1. Business plan LDR 609 Purchase of a ge revolution ct scanner
Robyn Wright

2. Executive Summary
The University of Michigan Health Systems CT Department services patients and physicians from across Michigan. Its fleet of 13 CT scanners operates 24/7 – 365 days of the year. Each CT scanner is placed on a seven year depreciation plan when purchased. In 2016 CT02, currently a GE Lightspeed VCT will have exceeded its depreciation date by 3 years. In order to maintain and expand our imaging departments high quality imaging, it is essential that we replace CT02 with the latest technology on the market. Our CT fleet continue to grow and advance as technology is ever advancing.

3. Proposal Purposed replacement is GE Revolution CT Scanner
Purchase Replacement Scanner for CT Room 02
Current Scanner is GE Lightspeed VCT
Current Scanner met UMHS 7 year depreciation schedule in Upgrade has already postponed 3 years
Purposed replacement is GE Revolution CT Scanner

4. Market Analysis- Strength
UMHS CT Staff is very knowledgeable with many years of GE scanner experience.
Revolution CT System offers the latest in technology from GE Healthcare.
New technology offer a multitude of benefits for our patients, imaging staff, radiologists, and referring physicians.

5. Market Analysis- Weakness
New technology
Learning curve for technologists with new technology.
Completely new platform and scanner layout for technologists to learn.
All protocols need to be rebuilt into scanner.

6. Market Analysis- Opportunity
First local hospital with Revolution CT System
Clinical Benefits
Patient Benefits

7. Market Analysis- Threats
New technology requiring a complete rebuild for all current protocols.
Significantly time consuming and must be completed prior to beginning scanner clinical use.
Down time for construction, instillation, and applications is a minimum of weeks.
Potential for unknown software problems with new technology.

8. Internal Assessment Current Lightspeed VCT has met depreciation.
Revolution CT best option as it is the latest technology and is way of the future in GE scanner fleet options.
Currently CT02 is used for inpatients. With Revolution it will be used for outpatients.
Staffing levels can remain the same.
New technology offer potential for better CTA imaging with lower or elimination of pre-medication.
Dedicated Training for CT technologists, 3D imaging staff, and Radiologists needed.
Software adjustments may be required for all GE Advantage Workstations.

9. Financial Analysis
Year
2015
2016
2017
2018
2019
Exams
8,760
,490 (construction downtime)
8,760-17,520
Revenue
$13,140,000
$10,117,500- $20,235,000
$13,140,000 - $26,280,000
Scanner Expenses/Depreciation
$64,285
$500,000
Salary Expenses
$165,000
Min Revenue
$13,075,550
$9,452,500
$12,910,715
Max Revenue
$19,570,000
$26,050,715
Outpatient scheduling grid open 12 hours a day, 7 days a week
Inpatient and ER patients may be scanned during off hours.
2-4 body parts imaged in an hour.
Scanner will be placed on UMHS seven year depreciation schedule

10. Implementation Plan
Obtain and negotiate official quote from GE Healthcare.
Construction and Install scheduled (12-16 weeks to complete)
Reassign off hour inpatient slots to CT04 during downtime.
Necessary Software Upgrades Complete
Training
Release for clinical use

11. References
GE Healthcare (2015). Revolution CT- Clinical Benefits. Retrieved from:
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GE Healthcare (2015). Revolution CT- Patient Benefits. Retrieved from:
tabs/tab1567C6256F2945BDBC9A4EF764B5E2A5
Business of Radiology 101. (2015). Income Statement: Depreciation and Amortization.
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