400845 Health Financial Management
School of Science & Health Learning Guide
Spring 2017

UNIT DETAILS
Unit Code: 400845 Unit Name: Health Financial Management
Level: 7 Contact hours
per week:
2 hour tutorials every 2 weeks
Lectures Online on vUWS
Credit Points 10
Assumed
Knowledge:
Nil

 

STAFF
Unit
Coordinator and
point of first
contact
Leigh Wilson
Building 24
Level 2
Room 36
Campbelltown Campus
02 4620 3537 Email: l.wilson@westernsydney.edu.au
CONSULTATION ARRANGEMENTS
Campbelltown Staff: Associate Professor Leigh Wilson and Dr Mary Foley
Consultation Details:
Dr Wilson is available on Parramatta Campus by appointment in Building EHa

 

Textbook

Edition: Spring 2017.
© Copyright: Western Sydney University, 2017. No part of this publication may be reproduced or transmitted in any form or by any means, electronic
or mechanical, including photocopying, recording, or by any information storage and retrieval system, without the prior written permission from the
Dean of the School of Science & Health. Copyright for acknowledged materials reproduced herein is retained by the copyright holder. All readings in
this publication are copied under licence in accordance with Part VB of the Copyright Act 1968.

Table of Contents
Table of Contents 1
1. About Health Financial Management 1
1.1 An Introduction to this Unit 1
1.2 What is Expected of You 1
1.3 Changes to Unit as a Result of Past Student Feedback 1
2. Learning and Teaching in this Unit 2
2.1 Unit Learning Outcomes 2
2.2 Course Learning Outcomes and Graduate Attributes 2
2.3 Schedule of Activities 4
2.4 Summary of How Learning Activities Support Achievement of Unit Learning Outcomes 8
2.5 Learning Resources 8
3. Assessment 10
3.1 Assessment summary 10
3.2 Assessment Details 11
Assessment 1: Critical Analysis Report Weight (40%) 11
Assessment 2: Short answer questions (20%) 15
Assessment 3 : Budget and Break-even Analysis (Weight 10%) 17
Assignment 4: Preparing a budget business case (30%) 19
TO BE READ IN CONJUNCTION WITH THE WESTERN SYDNEY UNIVERSITY LEARNING GUIDE
COMPANION AND WESTERN SYDNEY UNIVERSITY POLICIES.

1. About Health Financial Management
1.1 An Introduction to this Unit
This unit provides health leaders with an introduction to financial management in health and aged care
settings. This can be used as a basis for understanding the impact of leadership decision-making on
financial outcomes and how financial decision-making impacts on clinical service delivery. The unit
includes:
an overview of health economics and economic evaluation,
health care funding models,
the principles, practices and tools for financial planning and management,
basic accounting principles and financial terminology
using financial information and reporting for negotiating financial plans,
tracking and evaluating financial performance and
using financial information in decision-making within the clinical environment.
1.2 What is Expected of You
Study Load
For a 10 credit point unit, you are expected to study 10 hours per week for 14 weeks. This unit has online
lectures and 2 hour face to face tutorials at Parramatta Campus every two weeks.
Attendance
Face to face tutorials are held on Parramatta Campus every 2 weeks as outlined in the Learning Guide.
Online Learning Requirements
All lectures are online on vUWS. Powerpoint slides of the lectures are also available on vUWS.
Students are expected to consult vUWS at least twice a week, as all announcements will be made via
this site and teaching material will be regularly updated and posted online.
Special Requirements for the Unit
None
1.3 Changes to Unit as a Result of Past Student Feedback
Changes have been made to this unit following student feedback in previous years.
Western Sydney University – Learning Guide 1
2. Learning and Teaching in this Unit
2.1 Unit Learning Outcomes
Becoming a professional in this field requires a fundamental understanding of health funding issues and financial reporting
practices. This unit aims to introduce the understanding financial conventions necessary to be an effective health
manager. Upon successfully completing this unit, students will be able to:

1 Critically examine different funding arrangements used internationally, and/or between the Commonwealth and
the States in Australia for heath and aged care services.
2 Understand in detail the recent reforms in funding, including government funding, non-government funding, user pays,
and current and future issues in financing.
3 Practice basic accounting principles and the language of financial reporting.
4 Discuss financial management issues, such as accounting for overheads, capital assets, short and long-term liabilities
and depreciation.
5 Critically analyse the reporting systems used by health and aged care organisations, including budget statements.
6 Prepare budgets and economic appraisals of funding options.
7 Conceptualise how health information is used to develop performance indicators for management of cost centres, be
able to analyse budget variances and evaluate options such as a response to “budget blowouts”.
8 Prepare an application for funding, with consideration of offsets and alternative funding strategies.

