Hyperbaric Oxygen Therapy - Hyperbaric Chamber Information ...

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