Capital split
- Imaging GBP 6,000,000 · Theatre GBP 4,000,000 · Records GBP 3,000,000 · Total GBP 13,000,000 · Benefit GBP 1,930,000 a year.
Executive Intelligence · Capital Allocation and Investments
Capital Allocation Optimization
Compares allocation options within a stated budget and constraints by a documented method.
Demonstration: Halden Hospitals Group (fictional) · Healthcare. Fictional data and a scripted answer.
The situation
- Organisation
- Halden Hospitals Group (fictional)
- Who is asking
- Chief financial officer
- Industry
- Healthcare
- What happened
- The group has a fixed capital budget this year and three programmes asking for more than it can fund.
The question asked
How should we split the capital budget across three programmes to get the most benefit?
What it reads, and who can see the result
- Capital requests documentWhat each programme wants and expects.
- Benefit estimates documentReturn per unit of capital for each.
- Reads
- The requests and the benefit estimates.
- Does not read
- Clinical or patient data.
- Permission
- Finance planning access.
- Who sees it
- The CFO and the capital committee.
Try it
Change the assumptions. Every result and the answer below are recomputed from them, and a warning appears when a result crosses a stated limit.
- Capital allocated
- GBP 13,000,000The budget is 12,000,000.
- Over (+) or under (-) the budget
- GBP 1,000,000
- Annual benefit
- GBP 1,930,000Per unit of capital: imaging 0.14, theatre 0.19, records 0.11.
- Benefit per unit of capital
- 14.8%
The allocation exceeds the capital budget: reduce one of the programmes.
The answer
Simulated answer. Written for this fictional case, not produced by a live model. Only the figures in it are computed, from what you decided above.
Allocating GBP 13,000,000 yields about GBP 1,930,000 a year (14.8% of the capital); GBP 1,000,000 against the budget.
The estimates give each programme a different benefit per pound [S1][S2]: theatre refurbishment 0.19, imaging 0.14, records 0.11. Putting capital where the return is highest raises the total, but a return estimate is not a clinical priority.
Imaging may carry a safety case the return figure does not capture. The committee's job is to decide how far to follow the numbers and where to override them, and say so.
Relies on: S1 · Capital requestsS2 · Benefit estimates by programme
No approval is needed for this result: it is read-only insight, and nothing consequential happens because of it.
What it produces
Limits of this example
- Benefit rates are programme estimates and are uncertain.
- Safety and compliance needs are not in the return figure.
- This is a scripted demonstration on fictional data. No model was called and no real organisation, person or result is shown.
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