2.2 Course Learning Outcomes and Graduate Attributes
As a graduate from Master of Health Science, you will have achieved the following course learning outcomes upon completion of the
award:

1 Critically evaluate organisational structures, organisational behaviour and management needs in the health
care sector.
2 Describe the social aspects of health and ill health.
3 Analyse, develop and critically assess health care policy.
4 Demonstrate practical skills of financial planning and accounting principles.
5 Provide a global perspective on health care financing and provision.
6 Critically evaluate the economic performance of different interventions.
7 Effectively manage human resources in large and varied organisations, in both the private and public sectors of
health care.
8 Critically analyse current and emerging issues in health care management and have an ability to take a leadership
role in responding to change.
9 Implement effective methods of performance management.
10 Apply legislative and OH&S requirements in the management of employees in a large organisation such as the
health sector.
11 Apply new and current strategies in management for effective planning and improve outcomes.
12 Use statistical, epidemiological and research skills in the implementation and analysis of health care research.

 

13 Explain the concept of evidence based health care and critically evaluate such evidence.
14 Identify population health data sets and how they can be used to monitor health and the outcomes of health care.
15 Demonstrate communication skills particularly in the areas of academic writing, project reports and oral
presentations skills.
16 Apply key concepts and competencies associated with health policy, leadership, health financial management,
and/or applied research and evidenced based practice to design and conduct a research-based project or piece of
scholarship.

As a graduate from The University, you should be able to demonstrate all of the subsets of the major attributes which are:

1 Command multiple skills and literacies to enable adaptable lifelong learning;
2 Demonstrate knowledge of Indigenous Australia through cultural competency and professional capacity;
3 Demonstrate comprehensive, coherent and connected knowledge
4 Apply knowledge through intellectual inquiry in professional or applied contexts
5 Bring knowledge to life through responsible engagement and appreciation of diversity in an evolving world

2.3 Schedule of Activities

Wk Lecture Tutorial Independent Reading & Activities Assessments
Assessment items Feedback [Mode]
1
17/07
Introduction to Health
Financial
ManagementAssessment
requirements
The Australian Healthcare
system
Lecture online
NO TUTORIAL THIS WEEK Postgraduate Student Handbook
Learning Guide
Australian Institute of Health and Welfare (2014).
Australia’s
Health 2014
.
Australia’s Health Series no. 14. Cat. no. AUS 178. Canberra:
AIHW. Available:
http://www.aihw.gov.au/WorkArea/DownloadAsset.aspx?id
=60129547575
2
24/07
Why governments are
involved in healthcare
Funding revenue and
expenditure
Lecture online
Tutorial face to face on
Parramatta Campus
Discussion of Assessment 1
Australian Institute of Health and Welfare (2013). Health
Expenditure Australia 2011–12
.
Health and welfare expenditure series no. 50. Cat. no. HWE
59. Canberra: AIHW. Available:
http://www.aihw.gov.au/publication
detail/?id=60129544658
3
31/07
Budgeting for Health
Lecture online
NO TUTORIAL THIS WEEK Budget Paper Numbers 1 and 2 (Part 1 Health): 2016 Budget
http://budget.gov.au/2016-17/content/bp1/html/
4
07/08
Medicare
Lecture online
Tutorial face to face on
Parramatta Campus
Medicare : A Quick Guide. Parliamentary Library Canberra
(2016). Available at:
http://parlinfo.aph.gov.au/parlInfo/download/library/prspub
/4687808/upload_binary/4687808.pdf;fileType=application/
pdf

 

