A full IHP 450 Module 7 post, roughly 360 words, ranking three competing capital requests with a stated rule, must-do replacements first and then value per dollar, and recommending which to fund, which to defer and how to fund the third. Searches like "ihp 450 module 7 assignment", "ihp450 module 7 capital request discussion" and "ihp 450 module 7 example" land here.
The IHP 450 Module 7 example, in full
Module Seven Discussion: Competing Capital Requests
Re: Three requests, one pot of money
At our composite health center, the finance committee has 210,000 dollars for capital next year and three requests totaling 247,000 dollars: my adult medicine proposal for three AI retinal cameras at 103,000 dollars, dental's replacement of a panoramic X-ray unit at 96,000 dollars, and behavioral health's two telehealth rooms at 48,000 dollars. Something has to wait, and since I wrote one of the requests, I think the committee should agree on the ranking rule before anyone argues for a project.
The rule I would propose has two steps. First, fund must-do items: equipment that is failing, unsafe or required to keep an existing service running. Second, rank the rest by value per dollar, using the profitability index, the present value of future cash flows divided by cost, adjusted for mission benefit (Reiter & Song, 2021). The dental unit is a must-do. It failed twice last quarter, and without it the clinic cannot take the images that most new dental patients need, which puts existing revenue at risk. It goes first even though it creates no new value.
That leaves 114,000 dollars for two projects that together cost 151,000. The cameras have a profitability index of about 3.1 in the base case, though that depends on earning a quality incentive, and the evidence that point-of-care exams get done is strong (Wolf et al., 2024); the telehealth rooms would mostly shorten wait times rather than add revenue. On value per dollar, the cameras rank higher. The rule only works if the person who wrote a request accepts it when it goes against them, so I would have deferred my own cameras if the numbers had pointed the other way. The telehealth rooms need not simply wait: behavioral health could apply for federal or foundation grant funding for telehealth equipment, and the board, which approves the capital budget, could make that application a condition of funding them next year (Health Resources and Services Administration [HRSA], 2018).
So, classmates, is a two-step rule like this fair to departments whose projects improve care but never generate revenue, and how would you adjust it for them?
References
Health Resources and Services Administration. (2018). Health center program compliance manual (Chapter 19: Board authority). U.S. Department of Health and Human Services. https://bphc.hrsa.gov/compliance/compliance-manual
Reiter, K. L., & Song, P. H. (2021). Gapenski's healthcare finance: An introduction to accounting and financial management (7th ed.). Health Administration Press.
Wolf, R. M., Channa, R., Liu, T. Y. A., Zehra, A., Bromberger, L., Patel, D., Ananthakrishnan, A., Brown, E. A., Prichett, L., Lehmann, H. P., & Abramoff, M. D. (2024). Autonomous artificial intelligence increases screening and follow-up for diabetic retinopathy in youth: The ACCESS randomized control trial. Nature Communications, 15, Article 421. https://doi.org/10.1038/s41467-023-44676-z
How this IHP 450 Module 7 example is structured
The post sets out the constraint first, the money available against the money requested. It then names a ranking rule before applying it, so the result cannot look self-serving. Each request is placed by the rule, with the writer's own project treated like the others. The post ends with the deferred project's alternative funding and a question about whether the rule is fair.
Get IHP 450 Module 7 written to your instructions
Share your IHP 450 Module 7 prompt and rubric, and a reply weighing capital requests or budget priorities for your scenario comes back within 24 to 48 hours; the first is free. The paper above is an original model document written by our desk, not a submitted student paper and not an official Southern New Hampshire University document.
IHP 450 Module 7 questions, answered
What is IHP 450 Module 7 usually about?
Late in a healthcare management and finance course, discussions often turn to capital budgeting decisions in practice: how organizations choose among competing requests when funds are limited, how to present a proposal persuasively, and how financial measures and mission are balanced in the final decision.
What is capital rationing?
Capital rationing occurs when an organization has more worthwhile projects than capital to fund them. Decision makers must rank projects, often by mission need, required replacements and financial measures such as the profitability index, which compares the present value of a project's cash flows with its cost.
What is a profitability index?
The profitability index divides the present value of a project's future cash flows by its initial cost. A value above 1.0 means the project creates value. When capital is limited, ranking projects by profitability index helps an organization get the most value from each dollar.