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A Project Study
Submitted to the
In Partial Fulfillment of
September 2017
1
APPROVAL SHEET
This project entitled “Improving the Laboratory Services of New Sinai MDI
Hospital Through the Establishment of a Histopath Section: A Feasibility Study”,
submitted by Josephine T Policar, in partial fulfillment of the requirements for the degree
of Master in Hospital Management, has been examined and recommended for oral
examination.
Approved in partial fulfillment of the requirements of the degree for Oral Examination
Committee:
_______________________________ _______________________________
Member Member
2
Contents
ACKNOWLEDGEMENT ................................................................................................ 7
EXECUTIVE SUMMARY .............................................................................................. 8
CHAPTER 1 .................................................................................................................... 10
INTRODUCTION ............................................................................................................ 10
Background of the Study .............................................................................................. 10
Statement of the Problem .............................................................................................. 12
Objective ....................................................................................................................... 13
Significance................................................................................................................... 13
Background ................................................................................................................... 13
Scope and Delimitations ............................................................................................... 14
CHAPTER II ................................................................................................................... 15
MARKET STUDY ........................................................................................................... 15
The Market .................................................................................................................... 15
Geographical considerations ......................................................................................... 15
Demographics ............................................................................................................... 16
Psychographics ............................................................................................................. 18
Target market ................................................................................................................ 19
Environmental Analysis ................................................................................................ 21
Significant Findings ...................................................................................................... 22
Competitive Grid .......................................................................................................... 23
Industry Environment and Macroeconomics ................................................................ 23
Rivalry among Existing Competitors: Moderate ...................................................... 24
Threat of New Entrants: Moderate ........................................................................... 24
Bargaining Power of Buyers: Moderate ................................................................... 24
Threat of Substitutes: Strong .................................................................................... 25
Bargaining Power of Suppliers: Weak...................................................................... 25
Marketing Objectives (Key Result Areas) .................................................................... 25
Sales .......................................................................................................................... 25
Profit ......................................................................................................................... 29
Market Share ............................................................................................................. 29
Marketing Strategies ..................................................................................................... 29
Positioning ................................................................................................................ 29
Product ...................................................................................................................... 30
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Price .......................................................................................................................... 30
Place .......................................................................................................................... 31
Promotion.................................................................................................................. 31
CHAPTER III ................................................................................................................. 33
TECHNICAL STUDY...................................................................................................... 33
Objective of the Study .................................................................................................. 33
Infrastructure ................................................................................................................. 33
Equipment ..................................................................................................................... 34
CHAPTER IV.................................................................................................................. 37
MANAGEMENT STUDY ............................................................................................... 37
Form of Business Ownership and Rationale ................................................................. 37
Organizational Structure of Clinical Laboratory .......................................................... 37
CHAPTER V ................................................................................................................... 39
FINANCIAL STUDY ....................................................................................................... 39
Total Project Cost ......................................................................................................... 39
Sources of financing ..................................................................................................... 39
Projected Cash Flows .................................................................................................... 41
Computation of Net Cash Inflow .................................................................................. 42
Budgeting Techniques .................................................................................................. 43
Weighted Average Cost of Capital (WACC)............................................................ 43
Net Present Value (NPV) .......................................................................................... 43
Internal Rate of Return (IRR) ................................................................................... 44
Payback Period and Discounted Payback Period...................................................... 45
Profitability Index (PI) .............................................................................................. 46
Financial Assumptions .................................................................................................. 46
CHAPTER VI.................................................................................................................. 48
SOCIOECONOMIC ......................................................................................................... 48
CHAPTER VII ................................................................................................................ 50
CONTINGENCY PLAN .................................................................................................. 50
CHAPTER VIII .............................................................................................................. 51
SUMMARY, RECOMMENDATIONS, CONCLUSION ............................................... 51
APPENDIX ...................................................................................................................... 52
APPENDIX 1. Guidelines for charging Histopathology biopsy specimen .................. 52
APPENDIX 2. Computation of Revenues .................................................................... 52
4
APPENDIX 3. Computation of Yearly Depreciation Expense .................................... 53
APPENDIX 5. Computation of Interest Expenses ....................................................... 54
APPENDIX 6. Computation of Electricity Expense .................................................... 54
APPENDIX 7. Computation of Advertising and Promotional Expense....................... 55
APPENDIX 8. Histopathology Quality Procedure as a requirement by the DOH ....... 55
