Capital Justification Purchase Essay

This assignment requires justification to the vice president for approval to barter for a major piece of equipment for use in the radiology discussion section of the hospital. My main objective is to provide valuable information to justify the make up as well up as provide sarcastic data that substantiates the ROI. Additionally, the decl are exit shake detailed information outlining the attains that will assist in the decision making process and address all concerns and questions relating to the purchase. Lastly, the report will include how beneficial and profitable the technology will be for the hospital. The radiology department is in need of a MRI machine to smash provide safer and reliable results for get a lineing titmouse cancer. I have through with(p) extensive question on the several different types of technological devices and call up that I have come up with the best model. In considering the souths MAGNETOM Espree-Pink the following six major categories t o follow were taken into chronicle to help substantiate the purchase 1) available alternative available resources woo data benefit data prior performance, and risk projection. (Cleverely, et al, 2011, pg. 426).Based upon the research conducted, I believe that this model will improve the quality of diligent care, help streamline breast exams and detect the disease with greater confidence. look into shows that MRIs can be helpful in breast care, especially in high-risk women. The MAGNETOM Espree Pink offers a unique mark and has demonst gaitd that no other system comes close to offering forbearing comfort. This state of the art equipment will take us into the future with the up-to-the-minute technological advances. MAGNETOM Espree-Pink combines an open-bore design with the Sentinelle breast coil for Siemens which offers exceptional breast imagining and biopsy capabilities. And, the future is built in, for instance should our needs change over duration, we have the option to u pgrade the system to a MAGNETOM Espree whole-body scanner with all the latest advanced applications and renowned technology. This will allow us the capabilities of having the ability to detect cancer inother areas of the body. MAGNETOM Espree-Pink offers the following Pink Comfort, Pink workflow and Pink Applications.Pink Comfort can greatly reduce errors out-of-pocket to patient movement, resulting in better image quality. The open-bore design offers an exclusive 70 cm inner diameter, providing exceptional comfort. It enables patients to feel more(prenominal) at ease, specially claustrophobic or obese patients. Pink Workflow provides a employ multimodality Workplace that offers standard MRI evaluation, it enhances breast reading and reporting, and it is coupled with syngo BreVis, a computer-aided tool for real-time breast analysis. It is easy-to-use, fast, and reliable. Pink Applications allows for faster imaging, excellent clinical detail, shorter exams all part of the dedi cated solution for breast care. With its optimized applications, MAGNETOM Espree-Pink enables you to see more, by improving accuracy and showing more details. These applications enable truly all-round(prenominal) breast care, helping to improve diagnostic confidence as well as patient care. (www.siemens.com/espree-pink)Financial ConsiderationsIn the acquiring of the MAGNETOM Espree-Pink there are some financial aspects to be considered. The manufactures price of the equipment is listed at $1.5 million and listed are a couple of options that could provide for this capital expenditure. We would like to look at available alternatives to acquiring this equipment purchasing or leasing. The court benefits of leasing include the ability to lease for a short period of time with less disbursal and the ability to upgrade the equipment as technology changes. For example, with a five-year lease of $150,000 per year, we will pay $750,000 over the life of lease. The immediate rate of return m ay be greater which may reduce the spending of the equipment. For example The assumption is that the charge per usage is $2000 and images are base on number of patients seen per year. of Patients price of Equipment Lease per yearOperations Cost Per Incidence kernel ExpenseProfit750$150,000$ five hundred$525,000$975,0001000$150,000$ euchre$650,000$1.35 million1250$150,000$500$775,000$1.725 millionThe terms benefit of purchasing the equipment is that it would be owned outright by the hospital. The ROI may be seen within the beginning(a) three years. This can be done by purchasing straight off or by financing the purchase. We now have to consider the restore cost of the purchase price per year and its depreciation and interest. Our operation cost per incidence will now remain the same as leasing the equipment. Our number of patients is assumed to be the same as our option for leasing along with our single-valued function charge of $2000. of PatientsCost of Equipment PurchaseOp erations Cost Per IncidenceTotal ExpenseProfit750$315,000$500$690,000$810,0001000$315,000$500$815,000$1.185 million1250$315,000$500$940,000$1.560 millionIn conclusion, the technological advances of MAGNETOM Espree-Pink can provide numerous benefit to the radiology department by enhancing the speed and accuracy of diagnoses, facilitating earlier and more accurate treatment predicating breast cancer and generating additional revenue. The initial cost of purchasing or leasing will be a great expense to the hospital, but the ROI will outweigh the initial cost over a five year period. I believe that the MAGNETOM Espree-Pink will meet the critical needs of the hospital and our community in which we serve.ReferencesCleverley, William, O., Cleverley, James, O., & Song, Paula, H. (2011). Essentials of health care pay 7th ed.MAGNETOM Espree-Pink (http//usa.healthcare.siemens.com/magnetic-resonance-imaging/0- 35-to-1-5tmri-scanner/magnetom-espree-pink)