MBA FPX 5006 Assessment 3
Cost Benefit Analysis Healthcare Organization
A new machine called medical resonance imaging is already employed by all hospitals and doctors to heal some of the diseases such as cancer, tumors, and even strokes since early detection of such diseases is helpful for treatment. As this occurs, if there are high readmissions this means that healthcare workers will have to order this new equipment, an MRI machine.
The theoretical frameworks of cost and benefit will be assessed in this study to determine the extent to which mixed technology can enhance care. Perhaps this will be very useful for this company since they are trying to make a change to enable them start quality improvement. By noting when MRI machines are most cost-effective, leaders can use this study to determine acquisition timing; however, this would require the cooperation of the buyers.
The Cost and Benefits of Purchasing Equipment
Furthermore, it is getting to be more and more central for leaders to determine how it gotten imperative to acquire new technology at this juncture. In order to do this study, there was a cost-benefit analysis of the MRI machines that a hospital requires. Period 4 a method of doing a cost-benefit analysis is to first determine project cost and the number is divided by break-even advised by Kepka and colleagues that was found in 2022.
Other professionals should however design some costs to determine the cost that would be incurred to acquire an MRI machine and the total costs that would be incurred to operate the machine for its entire cycle. In their turn, many writers and experts argue that cost-benefit analysis is one of the most crucial issues (Pezelj et al. , 2018).
Well, this leads to an important question on why this method is so useful? The beauty of this method is that it effectively ensures customers are happier. According to someone (Righini, 2017), this is how they should be used since such machines assist the nurses to acquire better scans of patients and at the same time reduce the cost of the project.
This company has chosen to use this technology at last because everybody assured them that this is cheap and easy to get. For a rough estimation it would be helpful to know that the cost of getting a single MRI machine is expected to be in the range of $160,000. Energy costs are considered in the running budget and thus it will increase the costs of running the business. Again, to do MRI properly, you need to set up the right rooms and pay the techs enough, and this cost of installation will increase the total cost. However, what is quite relevant to notice is, the machine might require to be mended, perhaps, once a year since it is frequently employed.
Likewise, the wages of the workers are options parallel to a doctor’s wages in the US (Ross, 2022). For instance, in this group, a doctor may instruct MRI machines on individuals totaling 2,000-9,600 per year and perform 260 or more scans. Again here are costs not covered in this plan and the only one of them may be new or potentially unimportant.
This also accounts for the plan of determining what the machine will make by estimating the time it will take to complete a task, say, the aforementioned and duly stated two hours. It also demonstrated how many hours the radiologists work, and this plan will help cause them to work fewer.
Another thing to consider is if Medicare will cover the approved MRI machines and allow their use if they decide to do so? The managers will then be able to undertake some calculations on how much more the costs will be over the subsequent five years.
Concept of Opportunity Cost and How It Impacts a Company’s Profit Margin
The workers and nurses can understand everything that can be received from this idea ans what the owners can receive the most of (Waller et al. , 2022). Like for instance, expenses that are not monetary and are intangible do not require one to calculate this, and the inspectors would like to know how much it costs this company.
MBA FPX 5006 Assessment 3 Cost Benefit Analysis
The Chance Cost can be defined by the difference between the foreseeable opportunities and the institutionalized costs: Chance Cost = FO – CO
The lost in the choice that was rejected (FO) and the gain from the choice that was chosen (CO).
Lack of adjustment for opportunity cost will give managers a complete picture of the amount of cash their businesses have if this is the case.
As a result, and since the company understands that other parties are more often than not likely change their rates to their disadvantage, this has to be done to ensure that new roles do not rip the company off by offering an MRI.
This simply shows that the buy gives a percentage of value above 0% and the group, therefore, makes money out of it. This is positive indication that the group getting it right if they are interested in finding the efficient way of solving the case of cost-effectiveness.
Alignment of Cost-Benefit Analysis with Organizational Needs
The fact that managers are discussing the future of what it means for the CBA then means that what has to be in the interest of the company has to be the future. Lose such as the machine may lose approximately $32. 00 in value per year of testing.
The H h ratio is calculated by dividing quantity H h by the total value added in the given year. What this means is that at its peak, the number can only go up to 100%. If the business makes around $l0. 030. As the business employs this machine only three times a year, then it can be expected that the business expands its money rather than contract it through spending on this machine.
Due to this, this step is very crucial to ensure that the kind of plan that is being developed fits well with its business objectives. This means that business is doing more business since this machine saves time and reduces chances of being unlucky to be time wastey.
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A Plan of Action Based On a Cost-Benefit Analysis
Using this kind of research, the managers and others who make decisions will have better information to answer some questions such as whether they should buy the new MRI machine. To calculate the total cost, one has to consider the price of the particular machine, the cost of its operation, and the revenues that would otherwise be earned if it were not in operation. Nothing is free and the company can no longer afford to spend a lot of its money in tools (Waller, 2022).
This is what I believed the deal with the seller was supposed to accomplish. The workers have to ensure they place the machine correctly and more importantly maintain it in the future if they would like to achieve the best results. In order to ensure that these MRI tools last, the group will therefore need to employ four new science officers.
From the point of view of the CBA, it appears that the business is also solid, as the money is being made, and it may be more effective using this machine. Upward movement is also anticipated in case of sales also as a result of these objective grounds.
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MBA FPX 5006 Assessment 2 Business Strategy
References
Kepka, S., Zarca, K., Lersy, F., Moris, M., Godet, J., Deur, J., Stoessel, M., Muller, J., Le Borgne, P., Baloglu, S., Fleury, M. C., Anheim, M., Bilbault, P., Bierry, G., Durand Zaleski, I., & Kremer, S. (2022). MRI dedicated to the emergency department for diplopia or dizziness: A cost-effectiveness analysis. European radiology, 32(11), 7344–7353.
https://doi.org/10.1007/s00330-022-08791-7
Pezelj, I., Tomašković, I., Bolanča Čulo, K., Novosel, L., Tomić, M., Reljić, A., Katušić, J., Knežević, M., Nikles, S., Pirša, M., Justinic, D., Zadravec, D., & Ružić, B. (2018). Cost-benefit analysis of the introduction of MP-MRI guided biopsies in Croatia. Acta clinica Croatica, 57(Suppl 1), 46–49.
https://doi.org/10.20471/acc.2018.57.s1.06
Righini, M., Robert-Ebadi, H., & Le Gal, G. (2017). Diagnosis of acute pulmonary embolism. Journal of thrombosis and haemostasis : JTH, 15(7), 1251–1261.
https://doi.org/10.1111/jth.13694
Ross, E. L., Weinberg, M. S., & Arnold, S. E. (2022). Cost-effectiveness of aducanumab and donanemab for early alzheimer disease in the US. JAMA neurology, 79(5), 478–487.
https://doi.org/10.1001/jamaneurol.2022.0315
Waller, J., DeStefano, K., Dempsey, J., Leckron, J., Tucker, A., & Umair, M. (2022). A primer to cost-effectiveness analysis in breast cancer imaging: A review of the literature. Cureus, 14(8), e28356.