2023

Proposed Satellite Hospital

Feasibility Study

Pascual Rebarter Jr.

1/1/2023
Satellite Office: CADAY Bldg., 3Flr., George Town Sbcdn., Molino 4, Bacoor, Cavite 4102
Registered Address: MBT Bldg., #Flr., Unit K, Promenade South, Molino-Paliparan Rd., Salawag, Dasmarinas, Cavite
Contacts: 046-418-9716 / Globe: 0945-269-3071 / Smart: 0939-352-4044 / Whatsapp: 0918-957-0921
Email: [email protected]
 ISO 9001
QUALITY ASSURED COMPANY

OUR LADY OF THE PILLAR MEDICAL CENTER

PROPOSED SATELLITE HOSPITAL

FEASIBILITY STUDY
 Expansion Feasibility Study

Table of Contents:

Location Map

I. Abstract

II. Introduction of the feasibility study

III. Executive Summary

a. Introduction

b. Statement of Project Need for Future Hospital Project

IV. Market Analysis and Strategy

V. Market Services Insight

VI. Areas of Market Feasibility

VII. Financial Feasibility

VIII. Conclusion and Feasibility Summary

IX. Figures

A. Return of Investment Projection

B. Capital Expenditure

C. Operation Cash Outlay

X. Contractors / Suppliers
A. CNW CONSTRUCTION CORPORATION
B. NICKEN INDUSTRIAL MACHINES, PARTS and SUPPLY
 Expansion Feasibility Study

Location Map

I. Abstract

Everyone knows the importance of technological development happening day to day in

the world. Wherein the principle of supply and demand normally applies. In a healthcare industry
like the hospital the more innovative services being offered the more patient we cater. It is
important that we develop a more advance technology and increase the services that a hospital
offers. Our Lady of the Pillar Medical Center aims to be the center for wellness and the leading
provider of health care service not only to the people of Imus, Cavite but to the entire
CALABARZON area.

II. Introduction of the feasibility study

The aim of the feasibility study is to conduct a research on the services being availed by
our patients and the innovation that is in demand at this time. The study defines the viability of
a new business venture by constructing a new medical arts building which can cater more
patients who wish to avail of the services of the hospital. The expansion of the hospital will bring
a new image to the existing valuable image of Our Lady of the Pillar Medical Center. It is
therefore an established conclusion that with the high demand of additional hospital services,
we can therefore say that the expansion of a new medical arts building is viable
 Expansion Feasibility Study

II. Executive Summary

A. Introduction

The project feasibility report is for the proposed purchase and expansion of Our Lady of
the Pillar Medical Center. This study has been prepared to support the proposed Capital Outlay
Budget to be submitted to prospect investors. This report documents the need for the proposed
purchase and expansion facility, describes the alternative ways to meet the clients underlying
need to evaluate the proposed project. It outlines the recommended projects, provides summary
of possible sites for hospital expansion and financial viability and analysis.

B. Statement of Project Need for Future Hospital Project

At present, the hospital is in dire need of new innovative and more efficient health care system
in order to be considered the best hospital in town for the next 10 to 20 years to come. In order
to make it happen we consider the following concerns.

1. The long Term Inter-Town Strategy

An integrated strategy showing how all elements of the health service will fit and work together
in the future. OLPMC, considers there should be a document defining the balance between the
future models for acute, primary, social and community care digitization, off inter town solutions
and workforce attraction, retention and management, together with aligned provision of shared
back-office support functions.
It is important that hospital services and services outsides of the hospital are part of a continuum
of care which should be planned as a whole system. The new hospital will be the most expensive
capital project undertaken and therefore it should be demonstrated to be fit for the future and not
just a replacement on a like for like basis of the existing building.

2. Transition Plan
This transition plan we are showing how all elements of the health service will evolve and how
the financial, clinical and operational risks will be mitigated.

3. Governance of the future hospital project

The structure of the projects management team and its experience of transforming health
services and building new facility.

4. The preferred site including disruption, costs and risk

The construction of a new hospital medical arts building immediately adjacent to the existing
hospital while it remains operational will raise added complexities. There will be cost arising from
the need to temporarily provide new parking allocations for all patients of the existing hospital
due to the construction of the new medical arts building.
IV. Market Strategy and Analysis

Healthcare services are the largest shareholders of the healthcare industry.

