Capital budgeting covers fixed assets such as land, buildings, and long-life capital projects financed over two or more years. It is based on the overall operating plan and is part of the strategic vision for the organization.

Many external factors influence capital budget decisions, including financing sources; types of third-party payers via reimbursement rates; rate control agencies that affect rates that may be charged; and planning or government agencies that affect approval or disapproval of projects. For this question:

To prepare for this Discussion:

Identify one example of an event that has changed your organization’s operations or an organization you are familiar with. If you are not currently working in a healthcare organization (HCO), you may choose a case study from a reliable source from which to work.