CAPITAL BUDGETING
1, Please discuss Capital budgeting is needed to properly allocate the large dollar amounts required for major expansion and equipment purchases. The process is often perceived by employees as being very political. However, before any capital budgeting can be completed the medical facility must first complete its annual strategic and operational planning. Without this plan, the budget process is not only incomplete but will not be based on what is actually occurring in the facility. Please refer to your Discussion Group question below
2, Who is responsible for evaluating the progress of the strategic plan and the operational plan?
Question 1: What is the difference between equity and debt financing? Describe the reasons a medical facility would choose one over the other and why. How would this choice effect the budget process?
Question 2: If the medical facility is a non-profit what factors would determine if the facility should purchase or lease equipment? What factors would a lender/Bank consider?
Question 3/ reflection: Subsequent to each week’s live WEBEX/Webinar, please post what you found to be the most interesting or informative topic from, reading or research. Please post one-substantive paragraph of, at least, six sentences. In planning and budgeting in health care, Please cite APA References
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