Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From
description
Transcript of Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From
![Page 1: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/1.jpg)
Research a Capital Project
Section I of the Capital Project
Write a 3,000- to 3,500-word paper in which you complete the following:
o Research a capital purchase, costing more than $5,000, that your company could
benefit from. Examples include a new X-ray machine, an MRI processor,
software for filing patient records, a research library, or any large item that your
company might use.
o Identify the management goals that expenditure would support. Management
goals might include revenue, improvement, productivity, quality assurance,
employee development, or management services consultant packages.
o Explain how the item could enhance the economic environment of the
organization.
o Identify the organizational goals the expenditure would support. Goals might
include patient care, medical and allied health education, community service, cost
containment, leadership role, and clinical research.
o Explain how the expenditure would relate to the needs of the organization.
Explain how it would be beneficial to the organization.
![Page 2: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/2.jpg)
Research a Capital Project
o Justify the expense to the organization. Relate the reasons to the hospital goals,
including departmental and management goals, and how the acquisition might be
beneficial.
Format your paper consistent with APA guidelines. Use the APA Sample
Paper in Center for Writing Excellence (CWE) as a guide.
Use headings appropriately to provide organization and structure for your
thoughts.
Sections II, III, & IV of the Capital Project
Section II: Establishing Acceptability
Write a 1,050- to 1,200-word paper in which you include the following:
o Complete and discuss the results of the acceptability of the item for key
stakeholders.
o Respond based on research to the purchase and use of the items at other
organizations.
o Determine organizational risk and compliance issues related to the purchase and
use of the capital item.
o Recommend risk avoidance strategies.
![Page 3: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/3.jpg)
Research a Capital Project
o Explain management roles and risks in accordance to compliance.
Format your paper consistent with APA guidelines. Use the APA Sample Paper in
Center for Writing Excellence (CWE) as a guide.
Use headings appropriately to provide organization and structure for your thoughts.
Section III: Economic Feasibility
Create a budget that demonstrates the effect of the capital purchase on the service
line, including the productivity of the service line.
Complete a financial analysis of the capital expenditure. Provide responses in a
Microsoft® Excel® spreadsheet.
Create a pro forma summary sheet showing the net revenue and cost impact of
purchasing this item.
Section IV: Final Project Summary
Write a 1,200-word executive summary for the justification and include it at the
beginning of the paper. Attach the financial statement.
Format your paper consistent with APA guidelines.
![Page 4: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/4.jpg)
Research a Capital Project
Capital Expenditure
The Ambulatory Service Center has determined a proposal supporting a capital
expenditure for a Digital Imaging System is needed. The cost of the BioVison Digital
Surgical Biopsy Specimen Imaging System by Faxitron will be $99,875.00 total. This
includes the 10cm x 15cm digital detector, high resolution 2.3 MP flat-panel LCD
monitor, Ergonomic Keyboard, Transparent Imaging Door, 3 Hour Battery Backup
Operation, Battery Life Indicator, Automatic Exposure, Automatic Calibration, 2 times
Magnification, and DICOM compliant. Additionally it includes (1) One year warranty
and (1) one day in-service training by a factory trained representative. This proposal
explains how the purchase of Faxitron’s BioVision is supported by the management and
organizational goals of need and improving the economic environment of the ASC.
Executive Summary
The purpose of this report is to establish the need and costs to add Digital
Radiology (DR) to the Ambulatory Surgery Center (ASC). The ASC was built at a cost
of $2.9 million dollars. The report will disclose financials and operating costs. The
Ambulatory Surgery Center is a corporation that provides outpatient treatments to
patients in its targeted area. At issue is that 85% to 90% of patients will have health
insurance or a medical cost reimbursement program. The lower cost of ASC will attract
patients who are paying for their own procedures, for example cosmetic surgery
procedures.
The ASC offers outpatient services to adults and children in the targeted area.
These services include consultation and outpatient procedures. A source of secondary
![Page 5: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/5.jpg)
Research a Capital Project
revenue for the Ambulatory Service Center is MRI, CAT scan, ultrasound, and other
diagnostic services provided to patients through the ASC’s ultramodern facility. The ASC
employs two radiologists who provide these services to outpatients using existing in
equipment. The Ambulatory Service Center’s mission is to provide outpatients with
specialized and general high-tech care at reasonable costs and with an eye toward
compassion.
