Explain the capitol budget by addressing the following: 1. What expenses it covers 2. What's the role for the board of directors and hospital administrators in this section of the budget 3. What's the role of the medical staff in this section 4. What's the role of the community in this section of the budget.
Firstly, capital refers to the acquisition of tangible assets that can be used, usually directly, in rendering services or providing the products of the organization. So, in a health care setting, this usually means something like x-ray machines, wheelchairs, OR equipment etc.
The total amount of the budget available is usually determined by the Board, or at the very least, is approved by the Board. In that sense, their role is to approve of the final capital budget, or make suggestions as to where more resources are needed. Usually, the budget and its details are created by a specific department ...
This solution provides a brief discussion on the role of the Board of Directors, medical staff, administrators and the community in deciding and influencing the creation of a capital budget. Also, a definition of capital budget.