After reading this chapter, you should be able to
- Use the main elements of the hospital strategic plan as the criteria for determining capital budget winners and losers
- Understand why the strategic plan criteria should be weighted in the capital budgeting process
- Recognize the value of using the 80–20 rule to stratify capital budget requests from highest to lowest dollars in order to concentrate on the 20 percent of requests that make up 80 percent of the requested dollars
- Understand how hospitals decide how much money will be available for funding the capital budget each year
- Appreciate why additional operating expenses (staff and supplies) are more likely to be approved for capital projects with favorable ...