Purchase of Hospital Equipments - Assignment Example

Purchase of Hospital Equipments Purchase of Hospital Equipments A hospital is one of the most important social facilities in any society. A hospital refers to a medical institution dealing with diagnosis, treatment and caring for patients suffering from different diseases and injuries (Davey and Ince, 1999). Therefore, it is very crucial for a hospital to be well equipped with equipment capable of providing the necessary diagnosis, treatment and care for patients with speed and efficiency. However, in order to acquire the equipments, the hospital must ensure that enough money is available to enable a hospital acquire the equipments needed. In addition, once the money has been obtained, it is imperative for a hospital’s financial department to allocate the money available in accordance with the basic equipments that can enable the hospital to carry out diagnosis, treatment and care for patients. Since a decent hospital cannot do without diagnostic equipments, the following are some of the diagnostic equipments that will be considered for purchase by Kings County Hospital Center. The equipments which are worth more than $5,000 include: computed Axial Tomography, Magnetic Resonance Imaging (IMR), and diagnostic ultrasound. Since the hospital operates a surgical unit, the following surgical equipment will be considered for purchase: electrosurgical units and patient monitors. Other equipments that will be purchased include EKG machines, research library, defibrillators, and anesthesia machines. All this equipments currently retail at a price of more than $5,000 (Absolute Medical Equipment, 2012). The mission of Kings County Hospital Center is to be the leading health care provider in New York and beyond. Analysis of Organizational Goals the Expenditure Will Support These equipments be used to assist the management of the hospital achieve a number of goals. A computed Axial Tomography will enable the institution be able to meet its goal of providing effective patient care (Absolute Medical Equipment, 2012). Accidents are a common occurrence in the society resulting in fractures and other forms of bodily injuries. Research also indicates that many people suffer from diseases that resulting in growth of tumors. For instance, research indicates a huge increase in cancer related diseases, in the U.S. and the rest of the world. Cancer is a disease related to the growth of tumors in the body. Some of the fractures resulting from accidents and cancer related tumors are cannot be detected with a necked eye. (Davey and Ince, 1999). These are the reasons why the institution will have consider buying computed Axial Tomography to aid in detecting an analyzing the fractures and tumors to improve the quality of patient care in the hospital. A computed Axial Tomography scanner (CAT) is a type of X-ray scan, which incorporates several x-ray images using computers to generate the cross-sectional view of the internal organs and other structures of the body (Absolute Medical Equipment, 2012). Cat scan is very important in defining the body structures to reveal areas anomalies thereby helping in guiding in treatment. This is important since the hospital will use it in defining the internal organs such as the head where traumatic injuries may occur such as skull fracture during accidents or blood clot. It also helps in analyzing infections and tumors, spine injuries, fractures of the bone. The procedure adopted in CAT is painless and accurate which would certainly help the hospital improve the quality of patient care. This will also help improve the corporate image of the hospital as far as quality assurance is concerned (Davey and Ince, 1999). Heart ailments are also common throughout the U.S. as the report shows that a considerable number of Americans suffer from heart related ailments (Davey and Ince, 1999). As such, the hospital will find it prudent to purchase equipment to help cater for patients suffering from heart related ailments. This will certainly enable the management achieve the goal of ensuring that patients receive quality health care needed. In this regard, the hospital has found it prudent to purchase an electrocardiogram (EKG) machine to ensure that this goal is achieved. EKG machine is used for recording the rate of heartbeat over a period of time. This helps doctors and nurses to monitor the entire activity of the heart in order to figure out any abnormally in the heart (Absolute Medical Equipment, 2012). This makes diagnosis of normal and abnormal heartbeat easier for health care provider. Certainly this machine will enable the hospital achieve the goal of providing quality health care for patients. This is because the machine improve the efficiencies of diagnosis of heart related diseases which in turn will enable health care providers to administer the necessary treatments in time and effectively. In addition, the ERK machine will enable the hospital accomplish the goal of quality assurance since the instrument will help improve the quality of care provide