The organization that I am employed with is in need of new equipment or repairs to existing equipment fairly often. An upholstery company dropped by today in order to fulfill their contract and reupholster some worn chairs. The dialysis machines undergo frequent maintenance and are quite expensive. These are two examples of short term financial needs. Purchasing a generator for the facility is another example of something that is needed in case of a power outage. The company has a plan in place to reroute patients to the local hospital to get the lifesaving treatment they need in case of a power outage. This also requires high amounts of working capital available to transport services to another location. The company only does business with certain contracted personnel. Some bargaining takes place to ensure the best price however it remains quite expensive. During expansion from operating 3 days a week to 6 days required new equipment and staffing from nursing agencies and accommodations for existing company float nurses. When the census is up the costs go up to provide care to more patients. Water usage along with other utilities increase as well to accommodate for the extra treatment times. Money for these spikes in treatment typically comes from cash earmarked for this purpose. Management budgeting involves keeping track of overtime worked and restricting supply usage to the bare minimum. The organization could improve its cash position to address its short-term financial needs by acquiring more patients to charge for treatment. More patients equal more money but also more working capital.

Moy, R. (2014, January 15). Short-term financing [Video]. YouTube. https://www.youtube.com/watch?v=SkU6L-pdPIg

Respond to the above posts in one or more of the following ways:

• Present an additional idea for a short-term financial need your colleague's organization might have.
• Provide an additional perspective on whether your colleague's selected organization should have low, moderate, or high amounts of working capital or an additional perspective on your colleague's rationale.
• Offer an additional suggestion for how your colleague's selected organization could improve its cash position to address its short-term financial needs.