1. Department of Radiology
PET/CT Replacement Proposal
$2.2 M Capital Request
June 2016

2. Summary of Alignment of Project to Grady Pillars
Goal
Quality
The PET/CT Scanner was purchased in 2003 and is the only scanner of that age still in use in Metropolitan Atlanta. All other GE Discovery ST Scanners have been decommissioned and replaced. Additionally, the resolution quality of the images is reduced requiring additional acquisition time per patient which contributes to decreased throughput.
Service Excellence
In 2014, 20 service calls were placed for the PET/CT Scanner; 17 service calls were placed in 2015; 11 service calls have been placed YTD The scanner downtimes have resulted in rescheduled exams and delays in Oncologic treatment. The current scanner also requires the technologist to spend one hour each day to transfer images to I-Site PACS.
People
Replacing the PET/CT Scanner with a state of the art unit would make the work environment less stressful and more efficient for the patients, referring physicians and others stakeholders who rely on the services of the department.
Growth
Continue to increase volume as overall system grows through garnering referrals from hospital-based clinics and promotion of differentiating services (i.e., Cardiac PET/CT Studies)
Service projects growth in select services – Alzheimer’s Disease, Cancer Care ( Lung, Breast, GI, and Prostate), and Cardiac Disease.
A projected increase of 10 additional patients per day would result in a growth rate of 167% daily. Our current capacity is 6 patients per day.
Stewardship
The Oncology market is expanding with new reimbursement. Neurology reimbursement is also growing with the reimbursement for Alzheimer's disease. With the aging of the baby boomer population and the emphasis on heart disease and its prevention, CMS continues to expand reimbursement in Cardiology.
2015 Contribution Margin: $705,847.00
Pay back period: 3.1 years

3. PET/CT Margin Analysis
Reporting Period
Cases
Operating Revenue Per Case
Direct Fixed Cost Per Case
Direct Variable Cost Per Case
Contribution Margin Per Case
CM %
Indirect Cost Per Case
Operating Margin Per Case
Operating margin %
2014
910
$1,857
$644
$481
$731
39%
$492
$239
13%
2015
906
$2,045
$754
$512
$779
38%
$521
$258
2016
400
$2,073
$669
$572
$832
40%
$493
$339
16%
Capital Request
$2,209,493
2015 Contribution Margin
705,847
Payback Period
3.1 years
Source: GHS Decision Support