Managing Financial Resources in Health and Social Care

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Managing financial resources in

Health and social care

Contents
Health Care ........................................................................................ 2

Social Care ......................................................................................... 2

Integration of Health and Social Care ..................................................... 3

REQUISITES FOR MANAGING FINANCIAL AND OTHER RESOURCES ........... 6

Planning............................................................................................. 6

Management .................................................................................... 10

Health and Social Care in India ........................................................... 12

REFERENCES .................................................................................... 15
Health Care

According to WHO, “Health is a state of complete physical, mental and social

well-being and not merely an absence of disease or infirmity.”

It has been always important for the people to be generally, physically and

mentally fit in order to provide and also enjoy economical and social

benefits. As falling sick or getting hurt is very uncertain to the people,

therefore, interpolation of health care became a necessary evil to assist

people with such uncertainties in their lives. Health care as a matter of

course is regarded as an essential foundation in promoting over-all well

being of the people involving their mental health and physical health all

around the globe (Wheeler and Grice, 2000).

Social Care
There are some sections of the society, which need extra support and care,

be it a practical support or an emotional support, these people who demand

such assistance lack something which cause them to be dependent for extra

attention and care. Such support is provided to such sections of the society

to enable them to do activities happily which others who do not require

extra care or support take for granted. This is generally termed as social

care. Social care is provided to everyone, regardless of person’s background.

It is provided to old age people, ill people, children, disables or to poverty

stricken people. There are established social care teams under local

authority of the respective areas. The people involved in such teams are

also called social carers.

Integration of Health and Social Care

However, health care and social care are integrated services as both are

somehow interlinked and the sufferers are also humans. As health care is

given to the humans and providing services to needy humans are called

social services. Most of the countries take both the matters jointly and bring

about measures to look after it. These services are derivable from health

and care providers. Not everyone is eligible to provide such services .in

order to become eligible for providing health care and social services, the

applicants have to go through various professional courses as it involves a

range of academic and vocational courses. Health care and social care can
be and are studied as a subject in colleges and the discipline of this subject

embrace elements of many other social subjects or biological subjects, such

as sociology, biology, nutrition, anthropology, history, law and ethics. The

students intending to become social and health care providers can engage

themselves in part time jobs or internship which is in relation to their

subjects simultaneously with their academic studies. They may seek

placements in social homes, nursery, social institutions, hospitals or caring

establishments. After acquiring the qualifications, the students may begin

with being care assistance depending upon the level of qualification acquired

by them. Later, after being the care assistants, they can choose their

pathways to become a doctor, social workers, counsellors, physiotherapist,

paramedics, psychologist, psychotherapist and other related varieties of

occupations.

According to National Economic and Social Rights Initiative, health and

social care is considered as a human right. Consequently, it is guided by

human rights standards, such as universal access to everyone, health and

social care should be comprehensively available to everyone and should be

physically available whenever and wherever needed. The availability of

health and social care services must be available in all geographical areas;

availability of such services is an important component of maintaining

human rights standards. Moreover, it is expedient for the health and social

care providers to be sensitive towards the needs of the human based on

gender, age, culture and different ways of life and abilities or disabilities.
The care provided by the providers must respect dignity and must

administer culturally appurtenant care and be responsive. The quality of

care must be guided by quality standards and control appliance and must be

provided timely and safely. No discrimination should be made to people on

the grounds of race, caste, colour, sexuality etc. There must be complete

transparency in administrating information to the people. People must be

free to participate actively in their role in decision making that concern their

health and in conjunction with organization and incorporating the health and

social care services.

In most of the democratic countries, health and social care is regarded as an

important issue, as democracy is by the people, for the people and of the

people. Therefore, such services become foremost in such countries. It is

not a non burdensome job nor is it a child’s play to provide with the

services. It requires the usage of lot of resources and the procedure of

applying the resources in a systematically manner needs a great deal of

planning and proper management without which it does not only make the

provision or implementation of the services inefficient but nearly makes it

impossible to handle. Commonly, health care and social management

planning is a part of national development planning in almost all the nations.

As mentioned earlier, resources play a significant role in the management

strategies. It involves the money, manpower, skills, knowledge, materials,

techniques and time necessary or at one’s disposal for carrying out any
actions which is required to attain any specified objectives decided for the

purpose. (Sussex, Scour field and Herne, 2008)

Plan is the outcome of the formulation of planning result and it is a blue

print for proceeding with any action. It consists of five major steps that are;

elements, objectives, policies, programmes, schedules and Budget. It is very

important to have a proper financial planning in implementing policies or

any type of provision of such services, as one of the most important means

of obtaining resources is money power, for that purpose additionally with

other important aspects, it s expedient to maintain budget as money is not

an unlimited resource.

