Organizations thrive on the critical assets they invest in for the production of goods and services. The health institutions usually need high capital intensity to stock equipment. Kegedi Hospital has to get additional equipment to cater to x-ray patients. Since the purchase of five X-ray machines, service has improved, and the number of health consumers has also increased by 20%. The hospital needs five x-ray machines.
Purchase of X-Ray Equipment
Kegedi hospital started carrying out tests for various sicknesses. They developed the cancer center for almost 80% of the cancer conditions. They also started the center for other lifestyle conditions such as diabetes, High Blood Pressure, and other communicable diseases (Moss, 2015).
A majority of the clients come for tests since the hospital is known for quality medical examinations. Since the hospital’s mandate is never to turn away any customer, there is the need to purchase five X-ray machines and expand the institution (Mikesell & Bromley, 2012). The leadership should distribute the five tools on each floor of the new facility. Whichever floor they are on in the institution, they can still find the X-ray very close to them (Moss, 2015).
Cost of the Equipment
According to the hospital’s specifications, the most viable machine will be the YSX0314KW High-Frequency X-ray machine. It is a High-Frequency Radiography Unit and comes from China. It arrives in a wood case package, and the minimum order is 1 set. Once ordered, it can take seven to fifteen working days to arrive. The price for one is $350,000. However, if the organization buys five pieces and above, there is a discount of $15,000 per machine. The brand name is Ysenmed.
Benefits of Purchasing the X-Ray Machine
The organization is determined to continue on the path of growth and even opening other centers countrywide. The purchase of this equipment will help to improve service delivery to the patients (Moss, 2015). They will be new and fast. It means that the hospital will be able to serve more clients than before. Since there have been queues of bookings for X-Ray services, the machines will cut down on time taken to wait for services (Felix, 2012). They will also help to bring down the cost of such services in the region. The hospital will still be the primary provider of such services. And hence even when the prices come down, the organization will work on the economies of scale.
Kegedi hospital will be the leading referral center in the region. It will boost the hospital’s prestige and prowess. Many clinics and private organizations have been finding it hard to send clients to institutions that do not have enough facilities. The equipment will be of benefit to the management, the patients, and the workers. The health workers will find it easy to do their work. The patients will benefit from fast and quality services (Woods, 2016).
The equipment will also enable the hospital to attract highly qualified personnel to the institution Vesterinen et al., 2013). Apart from the available staff, there will be a need to hire more staff to handle the equipment with ease. Providing employment will assist the government’s effort in the promise to provide jobs to the unemployed. As the lower-level staff to get promoted for their effort, there is room for hiring more staff.
Meeting the Management Goals
Revenue
The management has set principles upon which the entire organization relies on bringing about success. Revenue is one of the original foundations upon which the management relies up to grow the team. The introduction of these X-ray machines will lead to increased services to health care consumers. When the number of clients increases, there is a growth in revenue. Apart from serving its customers, the organization exists to make a profit. The profit can only come when there are sales. And hence, revenue is critical for the growth of the organization (Woods, 2016).
Productivity
The organization exists to produce results. The essential resource is the people who work for it (Woods, 2016). Once they have all the required resources, they can work towards achieving the organizational vision. When there is efficiency in the organization, it leads to the effectiveness in the achievement of goals. Kegedi hospital has been serving about two hundred patients per week in need of X-ray services. And there have been those who had to book and wait for their turn to come. Due to the new machines that can produce results within 3 seconds, there is potential to increase this number to more than two hundred.
Quality Improvement
The industry of health is competitive. The government has set certain benchmarks upon which every organization should operate. Apart from the law, there are other hospitals and service providers of health-related cases. The health of the citizens is in the hands of medical institutions. They should, therefore, provide quality services. Kegedi hospital is working towards providing quality improvement in its packages of health treatment. The new equipment will deliver quality services and hence improve the image of the hospital. Clients like to go to a hospital where they see improvement. If the machine has stayed for a very long time, they tend to slow down and keep breaking down. However, new equipment will make the work enjoyable. It will also make the clients happy.
