Business Plan For Ct 511373

Business Plan for Toshiba Aquilion Prime CT Scanner: Edinburg Regional Medical Center Laurence Weinreich Siena Heights University Health Care Systems Management LDR 609 Dr. Fick October 15, 2016

Executive Summary: • Edinburg Regional Medical Center and Children’s Hospital is requesting approval to replace our existing Toshiba CT scanners with 2 Toshiba Prime 40 slice CT scanners. • Edinburg Regional Medical Center is an accredited chest pain center. We are one of two accredited chest pain centers in the Rio Grande Valley. We are a trauma level IV center for the McAllen/Edinburg area.

• This purchase is essential to the strategic positioning of Edinburg Regional Medical Center as a premier Imaging Center in the Rio Grande Valley. • The replacement of our current CT scanners is vital in maintaining our current volumes, but also to further develop our imaging services.

• The current CT’s are now over 10 and 11 years old. • The purchase of the new CT’s will give us numerous advantages over our current technology. • This will bring us into XR-29 compliance • The new systems will produce a lower amount of radiation per exam compared to our current system. In some cases, there is a 50-75% reduction in radiation. • The Prime 40 system utilizes AIDR 3 D, this removes noise from the image, which allows for less radiation to be used to acquire a diagnostic image.

• The bore (opening) on the Prime 40 CT scanners are larger than the current systems in operation This allows us to scan larger patients. • The larger bore also reduces the claustrophobic feelings of our patients. • This larger bore also gives the physician more working room when performing biopsies under fluoroscopy. • The table weight on these scanners is 660lbs, which is substantially higher than the current 450lbs. • The new CT scanners have shorter scan times. will decrease breath hold times. • The image reconstruction speed is 300% faster. This allows for a faster exam time • The new scanners will have SEMAR (Single Energy Metal Artifact Reduction) which greatly reduces/ eliminates blooming artifacts in orthopedic imaging from metal hardware in the patient.

Competitor Analysis:

• The majority of the competitors in the area have older CT scanners. This gives Edinburg Regional and Children’s Hospital a competitive edge. • Mission Regional, Knapp Medical, Valley Baptist, Valley Regional, Doctor’s Hospital Renaissance (Imaging Centers and Women’s Centers), McAllen MRI Center, other private Imaging Centers all have older CT scanners.

Operating Plan: • These new CT scanners will be operated out of the Edinburg Regional adult side and the Children’s Hospital Pedi side. • There will be no need for additional staffing due to this purchase. • The entire project will require 12-16 weeks of downtime. During this period, CT’s will be performed at ERMC and then switched over to Children’s.

Marketing Plan: • The new CT Scanners will be marketed heavily using the following avenues: • • Open house/ tour of the suite • • Physician office visits • • Articles in the physician newsletter • • Direct mail • • Articles in the Health News Community Newsletter • • Employee newsletter

Risks: • If the new CT scanners are not purchased, the CT department and its capabilities will fall further behind technologically as compared to the community. As a result, our scanners will not meet XR-29 compliance and we will start losing Medicare/ Medicaid funding and general insurance reimbursements.

Summary of CT Project/ Equipment Quotes below: Vendor

Scope of Work

Amount

Toshiba Aquilion Prime 40 with fluoroscopy

Purchase

$448,779.00

Toshiba Aquilion Prime 40

Purchase

$402,641.00

Sub-Total

 

$851.420.00

 

 

 

Tax (equipment)

8.25%

$ 70,242.15

 

 

 

Total (equipment)

 

$ 921,662.15

 

 

 

Summary of Projects Costs (Used in PAC): Project Summary

Amount

Architect Fees and Engineering fees  

$ 6,000.00

Construction Fees

$ 14,220.21

Taxes

$ 1,668.16

GRAND TOTAL

$ 21, 888.37

 

 

 

 

References Capital Budget Template. (2016). In South Texas Health System / Universal Health Services Capital Budget Template. King of Prussia, Pennsylvania: Author. South Texas Health System. (Cartographer). (2016). Direct Margin chart [Excel Spread Sheet]. Edinburg, Texas: Author.