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This article discusses techniques that healthcare financial managers can use to interpret and evaluate information from the statement of cash flows for more effective financial decision-making. The use of these techniques as a basis for systematically planning and controlling cash flows has the potential to benefit all healthcare organizations.
Jean Sylvestre, Ph.D., and Frank Urbancic, D.B.A., CPA, of the University of South Alabama, write that because of the financial challenges for health care, cash flow problems can arise. They offer techniques for interpreting and evaluating cash flow information as a means to more effective decision making.