You are the Administrator of the Radiology Department responsible for the day to day operation as well as developing the capital budget.

You are the Administrator of the Radiology Department responsible for the day to day operation as well as developing the capital budget. Your capital budget for fiscal year 2015(July 1, 2014 to June 30, 2015)is $1 million. You have received two capital requests. One from the Medical Director of Mammography requesting a new state of the art digital mammogram machine at the cost of $800,000. This department has won awards for its outreach to poor and low income women who otherwise would not have access to mammograms. The second request is from the Medical Director of the MRI Department requesting a state of the art open MRI eliminating fears patients have going into the MRI tube. The cost of the new MRI is $800,000. Both machines run faster, produce clearer films , meet all safety / radiation emission standards and can get the patient in and out faster resulting in enhanced patient satisfaction.

1. Identify the problem/issues you face? Be specific and direct in outlining the issues/problems.

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2. Referring to the Chapter on Managing Costs and Revenues what method will you use to base your decision?

3. What additional data/information will you need before making the decision ?

4. What challenge do you face once a decision is made? Will you have to explain or justify your decision to the Medical Directors of the departments?

5. In your discussion refer to the text, quote directly from the text to substantiate , expand your discussion and to demonstrate your understanding of the concepts/strategies described especially in Chapter 11 and 13. Include concepts learned in Leadership and Motivation — what leadership or motivation strategy will you use to most effectively manage this real life situation? Be specific.

6. What is your final decision?