REQUISITES FOR MANAGING FINANCIAL AND OTHER

RESOURCES

Planning

In order to manage financial resources in health and social care, it involves a

lot of steps and strategies. The 1st step is pre-planning which is preparation

for planning which initially involves Government interest, a strong and an

adamant political will is important for the health and welfare planning in the

nation as it is manifested with clear directives and policies given by the

government authority. The second important aspect of pre-planning is

legislation as the policies regarding health and social welfare, which have

been formulated have to e translated to legislation. For example, the


enactment of PCPNDT Act (Pre-Conception and Pre-natal Diagnostic

techniques Act) by the Indian parliament to protect the female child from

getting killed on her birth inside the womb. The third important thing is an

organization for planning. It is not easy to formulate plans and make

decisions regarding the same, therefore, there is required an organizational

structure for the preparation of the various parts of the plan. For example,

the planning commission of India act as an organization for planning. It

consists of full-time planners, who are advised to by representatives and

technical experts in the socio-economical fields and development as well as

for political leaders. The forth most essential aspect of pre-planning is

Administrative capacity. It prerequisite for the implementation of the plan

and administer proper coordination to manage the plan at all levels. The

Central and State Ministries are vested with administrative capacity for

health and social care related plans.

There is always a planning cycle, planning cannot be a one way process, it

includes many elements interrelated to each other usually forming a cycle.

Planning is wide bedrock on which management is based. The first element

involves analysis of the health situations. This process comprehends the

collection, assessment and interpretation of information in a manner which

enables the accumulation of minimum pertinent requirements for health

planning. This process generally involves collection of data regarding

population structure and its composition, mortality rates, medical and social

care facilities in different geographical areas, training facilities, attitudes and


beliefs of the population and technical manpower of various categories. The

second process in the planning cycle involves establishment of objectives

and goals. These establishments of objects are made at all organizational

level, from the smallest to the highest. This is generally required to avoid

haphazard activities, poor maintenance and un-economical use of funds. It

is not only established to guide the actions but also to establish some

economical concepts which obviously help in financial management of the

resources. The economical principles like “cost-benefit’ analysis, and “input-

output” study of health and social services. The third process is the

assessment of resources. As mentioned earlier, the term resources portray

money, manpower, skills, knowledge, materials and techniques. These

resources are examined and the distinction is made between what is

required to be used and what is available or is in stock, or is likely to be

available in terms of resources in order to implement the health and social

programs. The forth important process in the planning cycle is fixing

priorities. It is the next and the most important step after the determination

of problems, resources and objectives. Since the resources are limited, it is

likely that resources fall short of the total requirement. So, it becomes

expedient to set priorities regarding the usage of resources. In order to fix

the priorities, the main attention is paid to the financial constraints,

morbidity and mortality compilations and measures to be taken to prevent

these circumstances. This is basically a preventive process in the planning

cycle as alternate plans are established for achieving goals and objectives
without any hurdles. The next process in the planning cycle, which involves

a lot of detailing, is write-up of formulated plan. The plan should be properly

codified in order to enable proper execution plan objectives and goals. This

process was made mandatory as the planning process involves a lot of

collection and assessment of data, therefore, it is not easy to keep

everything in mind and include all the collected data. The data prioritized in

the previous step need to be formulated in writing. The codification contains

input and output of the plan, stages of implementation of the plan, working

guidance for the execution purpose and also contains a ‘built-in’ system of

evaluation. After the codification has been done it is left with the central

planning authority planning for further addition or modification if required

and the government can reconsider the modification from time to time

depending on the circumstances relating to allocation of resources. The

sixth step of the planning cycle is programming and implementation. This

the process after the codification of plans and any further modification

added by the central authorities. After the write of plans have been

approved, the process of execution and implementing begins. The execution

process demands recommendation of the proper organizational structure for

the delegation of well-defined and well-structured procedures to be

followed. It involves manpower. Many workers are engaged in this process

with different responsibilities. As different roles and tasks are given to the

manpower so it demands the selection process, training, motivation and

supervision of the manpower. The measures for enhancing the efficiency of


organizations and institutions are also demanded in this process. The

seventh mattering much of the planning cycle is monitoring. It is a diurnal

process of observing, recording, and reporting on the activities of the

organizations or projects and it is continuous. It is basically for keeping a

check or a track on the activities of the organizations to avoid flaws in the

future as it is a regular process and occur in the shortest duration possible.

The 8th and the last process of the planning cycle is evaluation. It is

expressed by modus operandi of assessment of achievements of the defined

objectives and the stated elements if the programme. The organizations

ensure that the objectives have been achieved and some relevant

judgments are made on the assessment of the goals set for the purposes.

Management

However, if we talk about management, it can be used in many senses,

generally confused with other fields other than health care. Management

techniques are familiar in business, industry, defence and other fields. The

forthwith emphasis by WHO and many governments is on improvising and

enhancing the efficiency of the health care delivery systems buttoning it up

with the application of modern techniques and methods of management.

Management techniques are based on principles of behavioural sciences as

well as quantitative methods.

The methods based on behavioural sciences are organizational design,

personal management, communication, information systems and


management by equipments. These are the important aspects in planning

the health care techniques and make the implementation more efficient.

