Four C's: Key Financial Activities for Healthcare Companies - Essay Sample

Published: 2023-11-15
Four C's: Key Financial Activities for Healthcare Companies - Essay Sample
Type of paper:  Essay
Categories:  Company Finance Business Healthcare
Pages: 2
Wordcount: 506 words
5 min read

The four C’s can be described as the four most vital financial activities in a healthcare company, and it comprises the cost measurement or management, the cash management, the capital acquisition as well as the control of resources (Reiter & Song, 2018). My opinion is that out of the four C’s the most important one is the capital acquisition, and it represents the means to which the healthcare organization acquires its assets including the land, the building and all the equipment that are essential for the provision of healthcare services to their customers or patients.

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The acquisition of capital is what makes the healthcare firm exist and meet all the healthcare requirements of the patients and the entire community at large. Therefore, without sufficient funds to sustain the facility’s activities, there cannot exist all other financial activities that are cost, control, and cash management, and this is because there would not exist any business to control or manage. In some cases, one might think that the management of cash is the most important financial activity in ah health care organization, and in some instances, it is. In the absence of proper cash management in the organization, it can lead to the essential daily operation of the healthcare to become challenging to accomplish, the budget can be minimized and the patients and the client no0t to get the necessary services that they deserve (Reiter & Song, 2018). However, this only deals with the management of the operation. In the absence of capital, there would be no daily operations to manage, and there would be no client and no cash coming into the organization, and this is because the organization would not exist.

With the recent changes and reforms in the health care sector like the passing of the Affordable Care Act, the way the health care organization acquires their capital has been dramatically impacted (Young, 2017). With an evolvement from the fee for care service reimbursement to the principle of insurance or covered lives, it has become challenging for the healthcare professional to acquire or raise capital for their practice. Owing to this, most health care professionals prefer to partner with the public healthcare hospitals or, in some other cases, the larger group practices, and this affiliation makes it easier to raise the required funds for starting a health care facility. Additionally, this kind of consolidation can have immense benefits on coordination as well as the integration of acre, and this generally improved on the quality of care provided to the patients (Young, 2017). It is important to note that that was the primary purpose of the change from fee for serviced to covered lives, and consolidation of the merger is one way of adapting to the changes in the healthcare sector.


Reiter, K. & Song, P. (2018). Gapenski’s fundamentals of healthcare finance, third edition. Chicago, IL: Health Administration Press.

Young, G. J. (2017, February). Hospitals in the Post-ACA Era: Impacts and Responses.

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