Featured in hfm Magazine, MD Buyline's "The
New Break-Even Analysis" expands the scope and assumptions of
traditional investment decision-making criteria.
"Hospitals and health systems that contemplate an investment in new
equipment or technology typically estimate procedure volume, payment
rates, and the useful life of the equipment to determine how long it
will take to recoup that investment. That information has allowed these
organizations to make reasonably accurate revenue projections for
purposes of conducting a break-even analysis and making a capital
acquisition decision. But changes in the economic and legislative
environment are complicating the capital acquisition landscape. These
environmental changes are making it imperative for break-even
calculators to evolve based on new assumptions and for providers to
start having in-depth discussions about nonfinancial factors as a
routine part of their break-even analysis," according to James Laskaris,
emerging technology analyst and co-author of the featured story, and
Katie Regan, clinical publications manager and co-author.
MD Buyline recognized equipment and technology decisions are directly
impacte by the changing legislative and economic landscape. Healthcare
providers need to re-evaluate the assumptions that underlie their
break-even analysis and incorporate clinical aspects into their
the featured story, MD Buyline addresses the four main areas of the
new break-even analysis:
Cost, utilization and payment and margins are part of traditional
break-even calculations; however, in today's financial environment,
there are now additional factors that may come into play (e.g., length
of stay, payment rates tied to utilization, never events, and penalties
for readmissions). Value analysis teams should adjust calculations
accordingly. The clinical considerations section is entirely new for
break-even calculations, and it will be a critical element for value
analysis teams to make financially viable technology acquisitions.
MD Buyline's clinical analysts work with healthcare providers across the
nation to target the right technology for their hospital's unique needs.
Through one-on-one consultations, MD Buyline's clinical analysts
evaluate technologies and perform customized break-even analyses for its
the complimentary story "The New Break-Even Analysis."
About MD Buyline
Healthcare providers recognize MD Buyline as the leading provider of
evidence-based information and research. By creating transparency and
fostering consultative relationships, MD Buyline has partnered with
providers for more than three decades to identify cost reduction
opportunities for purchased services, consumables, capital and IT.
Providers rely on MD Buyline's data and clinical analysts for financial
and clinical insight to reach long- and short-term goals. For more
information, please visit www.mdbuyline.com,
and follow MD Buyline on Twitter, @MDBuyline.
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