to the hospital (Davey and Ince, 1999). Diagnostic Ultrasounds is another important equipment that the hospital will consider investing in to improve the quality of patient care. Research indicates that the use of radiation in monitoring the internal body organs cause a lot of pain to patients (Davey and Ince, 1999). Therefore, the hospital found it prudent to invest in Diagnostic Ultrasounds machine, which is a painless method of examining internal body organs without involving radiation. The hospital has considered investing in this machine since it offers a safe and effective way of measuring the density, size, and structure of internal organs in the body (Absolute Medical Equipment, 2012). This will certainly help the institution achieve its quality assurance objective my ensuring that patients receive quality diagnosis without having to subject them to unnecessary pain associated with the use of radiation in diagnosis. Many women tend to develop complications during pregnancies due to lack of proper diagnosis in monitoring the growth of the fetus. This sometimes led to unnecessary deaths of the baby or the mother when the situation is worse (Davey and Ince, 1999). As a result, the Diagnostic Ultrasounds has also been considered in the budget since it will enhance quality of health care for pregnant women. This is because the instrument will help in monitoring the growth of the fetus during pregnancy (Absolute Medical Equipment, 2012). This certainly will enable heath care providers to be able to monitor closely the growth of the baby and be able to detect any abnormally that may put the fetus and iys mother at risk in time. Therefore, in case of any abnormally, this will be detected in time and necessary treatment administered to save the mother and child. Certainly this would enable the hospital achieve both quality assurance and patient care. Surgical equipments are very important in any given hospital. In this regard, the hospital has found it necessary to purchase a patient LCD monitor to help improve the quality of patient care in the hospital. A patient LCD monitor is medical equipment used by surgeons allowing them to see images of surgical processes at a high resolution during surgery (Absolute Medical Equipment, 2012). The equipment always comes in handy with vital sign monitors that help surgeons keep track of the condition of patients during and after surgery. As such, the equipment will help reduce errors that may occur during surgery since surgeons would be able view surgery processes clearly (Davey and Ince, 1999). Therefore, purchasing the equipment will enable the hospital meet its goal of quality assurance as far as patient care is concerned. The hospital management has also found it necessary to purchase a research library where the clinical officers, doctors, and physicians can carry out research. Investing in a research library will help develop the talents of its workers, which would eventually improve the quality of service provision to patients. As a result, the company will be able to accomplish its goal of quality assurance, employee development, and productivity (Absolute Medical Equipment, 2012). Anesthesia machine is another expensive machine worth over $5,000, which the institution would have to buy in order to be able to meet quality assurance goal in patient care delivery. Many hospitals all over the world are faced with the challenge of supplying medical gases to patients that need to be supplied with medical gases (Absolute Medical Equipment, 2012). Therefore, the machine will be critical in ensuring that no patient is left unattended to due to lack of machines to supply medical gases. This will certainly enable the institution meet the patient care goal. A defibrillator is another expensive medical equipment that the hospital will consider purchasing in an attempt to meet its set objective of ensuring quality health care services are provided to patients. A defibrillator is a medical equipment applied in the management of deadly diseases such as cardiac arrhythmias, tachycardia, and ventricular fibrillation (Absolute Medical Equipment, 2012). It is mainly used for restoring normal pulse to the heart. How the items could enhance the economic environment of the hospital Gourdon (2010) notes that most hospitals in the U.S. have been operating in a very hard economic condition since 2007 when the country was hit by the global financial crisis. The the crisis also saw hospitals financial situations deteriorate. He notes that period was marked by declining revenues resulting in low volumes and low investment income. Consequently, the situation led to a rise in costs. Additionally, the hospital was not able to get access to loans due to frozen credit markets. Therefore, the hospital found it prudent to find ways of enhancing the economic situation of the hospital. In this regard, the hospital financial department found it prudent to purchase the equipments in a bid to use the equipments to enhance the economic environment of the institution. Certainly, the equipments will help