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What is the true cost of ownership to acquire technology

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Reference no: EM131168796

You are the hospital CEO. Doctors on the capital budget committee can't agree on which equipment to recommend for purchase and for how much. The total list of requests is way over the board's guideline. Explain what do you say to them. ("Doctors and the Capital Budget" in Health Services Management: Readings, Cases. Readings, and Commentary. 9th ed., A. R. Kovner, A. S. McAlearney, D. Neuhauser, Chicago: AUPHA/HAP 2009, p. 294)

When evaluating the list of requests, prioritizing is essential to stay within the projected budget. The following questions are an example of what will need to be answered base on the item being purchased:

  • Is the new technology more clinically effective that the existing technology?
  • Are all of the pieces (physicians, facilities) in place to successfully implement this technology?
  • Are there codes in place and reimbursement rates established for the technology?
  • What is the "true" cost of ownership to acquire and maintain the technology, including training, staffing, and facility requirements?
  • Will this request have a positive return on investment? And when?

Reference no: EM131168796

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