Medical Costs will be lower
Recently South East Asia's first Medical Technology park was inaugurated in Sriperumbudur near Chennai. Technology products at the park to offer international quality yet cost effective solutions to healthcare providers.The aim of this project is to produce high quality medical equipments and supply to the industry at much less cost without compromising with quality of the equipment.
Project Highlights
- This project will be spread over 25 acres
- 10 International Manufacturers
- Scientifically designed production area
With development of indigenous equipments the supply chain cost will be lower and will create a scope for hospitals to provide quality care at cheaper rate.
Replies to This Discussion
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Permalink Reply by Katja Annemarie Martin on -
Dear Ashok,
its an interesting project and what kind of medical equipment they produce ?
Best regards
Katja
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Permalink Reply by Ashok Panda on -
Hi katja
Nice to hear from you.Hope everything is fine at your end.How is your work ? I would like to talk with you certain aspects of medical tourism and may be we can work on some tools.
A range of products including Ultrasound systems, Color Doppler, X – ray, C-arm, in-vitro diagnostic reagents and instruments, cardiology diagnostic instruments, critical care instruments, modular operating theatres, operating theatre lights and tables and implantable medical devices will be manufactured .
Regards
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Permalink Reply by Mubbashir on -
Dear Mr Ashok Kumar,
Greetings from Kuala Lumpur.
Certainly this is inline with reducing costs in healthcare, I hope once the manufacturer reaches at its maximum capability, the cost of products will not be high. It is very important aspect of medical tourism trends to keep the healthcare costs low, by creating products and services at lower costs. I hope this will give a good boost to Medical Tourism industry in India and world wide.
Best regards
Mubbashir
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Permalink Reply by Andrew Lloyd on -
Of course, one of the large costs (and operating margins) in health care is the cost of disposable devices or other one-use items. Certainly, it's important to see if some products can be brought down in price, but the economics of health care in the U.S., at least, is the ability to charge for one-use items, not so much the cost of the reusable device (whether that's a hospital bed, an MRI, or a stethoscope).
Has anyone looked into how fixed-price, cash up-front medical services reduce the use of low-cost, high-margin items? If I can charge $10 for a tylenol, when it costs me $0.20 for the pill and $5 of nursing time to provide it, and I can shift all of those costs to the insurer, I can keep my operating margins pretty well padded. If I have to pay for the cost of delivery of incidental services down to keep my profit margins up, I am running a much different business than I would be in the United States.
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Permalink Reply by Ashok Panda on
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Andrew,
there are different methods of fixation of rate for the clinical servcies, some do it on actual activity based costing, and when they follow activity based costing , in green field projects they do a comparative analysis and to achieve the break even point in a reasonable stretch . To have a good DSCR ( Debt service coverage ratio ) and IRR , the rate is fixed accordingly by doing a cost apportionment, hence, if the equipment costs ( though one time cost ) are affecting the total project cost , to have a good Internal rate of return it affects the costing of the service also.
Here the private green field projects are either 100 % equity or a equity sharing pattern where paying back the debt in time is very important on which the sustainability depends.
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Permalink Reply by Andrew Lloyd on
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Good to know, Ashok. Years ago, I used be a project finance attorney. While my practice in this area is mostly to represent medical tourism facilitators, I am very interested in hospital finance as well. Interesting to hear how these things are structured!
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Permalink Reply by Ashok Panda on
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Andrew, Nice to know about your involvement in Healthcare finance. The healthcare cost and Financing largely depend on the kind of healthcare delivery, but over a period of time ,it has be come clear that all the institutions have to bring some kind of sustainability and optimal use of resources. Hence in a cut throat competitive world, any single change in base line costs affects others.
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