Capital budgeting (aka capital expenditure or just CAPEX) is significant in the healthcare industry when considering the volatility of reimbursements and the vast amount of property, physical plant, and equipment required to provide high-quality health care. Thus, the ability to accurately evaluate the potential financial returns to the organization for any investment is a fundamental skill for healthcare leaders at all levels. It is also critically important to be able to understand the methods through which prospective projects can be evaluated for the risk of potential deviation from the originally formed plan.
For this discussion, do the following:
- Locate at least one online resource (a link, article, or book, for example) pertaining to capital budgeting and/or risk analysis in the capital budgeting process either within a broad industry context or within the healthcare field.
- In your discussion, examine the content and then share the resource. Summarize the resource(s) and what you find useful about it.
- Once your material is posted, be sure to review and comment on the materials posted by at least two of your peers.