The capital acquisition covers fixed assets such as land, buildings, and long-life capital projects financed over two or more years, and it is based on the overall operating plan and is part of the strategic vision for the organization.
Many external factors influence capital budget decisions, including financing sources; types of third-party payers via reimbursement rates; rate control agencies that affect rates that may be charged; and planning or government agencies that affect approval or disapproval of projects. For this question:
To prepare for this Discussion:
Review this week’s Reading and Learning Resources.
Textbook
Pink , G. H. & Song, P. H. (2020) Understanding Healthcare Financial Management. AUPHA/HAP Book. ISBN: 978-1-64055-109-1.
Textbook Reading: Chapter 6: Debt Financing
Textbook Reading: Chapter 7: Equity Financing
Textbook Reading: Chapter 8: Lease Financing
Assess how healthcare managers must understand the complexity of factors that influence decision-making and approval or denial of capital project proposals.
Evaluate why capital budgets are considered a component of the organization’s strategic vision?
The initial post must require a minimum of four (4) current quality references.
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