IAT Phaco Yag

8/11/2019 IAT Phaco Yag

1/6

S.Saravanan

Developed By

These materials are supported, in part, by the International Eye Foundation with assistance from the U.S. Agency for International Development

Cooperative Agreement No.: FAO-A-00-99-00053-00.

Comments & Suggestion

Faculty MemberLions Aravind Institute of Community Ophthalmology

Madurai - 625 020, India

Aravind Eye Care System
mailto:[email protected]?subject=Comments/Suggestion%20on%20IAT


2/6

Investment nalysis Tool

Home Introduction IAT Phaco IAT Yag IAT Cash Flow Glossary Help



Name of the Hospital

With this tool you can:

*Find the pay back period for the equipment based on the workload and charges

4) Consultants involved in resource mobilization and utilization for eye care delivery

Instruction for use:

Kindly open and print the following Manual in Word document - this manual will guide you to use this program.

Manual for IAT

*Estimate the price/charge for the patients? Whether to charge at the market price or based on the actual cost (cost analysis)?

*Find the Profitability & feasibility of purchasing a equipment

* Estimate the annual patient load required to pay back the loan in a given period of time (1year, 2 year, etc)? Or estimate how many patients should the hospital mobilize to effectively utilise the

procured equipment?

Indented User:1) Any hospital planning to purchase Phaco/yag.2) Funding agencies to support the capital purchases.3) Individuals and private practitioners
mailto:[email protected]?subject=Help%20on%20IAThttp://localhost/var/www/apps/conversion/tmp/scratch_4/iat-phaco&yag-manual.dochttp://localhost/var/www/apps/conversion/tmp/scratch_4/iat-phaco&yag-manual.docmailto:[email protected]?subject=Help%20on%20IAT


3/6

Rs.

1,000,000

50,000

50,000

50,000

1,150,000

8 Years

10%

Cost Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

24,000 24,000 26,400 29,040 31,944 35,138 38,652 42,517 46,769 - -

2,000 2,000 2,200 2,420 2,662 2,928 3,221 3,543 3,897 - -

10,000 10,000 11,000 12,100 13,310 14,641 16,105 17,716 19,487 - -

10,000 10,000 11,000 12,100 13,310 14,641 16,105 17,716 19,487 - -

1,250 168,750 204,188 247,067 298,951 361,731 437,694 529,610 640,828 - -

214,750 254,788 302,727 360,177 429,079 511,778 611,102 730,469 - -

5000

10%

30%

90%

10%

5000

10%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

135 149 163 180 198 217 239 263 - -5,000 5,500 6,050 6,655 7,321 8,053 8,858 9,744 - -


Home Introduction IAT Phaco IAT Yag IAT Cash Flow Glossary

Charges for the Procedure each year

Help


IOL surgery

Insurance

Maintenance incl. Service contract

Electricity

Cost per procedure (Cons & others)

Reccuring cost - Variable

Total Initial Investment

Life time of Equipment

Total recurring cost

Additional Charges for the Procedure

% increase in charges each year

No.of Procedures per year

Phaco surgery

Annual Growth Rate

Breakup of Procedure

Paying Patients among cataract surgery

Capital Cost

Recurring cost

Recurring cost - variable

Manpower cost

Annual Inflation Rate (Fixed &

vaiable cost)

Annual Admission for Cataract

surgery

Cost of the Equipment

Ancillary Equipments

Other contingencies - space,

restructuring, furnishing, etcProvision for working capital - Spares

& Supplies
mailto:[email protected]?subject=Help%20on%20IATmailto:[email protected]?subject=Help%20on%20IAT


4/6

Rs.

