The documentation that will be required will have to include details of the expected increases in terms of turnover and the additional benefits that can be provided by the hospital; descriptions of the uncertainties and other risks that are associated with the proposed investment; proof to show that the purchase of the item is in line with the general objectives that the hospital is supposed to do as per its objectives and goals; in applicable cases it should also show that the purchase is in line with the stated objectives of the government and its plans; details of income, expenditure and cash flow for the areas of the hospital that will be changed through the equipment and the differences from the flows that would have existed otherwise; when cash flows are given there should be clear provision for the repayment for the item being purchased; the financial rationale for purchase as worked out through a complete cost benefit analysis and this analysis should also indicate the non-financial benefits to the hospital and the society as a whole; and finally the signed approval of the Chief Executive Officer
(Preparing a business case).
Sometimes the asset will be of a bigger size in relation to the hospital and this will require a more detailed analysis. Then it will require an analysis of all the activities of the organization and this also has to be presented.
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