Capital Budgeting Theory and Practice

 Capital Budgeting Theory and Practice 
Abstract 
Finding out how healthcare firms make decisions on capital budgeting remains an intriguing topic because almost 85 percent of medical institutions are non-profit. This paper analyzes and compiles the critiques of various research articles based on the capital budgeting process framework; identification, selection, development, and post-audit. Capital budgeting is a significant task in medical institutions and hospitals due to the rising medical costs, fund limitations, and the competitive environment among hospitals. Therefore, proper tools have to be used during capital budgeting so that appropriate decisions can be made. In this case, five articles have evaluated by discussing their research objectives, main findings, methods, key limitations, conclusions, and contributions. Thereafter, the key findings collected from the articles have been synthesized into themes, the gaps in literature assessed concerning the capital budgeting theory, and finally, recommendations for future research have been provided. Key words: capital budgeting practice, method, analytics.   Capital Budgeting Theory and Practice Critical Evaluation of the Articles The Evaluation Methods for Hospital Projects article reports the survey findings of hospital managers in terms of their use of different evaluation methodologies and project selection. The paper mostly concentrated on the empirical relationship between the project evaluation procedures that were specifically used for a particular project as well as various measures of the perceived project success. The results of the analysis showed that the top management support and cost-benefit analysis were considered as the main project evaluation methods utilized more frequently by hospital managers. Furthermore, the research has provided evidence that implies that the top management support may be linked with the overall success of a project (Buelow, Zuckweiler, & Rosacker, 2010). The research objectives of the article include conducting a survey that will determine if hospital managers use standard project methodologies when it comes to deciding on specific project opportunities as well as controlling selected projects so that they can be implemented. The article also sought to document a preferable project analysis methodology that is used by different project managers as they control and evaluate projects that have already been completed in the healthcare environment. A description of the reasons for using some procedures was done through ranking the project methodologies. Do you need help with your assignment? We write original academic papers onany subject and topic CHECK PRICES Quantitative project evaluation procedures were used in the research. These methods focused on and aimed at evaluating the project investments using financial criteria (Buelow et al., 2010). This includes budgetary constraint, cost-benefit analysis, net present value, Net Project Execution Cost (NPEC), as well as Net Project Operation Value. The findings of the research showed that there was no statistical relationship between any of the proposed five measures of the project success; this includes mandatory requirements, NPOV NPEC, and the probability of completion. In addition, the results imply that hospital managers usually utilize various project evaluation processes with top management support that represent the two main project evaluation methods. The results of the study show useful and practical guideline that may assist new hospital managers and experienced ones by supporting the enhancement of hospital project management. Making Informed Capital Investment Decisions for Clinical Technology is an article by Brian Poplin, and it is aimed at analyzing the strategic planning process of the hospital by incorporating the use of different data sources that support the smart capital planning. The objective of the research is to evaluate the current clinical equipment through the data-focused lens so that irregularities can be eliminated for hospitals. This is important when assessing if new equipment needs to be purchased or whether slightly aged equipment should be redeployed to other areas (Poplin, 2011). A case study was used to try to understand as well as analyze this concept. The case study offered a stronger perspective of where hospital activities concentrated on and how purchasing new and innovative technology may prove to be the cost efficient and effective approach for hospitals. The main findings of the research revealed that when determining the capital investment requirements, hospital managers determine equipment to be purchased and the right time to do it. This process of evaluating needs may become tricky particularly when the outspoken parties demand greater and more modern equipment. The study concluded that identifying the areas that need equipment redeployment needs the establishment of key parameters that evaluate the functional c