CHAPTER 1 INTRODUCTION AND BACKGROUND OF THE STUDY

Background of the Study

Paranaque City is the third largest geographical region in the National Capital Region,
having two Congressional Districts and eight (8) Barangays each. The population of
District II alone has 424,127, accounting for 61.47% of the total population of the city.
The Ospital ng Paranaque District II, located in Brgy. Don Bosco will serve more than
half of the people in Paranaque who will need various medical procedures to stay
healthy. In addition, the majority of the city's depressed areas were concentrated in
District II.
According to the Philippines Statistic Authority, the top three major causes of mortality in
the Philippines for 2022 were Ischemic Heart Disease, Cerebrovascular Disease, and
Neoplasm which were preventable and curable through early detection and diagnosis.
Unfortunately, Parañaque City had the second highest proportion of unattended deaths
with 49.3%, after only Navotas (50.4%). Almost one out of every two deaths in these
cities went unreported.
Diagnostics are an essential component of the healthcare system because they give
information on prevention, screening, detection, diagnosis, treatment, and management.
One of the key issues is a lack of availability and access to high-quality radiological
services, which contributes to delayed or ineffective disease control and patient care.
This leads to a continuous dependence on empirical patient care or erroneous
diagnostic procedures, both of which waste precious resources.
Acquisition of a more advance medical equipment such as Computed Tomography
Scan unit to address the healthcare demands and minimize the incidents of mortality
from preventable and treatable diseases maybe a feasible solution.
Objectives
To determine the feasibility of acquiring a Computed Tomography unit Thirty-two or
sixty-four slices Computed Tomography (CT) Scan unit for Ospital ng Parañaque
District II.
To acquire a thirty-two or sixty-four slices Computed Tomography (CT) Scan unit for
Ospital ng Parañaque District II and address the healthcare demands of the Parañaque
City populace.
To significantly improve the quality and precision of diagnosis and detection of diseases
stated in the Philippine Statistics Authority’s Mortality and Morbidity rate report 2022,
hence, reducing the incidents of the latter.
To provide an accessible and free CT scan facility for the populace of Parañaque City
especially for the indigent citizens of the second congressional district.
To deliver a source of viable income for the City Government of Parañaque to support
other healthcare projects.
To maximize the service capability of the Ospital ng Parañaque District II for the citizens
of Parañaque City.
Scope and delimitation
This project shall encompass the analysis of the feasibility of acquiring a Thirty-two or
sixty-four slices Computed Tomography (CT) Scan unit for Ospital ng Parañaque
District II based on economic, financial, legal, and healthcare consideration and
demands in the second congressional district of Parañaque City.
This project shall only be limited by the availability of budget allocated for the acquisition
of the CT scan unit from the private partner of the City Government of Parañaque as
stated in the Joint Venture Agreement.
Definition of Terms
 Healthcare - the organized provision of medical care to individuals or a
community.
 Computed Tomography - an X-ray image made using a form of tomography in
which a computer controls the motion of the X-ray source and detectors,
processes the data, and produces the image.
 Morbidity - the condition of suffering from a disease or medical condition.
 Mortality - the state of being subject to death.
 Populace - the people living in a particular country or area.
 Slices - cross-sectional images (slices) of your body.
 Transformer - an apparatus for reducing or increasing the voltage of an
alternating current
 Ischemic Heart Disease - It's the term given to heart problems caused by
narrowed heart arteries. When arteries are narrowed, less blood and oxygen
reach the heart muscle. This is also called coronary artery disease and coronary
heart disease.
 Cerebrovascular disease - refers to a group of conditions that affect blood flow
and the blood vessels in the brain. Problems with blood flow may occur from
blood vessels narrowing (stenosis), clot formation (thrombosis), artery blockage
(embolism), or blood vessel rupture (hemorrhage).
 Neoplasm - a new and abnormal growth of tissue in some part of the body,
especially as a characteristic of cancer.

CHAPTER 2 MARKETING STUDY

Project Description
This project aims to identify the requirements for the procurement of a thirty-two or sixty-
four slice CT scan unit for Ospital ng Parañaque District II. This will include a
comparative analysis of the populace of the District I and District II of Parañaque City
relative to the availability, accessibility and affordability of CT scan services within the
respective barangays under each district.
Based on the data collected from previous survey, there is only one hospital that offers
CT scan procedures within the second congressional district of Parañaque City which
has 8 barangays where more than half of the populace resides including a large
percentage of depressed population. This will be an excellent opportunity for the City
Government of Parañaque to reach out and intensify healthcare system on this side of
the city. Furthermore, it will potentially generate a source of income for the city.
The source of funding for this project shall be in a form of a public-private partnership
where in, the city will provide the facility for the CT Scan unit and the private partner will
finance the procurement of the CT scan unit, renovation of the facility where the CT
scan will be installed and other supplies for the operations. The net generated income
will be divided between the city government and the private partner based on the joint
venture agreement.
Industry Profile
Paranaque City is the third-largest geographical region in the National Capital Region, with two
Congressional Districts and eight (8) barangays each. The population of District II alone, where the
Ospital ng Parañaque District II was built, is around 419,224, accounting for 61.47% of the city's total
population based on philatlas.com.

Furthermore, according to the Philippines Statistic Authority, the top three primary causes of mortality
in the Philippines from January to July 2022 were Ischemic Heart Disease, Cerebrovascular Disease, and
Neoplasm, all of which may be further evaluated or assessed with the use of a CT scan scanner.
Unfortunately, the PSA 2020 report also displays the Percent Share of Attended and Unattended Deaths
in NCR, with Parañaque City having the second highest proportion of unattended fatalities (49.3%), after
only Navotas (50.4%). In these cities, approximately one in every two fatalities went unreported. With
the presence of the CT scan modality in our hospital, these diseases can help for the early detection and
prevention of the patients and preserve life and lower the mortality rate of the city.
However, there are only 5 hospitals in the city that offer CT scan services. The majority of these
institutions are in District 1, with only one hospital serving District 2. The majority of such hospitals are
in the private sector, with only one being a government hospital. District 1 hospitals include the Olivarez
Medical Center, Unihealth-Parañaque Hospital and Medical Center, Medical Center Parañaque for the
Private sector and Ospital ng Parañaque District I for the government sector. Only the Parañaque
Doctor’s Hospital which is likewise a private institution services most of the population in District 2. In
this case, it is more advantageous for Ospital ng Parañaque District II to open its own CT scan facility
because it does not have in the area and, from the standpoint of the general public, government
hospitals can provide healthcare services at a lower cost and that is easily accessible to all, which is also
advantageous for our less fortunate constituents in District 2.

TOWS MATRIX ANALYSIS

External Opportunities External Threats

Successful referral system of
Poor outcome on patient satisfaction
patients between Brgy. Health
and experience
centers
Establish strategic partnerships
Competition from other hospital
with private institutions
TOWS MATRIX
Increase marketing efforts in
ANALYSIS different platforms to attract Limitation on revenue
patients
Ease of access due to R.A.
11223 (Universal Healthcare Patient's preference
Law)
Health Consumerism Urban Transport Challenges
Internal Strengths S-O Strategy S-T Strategy
Very affordable rates to 1. (S3, O3) Cost effective
ensure steady in-flow of advertisement (i.e., social
patients 1. (S5, T1, T2, T4) Excellent customer
media, word of mouth)
service
Ventured capital resources 2. (S1, S2, O4, O5) Patient
2. (S1, S2, T2, T3, T4) Equitable,
coming from public funding convenience and accessibility
affordable healthcare services
Advertising is more 3. (S4, O1, O2, O5)
efficient and cost-effective Personalized healthcare
Proximity on residential program or services to patient
and business districts
Highly Trained Staff
Internal Weaknesses W-O Strategy W-T Strategy
New in the market
Delay in provision of 1. (W3, W4, O1, O2, O5) 1. (W1, W4, T1, T2, T3, T4) Build up
medical care (i.e., result) Improve health care service good public image through top-notch
Lacking in bed capacity delivery. healthcare delivery approaches
2. (W2, O1, O2, O5) Provision 2. (W2, W3, T1, T2, T3, T4)
for a centralized patient data Developing future-proofing strategies
network
Budget constraints
Marketing Plan
Executive Summary

On February 10, 2020, City Mayor Edwin L. Olivarez dedicated Ospital ng Parañaque
District II. Ospital ng Parañaque District II, located in barangay Don Bosco, serves as
the City of Parañaque's Temporary Treatment and Monitoring Facility.

It was intended to be a 146-bed capacity tertiary hospital with level 3 Radiology and
Laboratory, Dialysis Center, Cancer Center, and Endoscopy Unit.

The Ospital ng Parañaque District II will soon open a MALASAKIT center which aims to
ease the financial needs in the healthcare of our fellow Parañaqueños.

OUR MISSION
To provide compassionate, exceptional and people-centered medical care that meets
global health standards to the community

OUR VISION
To become the leading hospital of choice in the Southern part of Metro Manila that
offers the highest quality standard of healthcare service

OUR CORE VALUES

 Excellence (Dedication)
 Respect (Humility)
 Integrity (Honesty)
 Compassion (Kindness)
 Teamwork (Hard work
 Target Population
 Sales Sales
Facilities that offer Computed Tomography Procedures relative to the
199
population share per district 318

District II District I
598
119
Ospital ng

District 1 depressed area district 2 depressed area Depressed area Parañaque

Total number ofDistrict
areas I

Olivarez General
Ospital ng Parañaque
Hospital
District II
Unihealth-
Population Population
Parañaque Medical
419,244 270,748
(38.53%) Center
(61.47%)
Medical Center

Parañaque Doctors Parañaque

Hospital The Premier

Medical Center
CHAPTER 3 TECHNICAL AND PRODUCTION
Project Flow/Operational Process

Market
Concept Planning
Analysis
Project Analysis

Review Justification of
Organizational Concept Location
Background Proposed CT
Philosophy Plan Rationale
Information scan Facility

Technical
Evaluation
Draft of
Management
Plan Capital
Costs
 Re-visit Needs
Recommendations Sustainability Financials
Assessment

GANTT CHART
CHAPTER 4 FINANCIAL STUDY
Projected Expenses for procurement of sixty-four slices Computed Tomography Scan
unit using a bottom-up cost estimate method
Projected Operational Expenses (in peso)
Utility expenses (24 hours per day for 30 days)
Electricity consumption per procedure 100
Other electricity expenses (3 air conditioners) 50,000
Total monthly utility expenses 50,100
Estimated annual expenses in utilities 601,200

Consumables (monthly consumption per 300 patients)

Office supplies 5000
Compact disc 2,100
Photopaper 10,000
total per month
17,100
 Estimated annual expenses in consumables 205,000
Preventive maintenance (PMS) (annual)
Year 1 0
Year 2 600,000
Year 3 600,000
Year 4 600,000
Year 5 600,000
Employees’ salary (annual) care of the City Government of Parañaque
CT tech 1 432,000
CT tech 2 432,000
CT tech 3 432,000
CT tech 4 432,000
CT tech 5 432,000
Total 2,160,000

Baseline data for costing

Most common requested CT scan procedure (plain)

Chest 4,500
Head 4,500
Most common requested CT scan procedure (plain)
Abdomen 7,500

Financial Feasibility

Parañaque Doctors Hospital is a private hospital that offers a Computed Tomography

procedure within the second congressional district of Parañaque City.

Average CT scan patients per day 5

Average price per procedure 6,000
Total average patients per month 150
Estimated Gross monthly income 900,000
Estimated gross annual income 10,800,000

A conservative assumption was made for the above data considering that most of the
patients are cash payee within and average to above average household income
earners and patients with medical insurance coverage.

Average CT scan patients per day 8

Average price per procedure 6,000
Total average patients per month 150
Estimated Gross monthly income 1,440,000
Estimated gross annual income 17,280,000
 An assumption using an identical price point was use to come up with the above
estimate. Additional consideration since Ospital ng Parañaque II is a LGU hospital that
offer services under MALASAKIT program; it is conservative to assume a higher patient
census relative to Parañaque Doctors hospital

5-year financial projection

Operating hours 24 hrs
Monthly operations 30 days

Operating Expenses

Yea Annual Annual Gross profit Annual Net profit Annual Net profit
r Operating before taxes before taxes
expenses (without (with employee
employee salary) salary)
1 806,200 10,800,000 9,993,800 7,833,800
2 1,406,200 10,800,000 9,393,800 7,233,800
3 1,406,200 10,800,000 9,393,800 7,233,800
4 1,406,200 10,800,000 9,393,800 7,233,800
5 1,406,200 10,800,000 9,393,800 7,233,800
ROI = (net return of investment/ cost of investment) x 100

Total cost of investment for 5 years = Total operating expenses in 5 years + initial cost
of investment

Total cost of investment for 5 years = 6,431,000 + 17,365,672.92

= 23,796,672.92

Net return of investment for 5 years = 36,769,000

ROI = (36,769,000 / 23,796,672.92) x 100

ROI = 154.51%

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS

Conclusion
Based on the presented data and analysis, this study found the acquisition of a
Computed tomography Scan unit for Ospital ng Parañaque District II (OSPAR II) is
feasible in the following aspects:

 Market feasibility - The prices of CT scan services that will be offered by OSPAR
II is lower than the competitors from the private sectors which in turn increase its
market feasibility.
 Financial Feasibility - The profitability of investing in a CT scan ability has shown
to be significantly profitable with a ROI of >150% in just a span ok 5 years.
 Socio-economic feasibility – the study found the extreme necessity for acquiring
and establishing such facility as a means to serve the majority of the population
of Parañaque City.

Recommendations

 The cost per procedure can be reduce to lower amount so that it can be
affordable to more people especially those who are living below the middle-class
household income