What is a Capital Expense Budget for Healthcare Providers?

Capital Expense (“Capex”) budget forms are considered a key part of annual budget models and are often used by budget managers, purchasing managers and department heads to plan future asset purchases. Some of the key functionality in this type of budget template is that it has drop downs to choose asset type, department, and purchase month. The average lifetime of the asset typically comes from an assumption and will automatically calculate the monthly depreciation amount. After the user enters purchase price and quantity, everything else calculates automatically. Total depreciation expense and accumulated depreciation ends up on the P&L and Balance Sheet budgets. Typically, this template is used for each healthcare facility with all their departmental asset purchases contained within the same form. You find an example of this type of budget template below.

Purpose of Capex Forms

Hospitals and clinics use Capex Forms to request funding for asset purchases and capture comments and details that will help in the approval process. When used as part of good business practices in a Financial Planning & Analysis (FP&A) department, a healthcare organization can improve its expense control and asset procurement plans as well as reduce the chances that there are budget overruns due to unforeseen investments.

Capex Form Example

Here is an example of a Capital Expense budget input form with automated depreciation expense calculations.

Capital Expense Budget for Healthcare Providers Example

Capital Expense Budget for Healthcare Providers Example

You can find hundreds of additional examples here

Who Uses This Type of Budget template?

The typical users of this type of budget template are: CFOs, Budget Managers, Procurement and IT Managers.

Other Budget templates Often Used in Conjunction with Capex Forms

Progressive Financial Planning & Analysis (FP&A) Departments sometimes use several different Capex Forms, along with budget templates for revenues, KPI metrics, payroll, profit & loss, balance sheet and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.

In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

Corporate Performance Management (CPM) Cloud Solutions and More Examples