Act in the role of a consultant to a physician who wants to establish “Oakville Open MRI
Clinic.” Dr. Hughes, is the physician in charge of exploring the development of an Open MRI
Clinic, which will be a part of Oakville Hospital. The proposed MRI clinic will be the only
“open” MRI operation in Oakville County. There are “open” units in Memphis, which is about
200 miles away, and there are many “closed” MRI facilities in the County. Oakville Hospital has
highly regarded neurological and radiology groups. Many aging baby boomers live in Oakville
County. There is a shortage of radiology techs needed to staff the Open MRI.
Dr. Hughes wants you to complete a draft of a business plan. The previous consultant completed
the Mission Statement, SWOT analysis, and Strategies sections of the Plan. Your function is to
draft any applicable economic, budgeting, and financial analysis sections, and to make
conclusions and recommendations based upon your analysis. Your business plan should include
worksheets and narrative. Should be both grammatically and mechanically correct, and formatted
in the same fashion as the project itself. If there is a Part A, your response should identify a Part
A, etc. In addition, you must appropriately cite all resources used in your response and document
in a bibliography using APA style.
NOTE: Perform sufficient research on Open MRIs to perform the economic analysis for this
project. Keep in mind that you are primarily interested in developing the feasibility analysis for
this project. You do not need to write an Executive Summary. As previously stated, you do not
need to draft a mission statement, SWOT analysis, or devise strategies. However, you are free to
develop any other aspect of a typical business plan you find applicable to the facts as stated in
this problem or based upon your research.
Part A Economic Issues: Dr Hughes would like for you to address the economic issues
arising from the following.
1.What type of price elasticity might be applicable to Open MRI services in
Oakville County? In other words, is pricing more likely to be elastic or inelastic?
Give two (2) reasons for your answer.
2.Identify four (4) factors (other than “utility” and “managed care organizations”)
that will influence the demand for Open MRI services.
3.Identify two (2) factors that will influence the supply (other than “utility” and
“managed care organizations”) of Open MRI services.
4.How might the concept of utility impact demand for Open MRI services?
Identify five (5) potential impacts.
5.How would managed care organizations impact demand and supply? Identify
four (4) potential impacts.
Part B Financial Analysis: Dr. Hughes obtained the following information from Memphis
Hospital Open MRI Clinic (MHOMC). This information for MHOMC is the most
analogous in scope to the clinic he is proposing to start.