enhance the economic situation of the hospital in a number of ways. Firstly, by increasing the scope of diagnosis by acquiring the necessary equipments necessary for use, the hospital will attend to more patients in the hospital who need diagnosis. This will translate to more revenue for the hospital (Gourdon, 2010). This is because the more the patients being attended to at the hospital, the more the revenue generated from diagnosis will be. This is the reason why the hospital found it necessary to purchase the diagnosis equipment such as CAT, EKG machines and Diagnostic Ultrasounds despite their cost since all of them cost more than $5,000 dollars. The financial department strongly believes that the return from the equipments will be very immense, as the cost will not take long to recover. Majority of those who will have been diagnosed with ailments in most cases will seek the treatment services from the institution. Therefore, since the hospital has invested enough in equipment necessary for treatments, the hospital will be able to accommodate many patients, which will also translate to additional revenue. This is because, with equipments readily available, patients will not have to be referred to other hospitals, which the necessary equipments. The additional revenue gained from treatment of patients will help improve the hospital’s economic situation in the long run (Gourdon, 2010). By acquiring the equipments, certainly this will boost the institutions possibility of getting loans from the credit market since the equipments are assets of the institution, which could be used as collaterals for the loans obtained. In addition, the equipments will improve the institution’s credibility thereby enabling it get fun ding from Medicaid and Medicare to help finance its operations. This will help improve its financial position and economic situation in which it operates (Gourdon, 2010). Benefits of the expenditure to the organization The expenditures will be of great benefit to the organization, as it will enable the hospital to acquire equipments needed to offer quality health care to patients, which is the main objective of the institution. For instance, the CAT scan equipment will aid in diagnosis of patients in the society who may be suffering from fracture or tumor (Absolute Medical Equipment, 2012). As earlier, either noted, many people in the country suffer from injuries that sometimes lead to fractures of the bone, skull, or causing injuries on the spinal cord. Other people also develops tumors in their organs that may require diagnosis so as to the able to give room for proper treatments. The diagnosis of this kind of tumors and fractures in the body can be carried out easily with the use of a CAT scan machine, which is capable of analyzing the internal organ, thereby revealing any abnormities that may be present in the body. Therefore, acquiring this important equipment will enable the institution to be able to offer the needed diagnosis of such problems in the future, which will be advantageous for the hospital, and society at large. The patients will benefit from the equipment because they will no longer have to be referred to other hospitals for diagnosis of their injuries. In addition, diagnosis performed using CAT scan does not cause extreme pain, as is the case with other methods. For the hospital, the benefits will be many. Firstly, since the CAT machine is technology oriented and the scanning is done using computers, this will increasing the level of accuracy in diagnosis (Absolute Medical Equipment, 2012). The machine is also capable of producing high-resolution images, which can easily be seen by doctors thereby enabling doctors to provide the necessary treatments thereafter. In addition, it makes the work of health care providers due to its accuracy and speed. Therefore, the hospital will be able to reap many benefits by acquiring the machine. Research library will be of great benefit to the institution since it will be employed for research purposes, which will certainly enable the hospital make more discovering in the treatment and diagnosis of diseases (Davey and Ince, 1999). Research will also help employees advance their heath care profession, which is beneficial as far as administration of quality health care, is concerned. This will also enable the hospital receive more recognition from the allied health thereby improving the organization’s corporate image. In fact, there are several diseases whose treatment methods have not been ascertained. HIV/Aids and cancer are some of the few examples of deadly diseases that researchers are trying to work on so as to discover ways of treating. As such, the hospital has found it beneficial to put up a research library where the institution’s health professionals can carry out research on some of the diseases that have proved incurable. The hospital also believes that the future of quality healthcare depends much on research. This is because apart from helping health care professionals in advancing their professions, it also boosts the institutions