Working capital management and financial health of private hospitals of India after COVID-19 pandemic

Abstract

The main objective of this study is to reduce working capital requirements, and to reduce the investments of private healthcare providers in their operating activities .A fundamental research was conducted by conducting a survey of 55 non- profit private hospitals of India in the period (2018-2021). Authors conceptualized a research model to develop hypotheses. Correlation between financial elements and the capital structure relevance was found out. Result indicates that, during Covid -19 pandemic, private hospitals made balance in working capital by allowing capital gap while adopting a delay payment strategy. Operating activities of the hospitals were financed by profit and working capitals of the hospitals are varying according to their financial need. It was suggested that the government needs to change healthcare policy, and give some funding and tax waiving hospitals. This study will be very helpful for the healthcare providers, hospital managers, medical staffs and other stake holders.