A USHospital System Is Considering Outsourcing a Portion of Its Diagnostic

question 14

Multiple Choice

A U.S.hospital system is considering outsourcing a portion of its diagnostic workload to a medical consulting firm based in India.In the United States these diagnostic services,done internally by the hospital system,cost $700,000 per year.The consulting firm would charge $400,000 per year for the same workload.In addition,the hospital system expects to spend $50,000 per year in managerial oversight,$8,000 per year administering the contract,and $125,000 to initially train the consulting firm's staff (amortized over five years) .What is the total annual outsourcing cost during the first five years?

• A) $400,000.
• B) $483,000.
• C) $578,000.
• D) None of the above.

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Definitions:

High-High Style

A leadership approach that is high in both task orientation and relationship orientation, balancing work requirements with support for team members.

Performance Outcomes

The results or outputs achieved from a certain activity or process, often measured against preset standards or objectives.

Behavioral Approach

A method of studying leadership or other psychological phenomena by observing and analyzing observable behaviors rather than internal processes.

Leadership Behaviors

Actions and attitudes demonstrated by leaders, including how they communicate, motivate, and guide their followers toward achieving goals.