Manage cash flow: Building 12-month cash flow projections (or over 13 weeks if finances are tight) can aid resource allocation and help in strategizing for operational management, risk mitigation, liquidity management, and securing additional capital.

The authors say that organizations should incorporate years of financial projections, enterprise risk assessments, workforce strategies, and competitive market and key industry trends research into long-term plans. They should also have short-term goals that include annual cash flow projections, monthly budget assessments and benchmarked key performance indicators to identify opportunities to improve.

For serious issues affecting entire organizations, establishing internal governance boards and consulting legal, financial, and investment experts to form solutions are good options.


Some optimism was noticed in the last quarter of 2023, with bankruptcy filings declining following increases over six consecutive quarters. The number of cases in the second half of 2023 was equivalent to those in the first half, but it is still unknown if the decrease in Q4 is the beginning of an emerging trend.

Rate and volume increases are expected to rise in 2024, and one-time grants may become available through COVID-19-related Federal Emergency Management Agency funds, but cost is likely to remain a challenge, and smaller organizations with revenues under $500 million may find it harder financially than larger health systems.

“As for total case volume, we are seeing a lot of distress in healthcare as the market remains very challenging for providers, so we expect to see continued levels of healthcare bankruptcies in 2024 that we saw last year,” said Tyler Brasher, director at Gibbins Advisors.

Back to HCB News

Business Affairs Homepage