Ambulatory Surgery Centers (ASCs) provide same day surgery and medical care
including diagnostic care and preventative healthcare. ASCs area modern concept
healthcare locations where patients can have outpatient procedures and other procedures
performed in a professional and ultramodern facility without being admitted to a hospital.
ASCs have were introduced in the United States in the 1970s and have expanded in
number and services so that today they are looked to for their exceptional care capacity,
high quality personnel and equipment, and customer service attitude. Medical care costs
have become prohibitive for much of the population. In order to obtain health care
services and benefit from high-end technology most outpatients travel to large hospitals
and medical centers. ASCs continue to change that by providing millions of people with
an alternative to in hospital outpatient procedures. The ASC expanded faster than had
been expected and was servicing a wider market than originally planned within the first
three years.
The main source of revenue for the Ambulatory Service Center is outpatient
services performed onsite. In ASCs, the standard assumption is that patients stay
between 6 to 10 hours onsite depending on the procedure. The ASC has three
ultramodern operating rooms plus a recovery room. The procedures currently offered
![Page 6: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/6.jpg)
Research a Capital Project
include outpatient procedures, cosmetic procedures, and emergency outpatient services.
The ASC receives payments from co-pays, Medicare, and insurance companies.
Approximately 85% of the ASC’s current patients use private insurance,
Medicare, or Medicaid. There is going to be huge growth in the ASC industry. The
“Value Based Purchasing” options available via The Affordable Care Act have already
been established. This plan allows for payments to ASCs similar to those that are already
popular under the Medicare program. The report to Congress referred to need to improve
payment quality and speed for ASC services. The intention is to reward ASCs for
providing “better value, outcomes, and innovations, instead of merely volume” (Centers
for Medicare & Medicaid Services, 2013).
Because of the changes in the population that will enjoy medical care in the
future, ASCs are in position to service the demographic of outpatients who will be
seeking disease management, surgery, and other payer made decisions. The issues facing
ASCs will be complicated and ASC growth will need to be planned in order to meet the
increasing demands for ASC services.
ASC’s consistently operated at a profit. Even during periods of recession,
outpatient centers enjoy economic stability. People always need specialized diagnostic
care and cancer patients require radiation treatments continuously. Costs for providing
outpatient care is paid by insurance and healthcare systems, in the future this will include
ACA payments. There are over 200,000 outpatient service facilities in the United States.
These outpatient facilities produce approximately $180 billion dollars in revenue
annually and employ almost 2 million people. As the population increases so does the
demand for outpatient treatment. The predicted growth rate of outpatient care in the next
![Page 7: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/7.jpg)
Research a Capital Project
two decades is expected to grow rapidly as the baby-boomers demand treatment.
Analysis reveals three factors that traditionally define the number of outpatient
procedures performed at ASCs. Firstly, there is an acknowledged need for increased
healthcare and medical procedures on an outpatient basis. The healthcare procedures
performed relate to the population served, the protocols for screening used by a given
facility, and the advancement and availability of technology (equipment). Secondly, a
determination must be made as to whether a give procedure requires the patient be
admitted for a hospital stay or if the patient can receive treatment as an outpatient. This
is often a technologically driven decision based on the services provided by the ASC as
well as issues related to anesthesia and outpatient technology and techniques available.
Thirdly, there is a site-of-service decision to be made. This decision takes into account
the ambulatory setting, for example, the ASC, the physician’s office, or a Hospital’s
Outpatient Department.
The demand for ASCs increase based on the medical cause of the patient’s
treatment. For example, as the baby boomers age there is an increased demand for
disease management, this includes screening, diagnostics, and consultation. Cost
becomes an issue and leads to the necessity for analyzing not only the quantitative
aspects of care but also the corresponding quality of that care.