Employee Development
An institution that does not have hi-tech equipment causes the employees to become complacent. New and improved technology keeps the employees upbeat about learning new things. The training will also go a long way in developing the workers. It boosts employee morale and keeps them motivated towards reaching their goals.
The Primary Stakeholders
The shareholders
The organization’s shareholders would like to see the group grow by leaps and bounds. It is because they want to be part of success. If the machines increase revenue, it means the company’s profits also grow. The shareholders can gain from increased dividends. The positive cash flow can also cause them to invest more money into the business. They can also source for other shareholders to boost the organization’s growth. Due to this, they will appreciate the effort and promote the organization’s growth.
The Management
It is upon the hospital’s management to find solutions to the challenges facing them in the industry. The problem has been the cost of X-ray and the lack of the machine. The administration’s resolution to provide the solution is impeccable (Moss, 2015). They support the objective of making the institution the best in the region for providing all quality services in health. The management should endorse this effort because whenever the organization is in need of support, it is their energy that can save the team (Lindley-Jones, 2016). The shareholders have placed their trust in them to make sure that they get their returns and that there is continuity in its operations.
The Community
People who come for hospital services live within their vicinity or travel from other corners of the world. The community should appreciate the effort of the hospital. They are the ones who will benefit from such developments. They can come and get service son time. They can also refer their friends to organizations that have enough facilities.
Purchase Risk Appraisal
The organization has two options. They can decide to buy machines or abstain from buying. If they fail to buy, the group will continue to exist but with minimal growth. In the market, other competitors are providing the same services. Sometimes the laxity of certain organizations may only lead to the growth of the others. Another group might come up with the same idea and take away even the current customers of Kegedi hospital.
The shareholders might start pulling out because of stagnation in growth. Once an organization loses the support of its shareholders, it means that the group loses the money to continue on the path of growth. The shareholders may also withdraw their cash only to invest with the competitors of the organization.
If the agency buys this equipment, the team will increase its customer base. Customers choose organizations that serve their interests. It has the potential of also increasing more customers from the competitors in the market (Woods, 2016). The customers can also refer their friends and family members.
Purchasing the equipment can also affect staffs positively. They can continue supporting the organization’s effort for growth. They can also continue to work for the organization knowing that there is growth. Staff turnover a=sometimes arises because of a lack of quality tools for doing the job. It will bring down staff turnover in the organization. It will be an attractive place to work and might end up receiving very many qualified applications for potential employees (Mikesell & Bromley, 2012)
Budget
The capital project proposal will succeed with the help of all the stakeholders available. The benefits will uplift the lives of the patients. It will be beneficial to the society because it deals with the essential human need. Humanity seeks for healing from the diseases that plague the world. The United Nations Millennial goals support affordable health care for all people on the face of the earth. The costs can only come down when there is sufficient infrastructure.
References
Felix, O. (2012). Determination of projects viability using capital budget in the local government areas in Ondo state Nigeria. International Business Research, 5(12).
Lindley-Jones, M. (2016). Triage nurse requested x rays–are they worthwhile?. Royal army medical corps. Web.
Mikesell, L. & Bromley, E. (2012). Patient centered, nurse averse? Nurses’ care experiences in a 21st-century hospital. Qualitative Health Research, 22(12), 1659-1671.
Moss, M. (2015). Conceptualizing 21st-century archives. Archives and Records, 36(1), 99-101.
Vesterinen, S., Suhonen, M., Isola, A., Paasivaara, L., & Laukkala, H. (2013). Nurse managers’ perceptions related to their leadership styles, knowledge, and skills in these areas—A viewpoint: Case of health centre wards in Finland. ISRN Nursing, 20(10), 1-8. Web.
Woods, C. (2016). The preservation management handbook: a 21st century guide for libraries, archives and museums. Archives and Records, 37(2), 248-251. Web.