HLTH 4520: Healthcare Finance Discussion

Your Women’s Health Services Center has determined that there is an opportunity to generate revenue by purchasing a digital mammogram machine. The cost of the machine is $250,000, with annual maintenance fees of $2,500 and is estimated to last 5 years. The radiology center will be open 5 days a week, 8 hours a day, and 50 weeks a year. The current volume of mammograms is 18 per day, and the reimbursement is $215 per mammogram. The radiologist is paid $50 to read each mammogram, and the salary for the full-time mammogram tech is $95,000 annually, including benefits. The cost of disposable supplies is $3.00 for each test. The potential volume for the new digital mammogram machine is 28 per day.

To Prepare:

ORDER CUSTOM, PLAGIARISM-FREE PAPER

Review the Resources for this week and review the two case studies in Pink and Song (2018) to provide a framework for the Women’s Health Services Center digital mammogram machine purchase.
Reflect on the scenario presented and consider whether you, as a healthcare leader, would recommend that the Women’s Health Services Center purchase the digital mammogram machine.
Post a comprehensive response that addresses the following:

Explain how the operating budget, capital budget, and cash flow related to the scenario presented may help you as a healthcare leader in the decision-making process for a large purchase.
Explain whether you would recommend to complete the large purchase for the healthcare organization and explain why. Be specific and provide examples.
Resources:

Penner, S. J. (2017). Economics and financial management for nurses and nurse leaders (3rd ed.). New York, NY: Springer Publishing.

Chapter 5, “Reporting and Managing Budgets” (pp. 111–135)
Chapter 6, “Budget Planning” (pp. 141–160)
Chapter 7, “Special Purpose, Capital, and Other Budgets” (pp. 163–185)
Pink, G. H., & Song, P. H. (2018). Gapenski’s cases in healthcare finance (6th ed.). Chicago, IL: Health Administration Press.

Case Study 20, “Coral Bay Hospital: Traditional Project Analysis”
Case Study 22, “Northwest Suburban Health System: Outsourcing Decisions”