PubMed includes studies that address growth factors in ambulatory surgery, as
well as predicted changes in the ambulatory aspect of healthcare and private payment
trends. A study of the growth rate of ASCs reveals that between 2000 and 2007
Medicare-certified ASCs grew at an average rate of 7.3% per year. The amount of
payments from Medicare to ASCs over the same period increased 11.4% per year
![Page 8: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/8.jpg)
Research a Capital Project
(MedPAC). Of note is that Medicare payments to hospitals for outpatient services during
the same period increased 6.9% per year (MedPAC, 2008). Demand for outpatient
services has increased and the use of the Hospital Outpatient Department (HOPD) at
medical centers and ASCs will continue to increase in the future. ASCs provide
advantages over HOPDs such as location, shorter wait times, and flexible schedules
(MedPAC). Co-payments are lower at ASCs than they are at HOPDs. There are also
reports that the focused nature of care at ASCs as are Medicare program payments for
services (Chukmaitov, et. al., 2008). An important draw for patients is that ASCs provide
them access to ultramodern technology.
Based on Medicare data for the period 2000 to 2007 supplied by Medicare
Physician/Supplier Procedure Summary (PSPS) growth in outpatient services for all
kinds will continue to increase and this means updated technology will be required for
ASCs, HOPDs, and physician offices as well as other facilities that offer alternative sites
for of outpatient procedures. We conducted a comprehensive study of the growth factors
for ASCs. The predicted growth in ASCs will mirror the movement away from hospital
inpatient surgeries to outpatient settings. ASCs need to be prepared to use disease
screening for common procedures, for example, colorectal cancer. Because these patients
will have a choice, they will be drawn to ASCs that can provide them with improved
technology, fast recovery times, pharmaceutical services, and modern ex-ray procedures.
Productivity at the ASC
One of the goals of management at ASC is productivity. The ASC is committed to being
at the forefront when it comes to technology. This will be accomplished by Faxitron’s
BioVison. This system is not only useful for daily imagining procedures. ASC surgeons
![Page 9: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/9.jpg)
Research a Capital Project
will be able to use the BioVison in the operating room to reduce procedure times and
advance patient care. The cutting-edge digital imaging technology comes with user-
friendly software that is designed to be learned intuitively so that training time is short
and the results are the finest images every time thereby bettering the workflow at the
ASC and in the surgical suite. Specimen radiographs are ready for review immediately.
This means that surgeons, technicians, and radiologists can view the x-ray
simultaneously. The BioVision consistently reduces procedure times and saves on per
procedure costs.
Efficiency in the ASC
The ASC is in need of updated radiology equipment. The film x-ray equipment currently
in use is outdated, requires frequent repairs, and uses a slow process by which the ex-ray
results take a long period to produce and read. This means long wait times for ASC
patients and multiple appointments. The addition of a BioVision Digital Surgical Biopsy
Specimen Imaging System would save ASC money because the image is a twenty second
process and can be read on site rather than sent out for reads. Cost savings would be
realized because it uses far less consumables. The BioVision does not use any film, it is
100% digital. Additional savings would result from using less paper, less employee time
transferring the film to courier service to the read location, and less time trying to contact
and reschedule patients to review their ex-rays.
The addition of new radiology equipment would eliminate the need for employees
to wait on ex-ray results, re-contact patients to explain the results or arrange for patients
to make an extra appointment at the ASC in order to review results. The BioVision uses
the most recent and best technology available. It is especially beneficial in practices such
![Page 10: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/10.jpg)
Research a Capital Project
as ASC where the diagnosis of breast cancer is a major concern. The BioVision would
significantly improve the standard of patient care. Additionally it would increase
operational effectiveness. Working to improve quality care for patients is the best done
by offering them technically advanced equipment.
Increased Revenue
Advanced customer service is one of the best ways to enhance the economic environment
of the ASC. Joel French, CEO of SCI Solutions, studies revenue management for
healthcare organizations. His recommendations include optimizing physician referrals
and physician orders. Because ASCs are in competition with hospitals and medical
centers the good way to attract business from physicians is by offering them the ability to
refer patients and get results back as fast and as conveniently as possible (French, 2011).
