Reference no: EM132155203
Discussion Board
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?
Essay - Short-Term Debt Financing
Write an essay analyzing short-term debt financing options for a healthcare facility. The first part of this assignment is to come up with a facility that you wish to analyze.
You may create your own facility name, background, and information, or you can base the facility on a healthcare organization with which you are familiar.
Be sure to include a name for your facility, whether it is fictitious or real. Give a brief description of your facility, including information about its history, its current financial situation, and whether it is for-profit or nonprofit.
Once you have chosen a facility and provided the background information, it is time to discuss the short-term debt financing options for your facility. Include the following components in your essay:
Compare and contrast three different external short-term debt-financing options that are available for your facility.
Suppose that your facility is projected to face a cash shortage later this year. Which of the options you listed would be the best to cover this shortage at your facility? Why?
Your essay must be at least two pages in length, double-spaced. You are required to use at least four outside sources, two of which must come from the Online Library and one of which may be your textbook. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying APA citations.
Textbook: Gapenski, L. C., & Reiter, K. L. (2016). Healthcare finance: An introduction to accounting and financial management (6th ed.). Chicago, IL: Health Administration Press.