(b) Equipment Depreciation Costs: When hospitals purchase capital equipment, the cost is expensed over the number of years the equipment is expected to be used. The depreciation period for equipment ranges from three to ten years, depending on the hospitals accounting policies. In Table 1, we assume that the relocation of testing to a stat lab would require acquisition of new benchtop systems, including a primary and a backup blood gas/electrolyte analyzer and a centrifuge for hematocrit. The estimated purchase price for the two units is $31,500 for the primary system and $10,000 (discounted) for the backup unit required to ensure continuity of service. Other alternatives, such as the retention of current equipment, could have been considered for the backup unit, but this was thought to involve risks associated with uncertain correlation between the primary and backup units. The cost of a centrifuge is estimated to be $1,000. With a depreciation period of five years, the annual depreciation cost for equipment in the stat lab is $8,500. buy antibiotics online
In Table 1, the bedside alternative also assumes the acquisition of new equipment, such as the GEM-STAT System (Mallinckrodt Sensor Systems, Ann Arbor, MI) with a list price of $19,500. The backup unit is discounted to $10,000. The annualized cost of instruments for bedside testing, depreciated over five years, is $5,900.