Capital Justification Purchase Essay Example for Free

Capital Justification Purchase EssayThis assignment requires justification to the vice president for approval to purchase a major piece of equipment for use in the radiology department of the hospital. My main objective is to volunteer valuable information to justify the cost as nearly as provide critical data that substantiates the ROI. Additionally, the report leave alone have detailed information outlining the wellbeings that will assist in the decision making process and address all concerns and questions relating to the purchase. Lastly, the report will involve how beneficial and profitable the technology will be for the hospital. The radiology department is in need of a magnetic resonance imaging machine to better provide safer and reliable results for detecting booby cancer. I have make extensive research on the several different types of technological devices and believe that I have fix up with the best model. In considering the Siemenss MAGNETOM Espree- tapdan ce the following six major categories to follow were interpreted into account to help substantiate the purchase 1) available 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 alter the quality of long-suffering care, help streamline heart exams and detect the disease with greater confidence. Research shows that MRIs can be helpful in breast care, especially in high-risk women. The MAGNETOM Espree intercept offers a unique design and has demonstrated that no other system comes close to offering long-suffering 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 instance should our needs cha nge over clip, we have the option to upgrade the system to a MAGNETOM Espree whole-body scanner with all the latest advanced applications and noted 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 repress 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 tone of voice more at ease, particularly claustrophobic or obese patients. Pink Workflow provides a utilize 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 applications, MAGNETOM Espree-Pink enables you to retrieve more, by improving accuracy and showing more details. These applications enable truly comprehensive breast care, constituent to improve diagnostic confidence as well as patient care. (www.siemens.com/espree-pink)Financial ConsiderationsIn the getting of the MAGNETOM Espree-Pink there are some financial aspects to be considered. The manufactures price of the equipment is listed at $1.5 one thousand thousand 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 invent $750,000 over the life 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 make outs are based on number of patients seen per year. of PatientsCost of Equipment Lease per yearOperations Cost Per IncidenceTotal Expense make headway750$150,000$ergocalciferol$525,000$975,0001000$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 possess outright by the hospital. The ROI may be seen within the first three years. This can be through with(p) by purchasing directly or by financing the purchase. We forthwith have to consider the intractable 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 procedure charge of $2000. o f PatientsCost of Equipment PurchaseOperations 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 high-fidelity 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 conjunction 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-espr ee-pink)