Working capital measures the operating liquidity available to an organisation and the decisions relating to working capital and short term financing are referred to as working capital management. Each hospital should have substantial amounts of working capital available to meet its day-to-day operating expenditures, maintaining adequate level of working capital, neither too high, nor too low. A working capital manual contains details of policies and procedures, delegation of authority and accountability, guidelines in quantitative terms regarding levels in respect of value of purchase orders, inventory carried, and credit extended to patients and how to deal with exceptions.