CAPITAL BUDGETING IN HEALTHCARE

Capital budgeting (aka capital expenditure or just CAPEX) is significant in the healthcare industry when considering the volatility of reimbursements and the vast amount of property, physical plant, and equipment required to provide high-quality health care. Thus, the ability to accurately evaluate the potential financial returns to the organization for any investment is a fundamental skill for healthcare leaders at all levels. It is also critically important to be able to understand the methods through which prospective projects can be evaluated for the risk of potential deviation from the originally formed plan.

For this discussion, do the following:

• Locate at least one online resource (a link, article, or book, for example) pertaining to capital budgeting and/or risk analysis in the capital budgeting process either within the healthcare field using APA format.

Answer preview

In preparation for capitalizing on new major equipment in the healthcare business, capital budgeting is an essential agenda to be attended to by the managers. It is hard to manage well the industry with the instability of petty cash due to unplanned usage or mismanagement by those entrusted to the money…

(400 words)