APPENDIX 9: Bill of Quantities .................................................................................. 71
Appendix 10. Letter of Proposal from the Supplier .................................................. 72
TECHNICAL SPECIFICATIONS: .............................................................................. 72
REFERENCES ................................................................................................................ 79
5
List of Tables
Table 1. Total Household Population of the City of Santa Rosa ...................................... 18
Table 2. Number of samples per year referred by Doctors within the 10 km radius
Hospitals ........................................................................................................................... 20
Table 3. SWOT analysis of New Sinai MDI Hospital – Histopathology Section ............ 21
Table 4. List of Hospitals in the Area that offers histopath .............................................. 23
Table 5. Price Comparison at present of NSMDIH and PHMC- Biñan ........................... 23
Table 6. Projected Sales per year in 5 years. .................................................................... 27
Table 7. Number of specimens for histopath per year by doctors from the different
hospitals within the 10 km radius from New Sinai MDI Hospital ................................... 28
Table 8. Projected Histopathology procedures per year in 5 years................................... 28
Table 9. Distribution of sales in Percentage. .................................................................... 29
Table 10. Projected Net Cash inflow. ............................................................................... 29
Table 11. Gantt Chart of the Histopathology Activities. .................................................. 32
Table 12. Total Project Cost ............................................................................................. 39
Table 13. Projected Cash Flows........................................................................................ 41
Table 14. Net Cash Inflow. ............................................................................................... 42
Table 15. Payback Period and Discounted Payback Period ............................................. 45
List of Figures
Figure 1. Vicinity Map ...................................................................................................... 11
Figure 2. Façade of New Sinai MDI Hospital. ................................................................ 11
Figure 3. Map of Santa Rosa, Province of Laguna. .......................................................... 15
Figure 4. Map of ............................................................................................................... 20
Figure 5. Proposed floor plan of Histopathology section. ................................................ 33
Figure 6. Manpower requirements of the Histopathology Section. .................................. 37
6
ACKNOWLEDGEMENT
Study, my husband Romeo C. Policar and my children, Roberto Jacob Policar, Juliana
Regina T Policar, Ramon Joshua T. Policar, and Jessica Ratu T. Policar, my groupmates,
Marian Colasito, M.D., Grace Mercado-Gito, M.D., Joel Colasito, M.D. Also the
Medical Technologist of New Sinai Medical Center, Miss Antonio chief Med Tech of
7
EXECUTIVE SUMMARY
New Sinai MDI Hospital is a six (6) storey building with 90 bed capacity tertiary
hospital located in a sprawling 4,800 m2 lot in Brgy. Tagapo, Sta. Rosa, Laguna. It is
competent medical specialists. It started its formal operations in its new location as a
hospital on July 07, 2007. After more than 2 years of service, the hospital was able to
establish a school that trains students in paramedical specialties like physical therapy,
and ancillary studies. Currently, there are 41 Clinical Specialties and 16 ancillary services
in New Sinai MDI Hospital. Thus New Sinai MDI Hospital is considered as the referral
center of San Pedro, Biñan, Sta Rosa, Cabuyao, San Pablo, and Carmona-GMA Cavite
areas. It has been known to be the leading medical and diagnostic center providing
quality care servicing the general public and become a competitive tertiary hospital in the
south. But even if there are several ancillary services NSMDIH offers, its laboratory still
The histopathology section shall be housed in the hospital laboratory with an area of 24
8
Before it’s actual operation, training on used of equipment shall be conducted by the
technical staff from equipment supplier. The section shall operate daily from 8:00 am to
5:00 pm and shall be manned by a licensed medical technologist. The laboratory shall
maintain an inventory of materials required for the process and shall be replenished from
As indicated in the study, the target market are the populations of the neighboring towns
of Sta Rosa, Biñan, Cabuyao, and Carmona. The market also includes hospitals and
clinics within the considered 10 km radius from NSMDIH. These are hospitals which do
not have in-house histopath laboratory and send out specimen to hospitals of choice by
With a capital expenditure of Php 6,000,000.00 coming partly from owner’s equity and
partly from bank loan the project is expected to payback in 4 years. Financial projections
were derived from data available publicly such as census of samples referred by New
Sinai and neighboring hospitals to Perpetual Binan and Census of gathered from
The project is seen to create positive social impact on the area. The introduction of a
competition for the lone provider of histopath shall provide the patients a choice. This is
also seen as another center of possible business growth as New Sinai becomes successful
to its new venture, providers of supplies shall see the opportunity to set us business in the
locality.
9
CHAPTER 1
INTRODUCTION
New Sinai Hospital started as a diagnostic clinic inside the Medical Center of
Muntinlupa on October 12,1995 and was known as Muntinlupa Diagnostics Inc. or MDI.
MDI for years continued to progress and expand providing additional services to its
clientele with an ultimate goal of becoming a hospital complex. Today, New Sinai Hospital
is a 90 bed, secondary level hospital located in a sprawling 4,800 m² lot in Tagapo, Sta
Rosa, Laguna.
10
Figure 1. Vicinity Map1
hospital on July 8, 2007. MDI has since been recognized as a leading medical and
diagnostic center providing quality care for the general public and a competitive tertiary
Upon its expansion from a diagnostic clinic to a hospital complex New Sinai MDI
begun to offer a wider range of services, both for inpatient and outpatient cases. The
diagnostics procedures the hospital offers are almost complete for OB Gyne and cardiology
1
New Sinai MDI Hospital.Google map. Retrieved from http://www.google.com.ph/maps/place/New
Sinai+MDI+Hospital
2
New Sinai MDI Hospital.Google map. Retrieved from http://www.google.com.ph/maps/place/New
Sinai+MDI+Hospital
11
and probably one of the reasons it is currently considered as the referral center for the towns
and cities of Laguna and Cavite. The hospital is affiliated with 24 Health Medical
Organizations making healthcare services more appealing and accessible to the local
residents as well as that of the nearby towns. There are 41 Clinical Specialties also available
in NSMDIH.
While the hospital is very strong in its diagnostics department the clinical
laboratory offers very limited services. To list, the hospital offers only the following:
1. Clinical Microscopy
2. Routine Chemistries
3. Microbiology
4. Drug Test
5. Thyroid Test
6. Hematology Test
At present, there is still no Histopath section in the laboratory and all tissue
While being known and recognized as the referral center of the south, NSMDIH
send out tissue specimen to other hospitals for all its HISTOPATH requirements. There is
no hospital in Sta Rosa which has a histopath section, all histopath specimens from the
town are sent to the nearest hospital which is in Binan and is about 2.1 km away from
NSMDIH.
12
Objective
NSMDIH to cater to its own tissue processing requirements and to offer the same services
section and the capability of both the personnel, the management and the process to the
Significance
Background
The project aims to establish a Histopath section for NSMDIH within the existing
part of the building. The hospital shall ensure that requirements from both local and
national government are met and complied with. The project is intended to address the
needs of both adult and pediatric patients needing diagnostic and therapeutic services in
the municipality of Sta. Rosa and the neighboring towns and cities. The inclusion of a
13
histopath section in the hospital operation is an operational improvement that should
This study looks at a new Histopath section and established for the purposes of
financial projections.
The data gathered on the prices of Perpetual Help Medical Center –Biñan, Binan
Hospital and Medical Center and Santa Rosa Hospital was thru telephone calls. While the
2016 Census of the Histopathology section being processed was gathered through the
14
CHAPTER II
MARKET STUDY
The Market
Geographical considerations
New Sinai MDI Hospital is located along National Highway, Brgy. Tagapo, Sta.
