Managing Working Capital Research Paper Example | Topics and Well Written Essays - 500 words

Managing Working Capital - Research Paper Example The net working capital of Syndicate Company is similar to its working capital. To find the net working capital, Syndicate clinic, subtracts the trade accounts payable from the inventories, marketable investment, and cash. The clinic used the net working capital in estimating the growth of the company. From its records, the clinic has a cash reserve to scale up the operation of the business (Gapenski, 2012). On the other hand, the working capital cycle is the time taken to convert the current assets and liabilities of the clinic into cash In the healthcare industry of today, the leaders and executives fight the challenge of lowering costs, while maintaining a quality healthcare. To increase the profit of the company, Syndicate clinic receive cash from the insurance institutions and patients early. To achieve this objective, the revenue cycle of the clinic opens until payment reaches the clinic. The management of revenue cycle is important because it gives one knowledge to lower the potential fraud, streamline the information of the clinic, and improve the client services. Some of the challenges that Syndicate clinic during revenue cycle optimization include the deficiency of flexible workforce, high and seasonal volumes, multiple touch points, lack of transparency and individual performance, and disparate work types in the clinic. The challenges causes troubles for the providers. Additionally, collection of payments from the patients is not an easy task for the providers and the problem only increase the struggle. To offset the challenges the billing professionals of the company and the physician work as a team to make sure that the patients are charged the correct payment. To manage a working capital, Syndicate Clinic need to a cash flow schedule that will be used in showing the cash inflow, cash outflow, and the balance. When the clinic offers services to its patients, there is a possibility that the company