|
|
Article: Capitalizing strategic planning costs to recognize future value. (Cover Story)
- Article from:
- Healthcare Financial Management
- Article date:
- April 1, 1995
- Author:
CopyrightCOPYRIGHT 1995 Healthcare Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
STRATEGIC PLANNING
As healthcare organizations devote more resources to strategic planning, financial managers should consider capitalizing, rather than expensing, planning costs.
Traditionally, healthcare organizations have absorbed these costs in the year a plan is developed. However, a strategic plan may be viewed as an intangible asset that provides the organization with future benefits. Therefore, its costs can be amortized over the plan's life.
In response to the current dynamic healthcare environment, many healthcare organizations are embarking on strategic planning efforts that involve significant investment. An organization's managers often ...