In order for a health care organization to be able to invest in information technology, that organization must have capital available for the expenditure. Sometimes, the organization will already have the necessary cash on hand to financially support the project outright; however, given the “big ticket” nature of many information technology expenditures, the organization will generally need to pursue a means of financing the capital needed for the investment. As such, it is important to recognize the various ways in which an organization can potentially raise this capital, as well as the inherent benefits and drawbacks of each type of capital financing.
To prepare for this Application Assignment, review the information on capital planning and financing in health care organizations presented in this week’s Learning Resource readings and discussed by the presenters in this week’s Course Media. Then, reflect on the perspectives provided by the Course Media presenters on the ways in which health care organizations raise capital for their information technology solutions.
To complete this Application Assignment, write a 2 page paper in which you:
- Describe and differentiate how equity, debt/bond, and lease financing may be utilized to fund investments in health information technology, including an explanation of the benefit(s) and drawback(s) associated with each approach.
- What factors should guide healthcare executives in selecting among these methods?
Your written assignments must follow APA guidelines. Be sure to support your work with specific citations from this week’s Learning Resources and additional scholarly sources as appropriate.
Refer to the Pocket Guide to APA Style to ensure your in-text citations and reference list are correct.
