WGU AMT2
Service Line Development
Tasks 1,2,3 and 4
Passed on First Attempt |Latest Update with
Complete Solution
Table of Contents
AMT2 Service Line Development Task 1 …………………………………………………………………….. 4
AMT2 Service Line Development Task 2……………………………………………………………………. 10
AMT2 Service Line Development Task 3……………………………………………………………………. 14
AMT2 Service Line Development Task 4……………………………………………………………………. 23
, Task 1
A1A. Building Advantages
Building a new Orthopedic service line comes with great advantages. The main advantage is the building
would be attached to the current hospital. Therefore, the new Orthopedic service line would have
immediate support from the current hospital. The emergency room and intensive care unit are only
minutes away. The hospital also has proper security and IT services available we can tap into. The price is
also favorable, $120 per square foot for 5,000 square foot building puts a $600,000 price tag on the
building. Building a new Orthopedic clinic will give us the opportunity to create and design our facility as
we envision. Also, by owning, it gives the ability to depreciate the property for up to twenty years.
A1B. Buying Advantages
The advantage of buying a building for a new Orthopedic service line is there would be
limited renovations that need to be completed. Therefore, the facility would be move-in ready
and the company could start making revenue faster. Another advantage is the company would
own property. As the company continues to grow and become stronger, the extra property
would be great to have for further expansions due to having limited available space left on
campus. There would also be tax advantages to owning property.
A1C. Leasing Advantage
The advantage of leasing a building for a new Orthopedic service line would be the
ability to negotiate terms of the contract. We could negate the contract to fit our needs for the
current situation, we could avoid a long term commitment. There would be less sunk cost with a
lease if the Orthopedic service line is unsuccessful. A building lease would be more feasible to
sustain for a certain period of time than an expensive property purchase. The monthly cost of
, the lease is $10,000 per month, which would allow the company to retain more capital reserves.
Leasing would allow the Orthopedic service line to open quickly and start producing revenue.
A2A. Building Disadvantages
The disadvantage of building a new Orthopedic service line is we would be taking the
last available space at the hospital. The impact of the construction would have a hindrance to
the current day to day operations of the hospital. Many of you may know, with renovations
there comes a lot of noise, dust, heavy machinery, and time. Heavy construction equipment
would be occupying the already limited parking space. It will take a lot more time and patience
to design and build on to the hospital. There would also be times when the water and/or power
will need to be shut off from the hospital to add new connections and services to the new
Orthopedic service line.
A2B. Buying Disadvantages
A huge financial disadvantage of buying a new Orthopedic service line is the big price tag
of $700,000, which is by far the most expensive option. Another disadvantage is not having
support from the hospital. The Orthopedic clinic would be required to start from the ground up
and build up with needed services and suppliers. We would need to ensure the new Orthopedic
service line has the proper maintenance staff, security staff, IT staff, insurance policies, and
telephone and internet installations. We would also need to ensure all of the computers are
compliant with HIPPA. The new clinic would also be required to set up accounts for medical
supplies and medical services needed.
Service Line Development
Tasks 1,2,3 and 4
Passed on First Attempt |Latest Update with
Complete Solution
Table of Contents
AMT2 Service Line Development Task 1 …………………………………………………………………….. 4
AMT2 Service Line Development Task 2……………………………………………………………………. 10
AMT2 Service Line Development Task 3……………………………………………………………………. 14
AMT2 Service Line Development Task 4……………………………………………………………………. 23
, Task 1
A1A. Building Advantages
Building a new Orthopedic service line comes with great advantages. The main advantage is the building
would be attached to the current hospital. Therefore, the new Orthopedic service line would have
immediate support from the current hospital. The emergency room and intensive care unit are only
minutes away. The hospital also has proper security and IT services available we can tap into. The price is
also favorable, $120 per square foot for 5,000 square foot building puts a $600,000 price tag on the
building. Building a new Orthopedic clinic will give us the opportunity to create and design our facility as
we envision. Also, by owning, it gives the ability to depreciate the property for up to twenty years.
A1B. Buying Advantages
The advantage of buying a building for a new Orthopedic service line is there would be
limited renovations that need to be completed. Therefore, the facility would be move-in ready
and the company could start making revenue faster. Another advantage is the company would
own property. As the company continues to grow and become stronger, the extra property
would be great to have for further expansions due to having limited available space left on
campus. There would also be tax advantages to owning property.
A1C. Leasing Advantage
The advantage of leasing a building for a new Orthopedic service line would be the
ability to negotiate terms of the contract. We could negate the contract to fit our needs for the
current situation, we could avoid a long term commitment. There would be less sunk cost with a
lease if the Orthopedic service line is unsuccessful. A building lease would be more feasible to
sustain for a certain period of time than an expensive property purchase. The monthly cost of
, the lease is $10,000 per month, which would allow the company to retain more capital reserves.
Leasing would allow the Orthopedic service line to open quickly and start producing revenue.
A2A. Building Disadvantages
The disadvantage of building a new Orthopedic service line is we would be taking the
last available space at the hospital. The impact of the construction would have a hindrance to
the current day to day operations of the hospital. Many of you may know, with renovations
there comes a lot of noise, dust, heavy machinery, and time. Heavy construction equipment
would be occupying the already limited parking space. It will take a lot more time and patience
to design and build on to the hospital. There would also be times when the water and/or power
will need to be shut off from the hospital to add new connections and services to the new
Orthopedic service line.
A2B. Buying Disadvantages
A huge financial disadvantage of buying a new Orthopedic service line is the big price tag
of $700,000, which is by far the most expensive option. Another disadvantage is not having
support from the hospital. The Orthopedic clinic would be required to start from the ground up
and build up with needed services and suppliers. We would need to ensure the new Orthopedic
service line has the proper maintenance staff, security staff, IT staff, insurance policies, and
telephone and internet installations. We would also need to ensure all of the computers are
compliant with HIPPA. The new clinic would also be required to set up accounts for medical
supplies and medical services needed.