Wk Lecture Tutorial Independent Reading & Activities Assessments
Assessment items Feedback [Mode]
5
14/08
The Pharmaceutical
Benefits Scheme
Lecture online
NO TUTORIAL THIS WEEK The Pharmaceutical Benefits Scheme: A Quick Guide.
Parliamentary Library Canberra. (2016) Available at:
http://parlinfo.aph.gov.au/parlInfo/download/library/prspub
/4482670/upload_binary/4482670.pdf;fileType=application/
pdf
Assessment 1 due
Friday 18
th August
at 11.59pm on
Turnitin.
7th September on
Grademark
6
21/08
Private Healthcare in
Australia
Lecture online
Tutorial face to face on
Parramatta Campus
Assessment 2
Discussion and questions
Australias Health System (2014) Australian Institute of Health
and Welfare. Available at:
http://www.aihw.gov.au/australias-health/2014/health
system/
7
28/08
Accounting and
budgeting principles
Lecture online
NO TUTORIAL THIS WEEK NSW Health (2015) Health Administration Corporation Annual
Report 2014-15
. Available at:
http://www.health.nsw.gov.au/annualreport/pages/default.a
spx
8
04/0
9
Casemix and DRGs
Lecture online
Tutorial face to face on
Parramatta Campus
Excel workshop in class
(Preparation for Assignment
3)
Definition of Casemix for Hospitals. Health and Hospitals
Commission.
Available at:
http://www.healthandhospitalcommission.com/docs/May26
Meeting/CasemixIndexDefintion.pdf
Assessment 2 due
8
th September at
11.59 on Turnitin.
28th September on
Grademark
9
11/09
Intrasession Break
10
18/09
The State Budget
Lecture online
NO TUTORIAL THIS WEEK The 2016 NSW State Budget (Chapter 6 – Health) Available at:
http://www.budget.nsw.gov.au/__data/assets/pdf_file/000
4/128551/6._Health.pdf
The NSW Health Budget (2016 – 2017) NSW Health
Available at:
http://www.health.nsw.gov.au/about/budget/pages/default.
aspx

 

Wk Lecture Tutorial Independent Reading & Activities Assessments
Assessment items Feedback [Mode]
11
25/09
Healthcare Agreements
and Planning
Lecture online
Tutorial face to face on
Parramatta Campus
The National Healthcare Agreement
Available at:
http://www.curtin.edu.au/research/jcipp/local/docs/National
_Healthcare_Agreement_2011.pdf
National Healthcare Agreement Indicators. Available at:
http://meteor.aihw.gov.au/content/index.phtml/itemId/4358
21
Assessment 3 due
28
th September
2017 at 11.59pm on
Turnitin.
21st October on
Grademark
12
02/10
The Private Public
Partnership and Capital
Charging
Lecture online
NO TUTORIAL THIS WEEK Pollock, A. M., Shaoul, J. & Vickers, N. PPPs: A policy in search
of a rationale? Private finance and ‘value for money’ in
Britain’s public hospitals.
Available:
http://evatt.org.au/publications/papers/33.html
OECD (2014) Private financing and government support to
promote long-term investments in infrastructure. Available:
http://www.oecd.org/daf/fin/private-pensions/Private
financing-and-government-support-to-promote-LTI-in
infrastructure.pdf
13
09/10
International Comparisons
Case studies
Lecture online
Tutorial face to face on
Parramatta Campus
The US Healthcare System. An International Perspective:
Factsheet. Available at:
http://dpeaflcio.org/wp-content/uploads/US-Health-Care-in
Intl-Perspective-2016.pdf
The National Health Service in the UK (England Scotland,
Northern Ireland and Wales)
http://www.nhs.uk/NHSEngland/thenhs/about/Pages/overvi
ew.aspx
Assessment 4 due
13
th October 2017
11.59pm on
Turnitin
Online after
results are
released.
14
16/10
Subject review
Lecture online
NO TUTORIAL THIS WEEK
15
23/10
STUVAC

 

Wk Lecture Tutorial Independent Reading & Activities Assessments
Assessment items Feedback [Mode]
16
30/10
Formal Exam Period
17
06/11
Formal Exam Period
18
13/11
Session Ends

