The one-page treasury policy every PE-backed healthcare platform needs: reserve sizing, yield, signer matrix, sweeps, FDIC strategy, and reporting.
A treasury policy serves as a single document addressing seven critical questions: operating reserve targets, excess cash placement, authorization signatories, review schedules, FDIC strategy, sweep configuration, and reporting structure. If your platform does not have those answers documented, your audit committee, your sponsor, and your lenders will ask. Writing the policy is easier on banking built for multi-entity healthcare platforms (opens in a new tab), where reserve and sweep mechanics are already entity-aware.
Reserve requirements depend on Days Sales Outstanding (DSO) rather than monthly burn rates. For healthcare platforms with 60-day DSO and 30-day operating expenses, maintain a 2-month reserve. Oncology and complex surgical specialties with 90-day DSO need 3 months, the reserve math worked through in detail in cash management for oncology platforms (opens in a new tab). Cash-pay specialties require 1-1.5 months. Document calculations and review quarterly, adjusting when DSO shifts beyond 15 days from baseline.
Cash above the reserve target should earn yield, not sit at 0.01% APY. Policies should establish: minimum 1.75% APY targets, IntraFi sweep coverage extending to $10M per entity, $5M maximum per single bank, and daily threshold-based sweeps from operating to yield-bearing reserves.
Authorization thresholds should include:
Sweeps move excess balances automatically. Document: trigger threshold (typically $500K), destination account, frequency (end of day), and exception protocols for full or unreachable destinations. Sweeps live in the banking platform configuration, not in a finance team's calendar.
FDIC coverage applies per entity, not platform-wide. With IntraFi networks, each entity extends coverage to $10M. Specify enrolled entities, maximum balances before additional coverage, and adjustment review cadence as balances grow, then document it in the counterparty risk one-pager your board expects (opens in a new tab).
Implement three review levels, the same structure laid out in a cash management committee charter (opens in a new tab): weekly cash committee reviews balances and exceptions; monthly CFO receives board-ready treasury summary; quarterly audit committee reviews policy itself and approves modifications.
PE sponsors require quarterly treasury reporting including: cash balance by entity, year-to-date yield, FDIC coverage status, signer matrix changes, and policy exceptions. This report should take one query, not a week of preparation.
If your current policy fits on more than one page, it has been overcomplicated.