An article review is a critical analysis of literature in a particular field by summarizing significant ideas. The article by Kleinmuntz et al. provides an overview of the strategic approach to allocating capital to healthcare organizations. The article focuses on strategic capital budgeting methods through decision analysis while trying to elucidate how this can help healthcare facilities effectively allocate their capital. Effective allocation of funds in healthcare firms occurs when the organizations meet the bar of their capital expenditures. Capital expenditures can overwhelm healthcare organizations when proper capital budgeting is not executed in time. Therefore, this supports the significance of strategic capital budgeting in healthcare organizations, which drive the initiative of providing quality care. This paper seeks to elucidate strategic capital management methods in healthcare organizations and determine if the article by Kleinmuntz et al. (1999) is relevant to the current healthcare strategic financial management approaches, not excluding reasons behind any subject changes.
The article by Kleinmuntz et al. (1999) is over-reigned by capital budgeting aspects in healthcare organizations. The authors elucidate how decision analysis impacts strategic capital budgeting methods and how this helps healthcare firms effectively allocate their funds when capital expenditures arise (Kleinmuntz et al., 1999). The authors highlight several steps used in the methods, including establishing the evaluation criteria, classifying the proposals based on the investment area, upholding complete proposals and their understanding, determining the cost of the proposal and rating them considering the individual criteria, ranking the proposals based on the benefit-cost ratios, and finally determining the numerical values of the weighted valued scores for specific proposals (Kleinmuntz et al., 1999). The outcome of these criteria provides a significant base for effective capital allocation.
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Despite increased uncertainties in this approach in the healthcare industries, this article is significant to healthcare organizations. The firms can quantify their budget to help them achieve their highlighted objectives regardless of their needs or capital source. Despite clarity claims by the 2018 capital market reports, hospitals' finance managers should embrace capital budgeting ( Warren et al., 2018) . The healthcare industry and its organizations are always challenging to understand since it is dynamic due to its impact or technological developments. Therefore, it is significant for effective planning of healthcare systems to ensure the success of the organizations. Strategic planning, in this case, is significant for the future of healthcare organizations. Strategic planning in the healthcare industry incorporates organizational goals, which drive the organizations' long-term lives.
Significance of this Article to Healthcare Organizations
The knowledge of strategic financial planning facilitates the development of value-based care. The billing system has significantly helped healthcare facilitates charge their clients for the various services they get. However, this criteria is currently changing as more healthcare organizations opt for a value-based model for payments. Additionally, the system also allows the healthcare practitioners to be paid according to their patients' health outcomes, contrary to the services offered. The healthcare practitioners are compensated for improving the patients' health, including reducing their risk to chronic diseases, thereby reducing the unnecessary and endless patient care costs.
Strategic financial planning is significant in healthcare as it helps in managing risks. This article holds that healthcare organizations' financial managers are always mandated to monitor, prevent, and drive initiatives to mitigate risks (Kleinmuntz et al., 1999) . The healthcare field is associated with various risks, ranging from patient safety ends and heapractitioners' safety nets and making life-threatening decisions. In addition to these factors, risk management in healthcare also involves ensuring the organizations' electronic health records (Ginter et al., 2018) . Such risks can arise from hackers and cybercrime activities in healthcare (Ginter et al., 2018) . Beefing electronic health records security would involve conducting medical research and incorporating advanced reimbursement policies from external parties such as insurers and the government (Ginter et al., 2018) . Technology helps healthcare organization managers to manage and secure healthcare data and information.
Another significance holds that strategic financial planning tends to improve communication in the organizational chain. In most organization set-ups, some departments usually fail to understand other departments' activities within the same organization. All the stakeholders of firms always anticipate a going-concern operation. Therefore, they should understand the organizations' vision and develop steps towards achieving their goals ( Grable et al., 2017) . In this case, effective strategic planning in healthcare organizations' management creates clarity and improves communication between stakeholders ( Grable et al., 2017) . Additionally, employees develop confidence in the organization considering a well-developed strategic plan that addresses the organization's goals and mission and steps towards achieving them.
