Reference no: EM133333307
CASE STUDY MANAGING COSTS AND REVENUES
You are the Administrator of the Radiology Department responsible for the day-to-day operation as well as developing the capital budget. Your capital budget for the fiscal year 2015(July 1, 2014, to June 30, 2015)is $1 million. You have received two capital requests. One from the Medical Director of Mammography requested a new state-of-the-art digital mammogram machine at the cost of $800,000. This department has won awards for its outreach to poor and low-income women who otherwise would not have access to mammograms. The second request is from the Medical Director of the MRI Department requesting a state-of-the-art open MRI to eliminate fears patients have going into the MRI tube. The cost of the new MRI is $800,000. Both machines run faster, produce clearer films, meet all safety/radiation emission standards, and can get the patient in and out faster resulting in enhanced patient satisfaction.
Assignment:
1. Identify the problem/issues you face? Be specific and direct in outlining the issues/problems.
2. Referring to the Chapter on Managing Costs and Revenues what method will you use to base your decision?
3. What additional data/information will you need before deciding?
4. What challenges do you face once a decision is made? Will you have to explain or justify your decision to the Medical Directors of the departments?
5. In your discussion refer to the text and quote directly from the reader to substantiate, expand your discussion, and demonstrate your understanding of the concepts/strategies described especially in Chapters 11 and 13. Include concepts learned in Leadership and Motivation -- what leadership or motivation strategy will you use to most effectively manage this real-life situation? Be specific.
6. What is your final decision?