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Jones Memorial Hospital [Case 27]. paper of 5 to 10 pages (APA Format), noting at least 4 peer reviewed sources, on the capital budgeting decision of...
Jones Memorial Hospital [Case 27]. paper of 5 to 10 pages (APA Format), noting at least 4 peer reviewed sources, on the capital budgeting decision of the two competing technologies. The uniqueness of this case stems from the fact that one of the technologies has the potential to move patients from an observation bed to an outpatient setting, which frees up bed days for other purposes (a backfill opportunity). The case also includes a simple replacement decision. In addition to the quantitative analysis, the case involves some interpersonal dynamics between the medical director, who wants the latest technology regardless of cost; the administrative director, who is responsible for cost control; and the CFO, who must evaluate the impact of the decision on the entire organization. Analyze and discuss whether the two systems have the same financial risk. In other words, are the cash flows being discounted equally risky? If not, why not? Modify your analysis to incorporate differential risk if you believe that it exists. Discuss and defend your final recommendation regarding replacement of the first system