The authors hold that strategic financial planning also develops vision and sharing. The aspects can impact various organizational levels when incorporated into the employees' minds in healthcare organizations (Kleinmuntz et al., 1999) . Employees will be motivated and embrace commitment towards helping the healthcare organization achieve its vision and goals. The aspect also boosts stakeholders' confidence to make sound-mind financial decisions in the organization (Ginter et al., 2018) . All employees always dream of being heard by their seniors during decision-making, which usually impacts their productivity at work, engagement, and self-management. Therefore, strategic planning enables employees to develop decisions that significantly benefit the healthcare organization (Kleinmuntz et al., 1999) . The aspect motivates employees to work and surpass the laid-out performance evaluation bars of the organization. An organization that does not uphold the factors mentioned above fails to motivate its employees.
Financial management in the healthcare industry requires healthcare facilities to offer quality care by dealing with the entire healthcare business side. Improvement of patient care, exploring new streams of revenue, minimizing risks and making the required investments make the financial management of healthcare useful (Ginter et al., 2018). Healthcare investments through health care systems are made possible through financial planning. For extra success and cost-effective strategies, a financial plan can help healthcare organizations invest in medical equipment and research, enabling them to analyze and track financial expenditures; this enables healthcare organizations' financial managers to make exceptional and error-free decisions (Ginter et al., 2018). Data obtained may help in generating income for healthcare. For example, a hospital increases outpatient services to its revenue stream by acquiring a nearby physician's practice. More dispensary services may be of more help to states that have legalized the use of cannabis Sativa. Good understanding enables managers of financial departments of healthcare organizations to make better decisions.
Conclusion
Kleinmuntz et al.'s (1999) article are relevant to the current healthcare strategic financial management approaches. The authors explain how capital budgeting methods incorporate financial management in the entire healthcare industry and healthcare organizations. The capital budgeting methods ensure effective preparation healthcare organizations should have when capital expenditures arise. From the article, it is evident that capital budgeting methods, in various ways, significantly impact the provision of quality care to patients. Therefore, the aspects support the relevance of the article to the current healthcare strategic financial management approaches. Changes have occurred over the years as healthcare organizations adopt and implement new techniques in their operations. In the past, the billing system has significantly helped healthcare facilities charge patients for various services. However, this criteria is currently changing as more healthcare organizations opt for a value-based model for payments. The advancing technology and expertise trigger the changes in the healthcare industry. Therefore, the aspects mentioned above sum up the authors' views towards strategic financial management in the healthcare industry.
References
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health care organizations . John Wiley & Sons. https://ir.ucc.edu.gh/jspui/bitstream/123456789/3016/1/%5BLinda_E._Swayne%2C_Jack_Duncan%2C_Peter_M._Ginter%5D_St%28BookZZ.org%29.pdf
Grable, J. E., & Goetz, J. W. (2017). Communication essentials for financial planners: Strategies and techniques . John Wiley & Sons. https://books.google.co.ke/books?hl=en&lr=&id=jdrwDQAAQBAJ&oi=fnd&pg=PR11&dq=strategic+financial+planning+tends+to+improve+communication+&ots=Wj4yWogTjj&sig=t8yGvmmIbNT86W_GMxHRZmvegY4&redir_esc=y#v=onepage&q&f=false
Kleinmuntz, C. E., & Kleinmuntz, D. N. (1999). A strategic approach to allocating capital in healthcare organizations. Healthcare Financial Management , 53 (4), 52-58.
Warren, L., & Jack, L. (2018). The capital budgeting process and the energy trilemma-A strategic conduct analysis. The British Accounting Review , 50 (5), 481-496. https://researchportal.port.ac.uk/portal/files/10601813/JACK_2018_cright_BAR_The_capital_budgeting_process_and_the_energy_trilemma.pdf
