MHA FPX 5006 Assessment 3 Health services try to optimize care by reducing costs. One method of achieving this is to invest in the MRI unit, which not only improves the patient’s care, but also attracts more patients for simplicity. However, the decision to obtain such equipment requires careful assessment due to its significant cost implications. By conducting cost-benefit analysis, health facilities should be responsible for various factors such as maintenance expenses, system upgrades and personnel training (Filips Healthcare, 2016). This analysis helps to estimate potential revenues generated by investments, thus leading the decision -making processes.

MHA FPX 5006 Assessment 3 Cost-Benefit Analysis  

Opportunity Cost 

It is important to understand the concept of opportunity costs when evaluating investments. MRI meets the risk and sufficient advance costs when you obtain the machine, it also provides opportunities for income creation and better patient care (Clever and Clever, 2018). Planning a comprehensive cost-profit analysis, in collaboration with an understanding of opportunity costs, ensures intensive evaluation of available alternatives before making decisions. Effective identification of alternatives and predicted help in making informed decisions, and eventually leading to the patient’s results and increasing the revenue for health services.

Cost-Benefit Analysis

MHA FPX 5006 Assessment 3 A cost-profit analysis acts as an important tool for assessing the possibility of a project, such as acquiring an MRI machine, and comparing expected costs with expected benefits (Plomain, 2009). Calculation over a period of five years, given the current price exemption of 2%, reveals the possible financial implications of such investments. While the original cost of an MRI machine varies considerably, nationwide (Glover, 2014) from $ 150,000 to $ 1.2 million, the analysis provides insight into the total cost and benefits of the specified time frame.

Action Plan

When deciding the possibility of a cost analysis and collection of the MRI machine, the functions of the health care system should develop a clear action plan. The scheme will emphasize steps for procurement, budget and decision-making (Chakravarti and Navire, 2008). In addition, it should address cost management strategies and ensure optimal patient care. Common maintenance programs and installed guidelines are required to maximize the life of the MRI machine and maintain the patient’s satisfaction.

 Conclusion

Finally, the decision to acquire the MRI machine must be careful in terms of both cost and profit. Through a comprehensive cost-profit analysis, health services can assess financial implications and potential return on investment. By accounting for maintenance costs, system upgrades and personnel training, facilities can inform decisions that optimize patient care and increase income creation.

 References

Chakravarti, A., and Navers, S.S. (2008). Cost -efficiency analysis for the acquisition of technology. Management and decision -making, 64 (1), 46–49. Cleverly, W. O., and Cleverly, J. O. (2018). The imperative about health care finance (8th edition). Jones and Bartlet. Glover, L. (2014, July 16). Why does an MRI cost so much? Wealth. https://www.aos.org