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Organizational Development and Success in Hospitals - Essay Example

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The paper 'Organizational Development and Success in Hospitals' presents hospitals which should always be looking for ways to increase the income of its operations. The proposal made by the physician is a potential opportunity for income growth for the hospital…
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Organizational Development and Success in Hospitals
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The hospital must evaluate the credentials of the doctor to ensure he is the type of professional the organization would like to do business with. The second factor is the volume of patients that the doctor can bring to the hospital. The number of patients must be sufficient to fulfill the income expectations of the firm. A third factor that must be considered is whether the hospital has employees that are adequately trained to operate the new machinery. Training is crucial for organizational development and success (Managementstudyguide, 2012).

The financial aspect of the acquisition is another important consideration. The cost of the machinery cannot exceed a particular threshold. The hospital administrator must determine the payback period of the machinery purchase. The payback period is a formula that determines how many sales must occur to recover the cost of acquiring the machinery (Garrison & Noreen, 2003). Another consideration in regards to the equipment is how much maintenance the equipment needs and who is going provide the maintenance for the machinery.

The hospital also has to determine the overall demand in the region for the treatments that the new machinery can offer.

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