The BioVision would definitely attract the attention of local physicians who would send
their patients to the ASC for ex-rays as well as other tests and procedures. MRI and CAT
scans constitute a steady revenue source. Besides the cost of the MRI or CAT scan, the
patient usually generates between $2,500 and $3,000 in additional services.
Quality Assurance
The management goals of the ASC include making sure that the facilities are prepared to
enter into the next era of patient care, surgical treatments, and professional management
by means of planned design and regularization to ensure a dependable, consistent
experience for patients, providers, families, and staff. ASC seeks to maintain a high level
of clinical quality. In doing so the organization will be better able to evaluate, monitor,
and increase the clinical outcomes for its patients. By creating standardized procedures
that capitalize on the use of modern technology, ASC will be able to simplify employee
![Page 11: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/11.jpg)
Research a Capital Project
workflow and increase employee productivity. To establish better patient access the ASC
was originally designed using standards that enhance patient and family experiences.
State-of-the-art clinical care was and is one of the main goals.
An example of how the BioVison would enhance quality assurance is the application of
the equipment to core specimens. When the physician is about to release a patient from
the stereotactic core needle biopsy procedure, the physician needs to be sure that he or
she wants to be certain that the core specimens taken are representative of the micro-
calcifications recognized on the mammogram. The BioVison eliminates the need to
move the specimen to a different location because the unit is in the stereotactic suite. It
sets up easily and provides a superior digital image on the spot (Faxitron, 2013, p 6).
This assures that the patient will be inconvenienced or forced into an uncomfortable
position for as short a time as possible. The time saving element reduces the workload
for employees thereby saving money on every procedure.
Cleverley & Cameron (2007) mention quality assurance in relation to revenue, but
quality assurance in relation to patient care can be improved using the Digital Imaging
System. Data can easily be accessed from the system and reports generated for patients
who have fallen, have frequent pain, are currently experiencing a urinary tract infection
or have shown a decline in activities of daily living. These reports can be used to
compare historical trends within the facility, the state, and the industry. The reports also
can be used by the clinical staff to improve infection control procedures, increase fall
prevention plans and address a patient’s pain more efficiently. The reports generated
from the Digital Imaging System can provide nursing management an opportunity to
review documentation for accuracy and follow through by the registered nurse, licensed
![Page 12: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/12.jpg)
Research a Capital Project
practical nurse, and the nursing assistants. This information can be then forwarded to the
appropriate person to ensure quality patient care.
Economic Environment
Most of the comments relate to Independent research and user experience suggest that
the use of Digital Imaging System systems can help organizations save money and can be
used as sources of new revenue” (Renner, 1996, para. 7). The economic environment of
ASC will certainly improve once the transition has taken place. The financial benefits to
implement the Digital Imaging System is a reduction in labor costs in the medical
records department, for personnel involved in coding, billing or manually retrieving lab
results, the nursing department in the transcription of hand-written physician orders and
redundant documentation. The system will be integrated with the business office and the
billing and coding department. The automated system will ensure that the process links
clinical information to financial information and lost charges can be reduced substantially
with improved documentation. The length of time accounts receivables are outstanding
will decrease increasing revenue monthly or quarterly. Storage and supply costs will
decrease with the use of the Digital Imaging System. Storage costs can be eliminated or
decreased because of the amount of paper a health care facility must keep. Supplies such
as paper, folders, filing cabinets, dividers, and storage boxes will decrease. Another
factor to consider is the cost of an outside vendor to shred sensitive information. With
the use of the Digital Imaging System the paper, needing to be shred will decrease and so
will the cost.
A decrease in the amount of funds necessary for labor is a large benefit to the
Center. An improvement for the economic environment also can be seen in the reduction
![Page 13: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/13.jpg)
Research a Capital Project
of repeated lab tests, such as x-rays, ultrasounds, and blood draws because of a misplaced
document. The physician’s access to the complete clinical record will ensure medication
orders are complete and covered by the patients insurance. Many times the facility has
been responsible to pay the pharmacy charges for non-covered medication or medications
ordered too soon. Having access to pertinent data will decrease pharmacy charges. With
the reduction in labor needed to perform all the above duties the staff will spend time that
is more productive with the patients.
