Abstract:
In Jauary 2001, SKMCH started a Diagnostic Center at 134-Habitat Villas, adjacent to Jail Road in Lahore, to provide quality diagnostic services to the people at a convenient location. It was believed that the center would attract huge volumes of business and would enable the hospital clinical income to carry greater burden of SKMCH expenses. Contrary to expectations, the center was unsuccessful to generate enough volume. The first six months' performance showed that the center might not be able to cover its own expenses. It was proposed to move the center to main Jail Road where a suitable piece of property has already been donated to the trust. It is now believed that the new site would offer better volumes of business as it is located across the road from Services Hospital and the
Punjab Institute of Cardiology (PIC), the main diagnostic and medical establishments on the busy road. Being a non- profit organization, the case allows analysis and the application of standard techniques of finance to this sector. The complexities inherent in the situation and the difficulty in selecting an appropriate discount rate are also issues for discussion and debate.