Details

Case

Educator Copy

Private Eye Hospital: A Feasibility Study

Naim Sipra, Subina Shami


INDUSTRY : Banking, Healthcare

AREA : Finance

ORGANIZATION : Private Eye Hospital

LENGTH : 11

LUMS No : 02-555-97-1

PUBLICATION YEAR : 1997

DESCRIPTION

KEYWORDS:

Private Eye Hospital,Feasibility Study,Finance,Hospital,Private Sector,Health Care Services,Health,Incentives,Loans,Government


DESCRIPTION:

This case presents the feasibility study of a proposed eye hospital. Dr and Mrs Ahmed had detailed all investments and carried out a thorough market research. The hospital was to be established within the Defence Society, Lahore. However, after facing a lack of Government incentives and loans (if available) at high interest rates the couple was in a dilemma whether to establish the hospital or not.


LEARNING OBJECTIVES:

This case is meant to be the second or third case, on capital budgeting, in the financial analysis course. What makes this case different from other typical capital budgeting cases, is that in a typical capital budgeting case, the costs and revenues are very neatly laid out while in reality, obtaining these figures is the main part of the feasibility. In this case, the costs for the hospital are relatively known, but the revenue stream is almost totally a matter of estimation. the difficulty in obtaining financing from various sources, under such circumstances is also highlighted.


SUBJECTS COVERED:

Finance