Life cycle costing of MRI machine at a tertiary care teaching hospital

Abstract

Background: Life cycle costing (LCC) is an excellent decision-making tool that can assist a hospital administrator in seeking more cost-effective decisions to select the best course of action. LCC can be defined as “an economic assessment of competing design alternatives, considering all significant costs of ownership over the economic life of each alternative, expressed in equivalent rupees. Aim: To determine the LCC of magnetic resonance imaging (MRI) machine at a tertiary care teaching hospital. Settings and Design: A descriptive, observational study in MRI scan center of a tertiary care teaching hospital. Materials and Methods: LCC analysis (LCCA) was performed to ensure total cost visibility for the entire life span of the MRI scan equipment, which was assumed to be 10 years. Statistical Analysis: Data were analyzed using MS Excel. Results and Conclusions: The total cost per MRI scan was calculated to be Rs. 2944. It was estimated that the MRI scan center would reach the break-even point by the end of the third year.

Cost-Effectiveness of Life Cycle Cost Theory-Based Large Medical Equipment

“…Before the introduction of large medical equipment, relevant cost benefit analysis needs to be implemented to ensure the effective execution of hospital cost management. It is stipulated in the newly released medical reform policy that public hospitals must strengthen the steady development of hospitals to achieve the goal of “providing people with reassuring, high-efficient, convenient, and affordable medical health service.” In addition, the guarantee of the relationship among social responsibility, hospital development, and stable team is accelerated [ 16 ]. As a result, hospital management becomes more scientific and professional, which is the inevitable way hospitals proceed orderly and steadily.…”

MRI scarcity in low‐ and middle‐income countries

“…These materials are essential for an MRI scanner to produce acceptable images and be fit for clinical use 20 . Obtaining and operating such equipment requires a dedicated workforce with significant financial capital, and consistent resources to monitor and ensure functionality 36 …”

“…There is wide discrepancy in the availability of MRI machinery between LMICs and HICs for additional reasons. Although costs of MRI equipment are substantial and ongoing maintenance expenses account for a significant portion of total costs, workforce salaries, infrastructure costs, cost of purchasing and maintaining equipment, contrast material and other consumables (e.g., drugs, medical supplies, cleaning materials), electricity, and diesel all contribute to the total value of an MRI scanner 36 . Energy consumption accounts for a substantial portion of costs associated with an MRI facility.…”

“…20 Obtaining and operating such equipment requires a dedicated workforce with significant financial capital, and consistent resources to monitor and ensure functionality. 36 There is wide discrepancy in the availability of MRI machinery between LMICs and HICs for additional reasons. Although costs of MRI equipment are substantial and ongoing maintenance expenses account for a significant portion of total costs, workforce salaries, infrastructure costs, cost of purchasing and maintaining equipment, contrast material and other consumables (e.g., drugs, medical supplies, cleaning materials), electricity, and diesel all contribute to the total value of an MRI scanner.…”

Sustainable low-field cardiovascular magnetic resonance in changing healthcare systems

“…139 A recent descriptive study found the total installation cost of a 1.5 T scanner in a tertiary hospital in India was just over 1 million USD. 140 CMR is more expensive, with a typical 1.5 T scanner costing between e1.6 and 2 million ($2-2.5 million), including purchasing and siting adaptations. 33 LF CMR should theoretically be less expensive by having reduced magnetic field strength.…”