Covid-19 has had a significant impact on the working capital strategies of healthcare companies, both short and long term. This is due to the sudden decrease in revenue that healthcare companies have seen as a result of cancelled procedures, furloughed staff, and decreased demand for services. The most immediate consequence of this decrease in revenue is an increase in liquidity risk; it becomes more difficult to access funds when they are needed since there are fewer sources of incoming cash. Additionally, these organizations may not have enough capital on hand to cover their expenses, resulting in further financial issues.

At the same time , investments that were used in order to diversify income streams may also be affected by Covid related restrictions . For instance ; many health care companies rely heavily on government contracts but with budget cuts being implemented across all sectors this could potentially lead them into trouble if they do not take appropriate measures such as reducing costs or adjusting payment terms in order to remain profitable .

In response to these changes , some healthcare organizations have adopted new strategies for managing their working capital . This can involve implementing stricter credit policies , increasing cash reserves , or focusing resources on high value activities such as research and development rather than low value administrative tasks . Additionally; they may also look at alternative financing options like venture capitalist fundingor leveraging PPP loansin orderto maintain solvency duringthis pandemic.