H320/HSA3170 Financial Management of Healthcare Organizations

Question

space in a local hospital. They ask their financial department (you) for methods of calculating whether or not they should consider the project. They are unfamiliar with the methods and just want an understanding of how they work.

Choose the capital investment decision method (Payback, Net Present Value, or Internal Rate of Return) that you think would work the best for this situation. How would you describe the method so that the doctors can understand the way it works? What outcome would they need to achieve in order to go ahead with the project?

It was then decided that a new imaging machine needed to be purchased as part of the project. What financial and other factors do you think they need to consider when making a decision?

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