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Both of these delivery systems required frequent home visits by suppliers to replenish oxygen supplies. In the United States, Medicare switched from fee-for-service payment to a flat monthly rate for home oxygen therapy in the mid-1980s, causing the durable medical equipment (DME) industry to rapidly embrace concentrators as a way to control costs.
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Estimating the cost savings required to justify the purchase of new equipment. [13] Determining the cost of continuing with existing equipment. [14] Where an asset undergoes a major overhaul, and the cost is not fully reflected in salvage values, to calculate the optimum life (i.e., lowest EAC) of holding on to the asset. [15]
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