Unit 2 Assignment- Vendor Selection
docx
keyboard_arrow_up
School
Herzing University *
*We aren’t endorsed by this school
Course
107
Subject
Industrial Engineering
Date
Jan 9, 2024
Type
docx
Pages
5
Uploaded by bethanyaarons
Unit 2 Assignment- Vendor Selection
Unit 2 Assignment- Vendor Selection
Healthcare Finance and Revenue Cycle Methodology (HI310-8)
Professor Denise Haynes
Herzing University
Bethany Aarons
11/12/2023
Unit 2 Assignment- Vendor Selection
Part I: Determine the total investment amount based on the information provided.
3M Investment total is $72,000.
Clintegrity Investment total is $76,200
Part II:
Determine the payback period for each product.
3M: $72,000/112,800=0.64 It would take a little over 6 months for the payback period.
Clintegrity: 76,200/150,400=0.51 It would take a little over 5 months for the payback period.
Part III: Provide a 1-page proposal for the product you feel is the best choice for your
department.
Unit 2 Assignment- Vendor Selection
I did research on two new vendors for a Computer Assisted Coding (CAC) product for
my department. The first vendor that sent me an RFI (request for information) was 3M. The
second vendor is Clintegrity. I have done the calculations and compared both vendors to see
which one will be the best fit for my department to run smoothly and efficiently.
To start with 3M our total investment amount would be $72,000 with a payback period of
a little over 6 months. It would result in a 15% reduction in coding productivity costs. Currently
we are at $752,000. This would save us $112,800.
With Clintegrity our total investment amount would be $76,200 with a payback period of
a little over 5 months. With this vendor it would be a 20% reduction in coding productivity costs
which would save us $150,400.
Going over the numbers and comparing 3M to Clintegrity I would like to go with 3M.
Clintegrity results in a 20% reduction in coding productivity costs and a slightly shorter payback
period. However, we must invest more money in this vendor than 3M and since we already are
using 3M,
our staff is familiar with it and we will save time and money by not having to train
our employees on a new Computer Assisted Coding (CAC) product. You also must keep in mind
that “the payback period does not consider any cash flows after the payback is complete and is
therefore biased against projects that may take longer to mature and begin to produce cash”
(White, 2018). Overall, in this situation I believe that 3M is our best option.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Unit 2 Assignment- Vendor Selection
3M
Clintegrity
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
3M vs. Clintegrity
Investment
Column1
Unit 2 Assignment- Vendor Selection
References:
White, S. E. (2018). Principles of Finance for Health Information and Informatics
Professionals. American Health Information Management Association.