Your hospital will need 10 POC coag instruments. The instruments will be purchased and are expected to have a useful life of 5 years. The previous instruments (n=10) were also purchased and were used for 4 years. Test strips are packaged in vials containing 100 strips each for both the current and proposed instruments. QC is integrated into each test strip. Training time for POC testing staff (nurses) is estimated at 1.5 hours. Initial training of approximately 75 nurses will be done by nursing service over the first 6 months with ongoing training required due to turnover and use of contract nurses. Ongoing training will return to the level required for the

current method (3 per month).

Test volume per month: 7,000 Total indirect costs: space cost, utilities, inventory: $5 per instrument/month Average nursing salary: $40 per hour + 20% benefits Current Method iSTAT Proposed Method Coagucheck XS Reagent cost (per vial) $495 $525 Instrument purchase cost (per instrument ) $1200 $1500 Service Contract (per instrument per month) $125 Included for year 1 # of Nurses trained per month 3 per month 12 per month for 1st 6 months; 3 per month after Training time (per person) 1 hour 1.5 hours Time per test (see product comparison) 3 minutes 1 minute

what is the answer below

Annual Test volume=?

Total Annual Indirect cost =?

Average nursing salary per hour=?

FTE Annual Total hrs = 2080

FTE Annual productive hrs = 1920

FTE Annual productive mins: 1920 x 60min/hr= 115,000 min/year

	Current Method	Proposed Method
Annual cost for 1 FTE nurse
Required FTE cost to operate the instrument
Potential FTE savings with the proposed new method