A STUDY ON THE FEASIBILITY OF A SATELLITE FACILITY LOCATED
AT BRGY. MALIWALO, TARLAC CITY
PURPOSE OF THE PROJECT
The purpose of this project is for the facility to serve as a catch basin for patients and clients who would
like to avail medical and health services in areas where such facilities do not exist.
SITE LOCATION & POPULATION OF AREA
This study is all about the feasibility of a satellite facility located at Brgy. Maliwalo, Tarlac City. CLDH shall
lease a facility located along Sta. Rosa-Tarlac Road at Zone 3 in Brgy. Maliwalo which is 6.1 km away from
CLDH. The proposed site has a total floor area of 44.32 sq.m. (6.36m L x 6.98m W) with two (2) comfort
rooms. Lessor shall install the following inside the facility: white granite flooring, painted walls and ceiling,
and metal roll-up. Application for utilities shall be facilitated by CLDH (lessee). CLDH shall also provide
the glass partitions, furniture & fixtures and other equipment for this project.See Figure 1 for the site
location and Figure 2 for the proposed layout based on our measurements in OPD.
Figure 1
Actual Picture of Site
Figure 2
Proposed Facility Layout
The research and marketing team chose this area (Brgy. Maliwalo) because there are no medical clinics
within the area and it covers seven (7) barangays (half of Matatalaib, Maliwalo, Calingcuan, San Jose, San
Manuel, Amucao and Balingcanaway). The projected 2019 population of the 7 barangays are as follows:
Table 1
Projected Population of 7 Barangays
Barangay
Matatalaib (50%)
Maliwalo
Calingcuan
San Jose
San Manuel
Amucao
Balingcanaway
Projected
Population
13,415
12,995
3,508
7,445
6,345
2,420
6,077
% Growth
2.68%
2.24%
1.12%
1.65%
0.00%
2.20%
0.48%
(Note: Projected population was computed using forecasting methods based on available data from Philippine Statistics
Authority)
The researchers also surveyed 415 respondents which is computed using Slovin’s Formula.
Tables below shows the results of the survey.
Table 2
Average population per Family
1
5
5
2
17
34
3
54
162
4
89
356
Family Member
5 Total
250
1250
Average
415
1807
4
Table 3
Average Income per Family
1
5000
141
705000
2
15000
159
2385000
Income
3
4
5
6
25000 35000 45000 55000 Total
Average
79
28
4
4
415
1975000 980000 180000 220000 6445000
15,530.12
Table 4
Average Frequency of Check-up per year
1
132
132
2
97
194
3
69
207
Frequency
4
Total
117
415
468
1001
Average
2
Table 5
Respondents with and without HMO
HMO
Meron Wala
37
378
Table 6
Preferred time of Respondents for check-up
8:00
AM
167
9:00
AM
142
10:00
AM
64
11:00
AM
5
12:00
PM
0
Time
1:00 2:00
PM
PM
6
7
Table 7
3:00
PM
3
4:00
PM
5
5:00
PM
8
6:00
PM
4
7:00
PM
3
8:00
PM
1
Satelite Clinic
Gusto
Ayaw
415
0
Table 8
Loyalty Card
Gusto
Ayaw
415
0
PROJECTED COSTS AND MONTHLY EXPENSES
The monthly lease for the facility is PhP 24,000.00 VAT inclusive. Table 9 shows the total project cost
associated for this project with 5-year depreciation. Table 10, on the other hand shows the monthly
expenses of the clinic.
Table 9
Total Project Cost (Projections)
Description
Construction - Materials
Construction - Labor
Glass Door
Signage
Air-conditioning Unit
PC with Printer
Refrigerator
LED TV
Tables (3)
Swivel Chair (3)
Visitors' Table (5)
Benches
Patient Bed
Extraction Chair
Government Fees
Total Projected Cost
Projected Cost
50,000.00
20,000.00
20,000.00
10,000.00
50,000.00
33,000.00
9,500.00
11,500.00
9,600.00
10,680.00
7,500.00
10,000.00
17,000.00
11,000.00
50,000.00
PhP 319,780.00
Table 10
Remarks
5-year depreciation
5-year depreciation
5-year depreciation
5-year depreciation
5-year depreciation
5-year depreciation
5-year depreciation
5-year depreciation
5-year depreciation
5-year depreciation
5-year depreciation
5-year depreciation
5-year depreciation
5-year depreciation
5-year depreciation
Monthly Expenses (Estimates)
Expense
Nurses (2)
Internet
Fuel Expenses
Electricity
Water
Phone bills
Rent of Facility
Misc Supplies
Total Monthly Expenses
Projected Cost
39,666.67
1,500.00
2,600.00
4,000.00
1,000.00
600.00
24,000.00
1,000.00
PhP 74,366.67
CONSULTATION FEE
The consultation fee shall be pegged initially at PhP 250.00. Fifty percent (50%) shall be due to the
consultant while the remaining 50% shall be due to CLDH. Eventually, the consultation fee shall increase
to Php 300 to Php 350 depending on the turnout of the project after a certain number of months of
operations.
