Remove Discounted Cash Flow Remove Finance Remove Innovation Remove Payback Period

Hospital Budget Systems Are Holding Back Innovation

Harvard Business

The audience for such innovation wants to be receptive: A recent American Hospital Association (AHA) survey found that 75% of senior hospital executives endorsed the importance of digital innovation. Yet, despite their stated enthusiasm, hospitals have been notoriously slow to adopt digital innovations. A hospital organized into these different unconnected units finds it difficult to adopt innovations that reduce costs across a patient’s complete cycle of care.

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course. Business students are taught to value a company based on the discounted amounts of future cash flows or earnings. Martin Konopka/EyeEm/Getty Images.

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