The Capital Budget For The Hospital Wing Renovation

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Monies to renovate the hospital wing will come from a capital budget which will include the demolition and reconstruction of the existing structure without changing the footprint. Equipment and furnishings needed for the unit will also come from the capital budget. The hospital may apply for grants or run a fundraising campaign through the hospital foundation to assist with the costs of the project. “A fundamental concept integral to business planning is the time value of money. A dollar today is worth more than a dollar in the future” (McKay & Peters, 2013, p. 107). McKay & Peters go on to state that “Whatever money a project generates over time must take into account that the value of the dollar is falling” (2013, p. 107). The capital budget for the hospital wing renovation is an estimate of 1,500,000 dollars. This number is derived from comparing similar projects and then determining a reasonable budget for the project planned. One such similar project at Clarke County Hospital in Osceola, Iowa had a budget of 2,200,000 for a 10,000 sq. feet renovation of nine patient rooms. This renovation included replacing an elevator, a pharmacy remodel, and a mechanical penthouse with a chiller (Graham Construction Company, 2012). Another wing renovation at Braintree Rehabilitation Hospital was done in 2009 for 1.4 million dollars that included 35 patient room and a therapeutic patio (Scheible, 2009, p.1). The proposed plans will consist of a sizable demolition project

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