THE APPLICATION OF MINIMUM DEMAND GUARANTEE SCENARIO IN INVESTMENT ANALYSIS OF HOSPITAL EXPANSION PROJECT CASE STUDY OF CICENDO EYE HOSPITAL

• Main Author: Kumala Dewi/29116039, Nindya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29663
• Institution: Institut Teknologi Bandung

Blindness and visual impairment is one of the main diseases that Indonesia currently faces. Cicendo eye hospital as the national eye center wantsstrengthen its role as a national eye center which is responsible for the eye health of the people of Indonesia. The main problem that is faced by CicendoEye Hospital in achieving its goal to be able to provide more service to patient in Indonesia is that currently it experiencing excess patient compare to the medical staff available that can be Seen by how crowded number of visitors come everyday. To be able to serve the increasing number of patients, Cicendo eye hospital needs to expand. <br /> <br /> <br /> <br /> With its strategy for the expansion, Cicendo Eye hospital is presented by several options for the expansion of the additional hospital building to be able to serve more patient or move the hospital to a new Enlarge hospital building by selling the existing hospital building. This research uses primary data by doing an interview with the management of the hospital and secondary data such as articles, regulations and research results from previous development plans that have been done by consultants who were recruited by the hospital. <br /> <br /> <br /> The research objectives is to answer how much capital funding is needed for the expansion project, and whether it is feasible to run financially and how minimum demand guarantee can improve viability of this project. Some of the criteria used for this feasibility analysis are NPV, IRR and payback period. In addition to analyzing feasibility, in this study also performed a risk analysis on several factor such as discount rates, tariff changes, and bed occupancy ratio. <br /> <br /> <br /> The minimum demand guarantee can be used as a risk mitigation caused by the uncertainty in demand forecasting. In this study the minimum demand guarantee scenario uses the bed number utilization ratio as the basis. In both scenario one and scenario 2, the organization must decide whether to implement a minimum demand guarantee scenario, in which if it decided to be implement it might the affecting the potential profit that may be gained. <br /> <br /> <br /> The implementation plan based on the analysis that has been done, depends on the decision of the hospital. If it is decided to be run then, CicendoEye Hospital must be decided to whether or not to use the Minimum demand Guarantee as well as negotiation with the government to determine the term of the contract. This study uses montecarlo simulation to find out the probability of occurencethat might be caused by changes in one of its variables. <br /> <br /> <br /> Keywords: Hospital, investment feasibility, risk analysis, minimum warranty.