UOP Capital Expenditure Decisions Made by Healthcare Managers Discussion

Why do you think it is important for health care managers know how to make proper investment decisions? Share an example to support your answer.

****Keep in mind that this question is in discussing about capital expenditures.

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Classmate: Shaneice, As a healthcare manager it is very important to make proper investment decisions in order for the business to continue to operate efficiently. Without making the proper decisions patients will not be provided with the best long-term care when money is not being spent correctly but instead is being thrown away. It is important to weigh the risks and benefits before spending money. As a healthcare manager it is also important to set financial goals to ensure the success of the business as well as enough money to be able to staff all employees to continue to provide top care for all patients. An example that previously happened to me was that I was working for a facility as a patient care administrative assistant, and it was a new facility. The manager decided to take on a lot of different partners to help speed up the growth of the business. The partners then bought out his shares in the company because they knew it would grow over time to be an amazing investment. The partners then made many changes financially that cost the business greatly and because of these things I decided to resign before the company went under. A few of my previous coworkers who stayed informed me almost 6 months later that they were sued for patient negligence. The patient won the case, and the business was soon terminated due to not enough money for the business to continue.



Professor: As a healthcare manager it is important to be familiar with investments and how they function since most corporations rely on investments/ investors to stay in business. Healthcare facilities also rely on investments to benefit employees in the future, with the 401k plans most corporations provide. As a healthcare manager, needing to know these sorta of things, is crucial as they are responsible for “recognizing the significant cost factors and identify potential solutions to achieve financial savings”.

Investment decisions can have

long term effect

s and will determine the roll of the company in the future. When looking to invest, one must understand the scope of investment, the article in which i found this information stated one must know :

requires high funds

high degree of risk

long term effect


  • impacts cost structure
  • long term commitment of funds
  • complexity
  • https://www.openeducationportal.com/importance-of-…
  • https://ztcorporate.com/blog/understanding-the-imp
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