Benefits of a Capital Item

Your consulting work with the physician’s group in Module Three earned you rave reviews and now your boss has asked you to put your skills to work in support of a local community health center. The center just purchased an electronic medical record system (EMR) and its board of directors wants it to justify the purchase. The center is small and understaffed, so the center’s CEO has asked you to help with the justification by identifying the benefits of the EMR and ways the benefits can be estimated to calculate a cost-benefit ratio. Then write a memo to the community health center’s Board of Directors that uses the cost-benefit to justify the purchase of the EMR.