Rosa, Laguna. It was strategically built near two distinguished shopping malls namely
Robinson’s place and SM Sta. Rosa. Likewise, MDI is located just a few meters away
3
Santa Rosa, Laguna.Google map.https://www.google.com.ph
15
The NSMDIH is accessible by public transport such as PUJ or FX from Alabang.
Patients may reach NSMDIH via Olivares Complex in Binan, Laguna through Mamplasan
exit. Alabang to Calamba bound clients may take PUJ passing along National Highway to
go directly to the hospital site. Same route goes for privately owned vehicles. Santa Rosa
Northwest : Binan
West : Cavite
The city is located along the south corridor of Luzon and about 40 km south of
Manila. It lies 50 kilometers northwest of Santa Cruz, The capital town of the Province of
Laguna. The City of Sta. Rosa is accessible to people coming from and entering Metro
Manila and other Southern Provinces due to the construction of South Luzon Expressway
(SLEX), The Manila South Road and the Philippine National railroad South line. It can
also be accessed by those from Silang, Cavite. Water transport to the nearby coastal town
is also available.4
Demographics
The City of Sta Rosa is known as the Lion City of South Luzon because of its
booming and vibrant economy. This city houses 4 car manufacturers, 4 Philippine Export
Processing Zones and some of the major and biggest manufacturing in the country, to name
one Coca Cola’s biggest plant in the Far East is here. The congregation of these zones and
corporations has provided jobs to more than 100,000 work force. This has also brought
4
Physical Profile.Geography. City of Santa Rosa, Laguna. Retrieved from http://www.santarosacity.gov.ph
16
great growth in the city’s revenue and has made it to become part of the billionaire’s club
This economic leap has spurred population growth due to migration. An excerpt from the
government’s website states: “Thirty years ago, the population of Santa Rosa was only
47,639 persons. The population size is almost five times the population of the City of
Santa Rosa in the 2010 actual census of population and housing (Figure 1). The
enumerated upward sloping population data from various censuses through the years can
be attributed with the favorable economic development brought by the private sector
making Santa Rosa as an alternative location for the businesses and residences other than
Metropolitan Manila.”5
With a record of 289,946 population count, the city of Sta. Rosa is divided into 18
barangays covering a total of 5,543 hectares. Within a few of the barangays, numerous
health facilities can also be found to cater to the general population. The hospital is
located in the most populated barangay of Sta. Rosa, Tagapo with a total population of
20,954, directly catering to 7% of the total population of the city. With the city of Sta.
Rosa allocating 31% of their land area for residential use, the city’s population continues
to grow with migrants and citizens seeking job opportunities and education. In 2012
survey, it has an estimated household of 67,500 and an average household size of 4.3.
5
Demography. Total Population. City of Santa Rosa, Laguna. Retrieved from
http://www.santarosacity.gov.ph
17
Table 1. Total Household Population of the City of Santa Rosa 6
Psychographics
Sta. Rosa has a dynamic mix of culture and heritage. At a very fast rate of
industrialization and commerce the city still has 15% of its total land irrigated and use for
agriculture. This group is expected to maintain the old traditional life of Sta. Rosa, on the
other hand about 10% of its population are migrants of which some percentage are
retirees and expatriates who are looking for a quiet and relaxing haven. Professionals
from the manufacturing and BPO industries, as well as young families also call the city
their home.
Sta. Rosa is also one of the provinces with the highest number of college graduates,
6
Demography. Projected Population. City of Santa Rosa, Laguna. Retrieved from
http://santarosacity.gov.ph
18
residents of other Laguna towns and municipalities are flocking to what is considered as
Laid back yet progressive, Sta Rosa can be considered as a city that champions
work-life balance.
Here, residents can look forward to a productive day at the office and still come
home to their loved ones with a lot of energy remaining; after all, they aren’t stressed by
Target market
With the establishment of a histopath section within the hospital’s laboratory, the
clientele of the hospital is predicted to grow which will translate to additional revenue for
the hospital. In addition to this, the hospital’s processes will also benefit from it because
there is no need to send out tissue samples to other hospitals providing more time for staff
to do other productive things. Also through this development, New Sinai may be able to
The target market are hospitals and clinics within the 10KM radius from the New
Doctors from these hospitals are part of the market since it would be their
decision to decide to which outside laboratory will the samples for histopath be sent. The
only competitor is Perpetual Help Medical Center in Binan. The hospital should organize
lunches or dinners with a different group of doctors every week to present the capability
and the capacity of the laboratory, especially detailing on the processes to ensure quality
19
and reliability of results. This should be on top of the special price that New Sinai can
offer.
Table 2. Number of samples per year referred by Doctors within the 10 km radius
Hospitals
Hospitals Number of Doctors
1 9
2 12
3 12
4 10
5 20
6 22
7 12
8 22
9 71
10 22
11 20
12 15
13 22
14 12
20
Based on data gathered thru survey and research there are 14 hospitals in the area with a
specimens sent out for histopath for every 20 doctors per year.
Environmental Analysis
STRENGTHS WEAKNESSES
1. Strategically located between 2 Malls, SM 1. Med Tech needs to undergo training on
Sta. Rosa and Robinsons Place. Histopath
OPPORTUNITIES THREATS
21
2. Serves as catchment area for smaller clinics 2. Fast turnover of staff that chose to work
and health facilities. overseas.
