Article: Hospital Capital Budgeting Practices and Their Relation to Key Hospital Characteristics: A Survey of U.S. Manager Practices

ABSTRACT

This paper presents the results of a survey of U.S. hospital capital budgeting practices. Capital budgeting allows managers to perform cost benefit analysis on proposed long-term investment projects. For hospitals and health care systems, such analysis may help organizations fulfill their missions while remaining financially secure. This paper extends the work of previous surveys on hospital capital budgeting by Kamath and Elder (1989) and Kamath and Oberst (1992) by including small as well as large hospitals and by analyzing the relationships between capital budgeting practices and key hospital characteristics such as managed care level, Medicare level, hospital size, and ...

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