Long-Term Investment Decisions

Long-Term Investment Decisions

Introduction

Investment decisions are some of the most important decisions managers have to make since any mistake in the decision can lead to huge losses which have to be borne by the organization. These loses can sometimes be so huge that the company may have to file for bankruptcy. Due to this importance, organizations take their own time and spend a lot just to decide whether to expand or not and to devise a plan on the way the expansion should be carried out.

Discussion

During expansion, organizations should focus on the internal as well as the external forces that can affect the plan. Although the internal forces are often controlled, the external environment is uncontrollable and can cause even the best plan to fail.

In the United States, there is a dire need for the healthcare industry to expand since the current facilities cannot provide the treatment requirement by most patients. As a result, the quality of health care is quite low despite efforts by the federal government to improve this overall health of the country (Li, 2002). When compared to other countries, the healthcare in the United States is one of the most highly funded; however, this has not led to an improvement in the health of the population. This shows that there is some issue in the system that needs to be rectified immediately so that the funds being spent in this sector do not get wasted.

Importance of Government Regulation

Although the United States is a free market economy, when considering the basic necessities of life, the government should have a role to play in order to ensure that the welfare of the population is maintained. In the United States, healthcare is provided mainly by the private sector. However, the government has a role in this regard as all the rules are devised by the government. If this intervention was not present, several poor people would not get the required treatment.

The new healthcare bill was supposed to increase poor people's access to healthcare and was a motivation for them. However, in this competitive environment, every healthcare provider is seeking to update itself by following the footsteps of the Military Health Service and the Veterans Health Administration (Berwick, 2009). This has led to an increase in the cost of receiving medical attention and hence the need for government intervention has been deemed necessary.

One major concern for the federal government is the rise in number of uninsured. This figure has risen to more than 35 million; therefore, something has to be done to reduce this number. No private organization has the powers to reduce this number but the government can do so. Although expansion of the organization can facilitate this, the government policies play the most important role. The Medicaid program coverage has also reduced considerably with several poor people not getting adequate healthcare. A competitive healthcare system will not only serve everyone but will also lead to national development and the poor will receive proper diagnosis and treatment of their ...