Strategic Allocation and Management of Capital in Healthcare: A Guide to Decision Making, Second Edition

Growing pressure to deliver higher-quality care at lower cost. New and nontraditional competitors. Legislative uncertainty. More investment needs than available capital resources. The stakes are higher than ever as healthcare organizations allocate and manage capital to fulfill their strategic objectives. How should executives choose which initiatives to fund? Their organizations' future rides on their decisions. Strategic Allocation and Management of Capital in Healthcare: A Guide to Decision Making, Second Edition, provides leadership teams with detailed guidance for making strategic investment decisions. Employing corporate finance principles, this book explains, step by step, how to (1) establish a framework for standardized, portfolio-based review of capital investment opportunities; (2) identify an organization's capital constraint; (3) assess and select the best value-enhancing projects; and (4) manage postallocation activities, including monitoring of project investments and measurement of results. Covering new capital investment needs and decision making in a rapidly changing and uncertain environment, this edition has been updated throughout. New features include:Strategic investment priorities for healthcare's new business model: a value-based delivery and payment system focused on managing population healthConsiderations for making investments in projects other than facilities or equipment, such as population health initiatives and unique physician affiliation arrangementsCase examples with approaches, planning schedules, and reports used by high-performing healthcare organizationsHelpful tools, such as a form for prioritizing capital investment opportunities and a sample curriculum for educating physician leaders on the capital allocation processPractical, on-the-ground guidance at the end of each chapterA final chapter on the prerequisites for a successful capital allocation and management process, including education; use of high-quality tools, communication, and transparency; and a disciplined implementation planThis book will help the leadership teams of organizations of all types and sizes-from small community hospitals to large healthcare systems and physician groups-to make informed decisions for smart investments in their organizations' future.