HCA312 Healthcare Finance-Capital Investment Project

Operating Budget

Altonice Cox

HCA312: Health Care Finance

INSTRUCTOR'S NAME: Paula Arceneaux

July 3rd, 2017

Operating Budget

Obtaining support for projects under consideration is very important for the expansion of services and facilities at Summerdale Medical Center. In capital investment process, the financial management board together with project evaluation team are in charge of making reviews and deciding on which projects will receive funding and which will not (Gotze, Northcott & Schuster, 2015).

The manager and the investment board should accept my investment based on the presentation of my capital investment proposal. First, I proposed that Summerdale acquire new technology and replace the existing technology being used at the moment. The life-span and the economic life of the new scanning technology will be ten years before the equipment are scrapped off (Gotze, Northcott & Schuster, 2015). During this period, the scanning technology will generate revenues for the medical center at a higher projection than expenses. The revenue projections show that the expenses and the revenues from this technology will breakeven after 4 years. I am very confident that based on the presentation of the benefits of this technology that my investment proposal will receive funding.

Summerdale Medical Center is driven by the need to provide quality and affordable medical services to people of all walks. Investment in the new expansion projects will ensure that the organization continues to provide patients with medical care at an affordable price. As a healthcare organization, Summerdale ought to strive to improve the quality of patient care. With the investment in the new medical team, medical equipment and expansion of the available facilities, I believe that my expenditure on healthcare at Summerdale is worth investment (Smith, 2014).

The capital investment plan is aims at ensuring that a health organization invests in projects that generally improves productivity, efficiency and seamless delivery of services. With the investment in the health management systems in my proposal, Summerdale will be in a position to boost its delivery of healthcare services such as appointment, booking with doctors, patient data management, data mining and improving general patient satisfaction (Smith, 2014). Summerdale Medical Center has been prioritizing safety and health standards, as well as quality standards (measured using metrics such as clinical outcomes and patient expectations). The proposed expansion and inclusion of the health management project will ensure that all these aspects of health, safety and quality are managed well. Therefore, I believe that the investment board will go ahead and accept my proposal and issue funding for the proposed projects.

References

Götze, U., Northcott, D., & Schuster, P. (2015). Investment appraisal: methods and models. Springer.

Smith, D. G (2014). Introduction to Healthcare Financial Management. San Diego, CA: Bridgepoint Education.