Medical Oxygen plant setup – Cost and Benefit

Due to a significant increase of Covid cases requiring oxygen therapy, hospitals throughout India have experienced significant oxygen shortages in recent months. All the hospitals have drawn their attention towards investing much in these life-saving oxygen plants at affordable prices. Here comes a question: what is the price of a medical oxygen plant setup in India? Is it more efficient than using oxygen cylinders?

The technology behind oxygen generators is not new, and it has been available for more than two decades on the market. What is the source of these newfound passions? The two primary reasons are as follows:

  • We've never seen such extreme price volatility in oxygen cylinders, or worse… crisis/ shortage/ insufficient supply. Due to this lack of supply, many patients died in ICU panting for air. Nobody wants something like this to happen again.
  • Small and midsize hospitals may not have the financial capacity to invest so substantially in generators upfront. Instead, they would maintain it as a variable cost that they could pass on to patients.

A few questions are also there. Is it the first investment? Is it a good idea for hospitals to spend money on oxygen generators? Does the oxygen generator have any advantage over the liquid medical oxygen tanks and PSA nitrogen generator? This post will look at the answers to all of these questions.

The expense of a Medical Oxygen Generator upfront

The capacity of oxygen cylinders varies from 200Nm3 to 10Nm3, and this is roughly similar to 30-700litres per day. Depending on the capacity required, these Oxygen Generators could cost anywhere between Rs 40 and Rs 350 lakhs (plus taxes).

Medical Oxygen Plant Space Requirements

If any hospital is already running an oxygen plant, it will not require any additional space. If not, then there is a requirement of setting up an oxygen generator, and it requires very much space, and there should be no movement after the plant has been set up.

Medical Oxygen Generator Operating Costs

In a hospital, the operating cost of an oxygen plant generator involves two things:

  • Yearly maintenance cost
  • Electricity bill

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