Hospitals are known for providing medical assistance, and saving lives. In order to do so, every hospital requires the proper equipment to run tests, perform procedures, and diagnose patients. With increasing healthcare cost, hospital executives are forced to find ways to save money to prevent financial strain for the organization. Healthcare providers find themselves in a situation in which they must guarantee quality care, but have less and less funds available to do so (Longo, Cassoli, Fugazzola, Vannucchi, Lanzoni, & castaldi, 2014). Upgrading to more modern equipment in a hospital environment can cost millions of dollars, and the hospital must be prepared for unforeseen expenses and challenges.
Small hospitals have to provide superior
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Time has to be set aside to make sure employees are educated about the new equipment, and have a good understanding on how to operate it. Training employees will cost additional money, but it will help to prevent critical mistakes from being made. Sometimes employees are resistant to new technology and procedures, and prefer things to stay the same. Older employees may consider quitting or finding another job at another hospital where thing are simplified. If employees quit, the hospital is faced with the additional cost of hiring new employees to fill the vacant positions. The hospital also has to consider the maintenance of the new equipment to keep it functioning properly. There has to be enough money in the budget to prepare for malfunctions. Small hospitals must take into consideration that they may not receive as many patients as a large hospital to pay for the new equipment. Investing in new equipment will also increase the operating cost of the hospital. Raising the prices of patient care can result in patients fleeing to larger hospitals where they are not charged as much. A small hospital must take in account the percentage of patients that will not pay their bills at all. Deciding if new equipment is needed to provide excellent care can be difficult. The hospital must consider every option to pay for the investment if all normal options