Economic Aspects of Instrument Evaluation and Acquisition Part 2 Economic Aspects of Instrument Acquisition

As previously noted in Part 1 (1), three avenues of instrument acquisition are available to management if the decision is reached to obtain the instrument that has been evaluated in the clinical chemistry laboratory: namely, (i) purchase the instrument outright if funding is available, (ii) acquire the instrument via a financial loan at the most favorable interest rate over a given amortization period, or (iii) arrange for an operational lease. Beyond the cost of the instrument, the critical consideration of purchase as an acquisition option requires knowledge of several variables: depreciation, estimated life of the instrument, salvage value, time value of money (present value concepts), cash inflow/outflow, payback period, discounted cash flow rate, cost reimbursement by third-party payors, as well as the feasibility of equipment leases. How these are utilized in the financial decision-making process will be examined using the economic data generated in Part 1 of this two-part series using an excellent format developed by Boer (2) for the economic analysis of capital expenditures and equipment leases; a format that is strongly recommended to all laboratory management personnel.