2.4 Summary of How Learning Activities Support Achievement of Unit
Learning Outcomes

UNIT LEARNING OUTCOMES LEARNING ACTIVITIES ASSESSMENT ACTIVITIES
1 Be able to critically examine different
funding arrangements used
internationally, and/or between the
Commonwealth and the States in
Australia for heath and aged care
services.
Tutorials and readings
Lectures
1. Critical analysis report
2 Assess understanding of lecture
material and financial concepts.
2 Be aware of recent reforms in funding,
including government funding, non
government funding, user pays, and
current and future issues in financing.
Tutorials and readings
Lectures
1. Critical analysis report
2 Assess understanding of lecture
material and financial concepts.
3 Understand basic accounting principles
and the language of financial reporting.
Excel workshop
Tutorials and readings
Lectures
2 Assess understanding of lecture
material and financial concepts.
Understand financial management issues,
such as accounting for overheads, capital
assets, short and long-term liabilities and
depreciation.
Tutorials and readings
Lectures
2 Assess understanding of lecture
material and financial concepts.
5 Critically analyse the reporting systems
used by health and aged care
organisations, including budget
statements.
Excel workshop
Lectures
2 Assess understanding of lecture
material and financial concepts.
6 Prepare budgets and economic appraisals
of funding options.
Excel workshop
Lectures
3 Prepare a business case
7 Understand how health information is
used to develop performance indicators
for management of cost centres, be able
to analyse budget variances and evaluate
options eg in response to “budget
blowouts”.
Tutorials and readings
Lectures
2 Assess understanding of lecture
material and financial concepts.
3 Prepare a business case
8 Prepare an application for funding, with
consideration of offsets and alternative
funding strategies.
Tutorials and readings
Lectures
3 Prepare a business case

2.5 Learning Resources

Resources How to Engage with the Resources
Lectures/
Textbooks/
Reading Lis
Read the recommended chapters and lecture notes relevant to the topics.
Ensure the theory match your assumptions.
Summarise the contents of each topic and incorporate material from lectures and tutorials.
Reading List:
Baker, J. J. and Baker, R. W. (2014).
Health care finance: Basic tools for nonfinancial managers (4th
Ed.). Burlington, MA: Jones & Bartlett Learning.

Western Sydney University – Learning Guide 8

Berger, S. (2014) Fundamentals of health care Financial management 4th Ed. Jossey Bass.
Courtney, M. D. and Briggs, D. (Eds.). (2004).
Health care financial management. Marrickville,
Australia: Elsevier.
Drummond, M., Sculpher, M., Torrence, G., O’Brien, B., & Stoddard, G. (2005).
Methods for the
economic evaluation of health care programmes
(3rd Ed.). Oxford, UK: Oxford University Press.
Ferguson, L. (2004). Casemix: Key issues for health service managers. In M. Clinton (Ed.),
Management in the Australian health care industry (3rd Ed.) p. 318-337). Frenchs Forest, Australia:
Prentice Hall Health.
Finkler, S. A. and McHugh, M. L. (2008).
Budgeting concepts for nurse managers (4th Ed.).
Philadelphia, PA: Saunders Elsevier.
Isouard, G., Messum, D., Briggs, D., McAlpin, S. and Hanson, S. (2006). Improving organisational
performance in health care. In M. G. Harris & Associates (Eds.),
Managing health services: Concepts
and practice (2nd Ed)
p. 349-380). Marrickville, Australia: Elsevier.
Jopling, R., Lucas, P. and Norton, G. (2004).
Accounting for business: A non-accountant’s guide
(2nd Ed.). Sydney, Australia: McGraw Hill.
Ministry of Health. (2008).
Episode funding policy 2008/2009 – NSW (PD2008_063). North
Sydney, Australia: NSW Health
. Available Online
Penner, S. J. (2013)
Economic and financial management for nurses and nurse leaders. (2nd Ed.)
NY: Springer Publishing
Zelman, W.N.
2014 Financial management of health care organisations: An Introduction (4th Ed.)
Jossey Bass.
You must use APA 6
th referencing style for this unit. If you have questions about referencing,
on-line librarians can provide instant assistance
http://library.uws.edu.au/uws_library/

Western Sydney University – Learning Guide 9
3. Assessment
3.1 Assessment summary
There are four assessment items in this unit designed to demonstrate that you have achieved the unit learning outcomes.
Completion and submission of all assessment items is essential to receive a passing grade.
Achievement of at least 50% overall is required to pass this unit.

