You are the administrator of an established orthopedic surgery practice…

Final Project Overview
You are the administrator of an established orthopedic surgery practice. Due to higher demand for MRI services resulting from increased population and the relocation of many employers to the local community, the practice is considering a new service for provider-based delivery–a portable MRI, for example. As an administrator, justify the reasoning behind provider-based delivery and develop a complete launch plan, including a budget and consideration of environmental factors. You must determine how data will be used to support the new service, and consider human resources issues affecting this new program.
The practice has these issues to consider:
•The local population’s payer mix consists of managed care and Medicare patients. Recently, in an effort to reduce health care costs, many managed care companies have reduced the payment for MRI services. At the same time, the practice is facing increasingly stiff competition from other, lower-priced MRI providers. The main advantage of your orthopedic group is its ability to provide high quality medical services that other providers can not match.
•This practice needs to plan for the recruitment and hiring of an experienced radiologist and other highly skilled technical staff to start the MRI services. The tight employment situation makes finding qualified personnel a challenge. Also, after hiring the appropriate staff, it is critical for the administrator to think proactively in order to motivate the staff and use an appropriate appraisal and reward system.
•If the orthopedic surgery practice decides to provide MRI services, the following financial data need to be considered:
oCost of purchasing an MRI machine: $1,200,000
oAnnual cost of hiring new radiologist to provide professional service: $500,000
oAnnual maintenance and warranty: $30,000
oAdditional office space to accommodate MRI: 5,000 SF; rent is $20/SF
oHiring four additional technical staff at $60,000 per FTE
oOther operating expenses: $50,000
oProjected number of MRI procedures per year: 10,000
Based on the background provided, prepare a 1400- to 1750-word paper, formatted according to APA guidelines, that answers the following questions:
1.Consider and discuss how the environmental factors such as competition, reimbursement, employment, etc., may impact the opportunity of starting MRI services. Explain the risks or benefits that the practice would face by attempting to capitalize on the opportunity.
2.Explain what human resource plans or initiatives are needed to manage the strategic goals associated with the identified opportunity.
3.Develop various specific budget profiles that achieve optimal allocation of organizational resources to manage the opportunity.
oA line-item budget for personnel cost
oA functional budget to calculate personnel costs per MRI procedure
oA program (clinic) budget for providing health care services for 3000 patient visits

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