Imagine that you are the administrator of a nonprofit community hospital. You ha
ID: 454009 • Letter: I
Question
Imagine that you are the administrator of a nonprofit community hospital. You have been approached by medical staff from two different departments (for example, pediatrics and radiation therapy) who are equally convinced that their respective areas of specialty need major new pieces of high technology capital equipment that will greatly enhance patient care in each department. Knowing your hospital has limited resources for capital expenditures, what information do you need to gather? Once you have gathered this information, how will you go about deciding which department, if either, should get the equipment?
Explanation / Answer
Factors to consider for and decision basis the factors.
1. Which department is generating the higher revenue.
2. Which department have higher number of patients coming in.
3. The technology that both the departments want is how much different from the existing one and how new technology will add to betterment of patient's experience and comfort.
4. Are patients willing to pay for the new technology and comfort or will they move to some other facility at lower cost.
5. Whether the same change is within the captial expenditure budget for that year.
6. Is there any space in either of the departments to accomodate the new machines.
7. Does this require additional headcounts to operate.
8. How much will new machine increase the operating expense and how much revenue is being earned from that department.