Reference no: EM132751266

Question 1: 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. What do you think the main capital management challenges would be in a for-profit facility that has a constant stream of revenue? How do you think these challenges would differ from a military hospital that is given its funding at the beginning of the year?

Question 2: Bring to mind a wide range of healthcare organizations, such as a long-term care facility, large for-profit hospital, a physicians' practice, Veterans Affairs hospital, or a state-run clinic. Consider how budgeting would be influenced depending on an organization's sources of funding. How do you think the purposes or uses of a budget vary according to the kind of healthcare organization it is?

Textbook: Gapenski, L. C., & Reiter, K. L. (2016). Healthcare finance: An introduction to accounting and financial management(6th ed.). Health Administration Press.