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Article: Outsourcing investing services. (investment management for healthcare firms)
- Article from:
- Healthcare Financial Management
- Article date:
- November 1, 1996
- Author:
CopyrightCOPYRIGHT 1996 Healthcare Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In the course of performing ordinary financial activities, many organizations create pools of excess funds, such as funded depreciation, capitation reserves, bond reserves, or funds accumulated for a planned disbursement. Although outside investment management firms are commonly used for long-term investment programs, such as foundation and pension funds, they do not usually manage excess fund pools. Instead, the organization's financial managers often handle these funds because it normally costs less to manage them inhouse and the organization retains control over investment decisions.
When managing excess funds, financial managers must ensure that investments will ...