The Importance Of Cash Flow Through The Organization Of Your Choice

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As a health care provider describe how income flows into the organization of your choice (e.g. hospital, Community or a private company). Cash flow is the money that comes in and goes out of a company. It is the generation of income and the payment of expenses. Cash inflows result from either the generation of revenue through the selling of goods and services, money borrowed, or money earned through investments within a given period of time. (Shawn Grimsley, 2014) Forecast of income flow is essential to any viable business, especially small scale establishment as it analyses where the money is, where it is coming from and where it is going to. An In-depth knowledge of the company’s profitability and operation is needed in doing this.…show more content…
As a semi-autonomous provider, the income generated from the NHS system is strictly for the services provided to local residents which is subjected to the Payment by Result system (PbR) introduced by the government in 2003/04 and also the historical ‘block contracts’ payment system (NHS Guide, 2014). Therefore UH, Bristol income flow will be discussed from the operational and financial/investment income flow perspective. Operational income flow results from the cumulative income from the various general medical and emergency services rendered which include, Emergency response, Intensive care management for adult and neonate, general consultation, outpatient clinics, admission, dental services, surgeries, etc. In 2013/14 financial year Bristol posted an income of about £500million (Bristol Quality account 2013/14). Expenses as a result of daily activities includes, Taxes and annual licensing by Monitor, Ambulance/Car fueling and maintenance, wages, insurance, Electricity cost, other utilities, Pharmaceutical purchase, purchase of health care materials etc. Financing/Investing activities cash flow is a term used in business financing, while generating cash to sustain a business other than the cash generated from the core responsibility of the establishment. Financing refers to securing capital and returning capital to its sources. Basically, the two
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