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

1526 WordsJul 27, 20167 Pages
Hospitals have had a tremendous obligation to provide innovative services to the public and to maintain their financial stability. One measure of fiscal responsibility used, is an organization 's day’s cash on hand. According to the Balanced Budget Act of 1997, a reduction in reimbursement to providers, hospitals, doctors, and ARNP’s, has contributed to lower revenue for services provided by health care organizations. In the state of Florida, 210 hospitals are located here, we are ranked #3 in the top 5 states with the most acute care facilities. True economic condition is based on long-term viability, which is controlled by variables such as size of endowment, fund balances, historical returns, market share, brand, and scale (Langabeer,…show more content…
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
Open Document