HCM5001 Fundamentals of Health And Care Finance
HCM5001 Fundamentals of Health And Care Finance Assignment
Word count : 3000
Assignment Brief
As part of the formal assessment for the programme you are required to submit a Fundamentals of Health & Care Finance assignment. Please refer to your Student Handbook for full details of the programme assessment scheme and general information on preparing and submitting assignments.
HCM5001 Fundamentals of Health And Care Finance
On successful completion of this module students will be able to:
- Explore and evaluate the financial environment under which health and social care services are provided.
- Explain the accounting process to prepare financial statements in healthcare and analyse the role of the finance function in a healthcare organisation.
- Interpret financial statements in healthcare and evaluate financial information for the management of healthcare organisations.
- Determine how to prioritise and evaluate investments in healthcare by applying tools to assess their financial viability and their benefits/costs for the population of interest.
- Graduate attributes: Professional Skills – Students will perform effectively within the professional environment. They will work within a team, demonstrating interpersonal skills such as effective listening, negotiating, persuading and presentation. They will be flexible and adaptable to changes within the professional environment.
HCM5001 Fundamentals of Health And Care Finance
Guidance
Your assignment should include: a title page containing your student number, the module name, the submission deadline and the exact word count of your submitted document; the appendices if relevant; and a reference list in AU Harvard system(s). You should address all the elements of the assignment task listed below. Please note that tutors will use the assessment criteria set out below in assessing your work.
You must not include your name in your submission because XXX University operates anonymous marking, which means that markers should not be aware of the identity of the student. However, please do not forget to include your STU number. Maximum word count: 3000 words
Please refer to the full word count policy which can be found in the Student Policies section here: XXX University | Regulatory Framework
Please note the following: Students are required to indicate the exact word count on the title page of the
assessment.
The word count includes everything in the main body of the assessment (including in text citations and references). The word count excludes numerical data in tables, figures, diagrams, footnotes, reference list and appendices. ALL other printed words ARE included in the word count.
Please note that exceeding the word count by over 10% will result in a 10-percentage point deduction.
HCM5001 Fundamentals of Health And Care Finance
Assignment Tasks
Task 1: Learning Outcome 1
(a) Outline the recent developments in the financial and legal/regulatory environment of health and social care service delivery. (b) Considering the usefulness of 3 alternative funding options, to draw a conclusion on what the best form of funding would be for the health and social care sector.
Task 2: Learning Outcomes 3 & 4
a) Review the financial statement for BUPA Group and determine the profitability of the business.
1 Calculate and analyse the Return on Equity (ROE) (Du Pont Analysis) for 2021 and 2020.
2 Explain how Du Pont Analysis could be used in decision- making. Is this business viable business in this case?
Industry Average for Healthcare Sector ROE: 11.6 % Debt Ratio: 35%
b) BUPA has two possible mutually exclusive service offerings. The Finance Manager projected the following investment information. The company’s cost of capital is %10. Evaluate these investment options with Net Present Value (NPV) and Internal Rate of Return (IRR) techniques. Explain what each of these values mean and make a recommendation on which option the company should invest in, justifying this decision.
| Premium Cash Flows | Basics Cash Flows | |
| Initial Investment (£) | – 650,000 | – 515,000 |
| Y1 Net Cash Flows | 175,000 | 125,000 |
| Y2 Net Cash Flows | 178000 | 130,000 |
| Y3 Net Cash Flows | 150,000 | 140,000 |
| Y4 Net Cash Flows | 190,000 | 150,000 |
| Y5 Net Cash Flows | 192,000 | 160,000 |
| Residual Value of Equipment | 50,000 | 40,000 |
HCM5001 Fundamentals of Health And Care Finance
Task 3: Learning outcomes 2 & 3
Assuming the role of a financial advisor, write a briefing report to the board of directors of the BUPA Group to cover the following:
(a) Explain the process to prepare financial statement.
(b) Determine the Debt Ratio and include a statement on the solvency position of the company.
(c) Critically appraise the role of the traditional finance function for healthcare organisations.
Ten additional marks are allocated for presentation, referencing and academic writing