Cost Containment
ASC has detected an inefficient practice related to the medical record. Areas of concern
are the location of needed documents, inadequate documentation, missing documentation,
inappropriate diagnosis codes, and failure to follow through on necessary patient care
needs. All of these concerns increase cost and unnecessary treatments or inefficient
treatment of the patient. The initial cost of the system will be large for the organization
and the effects may not be seen for quite some time. The organizations goal is to
improve patient care by reducing the cost of labor and increasing productivity.
Decreasing the need for costly medications and unnecessary medications will help in cost
containment and better patient outcomes.
Leadership Role in the ASC Community
There are many testimonials available from reliable leaders and researchers in the field.
The following are just a few from notables. Dr. and Professor G.W. Eklund at the
University of Illinois College of Medicine states that "Faxitron's unit has opened a new
era in specimen radiography. The ultra-high resolution and 5 times magnification
capability of needle core and excisional biopsy tissue have enabled us to find micro-
![Page 14: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/14.jpg)
Research a Capital Project
calcification that would otherwise escape detection. The superior contrast achieved with
very low kV enables discrimination of soft tissue lesions that have similar density to
normal glandular tissue. With Faxitron specimen radiography we can predict the extent
and location of disease more accurately.” Surgeon and Director Dr. Christine B. Teal of
George Washington University Hospital wrote “The BioVision system allows us to see
the specimen radiographs immediately which has improved our efficiency substantially,
benefitting us and our patients.” Dr. Michael N. Linver of the University of New Mexico
School of Medicine considers the BioVision "…one of the great breakthroughs in breast
cancer diagnosis in the past 10 years.” In his praise, Dr. Linver said of the BioVision
“Through its exquisitely detailed magnification images, the Faxitron has expanded our
understanding of breast pathophysiology, resulting in more accurate and complete
diagnosis and better patient outcomes." These leaders in the field point up many benefits
to the BioVision. It assists the institutes in guiding workflow, meets the needs of the
whole clinical staff that includes administration, nurses, assistants, and physicians. Using
this imagining system will allow the ASC to take and maintain its place as a leading ASC
as well as take a leadership role in educating its employees in the most modern
technology.
Organizational Need
ASC’s goal to provide high-quality clinical care means that all processes at the
facility should not only be standardized but also should be state-of-the-art. This goal sets
the standard for all of the clinic specialties the staff offers to its patients and their
families. Standardization provisions regulatory compliance. In order to assure that an
organized and dependable patient approval process takes place the ASC must consistently
![Page 15: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/15.jpg)
Research a Capital Project
maintain the best possible inventory of equipment. The ASC must demonstrate that its
goals include a coordinated effort to accomplish constant enhancements to the patient
experience. The BioVision improves the ASCs ability to increase the standard of care to
patients going through a surgical excision or a biopsy.
Nurses will be able to bring patient care plans up to in real time because of the
presence of the BioVision results and the ease in transferring the information. Staff will
spend less time on the phones with other locations, handling film, arranging new appoint,
or worse making the patient come in to the facility for a re-shoot of the x-rays because of
film development issues. Repairs and the procurement of film, paper, transport packets
and other consumables associated with film x-rays will be eliminated. Because of the
timesavings, the staff will not be required to work over-time nor will they have cause to
fall behind schedule. The auditing process will be streamlined because the digital images
with travel with the patient file. In this way the staff can ensure that all of the patient’s
records are complete, up-to-date, and accurate. Physician orders will be contained in the
file and available immediately upon the review of the record. This comprehensive way
of maintaining patient records, will all available information including x-ray images in
one place will assist the lab and other sectors in the ASC. This will allow the ASC staff
to make informed and speedy decisions about a patient’s healthcare needs.
The acquisition, simple delivery method and installation, along with the training provided
by Faxitron (and included in the quote price) correlates directly with the ASC goals of
value-added patient care, long-term revenue enhancement, community leadership, and
ethical responsibility. Comprehensive, precise, readable images will enhance the
maintenance of medical records, ensure a continuousness high standard of patient care,
![Page 16: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/16.jpg)
Research a Capital Project
lessen the possibility of error during transport of and development of film and above all
guarantee that diagnosis and treatment for patients occurs in a timely fashion.