The other important management technique in health care is based on and

derived from the arena of economics, operation research and budgeting.

This is based on the principles of quantitative methods, which includes Cost

benefit analysis, Cost-effective analysis, Cost-accounting, Input-Output

analysis, a proper model to understand the how the factors in a situation

affect one another, System analysis (this involves investigating and

searching the problems and bringing the solutions and alternatives.),

Network analysis (graphic plan of all events and activities). Another

important technique in management is the Planning-Programming-

Budgeting system (PPBS). This system is primarily required to help the

decision makers to make decisions regarding allocation of resources in such

a way that the available resources of an organization are used in the most

effective way possible in order to achieve the goals mentioned in the

objectives. It demands for grouping of activities into programmes in relation

to the objectives. Another approach in managing the finance is called ‘Zero

Budget Approach”, i.e., ’all budgets start at zero and no one gets any

budget that he cannot specifically justify on a year to year basis.’ Another

important technique involving observation and recording of activities carried

out in intervals of one or more individuals is called ‘Work Sampling’

(systematic observation and recording of activities of one or more


individuals) and decision making. Some of these techniques have a

significant role in the management of health services (Bryans, 2005).

Health and Social Care in India

India has been focused on eradicating social injustice and poverty since 60

years, as just after the independence, the nation was left with huge majority

of poverty stricken people. One of the main and foremost issues was

concerning the health and a social need of the people of the young nation

and presently also, it remains important. It was not only the government’s

initiative but also many public oriented people established many

nongovernmental organizations to work for the issues of the people. The

drastic development was required in health sector as people still believed in

using primitive means of solving health issues. Earlier, health issues or

illness were deciphered in anthropological and cosmological frame of

reference, consequently it became important for the introduction of modern

and scientific techniques regarding health care. There have been many

health care revolutions in India, such as health for all by 2000, concept of

primary health care, Millennium development goals in 2000, National Health

Policy 2003 and many more. The Indian government had been running low

on financial resources and its allocation on social and health care was not a

child’s play as financial resources are also required for other developmental

purposes. Let’s take example of the year 2004. This year recorded spending

of about 5.2 percent of nominal GDP or 34’9 billion of US dollars. The


health and social planning is the fundamental part of ‘national socio-

economic planning’. There were many committees appointed from time to

time by the government of India to look after these issues. There are some

committees like Bhore committee 1946 which highlighted the primary health

and secondary health. Some other committees which were appointed were

Chadah Committee 1963, Mukerji Committee 1965, Mukerji Committee

1966, Jungalwala committee 1967, Kartar Singh committee 1973,

Shivastav committee 1975, Rural Scheme 1977 and Health for all by 2000

– Report of the working group, 1981 .

A planning Commission was set by the government of India to draw on an

assessment material, capital and human resources of the country and

outline the plans for the development purposes and attempt to make the

best utilization of the resources. It consists of a division of planning year

wise, this includes future planning and projection of plans for future needs

over a period of 20 to 25 years. The planning commission consists of a

chairman, Deputy Chairman and five members. There works three major

divisions under the commission consisting of programme advisors, general

secretariat and technical divisions which are responsible for scrutinizing and

analyzing various schemes and projects to be incorporated in the five year

plans.

The five year plans also include planning regarding the management of

resources regarding implementation of objectives of health and social care

planning. It gave considerable importance to health related programmes


and divided the health sector into the sub-sectors, such as, water supply

and sanitation, control of communicable diseases, medical education,

training and research, medical care including hospitals, dispensaries and

primary health centres, public health services, Family planning and

indigenous systems of medicine. The emphasis changes from time to time

depending on the required needs of the people from time to time. The

health plan is implemented at various levels that are centre level, state

level, and block and village level. The five year plan based of health sector

highlighted many factors which were necessary and brought about new

innovations with the intention to not only bring effective innovations

regarding health and social care but also to bring about proper allocation of

financial resources for the purpose of imposing and creating objectives

regarding the same. The plan aimed at eradicating of major communicable

diseases by introducing modern techniques and cures, strengthening of the

basic health services through the establishment of primary health centres

and sub centres, introducing measures for population control as there are

more people compare to the resources as resources are limited over the

number of people demanding health services and lastly the most important

is to manage the financial and manpower resources. There were two

successful five year plans that are 1. Eleventh Five Year Plan (2007-2012)

and 2. Twelfth Five Year plan (2012-2017), these two plans majorly focused

on the health and social care issues and regarded health as an essential
component of development of the nation and also vital to social and

economic growth as well as the internal stability of the nation.

REFERENCES

1. Bryans, W. (2005). Resource management in health and social care.


Oxford: Radcliffe Pub.

2. Sussex, F., Scourfield, P. and Herne, D. (2008). Advanced health and


social care for NVQ level 4 and foundation degree. Oxford:
Heinemann.

3. Wheeler, N. and Grice, D. (2000). Management in health care.


Cheltenham, Glos.: Stanley Thornes.

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