ASSESSMENT DUE DATE WEIGHTING ULOs FEEDBACK
ITEM TASK MODE DATE
1 Report Critical analysis report 1500 words Friday 18th August
11.59pm on Turnitin
40% 1 – 4 Grademark 7th September
2 Short answer
questions
Short answers – topics from the
learning material
Friday 8th September
11.59 on Turnitin
20% 6 Grademark 28th September
3 Budget as an
Excel file
Budget and Break even analysis Friday 28th September
11.59pm on Turnitin
10% 5 – 8 Grademark 21st October
4 Report Application for funding with Budget –
2500 words
Friday 13th October
11.59 on Turnitin
30% 5 – 8 Grademark When results are
released

Note: Results may be moderated before you receive your results. Moderation is a process whereby the unit coordinator regulates the marking of individual
markers to achieve consistency in the application of unit objectives, performance standards and marking criteria. Marks for an individual piece of assessment will
not be changed after you have your results. You should note that, consistent with the Criteria and Standards Based Assessment policy, the final marks for the
cohort may also be adjusted if marks are very high or low or there are inconsistencies between groups.
Western Sydney University – Learning Guide 10
3.2 Assessment Details
Assessment
1: Critical Analysis Report Weight (40%)
Due Date: Friday 18th August (11.59pm on Turnitin)
Length: 1500 words (± 10% – 150 words)
Submission Details: Through the Turnitin link on the unit website.
Feedback Details: Via Grade Mark. It is strongly recommended that you read the detailed feedback
provided to avoid errors in further assignments.
Students should pay particular attention to feedback on academic writing style to ensure better marks
(such as how to use report format, with numbered sections in text, how paragraphs need a theme, how
to reference all content correctly in text with minimal use of quotations and use APA in the references
section).
Use of grammar and spell check is mandatory. This is because the number one generic competency
expected of health graduates across many countries by health managers is communication skills, both
written and oral. In addition, integrity and ethical conduct (which includes accurate referencing and
acknowledgement of sources) has been found the most important single competency in NSW Health.
Marks for content in this assignment require that students engage in critical analysis, without which a
mark of credit or higher cannot be awarded as per UWS Assessment Policy. This means that students
must learn to weigh up strengths and weaknesses in academic argument, identifying short comings,
limitations and what works well, and question how things are done now. This can be achieved by
reading widely and finding current literature from refereed journal articles especially recent
international literature.
Current means published in the last five years or from 2012 onwards unless the source is considered a
seminal source and therefor worthy of inclusion. Use of ten recent readings is a minimal requirement.
Good use of appropriate additional good quality references will earn higher marks. The quality of
evaluation and ideas to improve upon current practice also identifies students’ ability to critically
analyse current literature and practice.
Rationale
Understanding how current practices can be improved is essential for working in the health field.
Task
Students are asked to write a critical analysis essay of 1500 words (± 10%) on the following issue.
“The Australian Pharmaceutical Benefits Scheme and the consumption of medicines in Australia”
Australia has one of the highest consumption rates for medicines of all countries. The costs of
the Pharmaceutical Benefits Scheme in Australia are increasing each year.
What are the costs of medicine consumption in Australia and why is this the case?
What types of medicines are consumed (both prescribed and non -prescribed) and what are
the problems with the Pharmaceutical Benefits Scheme?
Western Sydney University – Learning Guide 11
Criteria
You will be assessed on the following:
Academic writing skills, use of report format and APA.
Reporting and analysis of PBS data, costs, sources of funds and medications used.
Use of charts and or tables to explain recent information with accurate sourcing.
Understanding and critical analysis of the issues using evidence from the recent literature.
Quality of recommendations to reduce costs and lower consumption.
Resources
AIHW (2015) Health Expenditure 2013-2014. Health and Welfare Expenditure Series no 54. Canberra.
Available:
www.aihw.gov.au
Duckett, S.J. with Breadon, P., Ginnivan, L. and Venkataraman, P. (2013) Australia’s Bad Drug Deal: High
Pharmaceutical Prices,
Grattan Institute, Melbourne, ISBN: 978-1-925015-00-3
Western Sydney University – Learning Guide 12
Rubric: Assessment 1 Critical analysis report 40 marks

