Capital Budget Proposal

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1. Discuss and assess the need for a capital budget item in the hospital ( The budget item is patient monitors)
2. Presents a compelling argument for the purchase of the capital item. (patient monitors)
Essay formatted and cited per APA style and references should be current (published within last five years) scholarly journal articles or primary legal sources (statutes, court opinions)
Incorporate a minimum of 4 current (published within last five years) scholarly journal articles or primary legal sources (statutes, court opinions) within your work. Journal articles and books should be referenced according to APA style.

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Capital Budget Proposal
Your Name
Subject and Section
Professor’s Name
November 14, 2021

Understanding the importance of capital budgeting is essential, especially for healthcare professionals who have the duty of proposing budgets and expenditures. This allows them to create more strategic decisions that would ensure the feasibility and cost-effectiveness of their actions. In line with this, the author would like to focus on the importance of patient monitors as a capital budget item for hospitals. This includes the need for these items and why hospitals should invest in these kinds of tools for the improvement of the delivery of care as well as the efficiency of such decisions. All in all, it is the author’s belief that knowing the importance of every capital budget item is essential for the future practice and administrative duties of a healthcare professional.

Capital Budget Item and Patient Monitors
Capital budgeting refers to determining and allocating capital towards liabilities, expenditures, and other investments that are essential for the operation of an organization. Accordingly, capital budget items are those line items that are specifically identified and enumerated as necessary to purchase properties, land, and equipment, among others (Drury, 2021).

In line with this, one of the capital budget items that hospitals purchase is patient monitors. Patient monitors are simply electronic devices that can assess, record, and visually present the vital signs of a patient. Patient monitors provide the preciseness and ease of determining a patient’s general condition without needing to conduct tedious examinations regularly (Andrade, et al., 2018).
Patient monitors (PMs) are an indispensable capital budget item for any hospital facility because; (1) it reduces costs on the part of the hospital and (2) reduce risks of lawsuits and malpractices over the long run.

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