healthcare capital budgeting follow up question | Cheap Nursing Papers

healthcare capital budgeting follow up question

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Research Optimus. (2017). How Risk Analysis can be Essential in Capital Budgeting. Retrieved from

In preparation for capitalizing on new major equipment in the healthcare business, capital budgeting is an essential agenda to be attended to by the managers. It is hard to manage well the industry with the instability of petty cash due to unplanned usage or mismanagement by those entrusted to the money. In addition, the hefty amount that is required to buy plant, machinery, property furniture and equipment requires being budgeted for earlier. This is done by analyzing risks by professions and having a thorough insight to see any dangers and to assess the forecast on capital budgeting in order to act accordingly before the onset of the risk itself.

While making long-term investments in the healthcare industry it is wise to take measures on risk analysis by appraising invented or identified business opportunities by preparing long-term aims, estimated future cash flows and rule over expenditures on capital. There are many arising uncertainties in today’s world. Moreover, the future is unknown and the best way to secure the business is to use professionals to analyze any risks and offer advice on making investment plans to avoid poor outcomes. This is the work of a manager hence should be very competent in problem-solving and best in foreseeing.

In budgeting process, various types of risk such as; corporate risk, standalone risk, market risk, international risk, industry-specific risk and project specific risk are used to give an account of the capital budgeting. This enables managers to continue with their scheduled plans with no major interruptions to enhance the effectiveness of delivering healthcare services. With the above risks, various methods of analysis are fundamental to be performed. The type of analysis to be done include scenario, simulation, break even and sensitivity analysis all done in consideration with the company, economic and industrial factors for effective investments forecasts (, 2017).

Managers’ can get help from agencies which are authorized to do risk analysis. The analysis helps organizations to be prepared for unseen negative future outcomes in investments and as well on how to tackle these problems accordingly for survival of the healthcare sector which aims in a healthy world. Risk analysis offers possible risks and the solutions to such problems hence not performing one is a suicidal act to the business decreasing chances for meeting long-term goals of the health sector in tackling diseases in the world minimizing early deaths and maintaining healthy people.

Professor asked:

You discussed the importance of identifying risks. There are many risks in any financial venture, but particularly in healthcare. What are some strategies for identifying risks? Post resources using APA.

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