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Business Finance Healthcare Finance: An Introduction to Accounting and Financial Management

The four C's in finance Introduction: A health care facility generally refers to a hospital or a clinic that provides health care needs to the people. Health care finance helps in gathering financial resources and allocates them as per the needs of the patients. The following are the four C's in health care finance: Cost Cash Capital and Control The financial activities in health care organizations are generallysummarized under these four C's. For the success of a business, the unwanted costs must be cut and the actual costs must be reduced to the lowest possible cost. The cash inflow of the business must be increased. The finance manager has to monitor the cash on hand balance frequently to avoid financial issues such as shortage of cash or too much cash on hand. Capital refers to the funds that the organization uses to invest on assets like land and buildings or machinery. Control refers to the way by which the finance department manages and controls the cash inflow and outflow of the business. The department must control the cash outflow and find ways to increase cash inflows. Hence, the four C's of health care finance are cost, cash, capital, and control.

The four C's in finance Introduction: A health care facility generally refers to a hospital or a clinic that provides health care needs to the people. Health care finance helps in gathering financial resources and allocates them as per the needs of the patients. The following are the four C's in health care finance: Cost Cash Capital and Control The financial activities in health care organizations are generallysummarized under these four C's. For the success of a business, the unwanted costs must be cut and the actual costs must be reduced to the lowest possible cost. The cash inflow of the business must be increased. The finance manager has to monitor the cash on hand balance frequently to avoid financial issues such as shortage of cash or too much cash on hand. Capital refers to the funds that the organization uses to invest on assets like land and buildings or machinery. Control refers to the way by which the finance department manages and controls the cash inflow and outflow of the business. The department must control the cash outflow and find ways to increase cash inflows. Hence, the four C's of health care finance are cost, cash, capital, and control.

Healthcare Finance: An Introduction to Accounting and Financial Management

Healthcare Finance: An Introduction to Accounting and Financial Management

6th Edition

ISBN: 9781567937411

Author: Louis C. Gapenski, Kristin L. Reiter

Publisher: Health Administration Press

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Chapter 1, Problem 4.2STQ

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Healthcare Finance: An Introduction to Accounting and Financial Management

Ch. 1.1 - Prob. 1.1STQ Ch. 1.1 - Prob. 1.2STQ Ch. 1.1 - Prob. 1.3STQ Ch. 1.1 - Prob. 1.4STQ Ch. 1 - Prob. 1.1STQ Ch. 1 - Prob. 1.2STQ Ch. 1 - Prob. 1.3STQ Ch. 1 - Prob. 1.4STQ Ch. 1 - Prob. 2.1STQ Ch. 1 - Prob. 2.2STQ

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