Hospitals have become one of the vital facilities in society. With the economic trends that exist, hospitals must ensure they streamline their processes to keep patients as their top priority while also realizing the efficiency of their overall capital plans ( Dufresne , 2009). Working capital is an organization's sum of current assets that the firm aims to convert to cash after one year ( Nowicki, 2018 ). Working capital is significant as it not only makes the organizations long term assets productive but also since it facilitates the organization’s capacity to pay their workers and retailers on time. Organizations with sufficient working capital are seen to be creditworthy; thus, all organizations aim for this status ( Nowicki, 2018 ). To have sufficient working capital, the organization must have an elaborate capital plan that ensures the efficiency and success of the organization. The best practice for capital planning is to ensure the facility has an accurate picture of its capital requirements ( Dufresne , 2009). They can achieve this by providing their existing workforce with tools and training. This will enable them to consistently practice what they learn by collecting and documenting data ( Dufresne , 2009). This will also allow employees to specialize and understand the needs of their organization by creating a centralized database for the storage and analysis of their capital requirements.
This best practice is the most essential in ensuring the organization's successful capital planning. This is the first step that an organization can take to ensure they streamline their efficiency. By doing this, they will be able to make forecasts on their needs, thus making tactical shifts in projects and the workplace (Straden, Banholzer & Chandarana, n.d). By keeping the task of collecting and analyzing data within the organization, employees are able to better themselves. The organization is also able to tap into its employee's collective wisdom and realize success in planning for their capital needs (Straden, Banholzer & Chandarana, n.d). This also allows employees to adopt a culture of continuous improvement. The employees charged with the analysis of the organizations' needs must be keen to identify past errors (Straden, Banholzer & Chandarana, n.d). Their analysis then forces the workforce to be creative and offer course-correcting alternatives that can be adopted to ensure the efficiency and success of the organizations.
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References
Dufresne, R. Best practices in healthcare facilities capital planning. Healthcare Design; Jun 2009; 9, 6; ProQuest Central, pg. 36.
Nowicki, M. (2018). Introduction to the financial management of healthcare organizations. Health Administration Press, Chicago, Illinois.
Straden, D., Banholzer, M., & Chandarana, A. (n.d). Nine practices for better capital investment management.
