It always confused me. A hospital has an MRI or some other machine, and you hear they try to use it as little as possible to cut costs, because it costs them this or that amount per usage. But why would that be if they own it?
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Because machines break down. Using any machine causes wear and tear on the parts which will eventually have to be replaced; a machine is usually rated for some number of uses or some number of hours of active use, so you can divide the total cost of the machine by the number of uses to figure out how much it costs each time it’s used. An MRI machine can cost well above $1 million, and if it’s rated for, say, 10,000 uses before it has to be replaced then each use costs $100. That also doesn’t count the cost of the electricity, the wages of staff, etc just to operate it.
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