Business Case Analysis: Reconfiguration of the Frederick Memorial Healthcare System Courier Service
Abstract
This business case projects the likely benefits and costs to Frederick Memorial Hospital that would result from a decision to reconfigure its courier service by way of vehicle diversification and route realignment. Presently, Frederick Memorial Hospital couriers employ inefficient utility vans on redundant routes that are not meeting the hospital's entire demand for courier services. By way of investing in fuel-efficient vehicles, reducing manpower levels, and realigning courier routes, this case proposes changes to the courier service that represent a cumulative savings of $883,263.53 over a five-year analysis period. This equates to an expected five-year return on investment of 2,294%, and a payback period of roughly 3.5 months. After adjusting for the discount rate, the annual cumulative savings equate to a net present value of $761,559.36. Based on five months of exhaustive research and the analysis presented here, it is highly recommended that Frederick Memorial Hospital accept the proposal to reconfigure its courier service by way of vehicle diversification and route realignment.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 13, 2008
- Accession Number
- ADA493596
Entities
People
- Nathan C. Rauch