Health Services Finance Week 6 Discussion Questions (6)
Experts only! Scholarly responses are required.
*Please answer each question individually and accurately. Must cite any and all references in APA format.
Label each solution with the corresponding question. Copy and pasted solutions will NOT be accepted.
Minimum 2-3 quality paragraphs per question
Part A: Cash and Assets
1. List and describe where cash is generated by an organization and where an organization uses its cash.
2. Discuss some of the disadvantages of having too much invested in working capital. How would this
affect the organization’s cashflow?
3. Distinguish between the terms working capital and current assets. Why is it needed in healthcare
organizations? As an administrator of a nursing home, discuss with the class why you need to keep a
working capital.
Part B: Cash Resources
1. List and explain the criteria that should be used when investing an organization’s cash in the short
term.
2. Discuss some of the risk of not being able to roll over or refinance a short-term loan.
3. As a hospital administrator, discuss why an organization needs to carry cash balances. Will the cash
balances for not-for profit and for-profit health organizations be different?