MINIMUM NUMBER OF PATIENTS TO BREAKEVEN
In order to breakeven, all fixed costs and depreciation must be accounted for on a monthly basis other
than the monthly expenses as shown in Table 11. Table 12 shows the computation for the minimum
number of patients including the consultation fee due to the consultant/doctor.
Table 11
Monthly Cost/Expenses (Projections)
Expense
Nurses (2)
Internet
Fuel Expenses
Electricity
Water
Phone bills
Rent of Facility
Misc. Supplies
Total Monthly Expenses
Cost
39,666.67
1,500.00
2,600.00
4,000.00
1,000.00
600.00
24,000.00
1,000.00
74,366.67
(Note: Depreciation is 5 years for all equipment and facilities)
Table 12
Minimum Number of Patients to Breakeven
Consultation Fee
Doctor's Fee from Consultation
Income of CLDH from Consultation
Monthly Operating Expense
Monthly Depreciation Expense
Total Expenses
@250.00
125.00
125.00
74,366.67
5,329.67
79,696.33
Patient needed to breakeven/year
Patient needed to breakeven/month
Patient needed to breakeven/day
7,651
638
25
Take Home Pay of Doctors
@300.00
150.00
150.00
74,366.67
5,329.67
79,696.33
@350.00
175.00
175.00
74,366.67
5,329.67
79,696.33
6,376
531
20
PhP 79,696.33
PhP 79,696.33
5,465
455
18
PhP 79,696.33
(Note: Total Monthly Cost of 79,696.33 was divided by 125 in order to get a result of 638 patients per month. Clinic shall
operate from Monday to Saturday. Clinic hours is still to be determined)
ANALYSIS OF ANCILLARY SERVICES FROM CONSULTANCY
Based from the census of January-February obtained from Outpatient Department of CLDH, a number
of patients availed ancillary services during their consultation. The statistics from these data shall be used
to project the likelihood that patients will avail such services. This is shown in Table 6.
Table 13
Percentage (%) of Ancillary Services Availed in OPD
(Using January-February 2019 Census of OPD)
OPD February
2019 Census
CBC
Creatinine
Potassium
Urinalysis
Fecalysis
X-ray
ECG
SOD
Pregnancy
DCTX
BUA
HDL/LDL
2,630 patients
501
39
27
119
45
106
53
25
15
17
15
11
%
19.05%
1.48%
1.03%
4.52%
1.71%
4.03%
2.02%
0.95%
0.57%
0.65%
0.57%
0.42%
Cost of
Test/Service
325.00
260.00
335.00
60.00
105.00
272.00
386.00
233.00
160.00
100.00
196.44
157.70
(Note: This means that out of 2,630 OPD Patients, 501 of them or about 19.05% availed the CBC Test)
If we will use the computed percentage in determining the additional income that can be generated
from ancillary services using the minimum number of patients to breakeven and total potential demand
if patients visit the clinic twice a year, we will generate the results shown in Table 14.
Table 14
Projected Additional Monthly Income from Ancillary Services for 2019
Type of Service
Breakeven
Breakeven
Breakeven
Potential
2x a year
Potential
1x a year
@ 638
Patients
39,472.41*
@ 531
Patients
32,893.68
@ 455
Patients
28,194.58
@1919
Patients
118,821.16
@960
Patients
59,410.58
½
Potential
1x Year
@480
Patients
29,705.29
Creatinine
2,458.16
2,048.47
1,755.83
7,399.64
3,699.82
1,849.91
Potassium
2,192.71
1,827.26
1,566.22
6,600.57
3,300.28
1,650.14
Urinalysis
1,730.90
1,442.41
1,236.35
5,210.40
2,605.20
1,302.60
Fecalysis
1,145.45
954.54
818.18
3,448.06
1,724.03
862.01
X-ray
6,989.52
5,824.60
4,992.51
21,040.08
10,520.04
5,260.02
ECG
4,959.48
4,132.90
3,542.48
14,929.18
7,464.59
3,732.29
SOD
1,412.11
1,176.76
1,008.65
4,250.78
2,125.39
1,062.70
Pregnancy
581.81
484.84
415.58
1,751.39
875.70
437.85
DCTX
412.12
343.43
294.37
1,240.57
620.29
310.14
BUA
714.34
595.28
510.24
2,150.32
1,075.16
537.58
HDL/LDL
420.00
350.00
300.00
1,264.29
632.14
316.07
62,489.00
52,074.16
446,34.997
188,106.44
94,053.22
47,026.61
No. of Patients
CBC
Total
(* PhP 39,472.41 was obtained by multiplying 638 patients by 19.05% and by multiplying it again by PhP 325.00)
PROJECTED REVENUE & PROFIT FROM THE SATELLITE CLINIC
Assuming that a single member of a family will visit the satellite clinic once (1) a year for checkup, Table
15 shows that a projected annual net profit can be generated amounting to PhP483K if consultation fee
is pegged at 300 pesos, a profit amounting to PhP770K if consultation fee is pegged at 300 pesos, and a
profit amounting to PhP 1.058M if consultation fee is pegged at 350 pesos.