Significant Findings
As indicated, the opportunity lies mainly in the hospitals and clinics located
within the 10 km radius from New Sinai MDI Hospital. Medical Specialists from these
hospitals are also connected and some are major stockholders of NSMDIH, who will
refer patients and histopath specimens for process in NSMDIH. The fast rate population
growth as well as the industrialization and commercialization of Santa Rosa City is also
Organization predicted that the number of cancer deaths worldwide would increase from
7.6 million to 17 million deaths in 2030. In the Philippines, cancer ranked third in the list
of leading causes of death in the country in 2010. 7 The lack of competition and
accessibility from all provinces surrounding it bespeak of the strong possibility to capture
22
50% of the market. This opportunity is fortified by the inherent strength of the hospital
The identification of the weaknesses and threats give the shareholders the time
and opportunity to prepare and solve the problems before it surfaces. The unfamiliarity of
the management and the staff can be easily remedied by training, exposure and hiring.
Competitive Grid
Table 4. List of Hospitals in the Area that offers histopath
Histopath Travel
Name of Hospital Level Address Distance
section Time
10
Perpetual Help Sto. Nino,
3 Yes 2.1 KM minutes’
Medical Center -Binan Binan, Laguna
drive
Price Comparison
NSMDIH PHMC-Binan
Specimen In patient Out patient In patient Out patient
small 1,623.00 1,461.00 1,050.00 950.00
medium 2,115.00 1,904.00 1,215.00 1,100.00
large 3,208.00 2,888.00 1,815.00 1,650.00
radical 4,618.00 4,157.00 2,500.00 2,250.00
FNAB 2,087.00 1,879.00 718.00 650.00
Cytology 2,087.00 1,879.00 718.00 650.00
23
Industry competitors : moderate
Threat of Bargaining Threat of Bargaining
new power of substitute: power of
entrants : buyers: suppliers:
strong
moderate moderate weak
Binan has been in operation since? and has established itself in the area as the only
Sta Rosa Hospital and Medical Center and Biñan Doctors Hospital is considered
threat in NSMDIH since Sta Rosa Hospital is just 4.2 km via Balibago road and Biñan
Doctors is 1.2 km only via National Highway from NSMDJH and on the opposite sides.
If they also plan to build up a histopath section, clientele will be diluted. And also
NSMDIH is sandwiched between the 2 other hospital (Sta Rosa Hospital and Medical
24
Buyers are actually the doctors, patients and other facilities or small clinics
nearby which refer patients and histopath specimens for process to NSMDIH. Their
power rests on their capacity to look for another hospital where they can send their
specimen for Histopath with the same services. At present, the only laboratory that offers
Histopathology// is Perpetual Help Medical Center in Binan which is 2.1 km only away
from NSMDIH.
At present, only 1 hospital has a Histopath section which is 2.1 km away from
NSMDIH.
equipment, accessories and consumables. Suppliers may try different marketing packages
to entice customers which would be good for the hospital and gives them a good footing
Sales
25
The sales will come from the in-patients admitted by the specialists like Surgeons,
Our projected total sale per annum is Php 3.4 M with an average annual growth of
26
Table 6. Projected Sales per year in 5 years.
27
Table 7. Number of specimens for histopath per year by doctors from the different
hospitals within the 10 km radius from New Sinai MDI Hospital
28
Table 9. Distribution of sales in Percentage.
Profit
Market Share
Maybe 15 % within the 11 km radius due to the presence of other competitor doing the
same procedure (Perpetual Help Med Center –Binan is 2.5 km away from NSMDIH) and
Marketing Strategies
Positioning
Doctors Especially Surgeons and OB- Gyne to bring their specimen for process in an
29
Product
Cytology
Price
The present price of NSMDIH is much higher compared to perpetual Help Medical
Center-Biñan, since all specimen are sent out. To be competitive, NSMDIH has to lower
the price of its services to match that of Perpetual Help Medical Center- Biñan. The out-
30
Place
The Histopath section will be placed adjacent to the existing clinical laboratory, it
is a 24 m² room.
Promotion
Below are the promotional mix that the hospital will employ for the Histopath section.
1. Social media
Department, the creation of Histopath section. This is to enable the Surgeons and Ob- Gyne
2. Open house
- At the opening week of the new Histopath section, Medical Doctors, Consultants,
Government officials, President of different Homeowners from the nearby villages will be
invited.
3. Streamers
- These will be posted in front of the hospital to announce the newly operated
Histopath section.
4. Lunch/Dinner
Internist, Patho;ogists of our hospital as well as from the different nearby hospitals will be
31
Table 11. Gantt Chart of the Histopathology Activities.
ACTIVITIES J F M A M J J A S O N D BUDGET
Brochure
Streamers ₱ 50,000
Social media
Open house
Lunch/Dinner ₱ 100,000
Rebates to MDs
32
CHAPTER III
TECHNICAL STUDY
The study aims to assess the feasibility of setting up a histopath section in the
laboratory of New Sinai MDI Hospital. It intends to provide the unmet needs of the hospital
Infrastructure
There is existing room which at present is the office of the chief Medical
Histopathology Section. Below is the proposed floor plan as recommended by the DOH.
33
Equipment
Equipment Specifications
Equipment 1
“LEICA” RM2125 RTS - Manual Rotary Microtome
It has been designed for effortless manual sectioning via
counter-balanced , exceptionally smooth-running hand wheel.
The object head with 8◦ X/Y orientation is equipped with a
fast specimen clamp exchange system for improved
workflow.
Technical specifications:
- Section thickness selection : 0.5 to 60 µm
- Section thickness increments :
from 0-2 µm in 0.5-µm increments
from 2 to 10 µm in 1-µm increments
from 10 to 20 µm in 2-µm increments
from 20 to 60 µm in 5-µm increments
Vertical stroke length: 59 mm / 2.32inches
Total horizontal specimen travel range : 25 mm/0.98
inches
Specimen retraction : on /off
Trimming 10 µm and 50 µm
Equipment 2
“LEICA” HI1210 Digital Tissue Floatation Bath, 220-
240VAC/50-60Hz.
Rectangular water bath with jet black aluminum surface
ensuring high thermal conductivity and resistant plastic
coating.
Equipment 3
“LEICA” HI1210 Digital Tissue Floatation Bath, 220-
240VAC/50-60Hz.