The staff will require less time in performing clerical duties. This will increase
cost containment overall. The ASC budget apportioned to clerical and staff labor hours,
technician, nurse and physician labor hours, materials, consumable supplies and their
storage, space used for film x-ray storage, as well as medical records will be cut. This
will reduce stress in the ASC as the staff will not be burdened with non-patient care tasks
and will feel confident that their records are up-to-date and comprehensive. This should
increase employee job satisfaction thereby reducing the risk of staff resignation and
discharge. Physicians, technicians, surgeons, nurse, and nursing assistants, in fact all the
clinical staff, will be gratified to be using the most modern imaging equipment available.
Justification
This capital expenditure is justified because the BioVision Digital Imaging System
meets the administrative, business, and clinical needs of the ASC. The improvement in
information management will enhance employee job satisfaction and advance the quality
of patient care. The problems associated with film will be eliminated because here is no
development, transfer, and transport of physical film x-rays required. The elimination of
film problems will increase efficiency, productivity, quality, and profits. Cost
containment with regards to employees will be assured.
Acquiring the Digital Imaging System will allow ASC staff to focus on clinical issues
such as patient diagnosis and treatment. The capability of reviewing a patient’s medical
records comprehensively will reduce wait times as well as the very timely task of
telephoning laboratories, read services, and other external support sources. Patient
![Page 17: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/17.jpg)
Research a Capital Project
histories and regularly scheduled physicals will be conducted with the knowledge that the
clinical staff is approaching patient care in a holistic manner due to the completeness of
the information contained in the patient’s medical record. Redundancy will be
eliminated, there will be no need for duplication services, or multiple copies of an x-ray
because clinicians can review x-rays digitally.
The Digital Imaging System will reduce the time required to file, warehouse, and
preserve the film and paper x-ray reports. Off site and on site storage space that has been
allocated to x-rays can be eliminated in the future. This will be an immediate hard cost
savings as will the reduction on supplies needed to maintain a film and paper records
including storage cabinets. The incorporation of the patient’s clinical record, insurance
records, and payment record will allow for more accurate and timely billing. It will
streamline the procedure for billing insurance companies because all the information will
be in one comprehensive patient file.
Conclusion
The BioVision cost of $99,875.00 total will be recouped in less than a year with a
minimum number of procedures benefitting from the new equipment. The attached Time
& Cost Savings calculations demonstrate that using a low estimate of four surgical
procedures and assuming patient screens of approximately 32 per day the immediate
monthly savings compared to film will be an estimated $20,800.00 per month. This
equates to an estimated savings of $249,600.00 in the first year. This more than meets
the requirements established by Cleverley & Cameron whose studies indicate that a
capital expenditure should be based on the assumption that it will not only deliver
![Page 18: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/18.jpg)
Research a Capital Project
benefits for a decent time period ( two years being the established minimum) but also that
the expenditure will be recouped (Cleverley & Cameron, 2007, p. 397).
As has been demonstrated in this report the ASC will benefit in many aspects of
operation form the acquisition of a BioVison. The organization has long been aware of
the need to modernize radiology services and streamline the handling of patient
information. The call for this report and proposal is an acknowledgment that the ASC
wants to advance patient care, address employee productivity issues, increase overall
efficiency and service, and ensure high quality patient experiences. The decrease in
duplication of documentation alone will allow for increased organization when meeting
patient needs and simultaneously increase employee job satisfaction and therefore
employee retention. New higher levels of productivity and precision will cause revenues
to increase because of cost containment and patient loyalty.
Section II: Establishing Acceptability
In Section I and in the attachments that comprise Section III the acceptability of
the purchase for revenue enhancement has been examined. Section I addresses the payers
whose focus is cost-effectiveness; and the ASC as an employer whose focus is cost
constraints and improved employee productivity.
This Section of the report addresses the acceptability of the BioVision for key
stakeholders at the ASC. The providers of direct care to patients, those being the
clinicians including physicians, radiologists, and nurses are key stakeholders. Clinicians
focus on high quality and advanced technology as well as providing an accurate
diagnosis, selecting the correct course of patient care and therapies, and finally the best
result for the patient’s health outcome. The patients themselves are key stakeholders as
![Page 19: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/19.jpg)
Research a Capital Project
well and concerned with many of the same things as are providers, additionally they look
for compassion and communication (Duke University, 2005).
