Finance and economics in health care delivery – discussion 6 (grading
compare and contrast the two, and explain why both are important.
Financial factors are the most obvious factor taken into consideration when making a capital budget decision. Financial considerations include assessing economic feasibility, evaluating cost-benefit analyses, analyzing financial resources available to fund the project or purchase a piece of equipment, examining potential return on investment, etc. These types of considerations help organizations determine if they have the necessary funds and resources to move forward with an initiative or not.
Emotional factors can also play an important role in capital budget decisions as well. Emotions can be powerful motivators that drive people to invest their time, money and other resources into projects that may not be necessarily economically feasible but offer immeasurable value in terms of providing hope for those affected by certain issues or promoting growth within an organization. For example, an organization might decide to take on a philanthropic project which has little chance at turning any profit but still choose to pursue it due its potential impact on helping others in need or raising awareness about a certain topic.
Both financial & emotional factors should be taken into account when making a capital budget decision because they each have their own merits & drawbacks depending on situation being examined & ultimately influence whether an initiative succeeds or fails . While financial constraints provide practicality & reduce risk associated w/certain investments , strong emotions often act as key motivators that lead individuals groups towards achieving greater goals than originally thought possible due passion commitment associated w/these causes . As such , it is essential weigh these two components together carefully order make informed decisions regarding projects moving forward .