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Presentation/PPT
27/08/2022
Capital Expenditure Proposals
This week we will focus on budgets for the healthcare industry, specifically, the operating budget and capital budget. Budgeting provides a plan for health care organizations (HCOs) that shows, in quantitative terms, how costs and expenditures are being used throughout the organization. Think about this in terms of your personal budget at home: sometimes you can purchase an item needed or wanted because you have the cash available; other times, you need to plan ahead and save additional money in order to purchase an item. HCOs go through a similar process when determining what monies are available for purchasing items that may be needed. Each of the managers will submit a proposal with justifications and benefits to the HCO for the expense outlay. It is up to the senior managers to determine which proposals will be accepted for the upcoming budget year(s), so the manager submitting the proposal must understand and provide the information needed to make the decision. Remember that the mission of HCOs is to provide quality patient care or a quality patient experience, so integrate the mission within the budget request. Capital requests may be a result of a new project, expanding existing services to enhance the services currently being provided, replacing equipment to ensure that the most comprehensive technology is being utilized for patient care, or replacing equipment to reduce the costs currently being incurred (Peavler, n.d.).
Complete the following sections for your capital investment proposal:
Your paper needs to be two to three pages in length (not including the title and reference pages) and formatted according to APA style as outlined in the Ashford Writing Center. You must use the textbook- chapter 7 and 10- (Smith, D. G. (2014). Introduction to healthcare financial management. San Diego, CA: Bridgepoint Education, Inc.)and at least one scholarly source per area. Cite and reference your sources in APA format as outlined in the Ashford Writing Center. Key Strategic Goals: one page minimum, include specific funding sources for the capital investment.
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