Cash, Cash Conversion Cycle, Inventory and COVID-19

In recent years, hospital cash balances and cash conversion has been largely stable in Washington State hospitals, with the only increase coming in terms of increasing inventory. At current levels, cash is in short supply at many hospitals. While increasing inventory would appear to be a good move in light of the COVID-19 pandemic, inventory is not a single generic item. Hospital inventory is comprised of literally thousands of supplies and medications, only a few of which are critical. Hospital financial viability could be threatened by insufficient liquidity

Hospital Capacity and Capacity Planning in Washington

Hospital capacity in the State of Washington may be unable to satisfy the number of COVID-19 patients. The adjusted occupancy rate (adjusted for outpatient equivalent days) places many hospitals near capacity prior to the current pandemic. Models of COVID-19 cases and hospital care generate scenarios under which hospital capacity is insufficient. Short-run tactics involve re-purposing of hospital units and other facilities. Long-run strategies will require organizational commitment and new policies and incentives to address capacity concerns