400845 Health Financial Management
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/ |
| 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/ |
Assessment 1 due Friday 18th 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 8th 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 28th 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 13th 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 6th 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