Criteria Unsatisfactory Pass Credit Distinction High Distinction
Academic writing
skills
(10 marks)
Over word limit.
No executive summary
or abstract only,
and/or no contents
page and/or
numbered headings in
text.
Formatting errors
Referencing not in
APA format
(2.5 marks)
Minimal Executive
Summary.
Adequate contents
page which may not
match headings in text.
Some report
formatting or language
errors.
Writing generally clear
may not be succinct.
Correct in-text citation.
APA referencing
format used for all
sources with no errors.
(5 marks)
Good Executive
Summary.
Correct contents page
which matches
headings in text.
Minor report
formatting or language
errors.
Writing generally clear
and succinct.
Correct in-text citation.
APA referencing
format used for all
sources with no errors.
(6.5 marks)
Executive summary
covers all main points.
Document well
formatted with few
errors.
High level writing skills.
Correct referencing
skills in-text and end
list.
(7.5 marks)
Executive summary
covers all main points.
Document
professionally
presented.
(8.5 – 10 marks)

Western Sydney University – Learning Guide 13

Criteria Unsatisfactory Pass Credit Distinction High Distinction
Use of tables and
charts
(5 marks)
Limited if any recent
data used with little if
any interpretation to
support argument.
No acknowledgement
of sources used.
(0 marks)
Descriptive use of data
only.
Refers to and attempts
to explain visual
materials used but not
always accurate in
interpretation.
Limited use of charts
and tables to explain
issues. Sources
acknowledged if
incorrectly.
(2.5 marks)
Some analysis of data.
Good reference to,
accurate explanation
of and integration of
visual materials into
text.
Good use of charts and
tables to explain
issues. Correct
acknowledgement of
sources.
(3.25 marks)
Good analysis of data to
support argument
Consistent and
accurate reference to,
explanation of and
integration of visual
materials into text.
Comprehensive and
relevant charts and
tables to explain issues.
Correct
acknowledgement of
sources.
(3.75 marks)
Excellent analysis of
data to support
argument.
Excellent reference
to, explanation of and
integration of visual
materials into text.
Excellent use of
charts and tables to
explain issues.
Correct
acknowledgement of
sources.
(4 – 5 marks)
Critical analysis of
literature and data.
(15 marks)
Little if any analysis of
issues, poor
understanding,
evidence not current
(<7.5 marks)
Some analysis of
issues, some
understanding;
evidence needs further
input.
(7.5 marks)
Good analysis of
issues, and
understanding, with
supportive evidence.
(9.75 marks)
Thorough analysis of
issues, and in depth
understanding, with
supporting evidence.
(11.25 marks)
Excellent analysis of
issues, and clear
understanding, with
recent in depth
supporting evidence.
(12 – 15 marks)
Recommendations
(10 marks)
Few if any
recommendations
(2.5 marks)
Some
recommendations but
may not be original
and/or supported by
argument.
(5 marks)
Good original
recommendations well
supported by the
evidence.
(6.5 marks)
Creative and original
recommendations well
supported by the
evidence.
(7,5 marks)
Excellent and
convincing original
recommendations
well supported by the
evidence.
(8.5 – 10 marks)

Western Sydney University – Learning Guide 14
Assessment 2: Short answer questions (20%)
Due Date: Friday 8th September 2017 on Turnitin by 11.59pm.
Length: 4 questions (250 words each answer).
These will be provided in class in Week 6.
Submission Details: Via Turnitin on vUWS
Feedback Details: via Grademark
Rationale
The purpose of these questions is to ensure students engage with teaching materials and achieve broad
understanding of the topic areas.
Quality of writing skills is also being assessed to help improve competency- an essential requirement for future
health services managers and/or employees.
Criteria
You will be assessed on the following:
Insights to financial management processes and current issues.
Accuracy of understanding.
Writing skills.
Identification of issues for reform.
Resources
Lectures, tutorials and readings.
Western Sydney University – Learning Guide 15
Rubric: Assessment 2- for each question.