Rectangular water bath with jet black aluminum surface
ensuring high thermal conductivity and resistant plastic
coating.
Equipment 4
34
Leica CM1860 - Cryostat for Clinical Applications
Freestanding cryostat with encapsulated, splash-proof
microtome.
Cryochamber temperature selection from 0◦C to 35◦C,
adjustable in 1K increments at ambient temperature of 20◦C .
It is easy to clean , with actively cooled specimen preparation
zone, with quick-freezing shelf for up to 8 specimens (
maximum temperature -42◦C).
2 Peltier element freezing stations( 17 K temperature
difference to the quick-freezing shelf when the chamber
temperature is -35◦C)
Cryochamber may be defrosted manually or via automatic hot-
gas defrosting once every 24 hrs. The cycle may be
programmed in 15- minute increments.
35
Other equipment and supplies (consumables) that are needed in Histopathology
procedure
1. Solutions
a. 10% Formalin
b. 95% ethyl alcohol
c. absolute alcohol
d. Paraffin wax
e. xylene
f. Chloroform
g. Hematoxylin stain
h. Acid alcohol
i. Ammonia water
j. Eosin stain
2. Slides
3. Microscope
4. Blades
36
CHAPTER IV
MANAGEMENT STUDY
At present the Clinical laboratory has its existing organizational structure, headed
37
The histopath section will need the following manpower :
Duties :
- perform gross examination of the surgical specimen, and body fluid for
cell block.
- Perform embedding of the tissue and then trimming of the paraffin block
- sectioning using the micrtome then staining, mounting and labelling of the
specimen
b. Pathologists ( 5)
- examine and describe the specimen grossly, and then takes sections,
38
CHAPTER V
FINANCIAL STUDY
D. Clinic equipment
Aircon (1 .5 HP) Php 19,000.00
Refrigerator 16,000.00
Computer 27,000.00
Printer 10,000.00
72,000.00
E. Furnitures and Fixtures
Table Php 8,000.00
Chair 10,000.00
18,000.00
Total Fixed Asset Php 5,706,920.00
F. Working Capital 279,739.25
Total Project Cost Php 5,986,659.25
Sources of financing
The total amount to be loan will be Php 6,000,000.00. 50% will be financed thru
bank loan payable in 5 years and another 50% from equity equivalent to Php 3,000,000.00.
39
40
Projected Cash Flows
41
Computation of Net Cash Inflow
42
Budgeting Techniques
WACC is the rate that a company is expected to pay to all its security holders to finance
its assets.
= ( 7% x 50% ) + ( 6% x 50% )
= 0.035 + 0.03
= 0.065 or 6.5 %
The Net Present Value is the difference between the present value of the future
Cash inflow from the investment and the amount of investment. Present value of the
expected cash flows is computed by discounting them at the required rate of return.
Accept a project if its NPV is positive, reject it if its NPV is negative and stay
= 7,986,659.25 – 5986,659.25
The calculated NPV at a WACC of 6.5% is Php 1,400,300.35 thus the project is
acceptable.
Internal Rate of Return method also takes into account the time value of money.
It analyzes an investment project by comparing the IRR to the minimum required rate of
If the IRR promised by the investment project is greater than or equal to the
minimum required rate of return, the project is considered acceptable otherwise the project
is rejected.
44
In the case of NSMDIH, IRR is calculated as follows:
IRR= rate of WACC where a (+) NPV is derived + (+) NPV x difference of the two rating
IRR = 13.6%
Since the calculated IRR is 13.6 % which is higher than the WACC of 6.5%, the
project is acceptable.
0 5,986,659.25 5,986,659.25
1 755,092.66 709,032.01 5,231,617.19 5,277,627.24
2 1,501,424.56 1,324,256.46 3,730,192.63 3,728,863.28
3 1,870,487.87 1,548,763.96 1,859,704.76 1,947,849.85
4 2,292,166.58 1,781,013.43 166,836.42
5 2,772,457.18 2,023,893.74
45
Profitability Index (PI)
be accepted or rejected.
investment and if PI is equal to 1 then indifferent (may accept or reject the decision).
PI = 7,386,959.60
5,986,659.25
PI = 1.23
The computed Profitability Index for this project is 1.23, which is greater than 1,
financially acceptable.
Financial Assumptions
1. Assumed census of outpatient is 50% of the in-patients which will come from the
nearby hospitals and clinics while the in patients census was the same census with
46
3. Salaries of the two Medical Technologist are estimated to increase by 3%
4. There will be no major repairs and parts replacement in the first 5 years of the life
by the supplier was estimated at 10% compounded yearly increase starting at year
2. Free repairs and maintenance for the first year under the warranty period.
47
CHAPTER VI
SOCIOECONOMIC
The creation of a histopath section in the medical laboratory of NSMDIH will cause
hospital will create a competition which does not exist at present. The sole hospital
providing histopath to the south dictates cost and pricing because there is no
competition and in any competition the public benefits from better prices and better
quality of services.
b. There is now better access to the services for residents closer to NSMDIH
c. Job opportunities is also increased, a new business will create new jobs for the
locals
2. The government
a. Increase revenue will mean increase taxes and revenue for the government which
will translates to better services from the government to the people or the
municipality
b. The increase of hospital providing histopath services in the south may also attracts
new players such as providers of consumables for histopath and services for
equipment
48
3. Other Medical Clinics/ Hospitals
a. With the rise of another Histopath service in the south, the hospitals will now have
better and faster access to the services not to include better prices. This should
encourage the hospitals to cater to medical services that would require histopath.
Medical Tourism was one of the project of the government to lure tourist to Philippines.
However due to lack of some critical and important medical services some areas cannot be
promoted to cater to this new market, the plan of NSMDIH will and may help.
49
CHAPTER VII
CONTINGENCY PLAN
The following are assumptions made that shall require contingency plan because failure
Surgeons and OB- Gyne to bring their specimen for process in an affordable and of
quality service.
