Prolong equipment utilization and cost effectiveness--decision-making by situational analysis; case study of Sanjay Gandhi Post Graduate Institute of Medical Sciences: India

Oxygen is indispensable for a hospital, therefore oxygen concentrator a oxygen source needs to be maintained and operated judiciously. But at the same time one should explore the alternative sources for further cost effectiveness. This study was conducted with an objective to compare cost effectiveness/saving among market supply, in house oxygen concentrator (20-year old partially out-sourced equipment) and liquid oxygen purchased at SGPGIMS, Lucknow, India in April 2012. Situational analysis of concentrator done in 2010 revealed that strength and weakness are almost equal and there were least chances to increase the strength and minimize the weaknesses & threats as the equipment being 20 years old. The cost of oxygen procurement from concentrator (Rs. 14.50-15.75/M3) was less than the cost of oxygen procured from market (Rs. 17. 00-20. 70/M3), and the institute was in position to save Rs. 9.11 million over the period of 10 years (March 2000 to March 2010). In view of prolong utilization, increase in demand and possibility of further cost-effectiveness/saving, an alternative source in the form of liquid oxygen supply was also explored and implemented (@ Rs. 12.47/M3) from 08 June 2011 on trial basis and the institute saved Rs. 23 lacs (Rs. 2.3 million) between June 2011-March 2012 by using liquid oxygen. Following situational analysis in 2012, a final decision to continue with liquid oxygen only and withdrawing the purchase of oxygen from concentrator and market was taken. [PUBLICATION ABSTRACT]