Question

Healthcare organizations strive to manage working capital in such a way that they can reliably cover their short-term expenses while also getting the best possible benefits from their capital. In managing working capital, healthcare organizations face some common challenges, as well as other challenges that are particular to the institution. Reflecting on your experience, what do you think the main capital management challenges would be in a facility that has a constant stream of revenue?

Answer 1

First most important problem with that will be most of the working capital will be used for meeting the daily expenses and also to stock up the pile of the most fast moving items this may some time cause over purchase of the inventory and because of that working capital will be stuck in that because of this company would not be able to invest money in R&D and also would not be able to buy any assets. Some time business have departments which just consumes most of the capital then the company has to do departmental capital analysis to understand which dept is using the most amount of capital and should try to improve on that.