2.Market share. Assumed at 50% within the 11 km radius due to the presence of other
competitor doing the same procedure (Perpetual Help Med Center-Binan is 2.5 km away
from NSMDIH) and has established already a name in the healthcare industry.
New Sinai should close a deal with neighboring hospitals not equipped for a histopath
that all histopath requirements will be sent to New Sinai. New Sinai can offer lower
New Sinai may also develop partnership with transportation companies in the area for the
cheaper transport cost of sample and in order to guarantee correct transportation procedure.
This contingency plan may also be an opportunity to extend services to areas farther than
50
CHAPTER VIII
SUMMARY, RECOMMENDATIONS, CONCLUSION
This paper features an analysis on the market area and subjects using demographics
and geography in the area of about 11 km radius from the location of New Sinai. It captured
data available in public documents to arrive at conclusions that would show whether
histopath section in New Sinai MDI Hospital shows positive result. It can actually gain
more profit if it can market more patients. This study therefore recommends the project to
be undertaken.
51
APPENDIX
Guidelines for charging Histopathology biopsy specimen based on the specimen size and
per container.
52
APPENDIX 3. Computation of Yearly Depreciation Expense
The estimated economic life of the asset is 5 years, hence yearly depreciation
expense is Php 1,171,584.00
= 5,706,920
5
= Php 1,141,38
APPENDIX 4. Computation of employee compensation
Computation of salaries ,13th month pay, vacation leave and employer’s SSS, Philhealth
and Pag-ibig Contributions.
Salaries are estimated to increase by 3% compounded yearly, while SSS, and Philhealth
contributions at 4% increase every 2 years.
Computation of Interest Expenses for Php 3 million loan at 7% interest per year for 5 years
to pay.
2 2,400,000.00 x 7% = 168,000.00
3 1,800,000.00 x 7% = 126,000.00
4 1,200,000.00 x 7% = 84,000.00
5 600,000.00 x 7% = 42,000.00
54
APPENDIX 7. Computation of Advertising and Promotional Expense
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5.2. Place the slides with paraffin sections on the warming block in a 65°C oven for
20-30 minutes. Once tissues are embedded, they are cut into sections that can
be placed on a slide, this is done using a microtome.
5.3. A good section should ribbon off the block in a flat, unwrinkled fashion, such
as paper comes off a printing press. Microscopically, the section must show no
venetian blind, tears and thick and thin areas.
5.4. Adequately processed and embedded blocks.
5.5. Microtome in good condition
5.6. A very sharp knife or blade
5.7. Skill of the histotechnologist
5.8. Microtomy
5.8.1. The rotary microtome is the most commonly used in histopathology since
it is good for cutting semi-thin sections and for cutting serial ribbons of
sections. Microtome knives are either of standard thick metal variety or
thin disposable knife.
5.8.2. Refined, high quality stainless steel razor blade
5.8.3. Consistently produce sections that are virtually free of compression
5.8.4. Less costly: a dull or damage cutting edge can be easily replaced with new
one
5.8.5. Sections are picked off the knife edge and gently floated onto a water bath.
5.8.6. Give the ribbon a slight pull using the scalpel to remove folds until all
sections have been immersed on the water.
5.8.7. Set the water bath at approximately 10°C below the melting point of the
wax (40°C - 44°C), allowing the sections to flatten out.
5.8.8. The water bath must be kept scrupulously clean at all times so that no
“floaters” get on the slide (floaters are dangerous)
5.9. Safety Points
5.9.1. Always lock the microtome handle-wheel when not actually trimming or
cutting.
5.9.2. Make sure you wipe away from the edge of the blade to avoid cutting
yourself.
62
5.9.3. If using a disposable blade loosen screws and use the blade dispenser to
remove the used blade.
5.9.4. Remove the microtome blade or knife handle when finished cutting.
5.9.5. Never carry microtome knives without a protective box. They are
extremely sharp so always handle them with care.
5.10. Hints on sectioning
5.10.1. Thoroughly clean the knife holder by removing the accumulated paraffin
with a piece of gauze.
5.10.2. Make sure all screws are properly tightened.
5.10.3. Study each blocks to determine placement in the microtome to obtain the
most representation of sections of the tissues submitted.
5.10.4. Check the resultant sections to be sure that the best possible sections have
been obtained.
5.10.5. Determine necessary steps or modification to achieve good section when
dissatisfied.
5.10.6. Good sections are result of a slow even turn of the wheel, whereas uneven
(thick and thin) sections can be the result of a fast jerky movement of the
microtome wheel.
5.10.7. Dense capsule or tough surfaces of tissue should be at the top and bottom
to allow easy separation of section.
5.10.8. For circular pieces of tissue, equal margins of paraffin should have left on
all four sides of the tissue block.
5.11. Important points in fishing out ribbon
5.11.1. Hold one end of the ribbon either with your fingers or used applicator
sticks with pointed end.
5.11.2. Gradually lower the ribbon on the water bath with a slight pull using the
pointed of the applicator stick or scalpel to remove the folding until all
sections have been immersed on the water.
5.11.3. Choose the best sections with the aid of an applicator stick gently separate
it from the rest of the ribbon.
63
5.11.4. Insert slide with corresponding label into the floatation bath
perpendicularly.
5.11.5. Orient sections so that it is centrally placed allowing free margins for
subsequent cover slipping and labelling.
5.11.6. Finally, gently immerse the slide again and perpendicularly to the hot
water bath with a slight pull of the section with the scalpel to stretch out
tissue and remove microscopic folding.
5.11.7. Remove slide gently in the same manner as it is being immersed with
proper orientation of the tissue on the slide.
5.11.8. The mounted sections are then placed in the paraffin oven set at 60°C.
Paraffin is allowed to melt at this temperature for 20 minutes; sections are
then immediately transferred to two changes of xylene (clearing) at 5
minutes each. The mounted sections are then ready for staining.