Pharmaceutical companies, medical devices sector, term care services, healthcare facility
management services and medical consumables industry together contribute toward the
healthcare services market. Even as an end-use segment, hospitals have the largest consumer
base within the healthcare industry. Hospitals, therefore are an integral part of the healthcare
sector and are a major revenue source for the entire industry which fuels research and
innovation. Therefore, multiple corporations invest significant efforts, both in terms of revenue
and marketing strategies, to promote their product/services among the hospitals. Hence,
strategic decisions within the hospital sector can affect other sectors within the healthcare
industry, giving them considerable power to dictate terms of the contract with suppliers/service
providers/distributors.

Hospital services include the cost of equipment and ancillary services, but primarily involve
service costs of healthcare professionals. Besides personnel cost, healthcare services also
include the revenue from hospital disinfection services, asset maintenance costs ( repair of
equipment and infrastructure ), and other costs.

V. Market Services Insight

Hospital service areas are segment by medical conditions into acute care, cancer care,
cardiovascular, neurologic rehabilitation and psychiatry services, pathology laboratory
diagnostic and imaging, obstetrics and gynecology, and others. Each service area covers a
significant condition for a demographic and observes major diseases/conditions with high
prevalence.

Based on type, the hospital services market has been classified into inpatient and outpatient
services. Till recently, inpatient services, including hospitalization procedures that require a
patient stay, were considered as a primary revenue source for hospitals. However, in recent
times, due to improved quality of wound healing equipment and quicker recovery from surgeries,
patient stay duration has decreased significantly, resulting in the gradual decline of the inpatient
market. Furthermore, the longer hospital stay is an additional cost for hospitals, as they reduce
a hospital’s capacity to admit new patient.

The outpatient market, on the other hand, is expected to grow in the future as a result of
development in communication technology, which paved the way for the growth of telemedicine
and remote consultation procedures. Shorter patient stay and higher medical costs for inpatient
have therefore made outpatient segment a more lucrative market for hospital services provided.
VI. Areas of Market Feasibility

In this section we’ll discuss different area of the project feasibility which maybe consider
during the assessment of the proposal. For every project transient and every development
phase, the feasibility may be considered as an important step for the investor or the organization
to make sure that their mission is officially feasible, gainful to the organization and beneficial to
the many.

A. Economic
Economic study related with price and all kinds of expenditure related to any scheme before any
project and proposal starts. This study also improves project reliability. It also helpful the decision
makers to design the planned scheme. This evaluation process also studies the price benefits
of the proposal.

B. Operational
Operational feasibility may employ the responsibility to examine and also decide whether the
proposed methods fulfill all kinds of business requirements. An effective operation must be
carefully chosen, In this way we ensure a good management that will be responsible and can be
held accountable for proper policies to guide the business in realizing the corporate goals and
objectives.

C. Financial
It is part of the study wherein the results of the marketing and management is being measured.
It is likewise expressed in financial terms the possibility and the profitability of the project. The
financial aspect of the study covers all expenses, like purchase of shares from the shareholders,
purchase of the new lot location for proposed satellite hospital and the construction of the new
medical arts building and the expansion of a multi-level parking. It shall entail cash management,
sound financing and investment measures, treasurer-ship as well as controllership.
 MARKET ANALYSIS

Market Growth Actual Potential

and Profitability Market Size

Market
Analysis
Identifier

Expansion and Key Success

Development Factor

Importance of having Market Analysis Identifier:

In creating a Marketing Analysis for a viable business venture, we typically consider different
Marketing Analysis, which help us analyze the feasibility of a business venture. With the
identifiers investors gauge the importance of a business opportunity.
 Graphical Presentation showing percentage of Inpatient and Outpatient
Services for the past two (2) years.

40% In-Patient
Out-Patient

60%

Market Analysis on the Graphical Presentation showing the Percentage of

In and Out Patients
The percentage of the out-patient department determines the increase growth of patient
availment which means an increase in the income of different ancillary services which most of
the Out-Patient customers availed. The increasing percentage of the Out-patient department is
remarkable in the past two years considering the outbreak of the COVID – 19 pandemic, which
brings t the need of new innovative and additional services we can offer our patients. On the
other hand, the percentage showing the number of the In-patient services does not mean a
decreasing income for the hospital, the average percentage shown in the presentation, the
decreases of the patient to have their selves admitted due to the reason of anxiety as a result
of the pandemic, through the remarkable percentage states the challenging effort of the hospital
to increase the number of In-patient services in the next 5 years and providing new attractive
services to patients which will bring increasing number of profit to the hospital.
 Presentation of Services Availed in the Hospital for the Past Two (2) years.

