Capital Purchase

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Capital Project

“A capital expenditure is a commitment of resources that is expected to provide benefits during a reasonably long period, at least two or more years” (Cleverly & Cameron, 2007, p. 397). Sometimes it can be difficult to determine the difference between a capital expenditure and a routine expense. A capital expenditure improves the value of the asset, whereas a routine expense is used for maintenance of that asset. For example, installation of a new bathroom in a rental is a capital expenditure, because it increases the value of the rental. Repairing the stove, however, is a routine expense designed to keep the rental in operating condition. The main goal of a capital purchase is that the lifetime of that product will extend beyond the year of purchase. After purchased the product is called a capital asset. Capital assets are all tangible property which cannot easily be converted into cash and which is usually held for a long period, including real estate, equipment, etc. (Finkler, Kovner, Jones, 2007). Capital assets and money used to purchase such items are treated differently than that of the operating budget. The operating budget is money being used and tangible at the time. Capital assets may cost money now, yet you may not profit from them until another period of time. The key to a good capital purchase knows the life of the product. This can help you choose whether a new product should be purchased or a refurbished product or if the product should be leased. Capital assets are usually equipment used to replace old equipment or new equipment in which studies have shown could improve the business. In healthcare the business is quality patient care. So in healthcare a capital purchase would be something in which improves quality patient care. There are several items in which are purchased on a daily basis in healthcare to enhance care. A capital purchase is one of $2500 or more, and is not considered part of the operating expenses (Finkler, Kovner, Jones, 2007). Capital purchases should be planned and thought out thoroughly before considered. The budget should be reviewed for cash or equity in which the purchase could be made. The employees or stakeholders in the company must be interviewed for their point of view on the product and research should be done on the products qualities before purchase.

When considering any purchase in healthcare the reason for the purchase should center on patient care. It should have qualities in which would improve patient care, employee satisfaction, and or improve finances and money in which is to be collected. Therefore a capital purchase should always be a necessity. Working in the emergency room of a small 95 bed facility, level 3 trauma centers, it is not common to get a patient in through EMS who needs intubation. However in recent months and increase patient flow, an increased need to be up to date and accurate with skills on intubation is presented. More cases of respiratory arrest are being seen, not only in the emergency room, but throughout the hospital. Respiratory arrest is the cessation of breathing. It is a medical emergency and it usually is related to or coincides with a cardiac arrest. Causes include opiate overdose, head injury, anesthesia, tetanus, or drowning. Respiratory arrest is treated initially with artificial ventilation (intubation), together with treatment of the likely cause. It requires specialized training and certification in advanced cardiac life support to be able to intubate. Some facilities allow nurses with ACLS training to intubate. At Northeast Arkansas Baptist nurses are not allowed to intubate. Respiratory, anesthesia or emergency room physicians are the persons qualified to intubate at NEA Baptist. NEA Baptist is also considered a teaching hospital, in which many new physicians start their practices and do residency. Therefore, a Glidescope Cobalt Advanced Video Laryngoscope System...
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