Capital management balances charitable, financial goals.Healthc Financ Manage. 1990 Mar; 44(3):32, 34-6, 38 passim.HF
Effective capital management allows not-for-profit healthcare organizations to make investment decisions that fulfill their missions and meet financial goals. The process involves identifying components of the hospital's value and creating policies aimed at maximizing it; determining the hospital's ability to produce financial capital; and developing a process for allocating this financial capability among the components of value. Once this is completed, hospitals should determine criteria that balance charitable and financial goals, enabling them to pursue sound investments.