Percentage of Service Availment

90

80

70

60

50

40

30

20

10

Market Analysis on the Percentage of Service Availed in the Hospital

It is indeed remarkable in checking on the graphical presentation of the most common services
availed in the hospital, may it be out-patient or in-patient services. Imaging, Cardiovascular and
Rehabilitation services are continuously increasing as we open the hospital to the public again.
The need of new radiologic services like MRI would be of great addition to the increasing profit
of the services in the hospital. Laboratory, hemodialysis and eye center are most in demand of
the services being offered in the hospital, considering that most of the patients who come to
the hospital in the past years would request for laboratory procedures, eye consultation and
operation. One of the most needed laboratory service is the presence of an onsite blood bank
center and a drug testing facility which we can provide as an additional profitable service we
can offer our patients. Out Hemodialysis is one of the departments wherein most of the
nephrologic cases we cater, the need to increase the number of beds and equipment is highly
remarkable to happen. The percentage of patients per week may justify the establishment of a
new hemodialysis center or a stone center perhaps. An onsite pharmacy is also one of the
services we can improve and offer to the patients, there is a need to open a new pharmacy
which is open to the public with wide array of pharmaceutical products which readily available
to the public for purchases. At present the pharmacy has a strong contribution to the increasing
sales of the hospital. Not to mention the pulmonary availment of patients needing immediate
treatment which involves pulmonary medicines.

Where does Our Lady of the Pillar Medical Center stand in terms of Market Share?
 Market Share

Medical Center Imus

MCI

OLPMC IFH
Imus Family Hospital

St. Dominique Medical Center

EAC SDMC
Emilio Aguinaldo Medical Center

Our Lady of Pillar Medical Center

Our Lady of the Pillar Medical Center stands 40% in terms of the total Market share of nearby

hospitals with the 1 Kilometer and other diagnostic er radius from the vicinity of the location of Our

Lady of the Pillar Medical Center. Market share is categorized in terms of number of patients who

visits the hospital for out-patient consultations, in-patient admissions, availment of laboratory and

other diagnostic procedures. OLPMC, remains to be the leading providing of an excellent health

care system in Cavite. With the growing increase of services of the hospital we aim to achieve the

50% Market share in the next Five (5) years. With the proposed expansion and creation of a New

Medical Arts Building and the creation of new viable services that will cater the needs of the people

of Cavite. The future construction of a satellite hospital in Anabu shall create a new strong market

towards the South portion of the province.

 VII. Financial feasibility

Financial feasibility is one of the most important areas we consider in a feasibility study.
Financial feasibility focuses specifically on the financial aspects of the study. It assesses the
economical viability of a proposed venture by evaluating the startup costs, operating
expenses, cash flow and making a forecast of future performance.

The results from a financial feasibility study determine whether the proposed project is
financial possible and make a provision on the rete of return on invested capital.

NETE SALES VS. NET PROFIT FOR FINANCIAL VIABILITY

NET PROFIT
NET SALES

0 10 20 30 40 50 60 70 80

Significant increase of net income sales and the increase in demand of the net profit brings
to conclusion that business is viable. Interpretation of the graph shows in the next five years
there is a significant possibility of the need of the patients for a more complex and innovative
hospital near their area. The construction of a New Medical Arts Building will be one of the
visible and concrete answer to the needs of the community.
VIII. Conclusion and Feasibility Summary
The preceding chapters of this study provided the details of the different studies conducted for the
expansion project of Our Lady of the Pillar Medical Center. The final analysis obtained during the
study of the various aspects has been summarized in this chapter.

Feasibility Summary
The market study conducted shows a bright trend of health care sector, and with on-going increase
of the services availed in the hospital, the hospital has been a go to option by most investors and
developers, as it can reap rewards and value for their money on the long run.

IX. Figures

RETURN OF INVESTMENT PROJECTION

18.00

16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

0.00
1 2 3 4 5 6 7 8

Return on investment is a simple calculation but provides very useful and first-hand information to the
investors about their investment. The ROI analysis further helps investors and management to gauge
if they should continue the investment in a specific instrument or project or look for other alternatives.

