Literature Review :

Cost In-Flow for Project :

As both the group are self funded & have agreed upon to interest
without any loan has reduced the liability on net profit which shall
definitely boost to increase the revenue. This will give the project more
breathing period as there will be no loans.
Project Liabilities :
As the project will be self owned there shall be no problem of rent. Only
the cost of
Interior

2 Cr (approx)

Medical equipment

10 Cr (approx)

Total 12 Cr (approx)
are immediate liabilities and their mode of payment shall be decided
by the joint board meeting.
Asset :
Land -10 cr
Construction -7cr
As these are assets they are subjected incline or decline in property
rates. This shall also prove to be future assets in case of expansion
project as they can be used for collateral for further expansion.
Contingency & Working Capital :
Contingency & Working Capital is allotted 2Cr. Whereas fixed monthly
expense is 24.3 Lakhs out of which 15.3 Lakhs is for salary and 9lakhs
for maintenance of hospitals. So we shall be able to survive for period
of six months.

All the replenish able and disposable goods used in hospital shall be
monitored by management and non-management department for cost
efficiency. There shall be a fixed budget of these goods and which shall
be replenish by quarterly by bulk by method. These products will be
asked to replenish from patient in there in voice.
Expense :
It has two components :
1. Fixed Expense
Electricity
Mtnl/Net

-300000rs(3lakhs)
-30000rs

Salary

-1500000(15lakhs)

Maintenance -200000(2lakhs)
Marketing
Misc.

-100000(1lakh)
-100000(1lakh)

Property tax -200000(2lakhs)

Total

- 2430000 (24lakhs)

2. Variable Expense :
Referal Bonus
Consultants

-10000000rs(1cr)
-10000000rs(1cr)

The above stated expense is a form of remuneration to

consultants for their loyalty to the hospital which shall be
converted to discount if the consultant declines this
remuneration.
These are approximation with 100 occupancy. These will decline
with decrease in occupancy.

Outsource Branches :
Pharmacy & Pathology has been outsourced. In case either of the party
wishes to take pharmacy and pathology shall be given first preference
but shall not come under joint venture. They shall subjected to deposit
of 5Cr and rent of applicable market rate & shall be subjected to 50%
sharing of net profit. In case of 100% it is 1.2Cr pharmacy and 74lakhs
pathology and in case of 50% it shall be 60 lakhs for pharmacy and 12
lakhs for pathology.
Income :
All the approximation have been done in accordance with appendix 2.
Case 1:
If 100% occupancy for 1month :
Income
Expense
IPD

3.59Cr

0.24Cr
OPD
VARIABLE
PHARMACY

0.48Cr
2Cr
1.2Cr

FIXED

PATHOLOGY

0.24Cr
TOTAL

INCOME

5.51Cr

TOTAL EXPENSE

2.24Cr

NET PROFIT

3.11Cr

Case 2:
If 50% occupancy for 1month :
Income
Expense
IPD

1.79Cr

FIXED

0.48Cr

VARIABLE

0.24Cr
OPD
1Cr
PHARMACY

0.60Cr

PATHOLOGY 0.12Cr

TOTAL

INCOME

2.99Cr

TOTAL EXPENSE

1.24Cr

NET PROFIT

1.75Cr

Break-Even :
Case 1:
If 100% occupancy for 10 months break even will be achieved:
Total cost of project
Net Income
Break Even Period

31Cr
3.11Cr
10 months approx

Case 2 :
If 50% occupancy for 20 months break even will be achieved.
Total cost of project
Net Income
Break Even Period

31Cr
1.75Cr
20 months approx

Case 3 :
Below 50% it will take above 24 months.

Appendices :
This is the financial details of phoenix hospital borivali which is
40bedded in the same vicinity is used for approximation in the
financing details of above project
Appendix 1 :
Assumption for the Day :
OPD 65 Patients per day at a charge of Rs. 500 per patient
Lab Tests 50 Patients of OPD at Rs. 500
Lab Tests 25 Patients of In-house at Rs. 1000
X-ray 25 OPD at Rs. 300
X-ray 25 IPD at Rs. 200
Ultra Sound 10 at Rs. 1000
Physiotherapy 10 at Rs. 200
Counseling 5 at Rs. 300

MTP 2 at Rs. 3000

Delivery 2 at Rs. 15000
Surgeries 4 at Rs. 50000
Indoor Stay 25 at Rs.3000
ICCU 7 at Rs. 10000
Health Checks 10 at Rs. 1000
Drugs & Consumables Rs. 100000
No. of Beds = 40-45