MHA FPX 5006 Assessment 3 Cost-Benefit Analysis
Cost-Benefit Analysis
Investing and adopting innovative machinery might open opportunities for higher profitability and more income. To establish if the expenditure will yield the desired results, several factors must be considered, such as infrastructure costs, operational expenses, wages, as well as others (Adler-Milstein & Jha,2017). Powerful magnetic and radiation transmissions are used in magnetic resonance imaging (MRI) to examine the anatomical structures within the human body. MRI scans are used by medical practitioners to identify a variety of illnesses, from cancers to damaged muscles. The central nervous system may be examined with MRIs (Orange et al., 2018). This research proposal will examine a hospital’s cost and benefit analysis. It will also determine whether investing in an MRI scanner will be advantageous for the facility.
Opportunity Cost and the Organization’s Financial Planning
The concept in discussion establishes the worth of a certain decision made by the organization compared to possibilities that will not be considered. Since numerous qualitative factors influence the grade and results of operations, it is the main measure of the value and benefit analysis. A healthcare facility’s profitability is impacted by the acquisition of an MRI scanner since the institution would be capable to provide further treatments, boosting the organization’s operational income. As an outcome, more reimbursed fees will be paid, and the profitability will be higher (Lad apo et al., 2018). Furthermore, the array of profitable operations will grow. As a result of the study, it has been determined that the institution must acquire the MRI machine in this instance since the advantages much surpass the expenses of purchasing and assembling the equipment.
The diagnostic procedure benefits from the information that the MRI services offer. Within the United States, more than 100 MRIs per 1000 population have been completed yearly, more than in practically any other country according to research studies. The acquisition will support the company’s plan to introduce this service and boost income. Furthermore, it will benefit the surrounding by providing the patients with access to essential medical diagnostics. Regarding medical services, the patient-centered model implies a need to concentrate on making sure people earn excellent services. This will be made possible by offering an internal MRI, which will enable the clinic to have decision-making power and provide supplemental discussions to the patients (Edmund & Nyholm, 2017).
MHA FPX 5006 Assessment 3 Cost-Benefit Analysis
Cost and Benefit Analysis
Since patients now need to go to different clinics to get an MRI scan, client comfort ought to be the major factor considered when making this acquisition. MRI is one of the most economical screening methods available right now. It is inconvenient to need to execute an operation in one location and receive consultation in the other (Faria et al.,2018). Some customers could decide to use various healthcare company that provides the services. The research considers the non-financial benefits of customer contentment, which researchers claim to lead to greater sales, enhanced stability, and higher occurrences of referring colleagues (Plowman, 2018). The institution can buy and operate an MRI scanner, it may be inferred from the benefits and costs analysis.
The anticipated cost of an MRI scanner for this work is the least costly obtainable. This conclusion was made since the hospital must assess if buying the machinery is necessary; as a result, one of the most economical equipment as well as other expenditures were identified. As a result, the hospital ought to spend about $1 million on an MRI scanner The hospital’s financial plan will likely need to be increased since more hospital staff will need to be employed. An expected $60,000 will be needed for installation charges, which include covering installing the equipment and furnishing an MRI unit. To guarantee that the gadget can function, annual maintenance fees were imposed. These costs include things like power and servicing (Emanuel, 2018).
Plan of Action
Utilizing standard international wages for healthcare assistants and radiologists overall staff compensation was calculated. The non-financial advantages also included treatments that doctors would be capable of offering as a result of shorter operation times. On average doctors can treat about 2,500 people annually. It is evident that perhaps a hospital will be capable of handling at least 250 MRI-related appointments for each doctor. Non-financial expenses include any dangers that the clinic could face (Rosenbach et al.,2017). For example, it could malfunction or need maintenance, making it impossible to utilize the MRI scanner.
MHA FPX 5006 Assessment 3 Cost-Benefit Analysis
The total percentage of MRI scans that may be completed each day was multiplied by that of the price of one operation for these findings. It will make it possible to be ready for such occurrences and will assist in the more thorough evaluation of the acquisition. The hospital would have to spend around $993,398 to buy and set up the apparatus for the year. Analyzing the operation’s average amount of time of around one hour, the number of hours a radiologist spends per week, and the cost per treatment allowed us to determine the direct income profit. Considering a non-financial factor is considered since these figures consider both hospital patients and people who have been given a prescription to use it. Radiographers would be capable of understanding more scanning findings, which will lead to a shorter turnaround time for treatments, which will help everyone including the patients and doctors. Given that just not all MRI machines are approved to be used in the system the consideration of Medicare status is a crucial factor (Martin et al., 2017). As a result, the estimates include the operating costs for relevant machinery. Since the hospital has a substantial number of patients who must go to other diagnostic facilities for any of these examinations, expansion uncertainty and market share were not considered. As a result, no such conditions can occur.
To develop an action plan, the hospital must use the data from the cost and benefit analysis, along with the cost of the system and data on running costs. Initially, a vendor must be contacted to execute a binding contract for the MRI equipment. To prevent overspending, the hospital should pay for the costs in advance (Emanuel, 2018). To verify that the system can function, the technician will set up the gadget and make sure where its servicing must be placed. The organization should then engage 3-4 employees who will operate with the MRI equipment and start offering this assistance to the patients (Rosenbach et al.,2017).
Conclusion and Recommendations
The hospital as well as its doctors would have been able to completely boost the leadership’s income by offering MRI services, according to the cost and benefit analysis of buying the MRI machinery. This notion that perhaps the hospital even has patients who need the examinations but who are being sent to the outsourced services is a crucial consideration throughout this ruling approach. However, no more fixed overheads would be required to guarantee the purchase’s profitability. The immediate revenue from MRI operations and unquantifiable estimates is more considerable than the expenditures again for machinery, implementation, operational costs, and employee wages.
MHA FPX 5006 Assessment 3 Cost-Benefit Analysis
References
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Lad apo, J. A., Spritzer, C. E., Nguyen, X. V., Pool, J., & Lang, E. (2018). Economics of MRI Operations After Implementation of Interpersonal Skills Training. Journal of the American College of Radiology, 15(12), 1775–1783.
https://doi.org/10.1016/j.jacr.2018.01.017
Martin, C. J., McAdams, S. B., Abdul-Muhsin, H., Lim, V. M., Nunez-Nateras, R., Tyson, M. D., & Humphreys, M. R. (2017). The Economic Implications of a Reusable Flexible Digital Ureteroscope: A Cost-Benefit Analysis. Journal of Urology, 197(3 Part 1), 730–735.
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Orange, A. M., Greer, P. B., & Glide-Hurst, C. K. (2018). MRI-only treatment planning: benefits and challenges. Physics in Medicine & Biology, 63(5), 05TR01. https://doi.org/10.1088/1361-6560/aaaca4
