Heathcare Capital Budgeting and Patient Consensus
Heathcare Capital Budgeting and Patient Consensus
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1. Why do health care organizations need to develop capital
budgets? How many years need to be included and why?
2. What are the consequences to a health care organization
that does not have the financial position to execute any capital spending?
3. If a hospital has an average patient census at
approximately 50% of capacity, should they consider taking on an HMO population
that will increase their census by about 15%, but will only reimburse an
average of 2% above total cost (fixed and variable)? Explain your answer.
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