Give three reasons why health care organizations need to generate and accumulate operating profits. Explain why profits might be preferred to other sources of resources (such as borrowing).

Question

Quizplus · Accepted Answer

The Answer is Health care organizations need to earn and accumulate profits to subsidize clients who may not be able to pay, to maintain an operating reserve to protect the organization from unexpected revenue or expense volatility, and to have resources available for potential investment and expansion opportunities. Borrowing may not always be available, or, when it is, may take too long to access.

Give Three Reasons Why Health Care Organizations Need to Generate