Criteria Unsatisfactory Pass Credit Distinction High Distinction
Topic understanding
and analysis
(2.5 marks)
No attempt to answer
all question or answer
incorrect.
(0 marks)
Correct answer and
some analysis present.
(1.25 marks)
Correct answer and
good analysis present.
(1.6 marks)
Correct answer and
detailed analysis
present.
(1.8 marks)
Correct answer and
high level analysis
present.
(2.5 marks)
Writing skills
(2.5 marks)
Poor writing skills. Not
in appropriate format.
No references.
(0 marks)
Adequate writing skills.
Some references used
correctly.
(1.25 marks)
Good writing skills,
references used
correctly.
(1.6 marks)
Very good writing
skills. References good
quality and used
correctly.
(1.8 marks)
High level writing skills
and high level
references used
correctly.
(2.5 marks)

Western Sydney University – Learning Guide 16
Assessment 3 : Budget and Break-even Analysis (Weight 10%)
Due date: Friday 28th September 11.59pm on Turnitin
Length:
This assignment is to be submitted as an Excel file using the template on the unit website.
Files should be submitted as usual on to Turnitin.
Submission Details: to Turnitin
Feedback Details: Via Grade Mark.
Rationale
Assignment 3 is designed to help students prepare the financial and activity details for the business
case (Assignment 4). This assists students to complete Assignment 4 more easily.
Note: It is strongly recommended that students submit their activity and financial budgets to the lecturer
in advance to seek feedback on the way activity and financial budgets have been constructed. It is
recommended that before the budget build up process starts that students consult with the lecturer to
confirm that the proposed project is suitable for this assignment. A whole hospital, for example, is not
appropriate as there are too many product lines to be managed successfully for a student assignment.
Task
After discussion with the lecturer, choose the appropriate template to download from vUWS. Prepare a
zero base activity and financial budget for the health services the student plans to propose in
assignment 4.
As well as the proposed budget for the optimal operation of the service the student is to prepare a
budget that will allow operations on a budget that is 10% less than the optimal budget.
Assignment 4 will explain the differences and how the operation on the reduced budget is made
possible. Include a break-even analysis.
Criteria
You will be assessed on the following:
Quality of explanation at each row item to explain activity and budget items.
Maintenance of integrity of the Excel file so that sources may be tracked back from the break
even to the source data items.
Resources
Zelman, W.N. (2014) Financial management of health care organisations. (4th Ed). Online in UWS
Library.
Chapter 9: Using cost information to make special decisions, p. 375 onwards.
Penner, S. J. (2013)
Economic and financial management for nurses and nurse leaders. (2nd Ed) . NY:
Springer Publishing. Chapter 8: Cost finding, breakeven and charges p. 168 onwards.
Western Sydney University – Learning Guide 17
Rubric: Assessment 3: Budget and break-even analysis (10%)

Criteria Unsatisfactory Pass Credit Distinction High Distinction
Activity and finance
Budget
(5 marks)
Little if any answer
( 0 marks)
Some data Inadequate
or incomplete budget
details and/or broken
spreadsheet
(2.5 marks)
Adequate data with
incomplete budget
details and/or broken
spreadsheet
(3.5 marks)
Adequate data with
complete budget
details and good
spreadsheet
(4 marks)
Adequate data with
complete budget
details. Fully
functional spreadsheet
(5 marks)
Break even analysis
(5 marks)
Little if any answer
( 0 marks)
Some data Inadequate
or incomplete budget
details and/or broken
spreadsheet
(2.5 marks)
Adequate data with
incomplete budget
details and/or broken
spreadsheet
(3.5 marks)
Adequate data with
complete budget
details and or good
spreadsheet
(4 marks)
Adequate data with
complete budget
details. Fully
functional spreadsheet
(5 marks)

Western Sydney University – Learning Guide 18
Assignment 4: Preparing a budget business case (30%)
Due Date: Friday 13th October (11.59pm on Turnitin)
Length: 2000 words
Submission Details: Via Turnitin on vUWS
Feedback Details: Via Grademark.
Rationale
This purpose of this assessment is to enable students to apply the knowledge they have gained from the
subject and completing the questions during the session.
The tutorial activities are designed to develop students’ skills in use of Excel. Attendance at tutorials
ensures that students can prepare the business case using financial data.
The assignment is designed for students to develop a zero based budget which shows skills in breaking
down costs for a service or project in relation to planned activity levels and outcomes or deliverables.
Development of a business case is a common activity for health managers to undertake.
Tasks
For your chosen service or health facility prepare a budget for this new service or project. Prepare this
in report format as discussed in class and as outlined on the vUWS website.
1. Remember outputs as well as financial data is required.
2. In preparing the budget, students should show the build-up of the budget from a zero base
including all significant line items.
3. A contingency plan must be included (what happens if desired funding is not available to the
optimal level desired) with at 10% less than the optimal budget. Show deletions and cost cutting
measures.
4. Include a financial activity analysis and a break-even analysis chart to show at what level of
activity the service ‘breaks even’. In the public sector this means to come in on budget rather than
make a profit.
Criteria
You will be assessed on the following:
Writing skills.
Rationale/justification for a new service.
Application of zero based budgeting principles.
Understanding of activity/output requirements.
Veracity of the break-even analysis.
Quality, feasibility and relevance of performance criteria.
Resources
A sample business case format will be provided on vUWS.
Western Sydney University – Learning Guide 19
Rubric: Assessment 4 Preparing a budget business case 30%

