Conducting a cost-benefit analysis

Conduct a cost-benefit analysis using a template, and explain the concept of opportunity cost and how a cost-benefit analysis aligns with organizational needs. Recommend a plan of action based on the cost-benefit analysis.
Assessment Instructions
Use the Cost-Benefit Analysis Template linked in the Resources to complete Part 1 of this assessment. Use the following scenario that continues the scenario from Assessment 2 as the foundation for this assessment:
One of the physician’s groups in the clinic would like to purchase an MRI machine. Currently, clients who need an MRI must schedule an appointment at another facility, adding time and cost to any treatment they may need. The machine will be available for all the physicians in the clinic and will require additional staff to operate the equipment and the office area where it will be housed.
You must prepare a cost-benefit analysis to present to the physicians so they may decide whether to move forward with the purchase. Be sure to consider the non-monetary costs, such as productivity, as well as the non-monetary benefits, such as improved customer satisfaction. Although these may be difficult to quantify, they are important costs and benefits that must be considered.
Prepare a two-part cost-benefit analysis.
Part 1
• Complete the cost-benefit analysis template for the purchase of an MRI machine for the clinic.
Part 2
Based on the cost-benefit analysis, write a 2–3-page summary:
• Analyzes the cost and benefits of purchasing equipment for a health care organization and considers how the purchase aligns with the organizational financial strategy.

• Explain the concept of opportunity cost and how it affects the profit margin of an organization

• Explains how a cost-benefit analysis aligns with organizational needs and future growth, as well as community needs and industry trends

Sample Solution