Worthwhile Hospital has a total capital expenditure budget for the next year of $5 million dollars. Of this amount, $3 million dollars is already committed as spending for capital assets that have already been acquired and are in place. The remaining $2 million dollars is available for new assets and for new projects or programs. Worthwhile Hospital typically divides the available capital expenditure funds into monies available for inpatient purposes and monies available for outpatient purposes. This year the split is proposed to be 50-50. The hospital's CFO is also proposing that a scoring system be used to evaluate this year's proposals. She has set up a scoring system that allows a maximum of five points. Thus the low is a score of one point and the high is a score of five points. In addition to the points earned by a funding proposal, the CFO will allow one "bonus point" for upgrading existing equipment and one "bonus point" for funding expansion of existing programs. Jody Smith, the director who supervises the Intensive Care Units, wants to secure as much of the $1 million dollars available for inpatient purposes as is possible for the ICU. At the same time, Ted Jones, the director who supervises the Surgery Unit, also wants to secure as much of the $1 million dollars available for inpatient purposes as is possible for his Surgery Unit. Ted Jones, the Surgery Unit Director, is about to choose his strategy for creating a capital expenditure funding proposal for the coming year. Ted's unit needs more room. The Surgery Unit is running at over 90% capacity. In addition, a prominent cardiology surgeon on staff at the hospital wants to create a new cardiac surgery program that would require extensive funding for more space and for new state-of-the-are equipment. The surgeon has been campaigning with the hospital board members. 1. Describe the Capital Expenditure process. 2. Explain the importance of the review and evaluation process. 3. Explain Jody's strategy to justify her request and include a list of items Jody might might ask for? 4. Explain Ted's strategy to justify his request and include a list of items Ted might ask for? 5. Based on the CFO's scoring system, summarize who do you think should get the bonus point?
Worthwhile Hospital has a total capital expenditure budget for the next year of $5 million dollars. Of this amount, $3 million dollars is already committed as spending for capital assets that have already been acquired and are in place. The remaining $2 million dollars is available for new assets and for new projects or programs.
Worthwhile Hospital typically divides the available capital expenditure funds into monies available for inpatient purposes and monies available for outpatient purposes. This year the split is proposed to be 50-50.
The hospital's CFO is also proposing that a scoring system be used to evaluate this year's proposals. She has set up a scoring system that allows a maximum of five points. Thus the low is a score of one point and the high is a score of five points.
In addition to the points earned by a funding proposal, the CFO will allow one "bonus point" for upgrading existing equipment and one "bonus point" for funding expansion of existing programs.
Jody Smith, the director who supervises the Intensive Care Units, wants to secure as much of the $1 million dollars available for inpatient purposes as is possible for the ICU. At the same time, Ted Jones, the director who supervises the Surgery Unit, also wants to secure as much of the $1 million dollars available for inpatient purposes as is possible for his Surgery Unit.
Ted Jones, the Surgery Unit Director, is about to choose his strategy for creating a capital expenditure funding proposal for the coming year. Ted's unit needs more room. The Surgery Unit is running at over 90% capacity. In addition, a prominent cardiology surgeon on staff at the hospital wants to create a new cardiac surgery program that would require extensive funding for more space and for new state-of-the-are equipment. The surgeon has been campaigning with the hospital board members.
1. Describe the Capital Expenditure process.
2. Explain the importance of the review and evaluation process.
3. Explain Jody's strategy to justify her request and include a list of items Jody might might ask for?
4. Explain Ted's strategy to justify his request and include a list of items Ted might ask for?
5. Based on the CFO's scoring system, summarize who do you think should get the bonus point?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
4. Explain Ted's strategy to justify his request and include a list of items Ted might ask for?
by Bartleby Expert
