Referencing Certificate of Need, and using evidence in your text and from at least one scholarly source for support, discuss the following in a minimum of 250-300 words: Explain the concept behind the certificate of need and whether you agree or disagree with the programs. For the Capital Investment Plan you are using, do the services or construction needed require a certificate of need in your State?
capital_investment_plan.docx
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Running head: CAPITAL INVESTMENT PLAN
Capital Investment Plan
Richard L Williams
HCA 312: Health Care Finance
April 10, 2017
Instructor: Kurlyn Monnie-Daniels
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CAPITAL INVESTMENT PLAN
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Capital Investment Plan
Executive Summary
Decisions in capital investment are important, as they make sure that there is the
identification of the capacity of the hospitals and the strategies that should be used in making
sure that there is the maximization of the returns that the hospital gets. In Naval Hospital, the use
of planning in the capital decisions made assists in improving the systems of the hospital and in
ensuring that there is the allocation of resources to the projects that helps in increasing the
competitive advantage of the hospital. The manifestation of the competition in the environment
is important as it ensures that there is the focus on the improved technology to assist in
improving the quality of the services of the hospital (Yu & Maula, 2016). It makes it necessary
to ensure that there is the identification of the tools that Naval uses in the capital investment
decisions and the frameworks that assist in improving the management of the hospital. It also
ensures that there is the prioritization of the different projects as it is through this that there is
focus on the utilization of efficiency created in the hospitals.
The approval process of the projects is important as it helps the Naval Hospital
management to focus on the issues that continue to affect the hospital and the best strategies to
use to improve the functioning of the organization. The demand for the services in the hospital
guides the operation of the capital investment decisions, as it is through this that there is the
implementation of the tracking process to assist in the management of the processes taking place
in the organization. In the enhancing of the efficiency of the organization, Naval Hospital is
implementing new operation systems to assist in the management of the patients and the
functions of the organization.
CAPITAL INVESTMENT PLAN
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Equipment Description
The Naval hospital is in the process of changing the core system in the operation of the
hospital and this is meant to help in the management of the operations of the company. It helps in
increasing efficiency and ensuring that there is increased competitiveness in the market (Kohli,
Devaraj & Ow, 2012). The system will make sure that there is the coordination in different
departments and that there is the management of the patients’ information and the enhancement
of confidentiality. Looking at the healthcare environment, there is need to ensure that the systems
are up to date as it assists in the saving of time and taking care of the patients in the shortest time
possible.
It is important that there is the identification of the critical success factors in the
implementation process as it is through this that the decisions on the implementation of the
systems are made. It also ensures that there is the focus on the needs of the hospital in the
coordination of the different activities that the company engages. It is through this that there is
the creation of awareness on the operation of the hospital. The increase in the efficiency of
operation helps in improving the profitability of the organization as more people will appreciate
the services offered and the creation of understanding between the patients and the doctors as
there is easy access to their information. The evolution of the systems also makes it necessary for
the Naval Hospital to make adjustments, as it is through this that there is an improvement in the
reporting manner.
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Establishing the Team
Capital Investment Committee
Chief Executive Officer
Chief Operating Officer
Chief Finance Officer
Management
committee;
Researchers
Risk managers
IT personnel
The diagram shows the parties that are responsible for the implementation of the system
change over and in making the capital investment decisions in the company. The capital
investment committees of the Naval Hospital are the last policy makers in the implementation of
the new systems, and their role is to ensure that there is the addition of value to the organization.
The management commitment involves the IT personnel that will be in charge of the system, and
their role is to report to the management on the different enhancements that should be made on
the systems. The researchers are important as they ensure that there is the comparison of the
operation of the system with the other healthcare organization and this helps in determining the
competitive advantage that the hospital will gain when they implement the system.
The risk managers also play a role in ensuring that the dangers of embracing the systems
are detected and the mitigation factors that they should embrace. The management committee,
CAPITAL INVESTMENT PLAN
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researchers, and the risk managers all report to the capital investment committee that weighs the
advantages of the adoption of the system and the financing that the company gets. There is the
identification of the needs of the hospital and the payback period the organization will recover its
initial investment. It is through this that there is the analysis of the issues that the company is
likely to face and the benefits of the adoption of the system in increasing the efficiency of the
organization.
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References
Kohli, R., Devaraj, S., & Ow, T. T. (2012). Does Information Technology Investment Influence
A Firm’s Market Value? A Case Of Non-Publicly Traded Healthcare Firms. Mis
Quarterly, 36(4), 1145-1163.
Yu, L., & Maula, M. (2016). Local Partnering In Foreign Ventures: Uncertainty, Experiential
Learning, And Syndication In Cross-Border Venture Capital Investments. Academy Of
Management Journal, 59(4), 1407-1429. Doi:10.5465/Amj.2013.0835
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