Capital Justification Purchase Essay

This assignment requires justification to the vice president for approval to acquire a major piece of equipment for use in the radiology dep craftment of the hospital. My briny objective is to provide valuable information to justify the cost as well as provide lively data that substantiates the ROI. Additionally, the report will agree detailed information outlining the benefits 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 gainful the technology will be for the hospital. The radiology department is in need of a MRI machine to better provide safer and reliable results for detecting doorknocker cancer. I have done extensive research on the several different types of technological devices and believe that I have come up with the opera hat model. In considering the Siemenss MAGNETOM Espree-Pink the following six major categories to follow were taken into account to help substantiate the purchase 1) accessible alternative available resources cost 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 long-suffering cargon, help streamline breast exams and detect the disease with massiveer confidence. Research shows that MRIs can be helpful in breast care, particularly in high-risk women. The MAGNETOM Espree Pink offers a unique design and has demonstrated that no other system comes close to offering patient role comfort. This state of the art equipment will take us into the future with the latest 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 pillowcase should our needs change over time, we have the option to upgrade the system to a MAGNETOM Espree whole-body scanner with all the latest advanced applications and renowned technology. This will take on 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 due 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 at ease, particularly claustrophobic or obese patients. Pink Workflow provides a dedicated 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 dedicated solution for breast care. With its optimized applic ations, MAGNETOM Espree-Pink enables you to see more, by up accuracy and showing more details. These applications enable truly comprehensive 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 cost benefits of leasing include the ability to lease for a short period of time with less expense 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 brio of lease. The immediate rate of return may be greater which may reduce the expense of the equipment. For example The assumption is that the charge per usage is $2000 and numbers are based on number of patients seen per year. of PatientsCost of Equipment Lease per yearOperations Cost Per IncidenceTotal ExpenseProfit750$150,000$ calciferol$525,000$975,000 molar concentration$150,000$500$650,000$1.35 million1250$150,000$500$775,000$1.725 millionThe cost benefit of purchasing the equipment is that it would be owned outright by the hospital. The ROI may be seen within the first triple years. This can be done by purchasing directly or by financing the purchase. We now have to consider the fixed cost of the purchase price per year and its depreciation and interest. Our operation cost per incidence will now remain the uniform as leasing the equipment. Our number of patients is assumed to be the same as our option for leasing along with our procedure charge of $2000. of PatientsCost of Equipment PurchaseOperations Cost Per IncidenceTotal ExpenseProfit750$315,000$500$690,000$810,0001000$315,000$500$815,0 00$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 carefinance 7th ed.MAGNETOM Espree-Pink (http//usa.healthcare.siemens.com/magnetic-resonance-imaging/0- 35-to-1-5tmri-scanner/magnetom-espree-pink)