1. What is Machine Burden Rate?

The Machine Burden Rate is a financial metric used to calculate the overhead cost associated with operating medical equipment per hour of usage. It helps in determining the true cost of machine operation for accurate pricing and cost control.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( overhead \) — Total overhead costs associated with the machine ($)
• \( machine\_hours \) — Total operational hours of the machine

Explanation: The equation divides the total overhead costs by the number of hours the machine was in operation to determine the cost per hour.

3. Importance of Burden Rate Calculation

Details: Calculating the machine burden rate is essential for medical facilities to accurately allocate costs, determine pricing for procedures, and make informed decisions about equipment utilization and purchasing.

4. Using the Calculator

Tips: Enter the total overhead costs in dollars and the total machine operational hours. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What costs should be included in overhead?
A: Include all indirect costs like maintenance, depreciation, space allocation, utilities, and support staff time associated with the machine.

Q2: How often should burden rate be calculated?
A: Typically calculated annually, but may be done quarterly if costs or usage patterns change significantly.

Q3: What's a typical burden rate for medical equipment?
A: Rates vary widely by equipment type and facility. High-end imaging equipment may have rates of $100-$500/hr while simpler devices may be under $50/hr.

Q4: How does this differ from direct operating costs?
A: Direct costs include consumables and operator time, while burden rate covers fixed and indirect costs of maintaining the equipment.

Q5: Can this be used for equipment replacement decisions?
A: Yes, burden rate is one factor to consider when evaluating whether to repair, replace, or upgrade medical equipment.