Capital Purchase Justification

Capital Purchase Justification

An MRI (magnetic resonance imaging) scanner is an important piece of equipment that every major health institution needs to own. Doctors use the machine frequently to scan patients’ bodies, particularly in search of anomalies in the subject’s brain, spinal cord, blood vessels, heart, breasts, internal organs and bones. The scanner can detect many symptoms and warning signs of diseases, helping to provide the medical teams with early diagnoses (MRI scan, 2013).

Currently, Nightingale Hospital does not have an MRI scanner, and this is affecting the institution’s operations in several ways.  Firstly, physicians are sending patients to other facilities for scanning. This is causing a delay in diagnoses, as the doctors have to wait for some time before they can get the test results. Another problem with the hospital’s lack of the equipment is that it is costing the hospital a lot of revenue as other institutions profit from the patients sent there for scans by Nightingale Hospital’s physicians. The lack of an MRI scanner in the hospital is also causing a backlog at the institution due to the delay that doctors experience awaiting results from patient’s scans.

The best MRI scanner for the hospital to purchase would be a Discovery MR750W 3.0T from GE (General Electric). The MR750W comes from GE healthcare latest line of MRI scanners that utilize wide-bore technology. The scanner offers advanced clinical functionality, and great image quality (GE healthcare MRI, n.d.). The scanner’s innovative design takes into account the patient’s comfort and peace of mind making it an excellent choice for the institution. Additionally, the scanner’s innovative design means that the equipment will remain technologically relevant for a long period after the hospital has purchased it. The cost of the Discovery MR750W scanner is $51, 615 (GE healthcare MRI, n.d.).

Nightingale Hospital will have to source most of the funds that it will require to purchase the scanner. A bank loan can be secured to aid in the procurement. The hospital can consider the purchasing of the MRI scanner to be an investment. Through the machine, Nightingale Hospital will earn revenue from patients seeking treatment at the institution as well as those who are referred by other physicians. Decreasing the backlog in the hospital will also help increase revenue, as the physicians will be able to handle a higher number of patients per day.

Most of the revenue that Nightingale Hospital will earn through the machine will come from scanning patients. On average, the hospital receives between two hundred and three hundred patients a day. It is possible that ten percent of the patients will have MRI scans performed on them, meaning that physicians will use the machine twenty to thirty times a day. The average cost of an MRI scan ranges depending on the insurance cover that a client has. For some patients, the scans will cost as little as $500 while others may pay six times that amount ($3,000). Putting all of these figures into consideration means that Nightingale Hospital may earn as much as $35,000 a day using the MRI scanner.

The cost of operating the MRI scanner will mostly be incurred through electricity bills and maintenance. Frequent use of the MRI scanner will mean that the hospital utility bills may increase by as much as ten percent, consuming a significant amount of the revenue that the machine brings in. Additionally, the hospital will have to service the scanner regularly (at least once a month), consuming even more of the revenue. However, considering the hospital’s dire need for the equipment, purchasing a scanner is definitely the best option for the management.





MRI scan. (2013). Retrieved from

GE healthcare MRI. (n.d.). Retrieved from


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