800,000

50,000

50,000

50,000

950,000

7 Years

10%

Cost Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

24,000 24,000 26,400 29,040 31,944 35,138 38,652 42,517 - - -

2,000 2,000 2,200 2,420 2,662 2,928 3,221 3,543 - - -

10,000 10,000 11,000 12,100 13,310 14,641 16,105 17,716 - - -

10,000 10,000 11,000 12,100 13,310 14,641 16,105 17,716 - - -

1,250 375,000 453,750 549,038 664,335 803,846 972,653 1,176,911 - - -

421,000 504,350 604,698 725,561 871,194 1,046,737 1,258,402 - - -

5000

10%

%

4%

100

4000

10%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10300 330 363 399 439 483 531 - - -

4,000 4,400 4,840 5,324 5,856 6,442 7,086 - - -

Recurring cost - fixed

Glossary


Help



Referred patients for yag laser/year

Recurring cost - variable

Manpower cost

Recurring cost

Provision for working capital - Spares

& Supplies

Total Initial Investment

Life time of Equipment

Annual Inflation Rate (Fixed &


Home Introduction IAT Phaco IAT Yag IAT Cash Flow

Capital Cost

Cost of the Equipment

Ancillary Equipments

Other contingencies - space,

restructuring, furnishing, etc

Total recurring cost

Annual Cataract surgery with IOL

Maintenance incl. Service contract

Electricity

Cost per procedure (Consumables)

Insurance

Annual Growth Rate

Breakup of Procedure

Hospital Patients requiring yag laser

No.of Procedures per year

Charges for the Procedure each year

Additional Charges for the Procedure

% Increase in Charges each year


5/6

Cash Flow Projection

INPUTS units

Investment

Purchase price of equipment Rs. 950,000

Depreciable life of of equipment years 7

FinancingLoan amount as % of purchase price % 100%

Interest rate on loan % 10%

Taxes

Marginal tax rate % 0%

Discount rate % 10%

units Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Initial investment Rs. 950,000

Revenue Rs. 1,200,000 1,452,000 1,756,920 2,125,873 2,572,307 3,112,491 3,766,114 - - -

Recurring Costs - Fixed Rs. 46,000 50,600 55,660 61,226 67,349 74,083 81,492 - - -

Recurring costs - Variabl Rs. 375,000 453,750 549,038 664,335 803,846 972,653 1,176,911 - - -

Total Recurring costs Rs. 421,000 504,350 604,698 725,561 871,194 1,046,737 1,258,402 - - -

Operating revenue Rs. 779,000 947,650 1,152,223 1,400,312 1,701,112 2,065,754 2,507,712 - - -

Equipment depreciation Rs. 135,714 135,714 135,714 135,714 135,714 135,714 135,714 - - -

Profit before intrest & tax Rs. 643,286 811,936 1,016,508 1,264,598 1,565,398 1,930,040 2,371,997 - - -

Interest Rs. 95,000 95,000 95,000 95,000 95,000 95,000 95,000 - - -

Profit before taxes Rs. 548,286 716,936 921,508 1,169,598 1,470,398 1,835,040 2,276,997 - - -

Taxes Rs. - - - - - - - - - -

Net income Rs. 548,286 716,936 921,508 1,169,598 1,470,398 1,835,040 2,276,997 - - -

+ Depreciation Rs. 135,714 135,714 135,714 135,714 135,714 135,714 135,714 - - -

Rs. (950,000) 684,000 852,650 1,057,223 1,305,312 1,606,112 1,970,754 2,412,712 - - -

Discount factor # 1 1.10 1.21 1.33 1.46 1.61 1.77 1.95 2.14 2.36 2.59

Discounted cash flows Rs. (950,000) 621,818 704,669 794,307 891,546 997,269 1,112,439 1,238,103 - - -

INVESTMENT ANALYSIS Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Payback Period

Cummulative cash flow Rs. (950,000) (266,000) 586,650 1,643,873 2,949,184 4,555,296 6,526,051 8,938,762 - - -

Part of year in pay-back period 1.00 0.31 -0.55 -1.26 -1.84 -2.31 -2.70 0.00 0.00 0.00Part of year in pay-back period 1.00 0.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Payback Period Years

INTERNAL RATE OF RETURN (IRR) %

Help


yagInvestment Decision for

Net cash inflow from

operations

CASH FLOW

PROJECTIONS

131%

93%


Home Introduction IAT Phaco IAT Yag IAT Cash Flow Glossary


6/6

Help



Net Present Value (NPV):NPV analysis takes future cash flows and discounts them to their present day value

Positive NPV's are profitable investment ventures while negative NPV's are money losers. Therefore as a rule of thumb if NPV >0 accept investment proposal and if NPV

IAT Phaco Yag

Documents

Transcript of IAT Phaco Yag