Research from other organizations point to the valuable contributions that digital
imaging has made in the field of breast cancer diagnosis and treatment. Because
mammograms are so much in demand, it is important that the ASC offer the best possible
service to these patients. The speed of the digital mammogram recommends itself to the
patient. Additionally the capability of manipulating the digital image of a mammogram
electronically is very useful for radiologists, physicians, and surgeons. A digital
mammogram is much better than the film mammograms currently in use because the
digital imaging system utilizes an exceptional detector that captures and converts the x-
ray energy into a digital image. There are obvious advantages to offering digital
mammography at the ASC, not the least of which is patient and employee expediency.
There is not film that needs to be developed. This means the radiologist or technician
doing the imaging can appraise the quality and usability of the image immediately. The
patient and the technician will not need as much time for the examination. Also, because
the technician can check the images as they are taken there will not be a need for
repeating the procedure at another time as happens so often when film images are over-
exposed (URMC, 2013).
From a patient point-of-view, the fact that they will not need to twist themselves into
awkward and even painful positions for x-rays will appreciate how much faster the digital
imaging is compared to film. Once the mammogram is ready to view, the technician can
change the setting for brightness, contrast, or darkness as well as zoom in or magnify
specific areas in the image. This allows for a high quality and refined appraisal of the
![Page 20: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/20.jpg)
Research a Capital Project
tissue under examination. Experts praise the way in which they can manipulate the
contrast feature of a digital image in mammograms because this aspect of the image is
vital to readings that reveal dense tissue. The problem with film mammograms is that
malignant cells and dense tissue both look white on a film mammogram. Other
advantages of digital imaging noted were that the images can be stored and retrieved
easily, they can be transmitted between doctors quickly and easily, and they can be used
with the latest advances in software to aid in the early detection of breast cancer (URMC,
2013). The BioVision delivers instantaneous confirmation of excised breast tissue
margins.
A publication that points up the advantages of this digital radiology is Abdominal
Imaging experts discuss the benefits of digital imaging when doing examinations of the
pelvis and abdomen. In this book, the experts discuss a variety of organs and systems
that benefit from being examined using digital equipment. Suggestions for imaging
methods and exam protocols are explained. The book uses many excellent digital images
to demonstrate how effectively a physician can differentiate between a normal scan and a
scan that reveals pathologic entities (Hamm & Ros, 2013). This type of ability to render
complete and accurate diagnosis in a timely manner will reduce organizational risk and
increase the ASC’s compliance record.
Because it is important that the ASC management make certain that the
organization stays in accordance with accreditation sources recommendations from such
agencies as The Joint Commission need to be examined. That organization has in place
guidelines whereby the ASC must provide modern diagnostic imaging services.
Additionally there are special requirements for ASCs that want to obtain an advanced
![Page 21: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/21.jpg)
Research a Capital Project
diagnostic imaging certification. The criteria regulates safety issues, in particular the
issue of claustrophobia that larger, older ex-ray equipment exacerbates. This problem
can be avoided by using a digital imagining system. Another issue for The Joint
Commission is that either quality of the imaging equipment. For ASCs that offer
diagnostic computed tomography (CT) services, they consider it necessary that a
diagnostic medical physicist evaluate the imaging equipment. The following is a list of
what the evaluator would be looking for in terms of quality imaging results (The Joint
Commission, 2013):
● Image uniformity
● Slice thickness accuracy
● Slice position accuracy
● Alignment light accuracy
● Table travel accuracy
● Radiation beam width
● High-contrast resolution
● Low-contrast resolution
● Geometric or distance accuracy
● CT number accuracy and uniformity
● Artifact evaluation
Owning and operating a state-of-the art digital system would insure the ASC passes all of
the above requirements and achieves the very desirable advanced diagnostic imaging
certification.
Sensitivity Analysis
![Page 22: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/22.jpg)
Research a Capital Project
Healthcare businesses are immune from negative changes in the economy due to
the simple fact that people will continue to get sick and require outpatient treatments.
