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Feb 15, 2024 · A health care facility’s decision to invest in any capital asset requires careful analysis and planning as well as knowledge of the drivers that influence future hospital operations. The strategic planning process is a method for hospitals to assess and prioritize their future capital goals against limited financial realities.
Oct 13, 2023 · Healthcare real estate and facilities professionals’ understanding of their health system’s mission and financial strength will guide their approach to funding facility-related projects. In this article, we will consider capital allocation in two areas: strategic (i.e., new ventures) and infrastructure (e.g., asset renewal, sustainability initiatives, infrastructure updates).
- Measure what matters
- Create flexibility to respond to future market forces
- Contacts
- Mallory Caldwell
- Natasha A. Hunerlach
- Evan Sussholz
- EY | Building a better working world
CFOs are well aware of the KPIs that measure financial value. However, long-term value has three other pillars: patient (customer) value, people value and societal value. CFOs should help identify the right KPIs to measure how effective capital allocation decisions are at creating long-term value. Balanced scorecards can be used to combine quantita...
A formal process that examines all investment opportunities on a level playing field and uses KPIs that focus on the potential for long-term value creation can help health care organizations make the investments needed to improve both patient outcomes and financial stability. To sustain and grow during this era of transformation in health care, org...
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US Health Leader Ernst & Young LLP mallory.caldwell@parthenon.ey.com
Principal, Strategy and Transactions Ernst & Young LLP natasha.hunerlach@ey.com
Partner, Strategy and Transactions Ernst & Young LLP evan.sussholz@ey.com Jennifer Gerold, Brett Moore, Heera Mathew, and Jordi Pujol contributed to this article.
EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, ta...
Jun 22, 2020 · Canada’s total health care capital funding has grown over the last 2 decades, from $2.3 billion to $8.1 billion annually in current Canadian dollars (Figure 1), 7 yet health care capital investment as a percentage of gross domestic product remains lower than that of many Western Organisation for Economic Co-operation and Development countries ...
- Bijan Teja, Imtiaz Daniel, George H. Pink, Adalsteinn Brown, David J. Klein
- 2020
a firm's acquisition of capital assets or fixed assets such as manufacturing plants and machinery that is expected to be productive over many years[6]. Capital investment is often referred to as capital spending, capital formation, or capital expenditures. In the context of healthcare, capital investment comprises large
In health care, investment in facilities and technologies has been linked to improvements in quality of care. 22 Literature from the US suggests that health systems with greater availability of financial resources and increased likelihood of making capital investments are more likely to adopt innovations, leading to some improvements in quality of care. 9, 22 – 24 A Canadian study from 2003 ...
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Decisions in the capital planning process are sometimes based on inaccurate, outdated, or incomplete data, leading to misinformed investment choices. This is particularly problematic in dynamic environments where the needs and conditions of the facility can change rapidly. 8. Inadequate Monitoring and Evaluation.
