Leveraging Balance Sheet Strength to Promote Long-Term Sustainability

In an environment where the pressure to improve financial performance only grows, many healthcare provider organizations fail to examine and engage the full potential range of opportunities that balance sheet resources can contribute to the organization’s long-term sustainability.

Any organization’s balance sheet serves three purposes:

• First, as a shock absorber
• Second, as a financing mechanism
• Third, as a profit center

This article briefly considers each purpose and provides key takeaways to improve balance sheet performance as a means of promoting long-term sustainability.

This article was originally published by The Governance Institute in its January 2025 System Focus newsletter. We thank The Governance Institute for the opportunity to republish it.