List and quantify some of the benefi ts that could be derived from the acquisition of a clinical IT system. If possible, estimate the costs of these systems, and develop a return on investment (ROI), using the internal rate of return (IRR) method for the acquisition. (See table 1.4 for an IRR template.)

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Table 1.4. Proposed MRI Service: Pro Forma Statement of Revenues and Expenses, Ridgeland Heights Medical Center, January 2010 REVENUES ($) 2011 2012 2013 2014 2015 Total Gross revenues 2,352,000 2,618,280 2,913,246 3,243,665 3,610,054 14,737,245 Less: Contractual allowances 974,702 1,006,362 1,033,129 1,059,895 1,092,899 5,166,987 Less: Free care allowances 81,608 93,346 104,540 113,183 115,056 507,732 Net revenues 1,295,690 1,518,572 1,775,578 2,070,587 2,402,099 9,062,526 EXPENSES ($) Variable expenses salaries 2.0 Technicians 90,000 94,500 99,225 104,186 109,396 497,307 1.0 Clerical 27,000 28,350 29,768 31,256 32,819 149,192 Total salaries 117,000 122,850 128,993 135,442 142,214 646,499 Fringes @30% 35,100 36,855 38,698 40,633 42,664 193,950