Question
How much working capital is needed for a nonprofit hospital to function? I was able to locate financial information but I do not know how
How much working capital is needed for a nonprofit hospital to function?
I was able to locate financial information but I do not know how to know if there is enough working capital given there is no profit at the end of the year. My assignment is to do an evaluation of whether or not there is sufficient working capital for business operations including an explanation of why or why not.
Working capital, or actual cash available for spending, is the key to a successful organization. In a healthcare organization, it is important to determine how much cash is available to run the day-to-day operations. For this Discussion, you analyze the working capital of a healthcare organization of your choice.
To prepare for this Discussion, first review the following resources for this week:
Zelman, W. N., McCue, M. J., Glick, N. D., & Thomas, M. S. (2014).Financial management of health care organizations: An introduction to fundamental tools, concepts and applications(4thed.). San Francisco, CA: Jossey-Bass.
- Chapter 5, "Working Capital Management" (pp. 209-243)
- Then locate and select financial statements for a particular healthcare organization. Analyze the working capital of the organization. Consider the impact of regulations, business plans, and economic dynamics on the working capital requirements of the organization. Is there sufficient working capital for business operations of the organization you selected?
- An analysis of the working capital of the healthcare organization you selected.
- An evaluation of the impact of regulations, business plans, and economic dynamics on the working capital requirements of the organization.
- An evaluation of whether or not there is sufficient working capital for business operations including an explanation of why or why not.
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