Additionally, these treatments are often paid for by private insurance companies and
publicly funded health systems. As such, the Ambulatory Service Center should have no
issues generating top line income or receiving payments from its patient base.
It is possible that ASCs are held to even higher standards that HOPD and
physician offices because of the newness of ASCs and the remarkable growth in their
facilities as those of choice for patients. Compliance with state and national standards
means on-site surveys during which the ASC is subject to evaluation. Licensures differ
according to the state and ASCs need to be prepared for on-going re-inspections. When
Medicare patients are involved, the ASC must meet federal facility standards. There are
several accreditation organizations, the main one being The Joint Commission and the
Accreditation Association for Ambulatory Health Care (AAAHC). The reason it is so
important for an ASC to offer the best possible technology is that they are expected to use
innovations in all aspects of outpatient care including ex-ray, anesthesia, and outpatient
techniques. The development of minimally invasive techniques, including the technology
that replaced intraocular lens is now expected. Procedures such as this are used one
million times every year to treat Medicare patients for cataracts. These and other
procedures that used to take place in hospitals are now performed at ASCs with greater
customer service and at lower costs.
The ASC would benefit from the purchase of the BioVision because it would
provide for intra-operative use. This makes for less time-consuming procedures. The
unit provides point-of-care specimen radiography so that surgeons can immediately read
![Page 23: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/23.jpg)
Research a Capital Project
breast biopsies and lumpectomy specimens. The estimated timesaving using digital
imaging is a minimum of twenty minutes for patients under anesthesia. The surgeon and
others do not need to send the specimens to another department or location for imaging.
The radiologist and the surgeon can view the digital image instantaneously and make
decisions accordingly.
References
Chukmaitov, Askar S, Menachemi, Nir, Brown, L Steven, Saunders, Charles, & Brooks,
Robert G.
(2008). A Comparative Study of Quality Outcomes in Freestanding Ambulatory
Surgery
Centers and Hospital-Based Outpatient Departments: 1997–2004. Blackwell
Science Inc.
Cleverley, W. O., & Cameron, A. E. (2007). Essentials of health care finance (6th ed.).
Sudbury, MA: Jones and Bartlett.
French, Joel. (2011). “Four ways to improve hospital revenue.” Healthcare Finance
News.
Retrieved from http://www.healthcarefinancenews.com/blog/four-ways-improve-
hospital-revenue.
![Page 24: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/24.jpg)
Research a Capital Project
Hamm, B., & Ros, P. R. (2013). Abdominal imaging. Berlin: Springer.
Renner, K. (1996). Cost-justifying electronic medical records. Healthcare Financial
Management: Journal of the Healthcare Financial Management Association,
50(10), 63. Retrieved from MEDLINE with Full Text database.
Organization Publications
Duke University. (2005). “Patient Quality Improvement.” Department of Community
and
Family Medicine, Duke University Medical Center. Retrieved from
http://patientsafetyed.duhs.duke.edu/module_a/introduction/stakeholders.html
Medicare Payment Advisory Commission (MedPAC). (n.d.). Medicare Payment
Advisory Commission (MedPAC).
Peer Reviews. (2013). “Ask the Experts.” Retrieved from
http://www.faxitron.com/medical/about/peer-reviews.html.
The Joint Commission. (2013). “Revised Requirements for the Ambulatory Health Care
Program.” The Joint Commission Perspectives. Retrieved from
http://www.jointcommission.org/assets/1/18/PREPUB-1-2-2014-
PCMH_AHC.pdf.
URMC. (2013). “Advantages of Digital Mammography.” University of Rochester
Medical Center.
Retrieved from
http://www.urmc.rochester.edu/highland/departments-centers/breast-
imaging/tests-procedures/advantages-digital-mammography.aspx.
![Page 25: Research a Capital Purchase, Costing More Than $5,000, That Your Company Could Benefit From](https://reader036.fdocuments.net/reader036/viewer/2022062712/55cf99d6550346d0339f6bdc/html5/thumbnails/25.jpg)
Research a Capital Project