Health Care Administration Health IT architecture or infrastructure

Health Care Administration
A recent change in Health IT architecture or infrastructure is the use of cloud computing. In the present day, cloud computing is having a positive effect on healthcare processes and outcomes and the healthcare organization as a whole through the provision of quality services to patients. To begin with, healthcare organizations have shifted to a digital basis in the contemporary where they gather a great deal of data. Through cloud computing it become possible to transform this significant amount of data into sensible information and facilitates the sharing and accessibility of data (O’Dowd, 2016).
Imperatively, through cloud services, it is conceivable to share huge files of data with the expediency that does not just save general healthcare expenses but at the same time augments efficacy as well. In the contemporary, healthcare organizations have to provide care to millions of consumers and therefore require potent systems to accomplish this. Moreover, the data and information of patients has to be shared in a secure manner by the healthcare providers (Morrow, 2016). Cloud has become a pivotal instrument in the healthcare sector for improved collaboration. It enables the remote accessibility of healthcare data and information to professionals. Therefore, in the contemporary improved care can be rendered by healthcare specialists devoid of any delay. In addition, in the event of tragedies, when it is usually impossible to visit any certain area, then through cloud technology, physicians can obtain the essential information required at that particular time.
Furthermore, regulations within the healthcare industry are impelling organizations to shift in the direction of improved storage, teamwork and data sharing in the cloud. Owing to the espousal and increased use of electronic medical records, there are opportunities of organizations experiencing loss of data or loss of other sensitive information. The utilization of cloud services offers a fitting solution to this issue and at the same time facilitates faster transference of data between parties (Morrow, 2016).
Financial Decision-Making
Opportunity cost is defined as what would be generated or earned on the subsequent best use of the assets. Opportunity cost is a significant concept in capital budget because it is a cost that does not essentially encompass the use of cash outflows but has to be taken into account for the reason that it mirrors the foregone profit that could have been somewhere else. Basically, opportunity cost signifies the lost chance to generate profit from substitute use of the funds apportioned to the project being taken into consideration, Moreover, capital budgeting decisions are centered on both current and future incremental cash flows but not cash flows of the past. As a result, while computing the net initial investment cost or expense, it is imperative to include opportunity costs (Obaidullah, 2013). An example of an opportunity cost is making use of a building or equipment that could alternatively be rented to another company or business.
From the perspective of capital budgeting, capital rationing is the case when the amount of spending or outlay for capital projects in a certain period is restricted. That is, capital rationing is present when there is a restriction on the amount that can be spent on capital projects. The key aim of capital rationing is to make the most of the owner’s wealth depending on the constraint on the capital budget (Bruggen, 2011). An advantage of the accounting rate of return method is that it is simple to calculate and comprehend. It takes into consideration the total profits over the whole economic life period of the project. On the other hand, a key disadvantage of the approach is that it overlooks the key factor that it time. That is, the approach fails to consider the time value of money.


References
Bruggen, A. (2011). Capital rationing for capital budgeting. Capital Budgeting Valuation: Financial Analysis for Today\\\\'s Investment Projects, 13, 95.
Morrow, W. (2016). How Cloud Computing is Revolutionizing Healthcare? Huffington Post. Retrieved from: https://www.huffingtonpost.com/william-morrow/how-cloud-computing-is-re_b_11675810.html
O’Dowd, E. (2016). Top 5 Health IT Infrastructure Trends Heading into 2017. HIT Infrastructure. Retrieved from: https://hitinfrastructure.com/news/top-5-health-it-infrastructure-trends-heading-into-2017
Obaidullah, J. C. (2013). Sunk Costs vs. Opportunity Costs. Accounting Explained. Retrieved from: https://accountingexplained.com/managerial/capital-budgeting/sunk-costs-vs-opportunity-costs