You are the laboratory manager. The hospital administration wants to penetrate the market and expand the business by performing Parathyroid Surgeries (reimbursement $15,000). They have enticed a prominent surgeon to join the staff He plans on scheduling four surgeries per week - two on Tuesday and two on Thursdays. Every case will need on intact Parathyroid Hormone (PTH) performed STAT during surgery. You currently send this test to your reference laboratory with a minimum 24-hour TAT. None of the analyzers currently in your lab are capable of running this test. The best pricing you obtain is from Siemens Diagnostics for an Immulite 1000. The price of the analyzer is $75,000. The price of the test kit is $800 for 100 tests. The test requires three levels of controls run per 24 hours. The stability of the test kit once opened is eight weeks. Reimbursement for the test is $20. You realize that you will only be able to run on average 32 tests (patient reportable results) before discarding the reagent ($25 per test for reagent alone). Would further explanation be needed in justifying the addition of this test as addition does not appear to be warranted on its own merits?

Business Its Legal Ethical & Global Environment
10th Edition
ISBN:9781305224414
Author:JENNINGS
Publisher:JENNINGS
Chapter6: Administrative Law
Section: Chapter Questions
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You are the laboratory manager. The hospital administration wants to penetrate the market and expand the business by performing Parathyroid Surgeries (reimbursement $15,000). They have enticed a prominent surgeon to join the staff He plans on scheduling four surgeries per week - two on Tuesday and two on Thursdays. Every case will need on intact Parathyroid Hormone (PTH) performed STAT during surgery. You currently send this test to your reference laboratory with a minimum 24-hour TAT. None of the analyzers currently in your lab are capable of running this test. The best pricing you obtain is from Siemens Diagnostics for an Immulite 1000. The price of the analyzer is $75,000. The price of the test kit is $800 for 100 tests. The test requires three levels of controls run per 24 hours. The stability of the test kit once opened is eight weeks. Reimbursement for the test is $20. You realize that you will only be able to run on average 32 tests (patient reportable results) before discarding the reagent ($25 per test for reagent alone).

  1. Would further explanation be needed in justifying the addition of this test as addition does not appear to be warranted on its own merits?

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