Question is in bold at the very bottom:

Multihospital system (MHS) is defined as two or more hospitals that is overseen by one common owner that provides decisions and integrated administrative functions as well. Medical staff has a legal contract that obligates them to work at all facilities where needed to meet the healthcare needs of the key stakeholders(Multi-hospital System Definition, n.d.). This structure allows a closer relationship with other hospitals that are connected under the common owner. This structure comes with both advantages and disadvantages as with every structure.

Assessing the opportunities or advantages with MHS include the following and the reasons:

*Cost savings from system-wide economies of sales: such as IT systems(EMR)(HFMA'S VALUE PROJECT, 2012) which will promote standardized care.

*Financial benefits are optimizing investments and assist with cost reduction(Multi-hospital System Definition, n.d.).

*Allowing staffing needs to be met due to different locations, one location might be overstaffed due to low census where another locations might be short-staffed due to high census and call ins.

Assessing challenges or disadvantages with MHS include the following and the reasons:

*Decentralized physician leadership has been challenging concerning the progress of clinical improvement and care coordination because of the lack of physician chief operating officer(Multi-hospital System Definition, n.d.).

*Initial development of MHS there is a lack of common EMR's. Without the common system the common processes of care will have variation.

*Seeking a common culture is challenging due to the various locations.

Financial scenario analysis plays a dominant role with capital budgeting for MHS because the process for navigating the futures uncertainty by analyzing possible future events that may occur and will impact the MHS. Capital budgeting is a benefit because it does provide a forecast that gives the CFO and CEO an opportunity to place a financial strategic plan to negotiate the highest-quality assets(Gapenski, 2016, p. 519).

References

Gapenski, L. (2016). Healthcare finance: An introduction to accounting and financial management, sixth edition (aupha/hap book) (6th ed.). Health Administration Press.

HFMA'S VALUE PROJECT. (2012, October). Healthcare Financial Management Association. Retrieved January 4, 2023, from https//www.hfma.org

Multi-hospital system definition. (n.d.). Law Insider. https://www.lawinsider.com/dictionary/multi-hospital-system#:~:text=Multi-hospital%20system%20means%20two%20or%20more%20hospitals%20that,result%20of%20a%20formal%20legal%20or%20contractual%20obligation.

The process of staffing and cross training are important in every business. In business, the process of choosing the right resources is gained over years of experience, diligence and the adroitness of decision-making.

Centralization enables better management and predictability of physician actions, whereas decentralization encourages flexibility and awareness.

What are some examples of high risks for capital budgeting?