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Related Experiment Videos

Allocating capital in a multi-hospital system.

D L Newland, S L Reoma

    Healthcare Financial Management : Journal of the Healthcare Financial Management Association
    |February 8, 1989
    PubMed
    Summary

    Healthcare systems need fair capital allocation. An effective method combines a quantitative formula with management oversight for equitable resource distribution.

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    Area of Science:

    • Healthcare Management
    • Health Economics
    • Resource Allocation

    Background:

    • Limited capital resources necessitate efficient and equitable allocation within healthcare systems.
    • Operating units require a structured approach to capital distribution.

    Purpose of the Study:

    • To outline an effective capital allocation method for healthcare systems.
    • To identify key components for successful resource distribution.

    Main Methods:

    • Development of a quantitative formula for capital distribution.
    • Implementation of management scrutiny at corporate, regional, and local levels.

    Main Results:

    • The proposed method ensures quantitative accuracy in capital allocation.
    • Management oversight guarantees fairness and equity in resource distribution.

    Conclusions:

    • An effective capital allocation method integrates a robust formula with managerial review.
    • This dual approach is crucial for efficient and equitable healthcare resource management.

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