basildon & Thurrock NHS Trust Hospital 20%
2) Explore best practice for reporting budgetary performance from a theoretical perspective incorporating, for example, frequency of reporting, content of a budget report, the selection of a budget holder and the roles of key persons
within the reporting structures. 20%
3) Answer:
a) Critique your theoretical model of budget reporting to the reporting practices within a healthcare organisation of your choice 30%
4) It is essential before any major investment is made in the provision of healthcare there is a detailed and robust analysis of the long term financial impact. Techniques such as Net Present Value and Payback are common techniques.
As an experienced healthcare manager, the deputy director of finance has asked your opinion on the following analysis
Page 2 of 5
How do you interpret the outcome of the appraisal?
Set out FIVE questions you would ask the Deputy Director of Finance to explore and explain before you would be happy to support the proposal.
10%
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
£ £ £ £ £ £
Training 100,000 -25,000 -25,000 -25,000 -25,000 -25,000
Cost of New Dressings
- - - - -
200 138,462 138,462 138,462 138,462 138,462
Cost of old style Dressings Saved
40 6 48,000 48,000 48,000 48,000 48,000
Savings arsing for early discharge of in patients
1200 200 240,000 240,000 240,000 240,000 240,000 -
Net Cash Flow 100,000 124,538 124,538 124,538 124,538 124,538
1.07 1 0.935 0.873 0.816 0.763 0.713 Discounted cash
flow -100000 116391.1 108776.7 101660.5 95009.8 88794.2