Table 15
Projected Revenue and Net Profit
If a single member of a family visits the clinic once a year
HH
Population
2,959
2,867
774
1,642
1,399
534
1,340
Brgy
Matatalaib (50%)
Maliwalo
Calingcuan
San Jose
San Manuel
Amucao
Balingcanaway
Projected Revenue
Less Expenses
Projected Profit
250
369,885.11
358,316.01
96,776.02
205,233.90
174,902.57
66,768.02
167,545.60
1,439,427
956,356
483,071
if Consultation Fee:
300
443,862.13
429,979.21
116,131.23
246,280.69
209,883.08
80,121.62
201,054.72
1,727,313
956,356
770,957
350
517,839.15
501,642.41
135,486.43
287,327.47
244,863.59
93,475.23
234,563.84
2,015,198
956,356
1,058,842
Assuming that half of the household population will visit the satellite clinic once (1) a year for checkup,
Table 16 shows that a projected annual loss in profit can be generated amounting to PhP236K if
consultation fee is pegged at 250 pesos, a loss amounting to PhP 92K if consultation fee is pegged at 300
pesos, and a profit amounting to PhP 51K if consultation fee is pegged at 350 pesos.
Table 16
Projected Revenue and Net Profit
If only ½ of the household population visits the clinic once a year
Brgy
Matatalaib (50%)
Maliwalo
Calingcuan
San Jose
San Manuel
Amucao
Balingcanaway
Projected Revenue
Less Expenses
Projected Profit
HH
Population
2,959
2,867
774
1,642
1,399
534
1,340
250
184,942.56
179,158.00
48,388.01
102,616.95
87,451.28
33,384.01
83,772.80
719,714
956,356
(236,642)
if Consultation Fee:
300
221,931.07
214,989.60
58,065.61
123,140.34
104,941.54
40,060.81
100,527.36
863,656
956,356
(92,700)
350
258,919.58
250,821.20
67,743.22
143,663.73
122,431.80
46,737.61
117,281.92
1,007,599
956,356
51,243
Assuming that a member in a family will visit the satellite clinic twice (2) a year for checkup, Table
17 shows that a projected annual profit can be generated amounting to PhP 1.922M if consultation fee is
pegged at 250 pesos, a profit amounting to PhP 2.498M if consultation fee is pegged at 300 pesos, and a
profit amounting to PhP 3.074M if consultation fee is pegged at 350 pesos.
Table 17
Projected Revenue and Net Profit
If a family member visits the clinic twice a year
Brgy
Matatalaib (50%)
Maliwalo
Calingcuan
San Jose
San Manuel
Amucao
Balingcanaway
Projected Revenue
Less Expenses
Projected Profit
HH
Population
2,959
2,867
774
1,642
1,399
534
1,340
250
739,770.22
716,632.01
193,552.04
410,467.81
349,805.13
133,536.04
335,091.20
2,878,854
956,356
1,922,498
if Consultation Fee:
300
887,724.26
859,958.41
232,262.45
492,561.37
419,766.16
160,243.24
402,109.44
3,454,625
956,356
2,498,269
350
1,035,678.31
1,003,284.82
270,972.86
574,654.93
489,727.18
186,950.45
469,127.68
4,030,396
956,356
3,074,040
RETURN ON INVESTMENT AND PAYBACK PERIOD
The Return of Investment is computed which considers three scenarios with the proposed consultation
fees. The table below shows the computed Return of investment of the study:
Table 18
Return on Investment
Consultation Fee
If 1/2 of HH Population visits clinic once a year
if HH Population visits clinic once a year
if HH Population visits clinic 2x a year
RETURN ON INVESTMENT
250
300
350
-87%
-26%
36%
220%
343%
463%
835%
1080%
1326%
(Note: The computed outcomes were obtained by adding the potential profit under the different variation of consultation fee and the different scenarios from 20192023 and dividing it to the initial investment)
The length of the time required for an investment to recover its initial outlay in terms of profit is
computed. The table below shows computed payback period;
Table 19
Payback Period
Consultation Fee
If 1/2 of HH Population visits clinic once a year
if HH Population visits clinic once a year
if HH Population visits clinic 2x a year
PAYBACK PERIOD
250
300
-1.1467
-3.8831
0.4544
0.2916
0.1198
0.0926
350
2.8010
0.2161
0.0754
(Note: The computed outcomes were obtained by dividing initial investment to annual cash inflow)
To determine if a specific investment will increase the stock value in a company before undertaking
the costs of the investment, the researchers uses internal rate of return to determine if an investment
will create value. The table below shows the computed Internal Rate of Return:
Table 20
Internal Rate of Return
Year
Amount
1
-729,109
2
3
4
5
507,722
532,948
558,735
585,096
Internal Rate of Return
Description
Amount of Invested
(Potential Profit Initial Investment)
Potential Profit
Potential Profit
Potential Profit
Potential Profit
Percentage
-30%
27%
51%
62%
(Note: The potential profit was based on the most feasible estimated payback period)
We hope you find this report acceptable and in good order.
DHON G. DUNGCA, PIE M’Eng’g. (SGD)
Quality Manager