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Discussion: To Buy or Not to Buy: That is the Question

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:

• 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.

By Day 4

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.