Managing Risk Through a Global Capital Strategy

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Managing Risk through a global Capital strategy article analysis
Article title: Managing Risk through a global Capital Strategy
Source and Date of Publication: Healthcare Financial Management, (July, 2010), pages 62-69.
Name of Author: Blake, James W. and Jordahl, Eric A.

Introduction

In view of the recent late 2000s Recession and the passing of the Patient Protection and Affordable Act (PPAA) in March 2010, finance executives in healthcare organizations are now faced with new dynamic challenges of financially positioning their organizations to respond effectively to changes in the business environment and to enhance the capital structure while at the same time lowering risks that are prevalent in the dynamic business environment. In this article, James W. Blake a partner at Kaufman, Hall & Associates an investment firm, and Erick A. Jordahl also a partner at Kaufman, Hall & Associates present a new model and strategy of managing capital markets risks in healthcare organizations. The model is aimed at providing a balance between aggressive healthcare practices and conservative fiscal management of healthcare organizations. This topic is very important especially in view of the restructuring that healthcare organizations will have to undergo due to the PPAA and due to the recovering phase of the markets. It is essential that healthcare organizations be able to develop effective strategies that will enable them to remain profitable and to quickly pick up from the Recession. The article in general terms has presented the strategy under study in a simple step by step easy to understand format.

Summary of the article

In this article, Blake and Jordahl, present a new tool for managing capital market risks in healthcare organizations: Global Capital Strategy. The authors specifically focus on how global capital strategy can be used to implement and manage enterprise risk to help mitigate balance sheet stress in healthcare organizations. In their work Blake and Jordahl uses Kaufman, Hall & Associates, Inc's framework for global capital strategy to develop their global capital strategy for managing risk and focus on seeking the right balance between maintaining a conservative approach to fiscal management that is able to realize the capital markets realities and operating the organization as aggressively as ...