Assignment: Capital Project

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Assignment: Capital Project

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HCS 571 WEEK 4 Section I of the Capital Project

Write a 3,000- to 3,500-word paper in which you complete the following:

  • Research a capital purchase, costing more than $5,000, which your company could benefit from. Examples include a new X-ray machine, a Magnetic Resonance Image (MRI) processor, software for filing patient records, a research library, or any large item that your company might use.
  • Identify the management goals that expenditure would support. Management goals might include revenue, improvement, productivity, quality assurance, employee development, or management services consultant packages.
  • Explain how the item could enhance the economic environment of the organization.
  • Identify the organizational goals the expenditure would support. Goals might include patient care, medical and allied health education, community service, cost containment, leadership role, and clinical research.
  • Explain how the expenditure would relate to the needs of the organization. Explain how it would be beneficial to the organization.
  • Justify the expense to the organization. Relate the reasons to the hospital goals, including departmental and management goals, and how the acquisition would be beneficial.

Format your HCS 571 WEEK 4 Section I of the Capital Project paper consistent with APA guidelines.

Submit your HCS 571 WEEK 4 Section I of the Capital Project assignment.

HCS 571 WEEK 6 Sections II, III, & IV of the Capital Project

Section II: Establishing Acceptability

Write a 1,050- to 1,200-word paper in which you include the following:

  • Complete and discuss the results of the acceptability of the item for key stakeholders.
  • Respond based on research to the purchase and use of the items at other organizations.
  • Determine organizational risk and compliance issues related to the purchase and use of the capital item.
  • Recommend risk avoidance strategies.
  • Explain management roles and risks in accordance to compliance.

Format your paper consistent with APA guidelines.

Section III: Economic Feasibility

Create a budget that demonstrates the effect of the capital purchase on the service line, including the productivity of the service line.

Complete a financial analysis of the capital expenditure. Provide responses in a Microsoft® Excel® spreadsheet.

Create a pro forma summary sheet showing the net revenue and +cost impact of purchasing this item.

Section IV: Final Project Summary

Write a 1,200-word executive summary for the justification and include it at the beginning of the paper. Attach the financial statement.

Format your paper consistent with APA guidelines.

Click the Assignment Files tab to submit your assignment.

Capital Project
HCS/571

Capital assets are generally purchased to improve quality of care, or to provide needed equipment for a new service or expansion of an existing service. The key element in capital budgeting is that the building or piece of equipment being acquired has a lifetime that extends beyond the year of purchase and it is a capital asset or long-term investment for the hospital. Capital assets are good financial investments for the organization.(Finkler, Ward, & Baker, 2007). The Electronic health record software system is one of the important operational priorities in the US healthcare. The change from paper-based record system to electronic record system supported by technologies and help for reducing errors and

…show more content…

(McCarthy & Eastman, 2010).
Cost containment
The software related Electronic health record implementation need to be appropriate for the needs of the organization and budget.(Swab, & Ciotti, 2010) The EHR software system has many areas of market depending upon the size of the hospital bed size. The first criteria for the vendors according to the bed with 100 and small hospital The Electronic health record system cost about between $ 1 million and 2 for the electronic health record system The electronic health record software cost for the organization about medium hospital cost is much larger than the first one. It comes around three to ten million. The hospital and organization with more than average bed cost for the electronic health record system will be higher amount than the other one. The cost and amount of electronic health record system will depend upon the size of the hospital . The management has to decide about the budget for the organization. (Swab, & Ciotti, 2010). The organization must evaluate its mission and goals in light of its particular strengths and weakness and in light of the demand for services and competition in the external environment. Based on that evaluation it can make a plan that will take advantage of opportunities like Electronic health record implementation according to the goals of an organization.(Finkler, Ward, & Baker, 2007).

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