The role and importance of economic feasibility studies in the development of medium-sized projects: establishing a specialized hospital for the treatment of atrophy in children in Najaf Governorate - a case study

Abstract

Economic feasibility studies play a significant, clear, and vital role in the development of medium-sized enterprises (SMEs), as they are the compass that assists and supports businessmen and investors in making sound decisions with minimal risk and increased chances of success. Providing a high-quality healthcare sector is a true investment in human development, as it provides greater opportunities for society intellectually, psychologically, and health-wise, in addition to raising the country's level of economic activity and reducing the loss of economic resources. Among the scourges and diseases facing Arab society are dementia, where patients require funds and care that differ from others. Here, the goal of establishing SMEs emerges in bringing about development, firstly on the economic level by providing labor, reducing unemployment, and minimizing the drain on foreign currency by limiting travel and employing qualified medical personnel. Secondly, on the human development level, by transforming those afflicted with dementia from a helpless group in need of a provider into individuals capable of working and supporting themselves. To reach and achieve the research objectives, it was divided into three chapters in addition to the introduction, conclusions and recommendations. The first chapter dealt with theoretical foundations: economic feasibility study; development of medium-sized projects, in terms of the general concepts of the feasibility study, its characteristics, objectives and stages, in addition to medium-sized projects and their role in enhancing economic and social development. The second chapter included the reality of the specialized hospital project for the treatment of atrophy disease in terms of the importance of the specialized hospital in providing health care and the general features of the health situation in Iraq. The third chapter included the financial analysis of the project and the application of commercial standards for the project. The conclusions and recommendations of the project will then be reached. Investing in Aba Al-Hassan Specialized Hospital will raise the quality of healthcare through the rehabilitation of injured individuals. This is from the social feasibility aspect. From the commercial profitability aspect, the project will recover its money within three years and nine months of its establishment and will obtain an accounting return estimated at 25% and a net present value estimated at 212,802,709. The profitability index is estimated at 0.257, and thus the project is commercially profitable. From here we conclude that the project has great social importance in terms of improving the quality of healthcare provided in terms of efficiency and effectiveness, in addition to speed, management, and increasing skill development. Therefore, establishing the specialized hospital project is necessary because of its great importance in reducing the drain on foreign currency and bridging the gap between the number of centers and injured children.