Case Study on Capital Budgeting In Hospitals this paper we present a zero-one goal programming model for capital budgeting in hospitals. Capital budgeting is a major task in hospitals because of rising medical costs, due to funds limitations, competition environment among the hospitals. So, the Administrator must take a proper decision about the capital budgeting by using proper tools. Among the many proposed methods of multi criteria decision methods, zero-one goal programming is powerful and widely used tool. The purpose of this paper is to present a model capable of dealing with the problems of multiple conflicting goals, indivisibility of projects, and capital rationing which characterize the unique decision environment of the hospital administrator.
Introduction: In today’s highly complicated, technological and competitive health care arena, the public outcry is for administrators, medical staff, and other health care professionals to provide high quality services at lower cost. Health care administrators must therefore find ways to get excellent results from more limited resources. The major problems facing by the hospital administrators are resources allocation and capital budgeting. Capital budgeting is the investment decision-making as to whether a project is worth undertaking or not. It is a big task in hospitals because of rising medical costs, due to funds limitations, competition environment among the hospitals. So, the administrator must take a proper decision about the capital budgeting..
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