Income Statement for the TAVR Project

An income statement is a significant statement of accounts that sums up the running costs of a commercial enterprise by differentiating the expenses incurred from the revenues earned within a specified length of time. In a situation where the income exceeds the expenditure, the business enterprise is believed to be operating at a profit and vice versa, making it the first accounting document to be prepared (DeFusco et al., 2015). Since the major goal of all commercial enterprises is the realization of profits, and then the success of the business can be determined by how much profit it has generated within a certain period. 

For the sake of our health institution, the profit and loss statement is necessary to determine whether the project to be undertaken will turn in profits for the hospital or not. Stakeholders, the board of directors, and the management would be interested in reading this piece of a financial statement as it will show them whether the project to be undertaken will have positive returns and if not, select another project that will generate profits for the organization (DeFusco et al., 2015). Therefore, to prepare the earnings statement, it's critical to determine what aspects should be factored in, and that will contribute to the success of the project. 

For instance, for the successful implementation of the Transcatheter aortic valve replacement (TAVR) procedure, it is vital to determine how many of the devices are going to be purchased and at what costs. This will assist indirectly by determining the best places that the devices can be purchased at discounted rates (Simon et al., 2018). In our case, the devices were found to cost USD 18,741.39 as seen in Appendix A. The price is excluding the transportation costs of the personnel who will be responsible for the acquisition of the devices which has been computed to be equivalent to USD 1,000. The training staff training costs should also be factored as the practice must be professionally introduced within the institution. 

Furthermore, it has been established that in our institution, no physician is competent in the use of the device. Thus, the four cardiologists within the facility will be selected for training program shown in Appendix B. The training costs together with the staff allowances have been computed to be at the cost of USD 9,200 for the one-day training program. Moreover, the cost of the procedure is proposed at USD 39,000 because the market cost for similar health services is USD 32,000 (Simon et al., 2018). The cost has been slightly increased because of the class of patients that the hospital has been serving is well-off. 

The projected number of patients targeted for the procedure is 400 in the initial year of introducing the services, and the number is expected to grow by 100 each year for the first three years. 

References 

DeFusco, R. A., McLeavey, D. W., Pinto, J. E., Anson, M. J., & Runkle, D. E. (2015).  Quantitative investment analysis . New Jersey: John Wiley & Sons. 

Simon, A. W., Kugelmass, A., Brown, P., Reynolds, M., Cohen, D., Katz, M., & Culler, S. (2018). 90-DAY COST AND CLINICAL OUTCOMES COMPARING TAVR TO SAVR: DO THE ECONOMICS WORK?  Journal of the American College of Cardiology ,  71 (11 Supplement), A1218.