Stephanie Krent, Imaging Performance Partnership
On Friday, budget cuts mandated by the sequester rule went into effect. Because there’s some confusion about what these automatic cuts will actually entail, we wanted to answer some questions here on the blog.
The sequester effect: Getting ready for cuts to come
As the Partnership prepares for the 2011 National Meeting Series, we are uncovering insightful practices that we would like to share with you. Just recently researchers spoke with administrators at member health systems to ascertain the percentage of profit allocated for the next year's capital expenditures and wanted to share our findings. Each of the systems we spoke with explained that capital budgeting is done as a system and that they do not have direct control over the amount of capital allocated for new technology purchases. Administrators prefer this process over siloed control of capital budgets as the system focused method promotes collaboration and allowed for the hospital to better adhere to its strategic plans.
Capital Budgeting at the System Level