INFOSHARE MANAGEMENT SYSTEMS

2 0 1 1 4 B L O C K 1 2 , L OT 1 5 , G U I J O H . R O S A R I O V I L L A G E , L A G A O ,
G E N E R A L S A N TO S C I T Y
Outline
A. Reviewing the Scenarios
B. Assumptions vs Reality
C. Next Steps
Reviewing the Scenarios
Reviewing the Options
Scenario A: No Private Partners
Scenario B: Outsourced Labor
Scenario C: Rentals or Concessions
Scenario D: Profit Sharing

pp. 69-70
Scenario A: No Private Partners
 Full control of Decisions
 Solo Responsibility for
 Personnel Costs
 Drugs and medical supplies
 Maintenance expenses
 Purchase of medical equipment
 Loan repayment
 Subsidy of hospital bills
Scenario B: Outsourced Labor
 Lessened Personnel Costs
Outsource the following:
 Orderlies,
 Security force,
 Laundry ladies, and
 Staff nurses
 Government Employees: Medical Personnel and
Administrative Staff
Scenario C: Rentals or Concessions
 Least Control and Least Responsibility
 Renting Out Hospital Facilities
 Hematology Laboratory
 Radiology Department
 With Monthly Rental Fee and additional 5% from gross
earnings
Scenario D: Profit Sharing
 Sharing of Profit and Expenses
 60-40 split
 60% concessionaire
 40% hospital
 Only for the following
 Hematology Laboratory
 Radiology Department
 Dialysis Unit
Start Up Requirements
400,000,000.00
350,000,000.00
300,000,000.00
Fixtures
250,000,000.00
Vehicle
200,000,000.00
Medical Equipment
150,000,000.00 Building and Land Devt
100,000,000.00 Pre-Op Expenses
50,000,000.00
-
Scenario A & B Scenario C & D
Loaned Amount
400,000,000

350,000,000

300,000,000

250,000,000

200,000,000 DOH Funding

Amount to be Loaned
150,000,000

100,000,000

50,000,000

-
Scenario A & B Scenario C & D
Financial Indicators
Indicator Scenario B Scenario D
NPV P 10,107, 140 P 11,122,700
IRR 14 percent 14 percent
Payback Period 14.62 years 14.08 years
Simple Rate of Return 6.84% 7.10 %
 Sensitivity Analysis
Scenario B Scenario D
Case
NPV IRR NPV IRR
A decrease in revenue by 10 % 208,344.67 67% (6,745.20) 11%
A decrease in revenue by 20 % 165,243.17 53% (25,947.82) 7%
An increase in operating
expenses by 10 % (106,173.04) -2% 27,619.05 17%
An increase in operating
expenses by 20 % (384,759.52) (55,944.26) 7%
Additional Gov’t Support (in millions)

Scenario Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Scenario B (115,835) (47,676) (46,204) (30,100) (17,037)
Scenario D (85,860) (36,963) (34,065) (20,159) (6,359)
Economic Indicators
Economic Economic
NPV IRR
Scenario B 127,737.94 35%
Scenario D 74,496.26 31%
Assumptions and Reality
Assumptions Reality
 200 bed capacity  60 bed capacity
 2015 start date  2015 start date
 All phases completed  Only Phase 1 is complete
 All departments are in  Only ER and Ward is ready
place
Next Steps
Definite Steps
 Adjust business plan for 60 beds
 OR in Phase I
 Personnel plan and other expenses
 Additional capital for next phases
 Added number of beds per phase
 Revisit data for 2012-2014 health statistics
Other Steps
 Possible private partners for
 Laboratory
 Radiology
 Pharmacy