Evaluating Capital Planning Strategies (Essay Sample)

Evaluating Capital Planning Strategies
Capital planning in healthcare remains a fundamental internal policy for budget and decision-making. Capital planning intends to facilitate making informed decision-making with the resources available, thus answering the questions of when, how, and with whom in the most efficient manner. Given the challenges faced in capital planning, it remains a powerful financial tool that evaluates non-working systems. This saves the company many resources from wastage, thus safeguarding the value of every money spent (Teece, 2018). Ray Dufresne, Vice President, VFA, Inc., outlined various best practices for capital planning critical for improving the process of capital planning and management, including reducing the and cost, promoting a better working environment, and aligning strategic plans with the overall corporate goals and objectives.
The best practice for capital planning entails aligning the investment strategy with the organization’s overall strategic plan. In so doing, organizations create strong procedures and systems for evaluating the worthiness of capital assets, appraising the funding scenarios, and documenting the risks and opportunities for each item based on recent research. This aligns with the changing needs of the environment and creates a realistic approach to the better utilization of resources. Accordingly, developing credible capital plans based on accurate information makes realistic decisions that can be quantified within a given period (Shrank et al., 2021). It becomes easier to pinpoint complexities and deploy cost-effective approaches, which set a platform for better communication among the stakeholders and encourage the steady growth of the entity.