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Purchasing An Mri Essay

951 words - 4 pages

Radiology Department Capital Expense
Teresa Lax
Grand Canyon University
Healthcare Policies and Economics
November 13, 2013
Radiology Department Capital Expense
Asking for a capital budget for x-ray equipment can seem overwhelming. As Olivi (2010) stated, “The financial-justification steps of capital budgeting can be particularly daunting,” if not sometimes impossible (p. 1). Typically, before the capital budget, financial justification begins; planning starts with considering the needs of the hospital over the next three years. A prioritized list is drawn up, and financial justification is undertaken for items beginning at the top of the list (Olivi, 2010).
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OT, 2013). The x-ray department overhead will include scheduling, billing, nursing support, office equipment, and the salary of the MRI radiology technician, which is around $65,000 a year. The cost per year to operate the new MRI machine would be around $400,000 (Gayler 2007).
Because the old MRI machine is larger, we will incur construction costs to update the electrical panels. Heating/air conditioning and ventilation may need to be redone, and new ceiling-mounted equipment and flooring will have to be calculated for different weight measurements and the installation of new x-ray shielding. This is all based on the new state and federal guidelines requirement changes for x-ray equipment (Gayler, 2007).
The return on investment (ROI) for purchasing an MRI machine is significant once the upfront cost has been paid. The going rate for doing an MRI procedure ranges around $2,500–$4000, so it will be an easy undertaking for the hospital to recover the cost of the MRI. The hospital is also able to charge for the MRI radiologist to analyze the MRI scan at a usual cost of around $450. This is also another revenue generator for the hospital and contributes to the ROI of the MRI machine. General Electric, which manufactures the MRI machine, has indicated that the equipment has a life span of up to 12 years, but the initial warranty is only good for 6 years (Signa HDxt 3.OT, 2013).
One of the significant advantages of the new MRI machine is that it is a great diagnostic tool for medical conditions such as heart disease, breast lumps, bone spurs and strains (anterior ligament tears, Achilles tears), and spine and brain issues. This is the only radiology equipment that can be used to diagnose multiple areas of the body. The MRI can diagnose patients with strokes, heart blockages, and peripheral diseases of the circulatory system (Signa HDxt...

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