Essay on Benefits Of Long Term Operating Assets

706 Words Jun 18th, 2016 3 Pages
Long-term operating assets are tangible assets equating to a company’s property, plant and equipment. Hospitals have millions of dollars tied up on long-term assets. Consider the operating room equipment, radiology and cardiac procedural labs. During the budget year each arena’s equipment and technology is evaluated reviewing the state of useful life, functionality, improvements or upgrades that are needed for competitive or patient outcome reasons. When new technology or replacement request were initiated, the executive director would have to provide a strong business plan to support the purchase. Key elements were how was the technology or upgrade going to improve a procedure, or improve diagnostics for the medical professionals. Did the technology provide increase in revenue stream, i.e. increased volume of patients, provide procedures that were not currently being performed and with this information how long was the investment expected to pay for itself. We typically wanted to see return on investment around 2 to 3 years and no more than five depending on the technological advances that would make the purchases obsolete. In health care, the intangible assets are tied into the reputation of the institution. There is really not much you can Patton or copy right for medical communities. Sometimes new technology can be protected for several years, meaning the company cannot sell the same technology for a particular radius for a period, but it would not go…

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