Hyperbaric Oxygen Therapy - Hyperbaric Chamber Information ...
Hyperbaric Oxygen Therapy - Hyperbaric Chamber Information ...
Hyperbaric Oxygen Therapy - Hyperbaric Chamber Information ...
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Appendix E Calculation of monoplace unit<br />
costs<br />
Capital costs<br />
The total cost per year, comprising both capital costs and costs of operating a hyperbaric<br />
monoplace unit, has been estimated. The number of sessions (treatments) and courses of<br />
treatments (patients) per year have also been estimated to compute costs per session and<br />
costs per course of treatment., number of sessions and courses of treatment per year<br />
An average of 90 minutes per treatment is required per session, 2 but this is expected not<br />
to allow for patient assessment and patient preparation. The duration of time required to<br />
turn around a chamber is estimated to be 2 to 2.5 hours. The number of sessions per day<br />
for a monoplace unit is estimated to be 4, the estimated maximum feasible number of<br />
sessions in an 8-hour day. The number of sessions per day is varied to 3 in sensitivity<br />
analysis. The number of sessions per year with 4 sessions per day is then calculated to be<br />
960, using a 5-day working week and 48 weeks per year (estimated 48-50 weeks in<br />
operation per year).<br />
Each course of treatment is expected to comprise 20-30 sessions (from the assessment<br />
report). An estimate of 30 sessions per course of treatment was used in the analysis. The<br />
estimated 960 sessions per year is then estimated to be equivalent to 32 courses of<br />
treatment per year.<br />
The cost of a hyperbaric monoplace unit has been estimated to range from A$100,000 to<br />
A$233,000. An acrylic chamber could cost US$90,000-US$120,000(A$137,000-<br />
A$183,000) with about A$50,000 on top for a fit out of the suite of rooms including<br />
oxygen supply. A steel chamber costs $100,000 to $150,000 (indicated by a manufacturer<br />
in Melbourne). A monoplace unit costs A$120,000 to A$230,000 (personal<br />
communication from applicant). A capital and installation cost of A$300,000 was also<br />
given. Discussions with experts in the field suggested an estimate of A$200,000. This is<br />
used in all the primary analyses. It is within the range of costs for an acrylic chamber. A<br />
sensitivity analysis on the cost of a unit from A$100,000 to A$300,000 was also<br />
conducted.<br />
The cost of capital is assumed to be 9% per annum. The commercial rates for the cost of<br />
borrowing (personal communication from applicant) are 8-10%. The sensitivity analysis<br />
used a 5% cost of capital per annum.<br />
The estimated effective life of the monoplace unit is 10 years (personal communication<br />
from applicant). A sensitivity analysis was conducted using an effective life of 30 years<br />
(estimated life of steel and acrylic monochambers).<br />
The capital cost per annum is calculated as the constant payment required per year, with<br />
the expected cost of capital, effective life and present value of the capital equipment. In<br />
the primary case, the capital cost per annum is estimated to be $31,164.<br />
The capital cost per session is $32.46. The capital cost per course of treatment is $974.<br />
<strong>Hyperbaric</strong> oxygen therapy 115