| Many challenges facing health care are due to medical errors, patient safety, and increased medical costs. By reducing any of these factors, a healthcare facility can gain an advantage in the current global market. Radio Frequency Identification (RFID) technology can help hospitals keep track of patients, medication, equipment, and many other items critical to patient care. However, RFID in health care is a new technology and there is a lack of information about its cost, possible effects of Electromagnetic Interference (EMI), and the need to keep information private. This paper discusses the use of Real Options Valuation (ROV) as a method for RFID cost analysis. The best ROV method to be used for RFID was found to be the Black-Scholes method. It was also found that EMI from RFID was found to be similar to cell phone interference and applications such as MedAssist can keep information private. |
