Words: 1625
Pages: 7

Executive Summary
To: Paul Howarth, Euipemnt management coordinator
From: Mark Greig, Clinical Engineering manager
Subject: Feasibility of the In-house Endoscope Repair

Issue: As currently the awareness that has been arising on the approach of in-house endoscope repairing, I have conducted a series analysis based on varies aspects of the existing and potential issues, the problem statement is presented below:

“VH must find a best solution on controlling its medical equipment maintenance costs, improving operation efficiency, reducing the operating total costs, thus, making the most of the government funds in order to improve patients’ satisfaction?

The department has received the quotations form 4 potential supplier as listed
…show more content…
Then we lose patients.

Core competency and major responsibility
- Medical Research and provide medical service for the society. Since the average annually spending on Barton products and services plus the additional costs on related equipment is approximately $150,000, only accounts for 2.83% of the BME’s annual total budgets. If take the in –house approach is will cost $258,000 for the three hospital banded group service, which would accounts for 4.87% of the BME’s annual total budgets plus technician’s overload work payment; in addition, possible difficult relationship need to be handled between VH and Barton are all concerns.

For year 1992, VP had a budget of $267 million, 81% were from Ministry of Health. That is 216.27 ($267million* 0.81) million.
Costs for endoscope per year (Repaired by Barton)
Amount of endoscope needed/year
Price for endoscope
$ 20000 each
Fees for purchase endoscope/Year
$40000 to 60000
Related equipment charge
$20000 to $30000
Cost of Rigid scopes
$5000 to 10000
Sub Total
$65000 to $100000
Repairing and Maintenance fee/year
Purchasing products form Barton
Sub Total

Cost for scope repairs for all 3 hospital is about $240000 annually.
80% of repair cost related to the first three levels of service can be solved in house.
The total annual repair cost for VH is 86833/0.8=$108524, for all 3 hospitals it is