6. Staining
6.1. Tissue sections on slides are then transparent and must be rendered visible by
differential dyes to make microscopic evaluation possible. The principle of
staining is simple ionic interactions of either (+) charge d basic dyes (B+) or
negatively (-) charged acid dyes (A-) with groups of opposite charge in tissue
macromolecules.
6.2. Our laboratory uses the regressive staining method of Hematoxylin-Eosin
staining method for staining of routine histological sections. Regressive
staining method, sections are overstrained in a relatively natural solution and
the excess stain is removed with decolorizer, then the sections are neutralized
with an alkaline solution such as weak ammonia water.
6.3. Currently, we are using Harris Hematoxylin as primary stain, it is a primary
stain and Eosin as counter stain which stains the cytoplasm and extracellular
material.
6.4. Pointers on staining
6.4.1. Before any staining of sections can be done, paraffin must be removed
from the tissue to allow water soluble dyes to penetrate the sections.
64
6.4.2. Always filter staining reagents before performing the procedure.
Impurities found in the H and E staining solutions will affect not only the
solubility of the dye but even the intensity of the staining reaction.
6.4.3. Always checked the volume of reagents for the complete immersion of the
slides.
6.4.4. Be sure that paraffin wax is totally melted and immediately transferred to
Xylene bath, do not allow paraffin to dry up since paraffin wax is poorly
permeable to staining solutions.
6.4.5. For even staining results, dip slides several times before allowing them to
set in the stains for desired time.
6.4.6. Do not allow prolonged application of 0.5% HCI to avoid
overdecolorization.
6.4.7. Failure of sections to remain on the slide during staining may be due to a
dirty or oily slide
6.4.8. If after staining section do not appear clear under the microscope, xylene
should be replenished. There may be water in the absolute alcohol,
moisture in the cover slip, or too much egg albumin, acid alcohol
decolorizer may not have been completely removed.
6.4.9. To remedy the above problem, the section is place in coplin jar containing
xylene to dissolve the adhesive. The slide is run back through the various
processes up to the point where the fault was.
6.5. Staining procedures
6.5.1. Hematoxylin and Eosin Staining Procedure
6.5.1.1. Deparaffinize sections/slides in oven for 20 minutes
6.5.1.2. Xylene – 2 changes, 5 minutes each
6.5.1.3. 95% Ethanol/Alcohol – 2 changes, 2 minutes each
6.5.1.4. 80% Ethanol/Alcohol – 2 minutes
6.5.1.5. Harris Hematoxylin – 15 minutes
6.5.1.6. Wash with tap water – until sections on slide are
visible
6.5.1.7. Acid Alcohol – 1 quick dip
65
6.5.1.8. Wash with tap water – 5 dips
6.5.1.9. Neutralize with ammonia water - 10 to 15 dips or
until dark blue color develops
6.5.1.10. Wash in tap water
6.5.1.11. 80% Ethanol – 2 minutes
6.5.1.12. Eosin – 3 to 5 minutes
6.5.1.13. 95% Ethanol/Alcohol – 2 changes, 5 minutes each
6.5.1.14. Xylene – 2 changes, 5 minutes each
6.6. Expected Results:
6.6.1. Nuclei stain blue / purple / black
6.6.2. Cytoplasm, connective tissue fibers, muscle fibers, and fibrin will stain
varying shades of pinks
6.7. Restaining of sections
6.7.1. Occasionally it is necessary to restrain sections because they have faded or
due to unsatisfactory staining. The following steps are recommended for
restaining sections.
6.7.1.1. Remove the cover slip by soaking in xylene.
6.7.1.2. Place in 80% ethanol/alcohol, 10 dips.
6.7.1.3. Place in 1% acid alcohol until all color has been
removed.
6.7.1.4. Wash thoroughly with running tap water.
6.7.1.5. Rinse in distilled water then restain as desired.
6.7.1.6. If unsatisfactory staining is due to incomplete removal
of paraffin, place in two changes of xylene at 15
minutes each before placing in 80% ethanol/alcohol.
7. Mounting (Cover slipping)
7.1. Mounting or cover slipping is done to protect the tissue from being scratched
and from deterioration from oxidation and to preserve tissue section. It also
provides better optical quality for viewing under the microscope. The
refractive index of the mounting medium should be close to the average
66
refractive index of the tissues (1.530 – 1.540). Entalan or Eukitt may be used
as mounting medium.
7.2. Method of cover slipping
7.2.1. Drain excess Xylene
7.2.2. Place 2 – 3 drops of mounting medium on slide
7.2.3. Gently lower cover slip onto slide
7.2.4. Tease air bubbles from slide
7.2.5. Dry on flat surface
7.2.6. Do not attempt to forcefully press down the slides on the cover slip just to
spread the mounting media, for it may cause bubbles.
8. Labelling
8.1. Slides are then labeled with gum label with the proper identification of the
slides and the date.
8.2. Quality control
8.2.1. Remove excess mounting medium
8.2.2. Check for any bubbles
8.2.3. Remove any paraffin wax on the slides
8.2.4. Double check labelling
8.2.5. Check the staining
9. Interpretation
9.1. Prepared specimen shall then be interpreted by the Pathologist
10. Releasing of results
10.1. Results shall be available within 3-5 days. Results shall be encoded in
Laboratory and Pathology Services Result Form (FM-LAB-001-3/0)
10.2. All reports for In-Patient will be put in the respective area in the Officer in
Charge of the day desk for proper endorsement in the nurse station.
10.3. All reports for Out-Patient and Walk-In Patient will be released to the
respective boxes at the main reception area of Clinical Laboratory.
