Discussion – Capital Decision Basics

Discussion – Capital Decision Basics

How I would present a hospital project of expanding into new services

Expansion into new services or markets is vital for every organization because it increases the customer base, increasing profitability. According to Reiter & Song (2018), expansion into new services or markets is among the categories considered in classifying projects in the healthcare sector. The current Covid-19 pandemic has resulted in a rise in psychological problems due to the loss of jobs and a high cost of living. There is, therefore, a rise in the demand for psychological healthcare services. Consequently, I would present a hospital project to expand the hospital’s services to include psychological healthcare services by first providing an overview of the rising number of clients requiring the services. I would then give an overview of the resources needed to offer the services, the availability of the resources in the hospital, and the expenses that will be met to provide the services. I would then finalize the presentation by describing the feasibility of adding the services based on how the project would benefit the hospital by contributing to its short-term and long-term goals. I would include statistics from records of other hospitals offering the services to demonstrate the hospital’s income by providing the services.

The cost, why I need it, payback period, and expected outcomes of the project

The initial cost of expanding to the new services is estimated to be $70,000. The overall cost includes hiring costs, insurance, training, and professional fees. The expected payback period is two years. The project’s desired outcome is high revenue for the hospital due to the high demand for psychological healthcare services. We also plan to refer some of our patients to the psychological healthcare department, especially those with chronic diseases, because most of them require psychological help due to the challenges they may encounter in the treatment, such as too much pain from medical procedures.

References

Reiter, K. L., & Song, P. H. (2018). Gapenski’s fundamentals of healthcare finance.

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Discussion – Capital Decision Basics

Your book this week discussed capital investment decisions. For your post this week, I want you to pick one of the first 5 project classification categories and discuss how you would present a hospital project of your choice. Be sure that the category you are explaining is clear. Talk about the cost, why you need it, the payback period, and the expected outcomes of the project.

Write a minimum of 300 and a maximum of 350 words.

Gapenski,L.(2018). Fundamentals of healthcare finance. (3rded.).Chicago, IL.HealthAdministrationPress.ISBN:9781567939750.
Chapters9-10