In my previous position I worked as the Administrator for a well-established outpatient diagnostic imaging facility. As the Administrator I was faced with having to make various decisions that utilized economics on a daily basis. The decisions that I would have to make would range from very simple to very complex purchases. Regardless of the amount of the purchase the same economic considerations were utilized prior to any purchases.
In my previous position as Administrator for an outpatient imaging facility I was faced with various daily decision making tasks that would range from something as simple as a supply order that would cost the company a few ...view middle of the document...
As I was moving forward with preparing the presentation of why and how this project would come together I found that for an additional cost we could purchase a PET/CT scanner that would allow us to not only conduct two additional modalities with one scanner, we would also be able to enhance PET scans by combining them with CT scans (which was a great benefit to many oncologist who would send patients in for cancer scans). The decision now would be if the company should pursue the new CT scanner or a used PET/CT scanner.
Through the decision process and thorough analysis I chose to present the purchase of a used PET/CT scanner to occupy the empty exam room. In order to reach this decision the evaluation of cost benefits, and opportunity costs were considered. Extensive research was conducted within the market to understand the demand of the scanners, as well as understanding the current supply of this scanner within a specific radius from varied competitors. Understanding these concepts would be key in presenting this option, especially since it would add an additional cost $700,000.00 to the alternative purchase of the new CT scanner. The additional benefits of this modality, with supporting demographic data, would have to be included in the presentation to justify the additional cost, and for the CEO to understand why this would benefit the company, as well as its patients.
The modality presentation provided information regarding the alternatives that the company could have chosen and what benefits those alternatives would bring. The presentation compared the chosen PET/CT modality to the other options and the purposes to why this would be the better choice for the business, and its profit margin. The other opportunities would need to be outlined so that the CEO would understand what other modalities were researched and reviewed, and why they were not selected as the chosen modality. The options that were presented were purchasing another MRI, a new CT scanner, a used PET/CT scanner, or to not purchase a modality at this time and wait until the following fiscal year to purchase a new PET/CT machine.
The option of purchasing an additional new MRI scanner would cost the facility 1.2 million dollars and would be able to facilitate the current demand for MRI scans the facility received on a daily basis. The current MRI scanner was able to scan an average of twenty patients per day, but the facility was receiving enough doctor referrals to scan an average of thirty patients a day. Even though the demand was not double the company would be able to facilitate their demand by offering an additional supply of scans, and leave room for potential growth for additional daily scans. The average insurance reimbursement for MRI scans is three hundred and fifty dollars. If the facility purchased an additional MRI scanner and scanned ten additional patients per day (Monday thru Friday) the...