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Cost Benefit Analysis Healthcare Organization
MBA FPX 5006 Assessment 3 medical resonance imaging is a new technology used in hospitals and by doctors globally to assist in the identification of diseases such as cancer, tumors, and stroke. Increasing rates of re-admission mean that it is essential for healthcare workers to get a new MRI machine. The purpose of this paper is to examine the economic rationale of integrating the mentioned technology to improve care delivery. This project is very critical for this company to enhance its position and implement quality improvement strategies. This study is also valuable for leaders regarding identifying the right time to purchase MRI machines.
The Cost and Benefits of Purchasing Equipment
Finally, it is at this stage that it becomes imperative for the leaders to appreciate why they should invest in new technologies. In conducting this study, the cost-user analysis on the MRI machines that the hospital requires was employed in undertaking a cost-benefit evaluation. One method that is applied to make cost-benefit is to first determine variable costs followed by a break-even volume measure (Kepka et al., 2022). In order to get the big picture of the price of that MRI move some of the professionals also calculate how much the whole deal which includes that MRI will cost in lifelong usage. Many theorists and writers emphasize the significance of cost-benefit studies (Pezelj et al., 2018).
It may be asked, and quite rightly, why this method is so useful. The main advantage consists of the fact that it angers customers. According to the findings of Righini (2017), MRI machines should be adopted because the device enables nurses to conduct better scans and reduces project expenses. This business has, at last, opted to employ this technology because they know they can easily acquire it inexpensively. For example, people believed that purchasing a single MRI machine would amount to about $ 160,000.
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MBA FPX 5006 Assessment 3 Establishing MRI
This would result in an increase in the company’s overall running budget. Similarly, installation cost would also be included as part of the total cost of establishing MRI rooms and rewarding the techs. The machine also may also require repair once a year since it is always in use all the time. Likewise, the wages of the workers are determined from the average national wage that equals a doctor (Ross, 2022). In this type of group, for instance, a doctor places MRI equipment on up to 2,000 individuals every year while performing at least 260 scans. Non-financial costs have not been included in this plan and these, for the most part, cannot be predicted at this point.
It has also been drawn that an attempt will have to be made to determine as to how much revenue this particular machine will yield, which will entail determining the time it would take, say, two hours. Furthermore, this denotes how hours of work are done by radiologists and thus this plan can assist them in working minimal hours. Another thing that could be thought of is if Medicare would cover the use of an approved MRI machine. Managers will be able to ascertain an estimated cost that it will take them for the next five years.
How It Impacts a Company’s Profit Margin and Concept of Opportunity Cost
MBA FPX 5006 Assessment 3 idea assists the staff and nurses to look at the advantages of technology, and how owners can optimize it (Waller et al., 2022). That is why it is indicated that non-financial and intangible costs do not have to be considered, and the inspectors have to find out how much is this company’s internal costs. The chance cost is the cost of an occasion multiplied by the sum total of the probability of occurrence multiplied by the cost of the occasion or in other words FO – CO FO stands for return on the option not taken.
If this is true, opportunity cost will enable the business managers to obtain a complete picture of capital. In this way, the company will be aware of the misses and gains enabling it not to lose on the other chances while attempting to get the best deal of using an MRI. This a positive indication that the steer of the group is positively on vane in the achievement of cost-effectiveness. This paper aims to look into the concepts of cost-benefit analysis as well as determine methods of cost-benefit analysis that can effectively suit the needs of the organization.
MBA FPX 5006 Assessment 3 Business Entity
This is so because, unlike other employees, managers are thinking of the future and, therefore, the CBA must be a reflection of what the company requires. For example, a loss to the machine could be in the region of $32. 00 in value in a year; Various devices can be connected to the home server, including set-top boxes, video players, gaming consoles, etc. That is, if the company makes about $10,030 then the rest, $100, must come from somewhere else. 03 a year, then this machine would assist the company to earn more income than the money that they disburse to acquire the equipment. Hence, this step has to be taken to ensure that this plan meets the objectives of this business entity. MBA FPX 5006 Assessment 3 implies that there is a likelihood of businesses generating more revenues since this machine increases their productivity.
Decisions Made On The Basis Of Variance Analysis Following A Consideration Of Costs And Benefits Of The Strategic Plan.
MBA FPX 5006 Assessment 3 decision makers and managers will be in a better position to determine the usefulness of a new MRI machine to their firm through the data culled from the cost-benefit analysis. Major cost components thought to be included in the total cost are the price of the machine, the cost of keeping the machine, and the cost of when the machine is lost. Instead of, a contract should be entered into with the seller, charges should be done fully and the company should not spend too much on equipment (Waller, 2022). Further, it is necessary to point out that workers also need to place the machines properly and maintain their condition in the process of work. The group will also have to employ four more technical officers to ensure that the MRIs are not easily damaged to require replacement soon. The CBA demonstrates that the probative company is operating efficiently in making money by adding this machine and has promising sales output.
References
European radiology, 32(11), 7344–7353. https://doi.org/10.1007/s00330-022-08791-7
Cost-benefit analysis of the introduction of MP-MRI guided biopsies in Croatia. Acta clinica Croatica, 57(Suppl 1), 46–49. https://doi.org/10.20471/acc.2018.57.s1.06
Diagnosis of acute pulmonary embolism. Journal of thrombosis and haemostasis: JTH, 15(7), 1251–1261. https://doi.org/10.1111/jth.13694
Ross, E. L., Weinberg, M. S., & Arnold, S. E. (2022). JAMA neurology, 79(5), 478–487. https://doi.org/10.1001/jamaneurol.2022.0315
Waller, J., DeStefano, K., Dempsey, J., Leckron, J., Tucker, A., & Umair, M. (2022). A primer to cost-effectiveness analysis in breast cancer imaging: A review of the literature. Cureus, 14(8), e28356. https://doi.org/10.7759/cureus.28356
