The Medical Equipment Rental Industry

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.

In a world of budget cut and layoffs, medical corporations face new and different challenges in addition to helping and healing patients. I used to work as a medical biller in a physician’s office for five years and I experienced how difficult for the health care providers to get reimbursed. The government and the insurance companies have been limiting the budget towards the health care services. This action also affects the hospitals greatly because Centers for Medicare & Medicaid Services (CMS) and some policymakers have requested the hospitals to reduce the

One area that has contributed to the rise of healthcare costs are the varieties of healthcare services offered to the patient. Competition between providers has caused physicians and hospitals to offer the most current healthcare technologies and modern, eye-catching settings in order to attract and retain clients (Shi & Singh, 2015). Reimbursements for costly procedures and hospital services have been compensated at a higher rate which has also supported the expansion of hospital and specialty procedure settings (Schroeder & Frist, 2013). Renovations of the physical settings and the acquisition of expensive technologies have elevated healthcare services prices to encompass the additional costs of providing high technical services and attracting clients and cause the over-utilization of expensive treatments.

The facility is also in need of new equipment to make sure patients are receiving the proper care and to reduce costs in the long-term. The facility needs to purchase these machines. The machines needed are as followed: high-speed CT scanner, an x-ray machine, and an ultrasound system. There are a few different options when obtaining medical equipment and in this case the facility is purchasing new equipment, purchasing refurbished equipment, or obtaining an operation or capital lease. The best strategy for purchasing a high-speed CT scanner would be to purchase a refurbished machine. The useful and usual life of this equipment is approximately 10 years. Although the hospital may need to upgrade the technology of the scanner in five years, at this time buying a refurbished scanner is the best option. The hospital can upgrade the equipment at a later time extending the usual life of this device. This will be recorded as an asset, but at a lesser value. The loan rate is also low at 9%.

More demand for “better quality” healthcare. New technology may not even be better than the previous technology that has been replaced, but people want the “best”.

This statistic brings focus to a trend that is seen over and over again throughout the country. Medical practices are seeking ways to upgrade and outsource in order to reduce expenses, enable them to bring in more revenue, and remain independent in what have become some tough times in the healthcare industry.

To say that hospital costs are rising at fast pace is an understatement. According to the article, gross domestic product spent on health care in the United States has grown from 5.3% in 1960 to more than 18%. With healthcare costs on the rise, I think it is important to accurately account for the costs. With the newly regulated and highly sophisticated electronic medical record (EMR) system it allows access to large amount of data that compare costs better than before. Due to EMR systems Physicians no longer chart on paper but on laptops and tablets.

These trends are allowing physicians to sustain the economic forces and science advancement. Physician’s industry is the locomotive of the healthcare advancement and cost effective outcome.

However, only in the area of outpatient and inpatient expenses did every size hospital experience an increase in costs. While medium and large hospitals shared an increase in expense in daily and ambulatory expenses, small hospitals experienced a surprising decline in expenses related to those two fields. All of the data on small hospitals in rural areas shows sharp decreases from 2010 to 2011. Startlingly, the same cannot be said for small urban hospitals. The daily and ambulatory expenses decreased, the same as rural hospitals. Yet small urban hospitals experienced a growth in outpatient and inpatient expenses from 2010 to 2011. Therefore, it is logical for outpatient and inpatient expenses to increase overall, because while some subcategories that contribute to the total showed decreases, further analysis of those subcategories show only one decrease in inpatient and outpatient

The study concluded that practices with a greater amount of available technology had greater overall cost. Furthermore, a positive relationship was not found between overall amount of money spent and the quality of care as measured by their identified metrics. Moreover, practices with access to more services were shown to have higher readmission rates and unnecessary emergency room visits. Finally, the study identified weaknesses in the quality and cost saving assumptions by the health care community.

Cost – The initial cost of mHealth equipment has acted a barrier in adoption. From the mHealth solution’s development perspective – the development and maintenance costs are also hindering the adoption.

Moreover, the introduction of the Medicare and Medicaid insurance programs, regulatory oversight by the Food and Drug Administration, and state licensure boards have impacted the whole healthcare industry (Fortenberry & Fortenberry, 2010). Consequently, the operations of the healthcare industry are affected by economic forces. The high infrastructural development in the country has enhanced the efficiency of healthcare organizations. However, the rate of unemployment in the country is

Learning about innovation in an entrepreneurial environment, we faced the obvious; Technology innovation contributes greatly a firm to gain prosperity and bloom with a comprehensive advantage. After this conclusion, I wanted to give my best and understand the ways that technology benefiting the health sectors, developing new and more profitable patterns, which will enormously help a healthy and innovative business activity in a demanding field; the field of healthcare. Working for many years in Hospitals as well as home care, I realize from the early days that technology it is very effective in patient care, enhancing experience and services, which are related to patient treatments and procedures. Obviously, improving patient experience is a great goal by itself, but the financial aspect of the issue cannot be neglected. Therefore, a questioning is born; can technology involve in any way reducing the cost in Hospitals and care centers? Additionally, which barriers might occur and what are the preconditions for successful health care projects that will successful combine both innovative services with economic prosperity of a firm? Can or cannot high-class services coexisting with thriving financial development model of an organization?

3M’s diversified range of products provides opportunities for the company growth. The medical industry is expected to grow from increase from 17 percent to 22% in next 5 years (3M Corporate Headquarters, 2016). Hence, 3M could expect to leverage its products in new markets that would sustain its profits (3M Corporate Headquarters,