I will post the two responses from the other classmates once i received them that has to be answered

Learning Resources

Required Readings

Penner, S. J. (2017). Economics and financial management for nurses and nurse leaders (3rd ed.). New York, NY: Springer Publishing.

Chapter 5, Reporting and Managing Budgets (pp. 111135)

Chapter 6, Budget Planning (pp. 141160)

Chapter 7, Special Purpose, Capital, and Other Budgets (pp. 163185)

Pink, G. H., & Song, P. H. (2018). Gapenskis cases in healthcare finance (6th ed.). Chicago, IL: Health Administration Press.

Case Study 20, Coral Bay Hospital: Traditional Project Analysis

Case Study 22, Northwest Suburban Health System: Outsourcing Decisions

Danna, D. (2019). Learning and mastering the operating budget. Retrieved January 30, 2019, from http://www.strategiesfornursemanagers.com/ce_detail/213520.cfm#

Mukherjee, T., Al Rahahleh, N., & Lane, W. (2016). The capital budgeting process of healthcare organizations: A review of surveys. Journal of Healthcare Management, 61(1), 5876. https://doiorg.ezp.waldenulibrary.org/10.1097/0011…

https://doi-org.ezp.waldenulibrary.org/10.1097/001…

Discussion: To Buy or Not to Buy: That is the Question

Your Womens Health Services Center has determined that there is an opportunity to generate revenue by purchasing a digital mammogram machine. The cost of the machine is $250,000, with annual maintenance fees of $2,500 and is estimated to last 5 years. The radiology center will be open 5 days a week, 8 hours a day, and 50 weeks a year. The current volume of mammograms is 18 per day, and the reimbursement is $215 per mammogram. The radiologist is paid $50 to read each mammogram, and the salary for the full-time mammogram tech is $95,000 annually, including benefits. The cost of disposable supplies is $3.00 for each test. The potential volume for the new digital mammogram machine is 28 per day.

To Prepare:

Review the Resources for this week and review the two case studies in Pink and Song (2018) to provide a framework for the Womens Health Services Center digital mammogram machine purchase.
Reflect on the scenario presented and consider whether you, as a healthcare leader, would recommend that the Womens Health Services Center purchase the digital mammogram machine.

By Day 4

Post a comprehensive response that addresses the following:

Explain how the operating budget, capital budget, and cash flow related to the scenario presented may help you as a healthcare leader in the decision-making process for a large purchase.
Explain whether you would recommend to complete the large purchase for the healthcare organization and explain why. Be specific and provide examples.

By Day 6

Respond to at least two of your colleagues by explaining whether you agree with their decision to make the capital purchase or not. Suggest at least two barriers that may prevent success of capital purchase approval.