FACS CASE STUDIES

 

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 CASE STUDY SUMMARY - HOSPITALS AND HEALTHCARE 

1. Ohio Psychiatric & Alcohol Treatment Center
An analysis was made of a new addition versus a renovation. This 72 bed proposed project was part of a 700 bed general hospital with operations of $302 M.

Issue: Are the 4 two-story wings best razed and built new (Plan-1) or renovated (Plan-2)? The "What If" (Plans 1 & 2) were analyzed and factored for least cost combinations of capital and operating - payroll and non-payroll costs.

The capital cost of Plan-1 was $3.25 M. more than Plan-2. The least costly capital plan became the most costly plan to operate.

Results: Plan-1 preferred. This was a least cost combination of capital and operating costs, with:
$12.9 million present value of savings over 20 years
$3.2 million more for capital improvements with payback in 8 years
$430,800 less operating costs initial year

2. Ohio General Hospital
Proposed new addition. This 126 bed hospital required new OR, CCU, ICU and CS departments.

Issue: Is the new addition best located at the rear (Plan-A) or in the front (Plan-B) of the present hospital? Both plans were factored for least cost combinations of capital and operating costs.

Results: Plan-B preferred, with:
$11.2 million present value of savings over 20 years
884 linear feet less corridor with 22 hours less travel time per day shift staff
5 nursing stations instead of 6
10,280 sq. ft. less heat loss thru roof & walls


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