Buy, lease, or rent: which way to go under DRGs? Prospective payment is changing the relative advantages and disadvantages of instrument acquistion alternatives

Medical Laboratory Observer,  August, 1984  by J. Lloyd Johnson

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But the really cost-effective hospital may be so awash in cash as a result of prospective payment that its internal rate of return is well below the prime bank rate. In that case, instrument acquisitions should take the form of purchases.

In short, we have to identify all the costs of acquiring an instrument. If we are paying for convenience, we must find out what that cost amounts to and determine whether the convenience is worth the price. It is the only way to make an informed, cost-effective decision.

COPYRIGHT 1984 Nelson Publishing
COPYRIGHT 2004 Gale Group