article thumbnail

Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

operating rooms, recovery floors, emergency department), and ancillary departments (e.g., Consider, for example, a surgical patient who starts in the pre-operative area, then moves to the operating room, the post-anesthesia care unit, and the inpatient floor, with occasional side trips for imaging, testing, and physical therapy.

article thumbnail

How Corporate Investors Can Improve Their Odds

Harvard Business Review

The operative question for them is, not “How confident am I that this investment will yield a positive return?” Ideas with positive discounted cash flows get investment. Five produced positive returns, two broke even, and three lost a little, but not a catastrophic, amount of money.

article thumbnail

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

However, many investors seem to have concluded that the most successful companies with tens of billions of dollars of valuation today could never have justified their valuation at the start of their operation based on discounted cash flow. Investors are paying more attention to ideas and options than to earnings.

Report 8