How do healthcare entities use the “time value of money” to increase financial performance?

Expert Solution

Healthcare entities will be using the concept of time value of money as follows-

A. Healthcare entities will be adopting early payment system method by providing discount to the patient as it will be helping them in order to increase their cash conversion cycle and better time value of money.

B. healthcare entities will also be lacking the payments to their creditors by application of the time value of money concept in order to increase their cash conversion cycle

C. They will be trying to receive the payments from all the facilities in order to enhance their overall cash receipt

D. Receiving payments from third parties mostly in cash and at time as it will be helping in generation of better cash conversion cycle and utilisation of the time value of the money concept

E. They can even invest into those products which will be providing them with Returns in quick Times.

F. At the time of the financial squeeze,they can also delay the payments of their staff.

jeff jeffy answered 2 years ago

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