I write this with regard to the potential purchase of the new tissue processing equipment. There are great advantages to be realised from its purchase, however, it is with great insight that the cons associated with this purchase not be ignored. I will seek to illuminate my position with logical and reasonable argument.
Advantages
The pros of purchasing this new equipment is undoubted. The production time for test results would be slashed to half. This will certainly increase the efficiency of the lab. Client’s would receive tests within 24 hours and reduce backlog of tests.
Underlying Cons
The underlying weakness to this purchase is the manner in which the purchase will be financed. The laboratory does not have the funds required to complete this purchase comfortably, hence the cost has to be transferred elsewhere (the clients). Most of our clients are elderly and on Medicare. Such patients on Medicare do not have the flexibility to adjust to the new prices as Medicare will not increase their allowances to cater for the increase in price.
Plausible Solution
Health Insurance Plans would be the solution to the price increase as they would be willing to take on this cost. However, creating such an agreement with the health insurance companies would take a while. If the Board contemplates purchasing the equipment without those structures in place, the laboratory might stand to lose clientele.
However, I believe the prudent and cautious decision would be to delay the purchase of the equipment in question until the necessary structures have been put in place. The process is estimated to take 6 months, in after which commencement of purchase would be timely and well prepared for.
In conclusion, the option before the Board of Directors is one of sustainable increased efficiency.
References
MacIntyre, D. M. (1962). Voluntary health insurance and rate making. Ithaca: Cornell Univ. Press.
Menke, T., & United States. (1991). Universal health insurance coverage using Medicare's payment rates. Washington, D.C: Congress of the U.S., Congressional Budget Office.
Morrisey, M. A. (2008). Health insurance. Chicago, Ill: Health Administration Press.
