CAPITAL BUDGETING

Capital Budgeting

Capital Budgeting

To assess the impact of qualitative factors on hospital capital budgeting, the sample hospitals were asked a three-part question. The first part of this question asked if the qualitative factors enter in their capital budgeting decisions. Only 2 of the 94 respondents reported that qualitative factors do not enter their capital budgeting decisions.

During most of the 1980's, the reimbursement environment of hospitals became very restrictive as well as unpredictable. In light of the numerous significant economic and regulatory changes, this study examined the current capital budgeting practices of hospitals. The primary results emerging from the survey of ...