HS440M5-5: Explain the methodologies and processes used in preparing budgets for health care organizations

HS440M5-5: Explain the methodologies and processes used in preparing budgets for health care organizations.

GEL-6.06: Apply research to create original insights and/or solve real-world problems.

Utilizing your textbook and the Library:

For the assignment this week, you are considering the purchase of a new MRI machine for Bayside Memorial hospital. Think about what types of patients you will be seeing, what types of care you will provide, and the members of the team that you have assembled. Remember that the financial analysis provides much of the guidelines for all decision making in the purchase decision.

Instructions

Using the chart of cash revenues and costs read and explain the results of the cash flow analysis. Describe incremental cash flow. Explain sunk costs, opportunity costs, strategic value and inflation effects. Then provide your decision on whether to make the purchase or not.

Minimum Submission Requirements

·         The minimum page limit is 2 pages or 600 words.

·         The maximum page limit is 4 pages or 1200 words.

·         Information should be summarized in your own words with appropriate APA formatting and citation style of in-text citations in the body of the text to acknowledge the source(s) of information.

·         Include at least one reference. The course textbook may count towards the reference requirement for this Assignment. All references will follow APA format