Wgu (Amt2) Service Line Development - Complete Course - All 4 Tasks

1822 Words Oct 22nd, 2014 8 Pages
WGU (AMT2) Service Line Development - Complete Course - All 4 Tasks

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AMT2 Task1 (Western Governors University)

Building Advantages (A1a)
Cost of Building Construction: $600,000
Radiology Expansion/Second MRI: $3,000,000
Total: $3,600,000
Architectural and Organizational Autonomy According to the information provided, Trinity Hospital (TH) wants an efficient and esthetically beautiful facility. The primary purpose of the building, other than increasing revenue,
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Buying Advantages (A1b)
Building Purchase: $700,000
Radiology Expansion/Second MRI: $3,000,000
Total: 3,700,000
Quick Building Turnover
If TH wanted to purchase the building and quickly remodel it, they could get the building operational earlier, thus generating revenue more quickly than fully constructing a building. It is unclear from the information provided vis-à-vis how long it will take to fully construct the new building; however, it can be deduced logically that it would take less time to completely remodel the inside of the building. And, if it takes less time to make the building operational, TH can begin admitting new orthopedic patients sooner.
As discussed previously, TH would need to renovate the inside of the adjacent building to secure a suitable and efficient workspace. They could, depending on the structure of the building, have little to no limitations on floor plans which could affect efficient workflow.
Option 1: Pay Cash Advantage
Please refer to pay cash advantage listed under A1a.
Option 2: Borrow: Tax Savings Advantage
Please refer to tax savings advantage listed under A1a.

Leasing Advantages (A1c)
Cost of Yearly Lease: $100,000
Radiology Expansion/Second MRI: $3,000,000
Costs of Renovations: Unknown
Triple Net Lease (includes taxes and repair costs)
Total: Unknown
If TH chooses to lease a building instead of
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