In this presentation we can determine the remarkable increase for the rate of the return of investment,
the first year maybe a significant time, since it is the year following the pandemic. The next few years
may have a slow growth of the return due to the adjustment of the patients in lieu od the continuing
threat of the pandemic moving towards the end of the fifth year, where everything is in place and most
of the people had already adjusted to our new normal, we can say that we’ve achieved the return of
investment we are aiming.
 NET INCOME SALES YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8

AVAILMENT OF DIFFERENT SERVICES ₱900,000,000.00 ₱990,000,000.00 ₱1,089,000,000.00 ₱1,197,900,000.00 ₱1,317,690,000.00 ₱1,449,459,000.00 ₱1,594,404,900.00 ₱1,753,845,390.00

RENTAL OF ROOMS ADMISSIONS

₱45,000,000.00 ₱49,500,000.00 ₱54,450,000.00 ₱59,895,000.00 ₱65,884,500.00 ₱72,472,950.00 ₱79,720,245.00 ₱87,692,269.50
(P2500/Rm@50Rms * 12Mth)

RENTAL FROM COMMERCIAL SPACES

₱4,320,000.00 ₱4,752,000.00 ₱5,227,200.00 ₱5,749,920.00 ₱6,324,912.00 ₱6,957,403.20 ₱7,653,143.52 ₱8,418,457.87
(P60k/Space * 12Mnth )

RENTAL OF DOCTORS OFFICES (P25k/Rm @

₱9,000,000.00 ₱9,900,000.00 ₱10,890,000.00 ₱11,979,000.00 ₱13,176,900.00 ₱14,494,590.00 ₱15,944,049.00 ₱17,538,453.90
30rms * 12Mth)
INCOME FROM MULTI LEVEL PARKING
(P1,825 @ 1600sqm) + increment of 10% / Yr. ₱8,760,000.00 ₱9,636,000.00 ₱10,599,600.00 ₱11,659,560.00 ₱12,825,516.00 ₱14,108,067.60 ₱15,518,874.36 ₱17,070,761.80
( 3-STOREY )

OTHERS ₱300,000.00 ₱330,000.00 ₱363,000.00 ₱399,300.00 ₱439,230.00 ₱483,153.00 ₱531,468.30 ₱584,615.13

TOTAL AVERAGE NET INCOME SALES PER

₱967,380,000.00 ₱1,064,118,000.00 ₱1,170,529,800.00 ₱1,287,582,780.00 ₱1,416,341,058.00 ₱1,557,975,163.80 ₱1,713,772,680.18 ₱1,885,149,948.20
YEAR

OPERATING CASH OUTFLOWS

MISCELLANEOUS / OTHER EXPENSES ₱200,000.00 ₱220,000.00 ₱242,000.00 ₱266,200.00 ₱292,820.00 ₱322,102.00 ₱354,312.20 ₱389,743.42

EMPLOYEE SALARIES ₱9,600,000.00 ₱9,600,000.00 ₱9,600,000.00 ₱9,600,000.00 ₱9,600,000.00 ₱9,600,000.00 ₱9,600,000.00 ₱9,600,000.00

EMPLOYEE BENEFITS ₱500,000.00 ₱500,000.00 ₱500,000.00 ₱500,000.00 ₱500,000.00 ₱500,000.00 ₱500,000.00 ₱500,000.00

SUPPLIES PURCHASES ₱100,000.00 ₱100,000.00 ₱100,000.00 ₱100,000.00 ₱100,000.00 ₱100,000.00 ₱100,000.00 ₱100,000.00

PAYROLL TAXES ₱50,000.00 ₱52,500.00 ₱55,125.00 ₱57,881.25 ₱60,775.31 ₱63,814.08 ₱67,004.78 ₱70,355.02

PERMIT AND LICENSES ₱50,000.00 ₱50,000.00 ₱50,000.00 ₱50,000.00 ₱50,000.00 ₱50,000.00 ₱50,000.00 ₱50,000.00

BUSINESS TAXES ₱100,000.00 ₱100,000.00 ₱100,000.00 ₱100,000.00 ₱100,000.00 ₱100,000.00 ₱100,000.00 ₱100,000.00

ACCOUNTNING LEGAL AND CONSULTANT ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00

INSURANCES ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00

UTILITIES ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00

TRAININGS & SEMINARS ₱250,000.00 ₱250,000.00 ₱250,000.00 ₱250,000.00 ₱250,000.00 ₱250,000.00 ₱250,000.00 ₱250,000.00

MARKETING & ADAVERTISING ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00 ₱300,000.00

FACILITY MAINTENANCE ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00

TOTAL AVERAGE OPERATING OUTFLOWS ₱12,150,000.00 ₱12,172,500.00 ₱12,197,125.00 ₱12,224,081.25 ₱12,253,595.31 ₱12,285,916.08 ₱12,321,316.98 ₱12,360,098.44

NET PROFIT ₱955,230,000.00 ₱1,051,945,500.00 ₱1,158,332,675.00 ₱1,275,358,698.75 ₱1,404,087,462.69 ₱1,545,689,247.72 ₱1,701,451,363.20 ₱1,872,789,849.76

