A cost-benefit analysis evaluates various solutions by comparing their costs and advantages (Mishan & Quah, 2020). For a proposal to proceed, the benefits must exceed the costs. The MRI proposal’s study reveals that after five years, the advantages exceed the expenses. The predicted net revenue for five years is $2,148,317. The original capital cost is estimated at $1,030,000. This cost will be met by a combination of authorized money and a one-year loan from Siemens Financial Organization.
The capital cost of the MRI department includes the MRI machine, and accessories, as well as installation and maintenance costs. The most expensive investment is the MRI scanner, which costs $975,000. To compete with other imaging clinics, it is necessary to buy a newer model, such as a 1.5 Tesla scanner (Heiss et al., 2021). This type has advantages such as shorter scan durations, increased productivity, and higher-quality diagnostic imaging.
Operating costs include a variety of expenses necessary for the department to function properly. These include consumables such as liquid helium, which costs $25,000 per year, as well as facility rents and utilities, which cost around $80,000 per year.
A tele-radiologist is presented as a low-cost alternative for analyzing MRI results. Unlike salaried or hourly radiologists, teleradiologists are paid depending on the quantity of reports they provide. Given the clinic’s expected progressive increase in imaging patient volume, this strategy is realistic. Additional labor expenditures include two radiologic technicians, each earning $60,000 per year and qualified in MRI procedures. Two administrative staff members, each earning $25,000 per year, are also needed for scheduling, patient support, and other administrative duties. To account for salaries, personnel turnover, and future increases in rent and utility prices, all operational expenditures are subject to a 3.5% yearly rise. This ensures that the budget is realistic and responsive to future financial changes.
A cost-benefit analysis has been conducted to compare the expected costs of creating the MRI department with the prospective advantages. The proposal contains a cost-benefit analysis, considering opportunity costs, explanation of how this plan fits into the clinic’s goals. It also discusses how to use the MRI department efficiently. The purpose of this proposal is to address the concerns of the clinic’s physicians about setting up and running an MRI department within the organization. Currently, patients are sent to external imaging clinics for diagnostic scans. This referral procedure can be difficult for both patients and doctors. It adds stages, raises expenses for patients, and could result in communication errors or inaccuracies.
Vanness et al. (2020) describe opportunity costs as the value lost when a resource is used for one purpose rather than the next best alternative. For example, deciding to invest in an MRI department involves neglecting other potential investments.
The first stage in making this decision is determining and calculating the expenses of acquiring, running, and maintaining an MRI department. These costs include both monetary charges, such as the cost of the MRI equipment, and non-monetary considerations, such as time and danger. Next, assess the positives, such as greater profitability and improved patient and provider satisfaction. Finally, all costs and advantages, both monetary and non-monetary, are weighed to decide whether this is the optimal option. While the initial installation of an MRI department could have an influence on the clinic’s profit margins and staffing during building and training, the long-term advantages are expected to exceed these expenses after five years.
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A cost-benefit analysis evaluates various solutions by comparing their costs and advantages (Mishan & Quah, 2020). For a proposal to proceed, the benefits must exceed the costs. The MRI proposal’s study reveals that after five years, the advantages exceed the expenses. The predicted net revenue for five years is $2,148,317. The original capital cost is estimated at $1,030,000. This cost will be met by a combination of authorized money and a one-year loan from Siemens Financial Organization.
The capital cost of the MRI department includes the MRI machine, and accessories, as well as installation and maintenance costs. The most expensive investment is the MRI scanner, which costs $975,000. To compete with other imaging clinics, it is necessary to buy a newer model, such as a 1.5 Tesla scanner (Heiss et al., 2021). This type has advantages such as shorter scan durations, increased productivity, and higher-quality diagnostic imaging.
Operating costs include a variety of expenses necessary for the department to function properly. These include consumables such as liquid helium, which costs $25,000 per year, as well as facility rents and utilities, which cost around $80,000 per year.
A tele-radiologist is presented as a low-cost alternative for analyzing MRI results. Unlike salaried or hourly radiologists, teleradiologists are paid depending on the quantity of reports they provide. Given the clinic’s expected progressive increase in imaging patient volume, this strategy is realistic. Additional labor expenditures include two radiologic technicians, each earning $60,000 per year and qualified in MRI procedures. Two administrative staff members, each earning $25,000 per year, are also needed for scheduling, patient support, and other administrative duties. To account for salaries, personnel turnover, and future increases in rent and utility prices, all operational expenditures are subject to a 3.5% yearly rise. This ensures that the budget is realistic and responsive to future financial changes.
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