Fiscal Responsibility Used, An Organization's Day's Cash On Hand

Gaining the organizational Board is a key component to implementing any new revisions. Increasing the days cash on hand will require the use of some financial expertise, both in house and outsourced, when aggressive measures are taken. It is crucial to have the Board 's support of the initial expenses and challenges (2010). A top down approach creates lasting effects, once implementation is successful. Smaller community facilities are challenged with the same obstacles as large healthcare systems face, they simply see the revenue loss on a much smaller scale. Change cycles, in smaller facilities, are shorter as there is senior leadership present, along with an easily accessible Board, to authorize the necessary revisions. One strategy is to set aggressive goals in ensuring revenues will see an increase. By looking at all departments, and their AR (accounts receivables), review of quality/ service measures, and billing; savings from each area can amount to significant revenue increases, which in turn will increase DCOH. Let’s take a look at some of the strategies taken by similar, community hospitals who endured some challenges in increasing their DCOH: Improving operating efficiency: Restructuring debt, focusing on collections, and building cash are constantly discussed in healthcare trade magazines as a means to recovery (Langabeer, 2008). Keeping AR below 50 days. The