67
68
FLOWCHART DETAILS RESPONSIBLE INTERFACE
Receive and check the Laboratory Surgical Pathology
request and specimen. Receptionist/ Medical Request Form
Check the necessary Technologist (FM-OPR-003-10/0)
details the quality of Record of Specimen
the specimen. (FM-OPR-003-10/0)
Specimen shall be
suspended in
adequate fixative
agent. Refer to
implementing
guidelines 1.1
Perform gross Medical Technologist/
examination of the Histopath Technician
surgical specimen,
and body fluid for cell
block. Refer to
Implementing
guidelines 1.2
Perform tissue Medical Technologist/
processing: fixation, Histopath Technician
dehydration, clearing
and infiltration. Refer
to Implementing
guidelines 1.3
The tissue is oriented Medical Technologist/
on the mold: a Histopath Technician
cassette is attached;
producing a flat block
face with parallel
side. The mold is
placed in a small
cooling area to allow
the paraffin to
solidify. The quick
cooling of the wax to
ensure a small
crystalline structure,
producing fewer
artifacts when
sectioning the tissue.
When the wax is Medical Technologist/
completely cooled Histopath Technician
and hardened, the
paraffin block is then
pop out of the mold
and trim off the
excess paraffin. Refer
to Implementing
guidelines 1.5.
FLOWCHART DETAILS RESPONSIBLE INTERFACE
Sectioning is then Medical
performed using Technologist/
the microtome. Histopath Technician
Refer to
Implementing
Guidelines 4.5
Using Medical
Hematoxylin- Technologist/
Eosin staining Histopath Technician
method for
staining of routine
histological
sections
Mount the slides Medical
with the before Technologist/
reading by the Histopath Technician
Anatomic
Pathologist
70
APPENDIX 9: Bill of Quantities
Bill of Quantities
Item # Description QTY Unit Unit Cost Total Cost
Painting
1 Flat Latex 2 tin 2,200.00 4,400.00
2 Semi Gloss Latex 2 tin 2,700.00 5,400.00
3 Boral 2 bag 730.00 1,460.00
4 Sanding Paper #100 15 pieces 20.00 300.00
5 Sanding Paper #120 15 pieces 20.00 300.00
6 Paint Roller # 6 and tray 9 pieces 30.00 270.00
7 Paint Brush # 2 5 pieces 30.00 150.00
Carpentry
8 Marine Plywood 3/4 " 4 pieces 1,200.00 4,800.00
9 Good Lumber 2X2X10 S X S 8 pieces 250.00 2,000.00
10 Finishing Nail 2 kg 100.00 200.00
11 Expansion Bolts 24 pieces 30.00 720.00
Labor
17 Painter 6 man-days 1,000.00 6,000.00
18 Carpenter 2 man-days 1,000.00 2,000.00
19 Plumber 2 man-days 1,000.00 2,000.00
20 Supervision 4 man-days 2,000.00 8,000.00
Total Cost Labor 18,000.00
71
Appendix 10. Letter of Proposal from the Supplier
05 January 2017
HISTOPATH SET UP
One (1) Unit “LEICA” RM2125 RTS - Manual Rotary Microtome
TECHNICAL SPECIFICATIONS:
One (1) Unit “LEICA” TP1020 Tissue Processor with Fume Control
Technical Data:
73
Standard delivery includes:
1 Basic instrument
10 Beaker carriers (14 0422 30671)
2 Wax baths, 1.8 liters (14 0422 30665)
1 Standard tissue baskets (14 0422 30585)
1 Set of replacement fuses 2 x T 10.0 A
1 Set of power cords:
1 Power cord "D" (14 0411 13558)
1 Power cord "USA-C-J" (14 0411 13559)
1 Power cord "UK" ST/BU F-5A (14 0411 27822)1 Screwdriver 5,5
x 150 mm (14 0170 10702) 1 Crank handle size 4 (14 0222
30663) 1 Instruction manual Leica TP1020
G/E/F/S (14 0422 80001)
Instrument features:
Freestanding cryostat with encapsulated,splash-proof microtome.
Spacious, stainless-steel cryochamber withantiglare illumination.
Easy-to-clean and disinfect.
Heated, removable sliding window.
Stable, self-contained cryocabinet on casters.
Collection container for condensing water at front of instrument.
Outer surfaces and controls of instrument coated with AgProtectTM
nanosilver coating to reduce risk of infection.
Handwheel may be locked in two positions.
Easy-to-handle and stable clamping system for clamping the specimen
discs.
8° XYZ specimen orientation with zero point reference.
Specimen retraction, (20 µm), can be switched off.
75
selectable in 10 µm increments from 60-100 µm.
Technical Data:
Mains power supply: 230 V/60 Hz
Admissions: CE
Dimensions and weight:
Dimensions (W x D x H): 730 x 730 x 1140 mm
Dimensions (W x D x H): 28.74 x 28.74 x 44.88 inches
Weight: 135 kg - 297.36 lbs
All specifications related to temperature are valid for a room
temperature of up to 22 °C and a relative air humidity of 60 %.
76
1 Allen key with handle, size 5.0 (14 0194 04760)
1 Allen key, size 6.0 (14 0222 04141)
1 Single-head wrench, size 13 (14 0330 33149)
1 Single-head wrench, size 16 (14 0330 18595) 1 Bottle of cryostat oil,
type 407, 50ml (14 0336 06098) 1 Tissue freezing medium for
cryosectioning, 125 ml (14 0201 08926) 1 Pair of cut-resistant safety
gloves, size M (14 0340 29011) 1 Instructions for use Leica CM1860/
Leica CM1860 UV (14 0491 80001)
1. Cutting Tissue
2. Techniques in embedding
3. Histopath process flow
INSTALLATION &
OPERATORS TRAINING : On Site, Free-of-Charge
VALIDITY : 90 Days
MA.GIGI S. VESLIŇO
National Sales Manager
77
78
REFERENCES
7. Hospitals in San Pedro, Biñan, Sta Rosa, Cabuyao, Laguna Philippines. Google map.
Retrieved from
https://www.google.com.ph/maps/search/hospitals+in+santa+rosa,+cabuyao,+san+pedro,
+binan+laguna
79