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Capital Investments in Healthcare

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Why capital project analysis is an integral part healthcare financial management?

Describe the kinds decisions made in capital investment decision analysis?

Explain the four stages of the capital decision making process?

Also, describe the information needed to evaluate a capital investment project?

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https://brainmass.com/business/business-management/capital-investments-healthcare-606854

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Capital Project Analysis and Healthcare
Capital project analysis is an integral part of healthcare financial management because, frankly, running a hospital is expensive. There are costs such as hospital beds, new imaging machines, new software that cannot be bought without capital planning. Furthermore, maintaining a hospital is important to the health of an entire community. It is important that hospitals keep up with modern technology and advances in medicine and those things are are expensive and must be planned for. One of the advantages of capital project analysis is that expenditures that are deemed to be capital expenditures are carefully planned for and scrutinized.

Decisions Made in Capital Investments
There are several important items that must be addressed during the decision phase of capital project analysis. For one, the period of investment must be determined. This is important to know because of financial planning considerations. An example given in the attached PowerPoint presentation is a program that is funded based on a grant. If the program is intended to by a three-year program, then plans must be made to ensure the grant is ...

Solution Summary

Capital investments in healthcare are examined. The expert describes the kinds of decisions made in capital investment decision analysis.

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