PROJECTED ROI (%) 9.00 9.92 10.92 12.02 13.24 14.57 16.04 17.65
 CAPITAL EXPENDITURE ( SATELLITE HOSPITAL )

VARIABLES UNIT COST DESCRIPTION TOTAL COST

A. Cost of Purchases of each Stockholder share of Stock ₱100,000,000.00 30 Share holder ₱3,000,000,000.00

B. Purchases of Lot @ 9800 sqm ₱525,745,000.00 55K / SQM ₱525,745,000.00

C. Land Development / Construction of Medical Arts Building & Multi level Parking
Construction of 5-Storey Medical Arts Building ₱377,300,000.00 5-Storey ₱1,886,500,000.00
Construction of Multi-Level Parking ₱700,000,000.00 ₱700,000,000.00
TOTAL COST of LOT ACQUISITION & CONSTRUCTION ₱2,586,500,000.00

D. Purchase of New Medical Equipment

Cancer Institute ₱390,000,000.00 ₱390,000,000.00
Nuclear Medicine ₱390,000,000.00 ₱390,000,000.00
Stone Center / Hemodialysis ₱455,000,000.00 ₱455,000,000.00
Eye Center ₱390,000,000.00 ₱390,000,000.00
Wellness / Aesthetic Center ₱260,000,000.00 ₱260,000,000.00
Radiologic Imaging Center ₱520,000,000.00 ₱520,000,000.00
On-Site Pharmacy ₱130,000,000.00 ₱130,000,000.00
Cardiovascular Center ₱520,000,000.00 ₱520,000,000.00
Drug Testing Facility ₱130,000,000.00 ₱130,000,000.00
Blood Bank Facility ₱130,000,000.00 ₱130,000,000.00
Gastroenterology and Digestive Endoscopy Center ₱260,000,000.00 ₱260,000,000.00
Industrial Clinic ₱130,000,000.00 ₱130,000,000.00
Pulmonary and Physiology Sleep Laboratory ₱390,000,000.00 ₱390,000,000.00
TOTAL COST of MEDICAL EQUIPMENT ACQUISITION ₱4,095,000,000.00

E. Miscellaneous Cost & Admin Cost ( 6% ) of C & D ₱400,890,000.00

TOTAL CAPITAL EXPENDITURE ( A, B, C, D & E ) ₱10,608,135,000.00

 OPERATION CASH OUTLAY
OPERATIONAL BEFORE 2ND 3RD 4TH AFTER
1ST QUARTER
CASHFLOW START QUARTER QUARTER QUARTER CONSTRUCTION
Lot Acquisition 525,745,000

Construction Payment 1,300,000,000 500,000,000 400,000,000 386,500,000

Acquisition of New Medical Equipment ₱4,095,000,000

Miscellaneous / Admin Cost

Cash Paid for Supplies /
₱99,537,500 ₱99,537,500 ₱99,537,500 ₱99,537,500
Purchases
Salaries ₱100,000 ₱100,000 ₱100,000 ₱100,000

Employee Benefits ₱30,000 ₱30,000 ₱20,000 ₱20,000

Payroll Taxes ₱30,000 ₱30,000 ₱30,000 ₱30,000

Office Supplies ₱30,000 ₱30,000 ₱20,000 ₱20,000

Permits and Licenses ₱50,000

Business Taxes ₱50,000 ₱50,000

Accounting, Legal and
₱50,000 ₱50,000 ₱50,000 ₱50,000
Consultant
Insurances ₱20,000

Utilities ₱300,000 ₱300,000 ₱300,000 ₱300,000

Trainings and Seminars ₱20,000 ₱20,000 ₱20,000 ₱20,000

Marketing and
₱150,000 ₱150,000 ₱50,000 ₱20,000
Advertising
TOTAL OPERATIONAL
₱525,745,000 ₱1,400,367,500 ₱600,247,500 ₱500,127,500 ₱486,647,500 ₱4,095,000,000
CASH OUTFLOWS
IX. Contractor / Suppliers

A. Gen. Contractor – CNW CONSTRUCTION CORPORATION

Pascual Rebarter Jr. – CEO / Chairman
Responsible for the construction of Medical Arts Building & Elevated Multi Level Parking.

B. Supplier – NICKEN INDUSTRIAL MACHINES, PARTS & SUPPLY

Pascual Rebarter Jr. – President / Owner
Responsible for the supply of new medical equipment