7324MED Health Finance And Project Management

Like any other organisation, a health care system has also its revenue and expenses which impact the quality of services offered and the survival of the system and its units. For a particular organisation like hospital , research centre which are part of health care the following revenue and expenditure shall arise:-

• Revenue which is income for health system comes from Insurance Billing, Patients care services, State and Central aids; billing of patients when no amount is received form government or private insurance body;
• Research and Teaching Bodies under the health care system through fees ,state central and private aids;(Hearst Newspapers, LLC, 2018)
• The expenditure which is an outflow for the system includes payment of wages and salaries to staffs, doctors and other personnel;
• Cost associated with testing and day to day management activity;
• Cost for violation of legal laws of environment and consequential penalty;
• Expenses w.r.t supplies and capital expenses.

2.Activity based Funding is a technique of funding healthcare under which the providers are allocated funds on the basis of type and volume of service they offer and the complexity of treatment of the patient involved. (Activity-based funding) It has become an international norm for funding care provided by hospital and is also known as patient focussed funding.

Under, the NSW Health system, Activity Based funding (an approach based on unit price for the number and types of service provided) allocation is based on the following elements:

• Targets : It shall mean to specify level of activity which needs to be undertaken by each Local Health Districts and Speciality Networks;
• A classification system for grouping activity into classes with similar clinical profile and use of resource;(Finance & Performance Management, 2014)
• Weighing the activity in order to ascertain the relative weight of resourced used in the treatment;
• Price at which the activity which is weighed shall be paid.

3.Case mix also known as patient mix. It is a term used in health care system and used as a synonym for cohort. Under such mix a group of statistically related patients are created. For instance, case mix of patients below the age of 50 who are suffering from cancer and is also undergoing radiation treatment may be created.

Further, at local level case mix may consist of an individual consultant, a specific speciality or a particular unit. On a wider range case mix of hospital, region and even countries may be created.

Australian Refined Diagnostic Related Group System is a patient classification system which provides clinically relevant way of sorting the types of patient which are treated in a hospital and resources used for treatment of patients. The system comprise 700 patient classification or categorisation with each patient is being categorised on the basis of diagnoses, performing surgical procedures, and other data that has been collected routinely. (AR-DRG classification system)

The system enables hospital procedures to be measured by linking characteristics of a treatment of patient with the services that have been rendered. This standard is of very high quality and is prevalent in several countries like Middle East, Europe and Asia.

References

Activity-based funding. (n.d.). Retrieved September 19, 2018, from healthcarefunding.ca: https://healthcarefunding.ca/key-issues/activity-based-funding/

AR-DRG classification system. (n.d.). Retrieved September 19, 2018, from www.ihpa.gov.au: https://www.ihpa.gov.au/what-we-do/products/AR-DRG-classification-system

Finance & Performance Management. (2014, july). Retrieved September 19, 2018, from www.health.nsw.gov.au: https://www.health.nsw.gov.au/policies/manuals/Documents/corporate-governance-compendium-section7.pdf

Hearst Newspapers, LLC. (2018). Categories of Expenses & Revenues in the Hospital Business Setting. Retrieved September 19, 2018, from smallbusiness.chron.com: https://smallbusiness.chron.com/categories-expenses-revenues-hospital-business-setting-4882.html