Certified Healthcare Leader (CHL) Exam 2025 – 400 Free Practice Questions to Pass the Exam

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Question: 1 / 655

What is the primary purpose of a capital budget in healthcare?

To plan the purchase of medical supplies

To outline expected patient revenue

To plan for the purchase of expensive items

The primary purpose of a capital budget in healthcare is to plan for the purchase of expensive items. Capital budgets are specifically designed to allocate resources for significant investments, which often include the acquisition of medical equipment, infrastructure improvements, and technology upgrades that cannot be covered by the regular operating budget. These expenditures generally have a long-term impact on the organization, contributing to the enhancement of services, efficiency, and patient care quality.

In contrast, planning for the purchase of medical supplies is typically managed through the operating budget, which encompasses day-to-day expenses. Outlining expected patient revenue relates more to revenue forecasting and financial planning, rather than capital expenditure. Managing staff salaries also falls under the realm of the operating budget, focusing on ongoing operational costs instead of long-term capital investments. Thus, the correct focus on the capital budget emphasizes its role in handling significant financial commitments that shape the future operational capabilities of the healthcare organization.

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To manage staff salaries

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