managers Decide
ethics and choosing among competing proposals
Frequently, hospitals are asked to approve capital expenditures in excess of available funds. The usual financial criteria for selection among competing capital projects is sound but not sufficient. An ethical analysis of proposed projects allows both economic and moral ends to be balanced. Nonprofit hospitals, for example, should actively promote outcomes that benefit others. They must provide sufficient community benefit to justify their tax-exempt status. Furthermore, capital expenditure decisions should avoid doing harm to others.