Criteria Unsatisfactory Pass Credit Distinction High Distinction
Writing skills
(10 marks)
Poor formatting – no
Executive Summary
No Contents Page
Not in Report format
No APA referencing
style
Not in writing style.
(2.5 marks)
Executive summary
may cover some key
points only.
Poorly presented
contents page which
may not match
headings in text. Other
formatting errors.
Some language errors
interfere with meaning.
Writing generally clear
may not be succinct.
Correct in-text citation
& use of APA.
(5.0 marks)
Executive summary
good and
comprehensive.
Good contents page
which matches
headings in text. Few
formatting errors.
Few language errors
interfere with meaning.
Writing generally clear
and succinct.
Correct in-text citation
& use of APA.
(6.5 marks)
Executive summary
very good and
comprehensive.
Good contents page
which matches
headings in text. No
formatting errors.
No language errors
that interfere with
meaning.
Writing clear and
succinct.
Correct in-text citation
& use of APA.
(7.5 marks)
Executive summary
high level and
comprehensive.
Perfect contents page
which matches
headings in text. No
formatting errors.
No language errors
that interfere with
meaning.
Writing high level
academic style.
Correct in-text citation
& use of APA.
(8.5 – 10 marks)

Western Sydney University – Learning Guide 20

Criteria Unsatisfactory Pass Credit Distinction High Distinction
Rationale and
Objectives
(5 marks)
Inadequate coverage
of content.
Few references cited,
and/or out of date
and/or from
inappropriate sources.
No or little
demonstration of
service need or why
the service/project
should be
implemented.
No service/project
objectives
(0 marks)
Adequate coverage of
content.
10 references cited
that are of adequate
quality and date.
Argument or
objectives may be
non-feasible or
incorrect.
(2.5 marks)
Good coverage of
content.
Evidence of additional
reading/references but
may not be current
references.
Good objectives and
rationale for the
service – could be
more developed.
(3.25 marks)
Very good coverage of
content.
Evidence of additional
high quality reading
and references.
Very good objectives
and rationale for the
service – well
developed.
(3.75marks)
High level content.
High level reading and
references that are of
high quality and
current.
High level objectives
and rationale for the
service – very well
developed budget of
professional quality.
(4-5 marks)
Budget build-up and
financial activity
(10 marks)
Budget poorly
structured or missing
major sections
Activity and revenue
analysis inconsistent
with other data.
(2.5 marks)
Financial analysis for
service at optimal and
10% less
Breakeven analysis but
some gaps or
inconsistencies/errors.
(5 marks)
Financial analysis for
service at optimal and
10% less
Breakeven analysis few
gaps or
inconsistencies/errors.
(6.5 marks)
Financial analysis for
service at optimal and
10% less
Breakeven analysis
good but minor gaps
or errors
(7.5 marks)
Financial analysis for
service at optimal and
10% less
Breakeven analysis
good no errors.
(8.5 – 10 marks)

Western Sydney University – Learning Guide 21

Criteria Unsatisfactory Pass Credit Distinction High Distinction
Management of risks
and service issues
(5 marks)
No analysis of risk or
service management
issues.
(0 marks)
Poor or inconsistent
risk and management
analysis.
(2.5 marks)
Analysis of risk and
management issues
incomplete.
(3.25 marks)
Adequate analysis of
risks and management
issues.
(3.75 marks)
Excellent analysis of
risk and service
management issues.
(4 – 5 marks)

Western Sydney University – Learning Guide 22

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400845 Health Financial Management