Healthcare Financial Management

The purpose of preparing a cash budget is to lead the organization toward maximum financial efficiency and to anticipate cash needs and be ready to fill the needs. It is important because the efficiency created will save money by not wasting money with lag times and unnecessary borrowing of money to fill the gaps.

Explain in detail how the four kinds of float (billing, collections, transit and disbursement) can be used to maximize the efficiency of incoming revenues and outgoing expenditures? What kinds of policies can be initiated to facilitate maximum efficiency and why?