corporate image as an institution that endeavors to make discoveries aimed at enhancing the quality of health care in the society (Davey and Ince, 1999). Accreditation is very important for any given hospital. Nonetheless, in order to be granted this right, it is always important that the organization acquire the necessary equipments for it to be granted such a right (Davey and Ince, 1999). For instance, in order to get credited to carry surgery related treatments, a hospital must be able to have qualified surgeons. In addition, the hospital must have the equipments necessary to perform a surgery. This are some of the reasons why the organization considered purchasing the patient LCD monitor to help surgeons in monitoring the surgery process so as to ensure that patients are treatment with a lot of care and professionally to avoid putting their lives under any risk (Absolute Medical Equipment, 2012). This will be beneficial to even the employees themselves because the LCD monitor will make their work easy as opposed to just performing surgery using surgical lights. As earlier stated, the institution found it necessary to purchase EKG machine to help health care providers in monitoring the heart’s electrical activity. This helps in diagnose of normal and abnormal pulse of the heart (Absolute Medical Equipment, 2012). The hospital is aware of the problem the country is facing with regard to heart related ailments. As such, the hospital found it important to ensure that people do not succumb to heart related ailments because of lack of enough equipment to diagnose heart ailments. As such, the equipment has proved to be very efficient in the diagnosis of normal and abnormal rhythm of the heart. In addition, by acquiring this important equipment, the hospital will benefit since it will be able to gain competitive advantage over healthcare institutions that do own the equipment (Davey and Ince, 1999). This is because patients would find it prudent visiting the institution with the capability of carrying out the diagnosis. Moreover, acquiring the equipment will improve the institution’s corporate image as far as quality assurance is concerned. This will enable it get accreditation for adhering with quality in the provision of health care to patients. The Three Essential Factors to Consider in Prioritizing Programs or Projects Many health care institutions are facing the challenge of liquidity problems exacerbated by the current economic situation of the country. As such, health care institutions are finding it difficult assessing external capital or making use of funds generated within the organization. In this regard, irrespective of whether the economic conditions of a health care institution, the following are the three strategic factors to consider in prioritizing projects: availability of funds, organizational mission, and cost of funds (Casolari and Womack, 2010). Availability of funds When considering funding for any project, it is vital that the managers responsible for capital budgeting to take into consideration the availability of funds needed to fund the project. This should start with evaluating the ability of the organization to meet its financial estimates and analyze any constraint, internal or external, which may limit the availability of money required to fund the project or program. The issues to consider here include cash projections, liquidity events, risk, and constraints. Organizational mission Casolari and Womack (2010) argue that the success of any given organization depend of its mission, which must be well defined. This is because the mission defines what the organization intends to accomplish presently. Therefore, it is a factor that must be considered when prioritizing projects so as not to derivate from the mission of the organization (Casolari and Womack, 2010). Cost of funds It is important for the managers prioritizing projects to consider the cost of the project as this will ensure that only those projects likely to yield the greatest returns are given priority. The application of cost of funds may not be familiar to clinical managers, but through proper training, they can be able to understand how to apply the tool in the allocation of funds to projects. This is because irrespective of the availability of funds, a majority of organizations is not in a position to undertake all the projects at once and must therefore allocate in accordance with the project’s return within a given period of time (Casolari and Womack, 2010). References Absolute Medical Equipment (2012). Medical equipment - hospital equipment - medical supplies. Retrieved from http://www.absolutemed.com/. Casolari, C., & Womack, S. (2010). Prioritizing capital projects when cash is scarce. Retrieved from http://www.hfma.org/Templates/Print.aspx?id=18049. Davey, A., & Ince, C.S (1999). Fundamentals of operating department practice. New York, NY: Cambridge University Press. Gourdon, C. (2010). Hospitals’ overall economic situation, access to capital and capital spending trends. New York: Webinar Transcript. Read More