Section I of the Capital Project - Research Paper Example

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Section I of the Capital Project

With every capital purchase, an organization aims to meet a set of organizational needs. A capital purchase would not benefit an organization unless it contributes to the organization’s productivity or overall performance efficacy. This paper will discuss a software purchase a healthcare organization made for filing patient records properly. The paper will give particular focus on managerial, organizational, and economic benefits of this capital purchase. Capital purchase To define, “a capital purchase is defined as any purchase of $1000 and over” (Novak, 1996, p.335). Capital purchases are considered as long term assets of an organization. Generally, capital purchases are viewed as capital investments, capital assets, or capital acquisitions. The process of capital acquisition can benefit a healthcare organization in a number of ways. In the view of Gitman and McDaniel (2008, p.434), capital acquisitions add to an organization’s asset strength, which in turn contributes to the firm’s value chain efficiency and service efficiency. In the case of healthcare organizations like hospitals, a capital purchase is mainly intended to improve the quality of care delivery and thereby promoting patient safety. ...Show more

Summary

Capital Project Capital Project Introduction Like any other firm, health care organizations periodically perform capital purchases so as to improve the quality of care and patient safety. Although such purchases may cause the organization to incur additional costs, they may benefit the organization in the long run…
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Section I of the Capital Project essay example
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