HCA312 Week 5- Discussion 1

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This is a graded discussion: 4 points possible

due Jan 3, 2019

Week 5 – Discussion

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Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

Capital Expenditure [WLOs: 1] [CLOs: 2, 4]

Prior to beginning work on this discussion, please read Chapters 16, 17, 22, 23, 27 and 28 in your course textbook, the Capital Budgeting in Health Organizations: Application of the Multicriteria Method Promethee V1, Capital Budgeting, and Strategic Capital Planning: System Looks Toward the Future, and Overview of Capital Budgeting (Links to an external site.)Links to an external site.articles, as well as the Capital Budgeting (Links to an external site.)Links to an external site. web page.

The most obvious cost in a capital budget is the actual cost of the capital expenditure item. We must also consider other costs that will be incurred when we make the capital expenditure (purchase). These costs are important to include because they can be the difference between a successful implementation of the capital expenditure item and staying on budget.

After reviewing the textbook readings, provide an example of a healthcare capital expenditure. Explain the rationale behind the purpose of a capital expenditure budget. In addition, include two other cost considerations and explain their inclusion in your capital budget plan. For example, if you are installing an Electronic Medical Records (EMR), you must include future cost for maintenance, software updates, new computers, etc. These are the hidden costs of operation often not considered in a capital budget.

Guided Response: Review your classmates’ posts. Based on the capital budgeting information provided in their posts, discuss a cost consideration they did not include. Explain your rationale for stating that it is an important factor to be considered in the capital expenditure proposal. Your response posts should be a minimum of five well-developed sentences, with at least 100 words in each response.

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