Financial Success In Healthcare Organizations

Decent Essays
Financial success in a healthcare organization means it is capable of generating the resources needed to meet their mission (Cleverley, Cleverley, & Song, 2012). To be successful financially, the organization must focus on sustainable growth, this is when the equity growth meets or exceeds asset growth. If the healthcare organization expects low rates of equity growth, they will not be able to provide the level of resources needed to meet their mission. When a healthcare organization has low growth equity, their asset growth will likely be in working capital. This means they will not have the funds necessary to revamp and renovate their buildings or buy new equipment. They will have very little new capital necessary to be competitive.

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