Case
SHAUKAT KHANUM DIAGNOSTIC CENTRE
INDUSTRY :HEALTH SERVICES
AREA :FINANCE
ORGANIZATION :SKMCH&RC
LENGTH :19
LUMS No :02-620-2004-1
PUBLICATION YEAR : 2004
ABSTRACT:
In January 2001, Shaukat Khanum Memorial Cancer Hospital (SKMCH) started a Diagnostic Centre at 134-Habitat Villas, adjacent to Jail Road in Lahore, to provide quality diagnostic services to the people at a convenient location. It was believed that the centre would attract huge volumes of business and would enable the hospital’s clinical income to carry a greater burden of SKMCH expenses. The centre did not succeed in generating the expected volume. The first six months' performance showed that the centre might not be able to cover its own expenses. It was proposed to move the centre to the main Jail Road where a suitable piece of property had been donated to the trust. It was believed that the new site would offer better volumes of business as it was located across the road from Services Hospital and the Punjab Institute of Cardiology (PIC), the main diagnostic and medical establishments on the busy road. The case allows analysis and the application of standard techniques of finance to a non-profit organization. The complexities inherent in the situation and the difficulty in selecting an appropriate discount rate are also issues for discussion and debate.