UNIT 05: FINANCIAL DECISION MAKING FOR HEALTH CARE MANAGERS Unit Reference Number Unit Title Unit Level Number of Credits Total Qualification Time SSAs Unit Grading Structure
K/507/9473 Financial Decision Making for Health Care Managers 6 15 150 1.3 Health and Social Care Pass
Unit Aims The aim of this unit is to introduce key financial concepts and tools for managers in health and social care. The unit gives consideration to the knowledge and understanding necessary for making finance informed decisions in health and social care organisations. Learning Outcomes and Assessment Criteria Learning OutcomesThe learner will:
Assessment CriteriaThe learner can: Evaluate the financial statements of health and social 1. Understand the role of financial 1.1 care information in managing health organisations Analyse the role of financial information in decisionand social care organisations 1.2 making processes 1.3 Describe how key financial ratios are used by health and social care organisations 2. Understand the different Differentiate between long and short term business sources 2.1 finance of finance available for the needs of health and social care organisations health and social care 2.2 Explain sources of finance available to health and social organisations care organisations Evaluate the implications of different sources of finance 2.3 for health and social care organisations Interpret organisational budgets in health and social 3. Understand how business 3.1 care decisions in health and social 3.2 Evaluate capital expenditures and investment projects care can be informed by using different investment appraisal techniques financial information 3.3 Make recommendations for financial management in health and social care organisations Indicative Content Learning Objective 1 Structure, format and requirements of published accounts: Role of auditors, published vs internal financial information, main published financial statements: statement of financial position, statement of financial performance, statement of cash flows; Different ratios: profitability, liquidity, efficiency, capital, investor, using ratios: calculation and interpretation, industry benchmarking, limitations of ratio analysis Learning Objective 2 Business finance needs and sources of finance: Long term – non-current assets; Short-term – working capital; importance of working capital for business continuity. Costs of finance, effect on financial statements, range of sources, external and internal sources, long-term and short-term role of stock markets and advantages, disadvantages of each source
Learning Objective 3 Budgets, cash flow and investment appraisal: Cash flow forecasts, budgetary control systems and budget formation and managing cash flow. Net present value, discounted cash flows, internal rate of return, London School of International Business | www.LSIB.co.uk
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