The decision to buy a new X-ray machine will be accepted by shareholders of the company because of the following reasons;
The machine has a long life the capital invested in it can be recouped and result in profits to the hospital. The operational cost of the machine is relatively minimal than those of the old machine. This results in increased revenue and better cost management in the hospital. The machine will also assist other patients from the locality and thus assist in the general health of the society. This is what shareholders would like to do in their company.
The machine will result in high efficiency in X-ray services in the hospital. This will result in better services to patients which is one of the objectives that the hospital shareholders have for the hospital. Modernizing current practices in a business will result in improved services to patients.
Research and development
The machine is likely to increase the chances of research in medical conditions affecting the locality of Lee County. This will fulfill Central Carolina Hospital shareholders’ objectives.
Response based on research to the purchase
The novel X-ray machine is a modern machine that is relatively expensive than other machines in the market. Other than Central Carolina Hospital there are n other hospitals around Lee County that have not attained the machine. This is likely because of the cost of the machinery. The available machinery does not offer clear X-rays photos and thus offers some difficulty when interpolating them for medicinal purposes. To ensure that the general population has better health Central Carolina Hospital will be offering X-ray services to patients referred by other hospitals in the area. This will be done at a fee which will assist in maintaining the machinery as well as an extra revenue to the hospital. The benefits extended to other hospitals will include better service delivery from the machine results.
Determine organizational risk and compliance issues related to the purchase and use of Novel X-ray machine
Adding an asset to the hospital gives an additional financial obligation (this is when the asset has been acquired through borrowed capital); this is financial risk and the risk that the hospital fails to deliver as expected; this is in terms of objectives that are expected to be attained via the new machine adoption. There is also the risk that medical personnel’s in the hospital will not embrace the new machine wholly. This is a risk that results from the organizational culture of the hospital.
Technological risk is another type of risk that is likely to face the hospital; this is because the new invention can be rendered obsolete before financial targets set are attained. This will mean that the project leads to a loss to the hospital.
Recommend risk avoidance strategies
There are different mechanisms of risk avoidance and management when attaining new machinery, they include;
Having a proper strategy
Having a proper strategy will ensure that weak points and strong points of the decision are weighed before a decision to buy the machinery is made. This is in the decision-making stage. The following are the factors to consider;
- Level of technology of the asset
- The expected life of the asset
- Operational costs of the machine
- Disposability of the asset
- Demand for the project
This is a mitigation strategy to ensure that the chances of the project being unsuccessful are reduced.
Developing a long term relationship between contractors and adopting formal capital approval tools
This will guarantee the hospital of high-quality machines; chances of faulty machines will be reduced. On the other hand, there is a need to adopt a scientific project evaluation method. For maintenance purposes there is need to contract the machine manufacturers since they are in a better position to repair the machine. Adopting a machine that can be improved in the future as technology changes are paramount.
Ensuring the machine against perils is important. The perils to insure against include;
- Technological redundancy
- Financial risk
This will ensure that the hospital does not lose in case the asset does not meet the expected objectives. This will involve payment of a premium to a reputable insurance body; this is a cost that should be included when evaluating the project.
Management roles and risks following compliance
Adopting new technology is changing in the hospital. How well management manages change will determine the success of the machinery. The move should not be imposed on the people but they should be involved in the development process. To ensure that the adoption is not affected by negative organizational culture the management should adopt effective communication mechanisms for better transition. The management should ensure that there are adequate well-trained operators of the machine at any one time and have the policy to evaluate the outcome of the new machine. There should be regular maintenance procedures to ensure that the machine is operating as expected.