Planning Feasibility of an ENT (Otorhinolaryngology) Daycare Surgical Unit with Reference to Return on Investment.

Abstract

To project return on investments for a private ENT (Ear, nose & throat) autonomous surgical day care unit attached to large academic hospital, as a business model. Prospective, Observational study was conducted at two hospitals - a medical college hospital and a private hospital. Financial revenue generated from both hospitals was computed for a 1-year period. Historic 3-year arrival rates of patients against the name of surgery performed were collected from the statistics department of both hospitals. From this new day care unit feasible number of patients in 1 year period were projected. Personal identifiable information or health information about patients was not collected. Medical College hospitals cater to public health insurance patients from government. The package prices would be lower in government insurance schemes, but the volume of patient arrivals will be high. This large number of arrivals would be essential for maintaining bed occupancy rates, which is ideal for student training. Private hospitals receive more volume of out-of-pocket patients; hence a comparative study is useful. The net operating margin for a large hospital stands at 45% and for a small hospital it stands at 25% per annum, without considering the capital infrastructure costs. Administrators of hospitals can strategize towards achieving profitability. Both types of hospitals can successfully implement the day-care surgery model with substantial profits, improving operational efficiency and patient turnover.