Essay about Capital Justification

Purchasing new MRI scanners for the hospital is a good idea for the hospital because although expensive for the first time purchase, the maintenance issues will be less. Any product reused or refurbished automatically requires more maintenance. The only time a refurbished item is very good in comparison to the average life span of a new one is if all of the mechanics have been completely replaced with brand new pieces and the body of the machine is the only thing refurbished but that would be very unlikely. Maintenance costs is what will be cut over time and in the end the hospital will be happy that they purchased new medical machinery. It ensures that the machine will do the job correctly the first time around and doctors have more accurate results for patients.

When considering requests such as a new piece of equipment, staff training, and supplies for the unit, a manager must consider the overall budget, constraints, and variances. If equipment has a useful life of more than one year and exceeds the minimum cost level of the facility, the manager may request the cost originates from the capital budget of the facility (Yoder-Wise, 2012). Large equipment such as a patient lift, which costs $3000 per lift, would be beneficial to the staff and

* Computerized tomography (CT) or magnetic resonance imaging (MRI) scan. CT scans use computers to create more-detailed images than those produced by conventional

When making a purchase to improve on many areas of operations there are always factors to take into consideration. There will be a great amount of capital expenditure for this equipment; however the potential for higher return on investment is remarkable. The initial cost of purchasing the MAGNETOM is approximately $ 1 million. There will be an additional cost of $500,000 to operate and maintain the machine. These costs will be reimbursed within the first eight months of extensive utilization if the all marketing for the machine is on point. Since we are currently paying a technician to operate our out of date machinery, there is no reason why this prediction cannot become reality. There will also be an offset of income inherited by the lack of errors made by the technicians after they have trained for the new machine . ("Magnetom espree -," 2013)

Another form of imaging is ultrasound. Ultrasound, which uses very high frequency sound, is directed into the body. And because the tissue interference's reflect sound, doctors are able to produce, by use of a computer, a photograph or moving image on a television. Ultrasound has many application uses on the body, but is more commonly used in examinations of the fetus during pregnancy, because use of radiation may affect the outcome of the baby. Some other practices for ultrasound include examination of the arteries, heart, pancreas, urinary system, ovaries, brain, and spinal cord. And because sound travels well through fluids it is a very useful technique for diagnosing cysts( which are filled with fluid), and fluid filled structures such as the bladder. And since sound is absorbed by air and bone it is impossible to use a ultrasound on bones or lungs.

Due to the technological advances in the medical industry, the clinic has decided on advanced medical equipment to provide quality care to the patients. The equipment that will be purchased is a High- Speed CT Scanner, X-Ray Machine, and an Ultrasound Machine. This equipment will allow more quick and efficient test and treatment. The options that can be made include: buying new or refurbished equipment with an option of a loan, acquiring on capital or operating lease. During this phase, I chose the most cost effective option to acquire the equipment. To acquire the equipment, I chose the operating lease. Since there are always potential advances in technology, buying the equipment may not be a good idea. In the long term, the equipment that was purchased will likely be replaced by newer technology in a few years. Due to the decisions of acquiring new equipment, the clinic is now doing well and the profits are growing which allowed growth for the clinic.

To acquire the equipment, I chose the operating lease. Since there are always potential advances in technology, buying the equipment may not be a good idea. In the long term, the equipment that was purchased will likely be replaced by newer technology in a few years. Due to the decisions of acquiring new equipment, the clinic is now doing well and the profits are growing which allowed growth for the clinic.

The doctor also questions the patient about the symptoms, their duration, and their onset. In a Physical examination, the doctor runs tests that will determine the health of nerves and muscles. Doctors will also look for weakness in specific parts of the body. In a MRI, a patient’s body is placed within a magnetic field and scanned by radio waves. Doctors also take pictures of the brain or spine to see if there are any patches or scars on the myelin sheath. In CSF collection, the doctor will take a sample of the patient’s spinal fluid. Then doctors study the sample for abnormalities like an increase of white blood cells and high amounts of immunoglobulin G. In ERTs, doctors attach wires to a patients scalp. Then doctors can measure the speed of visual, hearing, and sensory pathways and can detect damaged areas of the brain.

The first expense I will start with is the expense that is considered the overhead costs. There are no overhead costs because your company has a vacant building that will be perfect for housing the MRI machine. The next expense will be the purchase price of the MRI machine which is two million five hundred thousand dollars. The next expense to take into account is the annual maintenance costs of one hundred and twenty five thousand dollars. The annual maintenance costs needs to be multiplied by five years, which means the cost for the maintenance comes out to six hundred and twenty five thousand dollars. The next expense associated with the MRI machine is the site preparation, site and installation cost of five hundred thousand dollars. The next expense associated with having an MRI in your network is the labor costs. The annual labor cost including benefits for the one and half employees is seventy thousand dollars. The annual costs of the staff have to be multiplied by five years and that equals out to be three hundred and fifty thousand dollars. The final expense to include is the supply costs for five years of running an MRI machine. The supply cost per scan is forty dollars. The MRI machine will be running for fifty weeks annually with twenty seven scans being done every week. When configuring the amount of supplies used annually you need to multiple twenty seven

As it relates to the textbook, this describes some of the scope of the hospitals; which refers to the range of activities which the firm performs internally, the breadth of its product and service offerings, the extent of its geographic market and its mix of businesses. But unlike with the electric company, no regulator caps hospital profits. To the extent that author Steven Brill found any consistency among hospital charge-master practices, this is one of them: hospitals routinely seem to charge 2V2 times what expensive implantable devices cost them, which produces that 150% profit margin.

• MRI (magnetic resonance imaging) is a diagnostic test that uses large magnets, radio frequencies, and a computer to make images of organs and structures within the body. This test outlines the extent of the tumor within the bone and joint and the relationship of the tumor to the muscles, nerves and blood vessels.

Magnetic resonance imagining (MRI) – this test is the most effective for finding blood clots in the pelvis and thigh. It uses radio waves and a strong magnetic field to make pictures on a computer of the inside of your

Magnetic Resonance Imaging, or commonly known as MRI, is a technique used in medicine for producing images of tissues inside the body. It is an important diagnostic tool because it enables physicians to identify abnormal tissue without opening the body through surgery. MRI lets physicians see through bones and organs. MRI does not expose the patient to radiation, unlike tests that use X-rays. MRI provides an unparallel view inside the human body. It is the method of choice for the

MRI technology is a useful technique in the medical industry, there are many advantages to its use and for the most part the disadvantages of its use are minimal. They are great because they provide very detailed diagnostic pictures of most of the important organs and tissues in one’s body. They are also capable of showing unique information that other tests are unable to show. They are generally painless. Furthermore, they do not use radiation and are therefore suitable for use in children and pregnant women. Although there are many good attributes to MRI’s, there are still disadvantages to its use. For one, many people are claustrophobic and being in an MRI can become very uncomfortable for them. In addition, the MRI makes a tremendous amount of noise. Often patients are given earplugs or stereo headphones in attempt to muffle the noise.

Modern medicine has undergone major advancements over the past years. One of these developments include the capacity to retrieve crucial information about the human body and its health beyond the use of manual diagnostic techniques. This is referred to as Medical or Diagnostic Imaging.