Article Abstract:
Cash management is crucial to the survival of health-care institutions in this changing environment. Many (approximately 1,000 predicted by the year 2000) hospitals are expected to close. Those that survive will be more business oriented. All key decisions (developing new services, pursuing new markets, recruiting physicians,) require financial management and available cash. Costs of providing care have risen while sources of hospital funds are limited. New technology, economic conditions and increased competition have all placed burdens on hospitals. Planning is crucial to cash management. Planning can be designed after industry using cashflow forecasting, cost accounting, modeling and others. Hospital administrators need to be more conversant on financial management, something that they traditionally are uncomfortable with. As the decision-makers, they need to invest to the maximum until it affects liquidity. Since they understand all aspects of the hospital, they also need to learn the financial picture. Financial statements must be analyzed and understood, particularly current ratios and other liquidity measurements. Cash management, in operating terms, requires a delicate balance between maintaining enough liquidity to handle disbursements and investing any excess capital.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Hospital financial managers can utilize the principles of statistical sampling in their financial planning. It is a relatively low-cost and simple way of gathering information and making decisions. The confidence level, as well as levels of precision and the standard deviation, and selecting the sample size are all components in statistical sampling. A financial manager may be interested in either tests of how many or attribute sampling, or tests of how much, or dollar value. Charts are included.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The American College of Hospital Administrators (ACHA) has determined that financial matters are of primary concern to its members and their institutions. The ACHA has released several recommendations to improve managerial effectiveness. These are detailed in the article.
User Contributions:
Comment about this article or add new information about this topic: