International Journal of Research Foundation of Hospital and Healthcare Administration

Register      Login

VOLUME 2 , ISSUE 1 ( January-June, 2014 ) > List of Articles

RESEARCH ARTICLE

Economic Evaluation of an Eye Hospital in Terms of Net Present Value and Profitability Index

Shibu John, Komal Dabas, Iffat Naseem

Citation Information : John S, Dabas K, Naseem I. Economic Evaluation of an Eye Hospital in Terms of Net Present Value and Profitability Index. Int J Res Foundation Hosp Healthc Adm 2014; 2 (1):36-40.

DOI: 10.5005/jp-journals-10035-1013

Published Online: 00-06-2014

Copyright Statement:  Copyright © 2014; Jaypee Brothers Medical Publishers (P) Ltd.


Abstract

Introduction

Hospital projects are highly cost intensive and therefore, it takes few years to become a profit oriented entity. The success of these hospital projects can be measured through various economic evaluation methods. Economic evaluation can also be called as an effort to analyze inputs and outputs together and logically help decision makers evaluate whether a certain level of output is worth the amount of resources expended to produce it.

Method of the study

The present study was planned to do the economic evaluation of an Eye hospital, in Haryana state. Two parameters were considered for evaluating the project, i.e. Net Present Value (NPV) and Profitability Index (PI). The data used in the study was from 2010-2011 to 2016-2017. This includes actual and projected data.

Result and conclusion

A positive NPV explain the project is worthwhile and making profits, with current cost and revenue projections. PI for this center is found out to be 3.47 which also emphasize that the project is a value for money proposition.

How to cite this article

John S, Dabas K, Naseem I. Economic Evaluation of an Eye Hospital in Terms of Net Present Value and Profitability Index. Int J Res Foundation Hosp Healthc Adm 2014;2(1):36-40.


PDF Share
  1. Available at: http://www.mmu.ac.uk/bit/docs/Cost-Benefit-analysis-toolkit-v2.pdf.
  2. Health economic evaluation. J Epidemiol Community Health 2002 Feb;56(2):85-88.
  3. Principles of economic evaluation for health care programs. J Rheumatology 1995;22:7:1399-1402.
  4. Cost-effectiveness of monitoring glaucoma patients in shared care: an economic evaluation alongside a randomized controlled trial: BMC Health Services Research 2010;10:312
  5. Health care economic analyses and value-based medicine: Survey of Ophthalmology 2003;48(2):204-223.
  6. The iterative use of economic evaluation as part of the process of health technology assessment. J Health Services Resear Policy 1997;2:26-30.
  7. Available at: http://www.financescholar.com .
  8. Understanding cost effectiveness: a detailed review. Br J Ophthalmol 2000;84:794-798.
  9. Nuffield occasional papers: economic evaluation and the healthcare: health economics series: Paper no. 7. 1998.
PDF Share

© Jaypee Brothers Medical Publishers (P) LTD.