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Purchasing an Mri

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Submitted By Truman02
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Radiology Department Capital Expense
Teresa Lax
Grand Canyon University
Healthcare Policies and Economics
HCA-530
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). The hospital is in the process of asking for the 2013 department capital request. While the economy is not doing particularly well, it’s doing better than in previous years. The financial team will need to investigate the possibility of new capital equipment; they need to know that this equipment will increase the delivery of services. This hospital would like to invest in a new updated magnetic resonance imaging (MRI) machine. The current MRI machine is over 20 years old, is unable to acquire any new information, and is costing the radiology department more in maintenance to keep it running than it would cost to purchase a new one. Radiology has requested a new Signa HDxt 3.OT MRI system as a capital budget item. The Signa HDxt3.OT delivers high-density coils and has great “tissue characterization and artifice reduction, high efficiency with a detachable table, so a technologist can remove a patient in less than 30 seconds” (Signa HDxt 3.OT, 2013, p. 1). The initial cost of the MRI machine is $1.2 million. The cost to update the system over the next few years is approximately $250,000 per year, which includes the education training information, cost of power,

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