Hospital Feasibility Study

Market Survey and Feasibility Study for setting up a Healthcare Facility

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Introduction

 

A Hospital Feasibility Study is the best way to find out the sources of patient flow to the Hospital. The Feasibility Study comprises both a Market and Financial Analysis of the Project and is an essential aspect to be considered either while establishing a new hospital or a new facility in an existing hospital or expanding the existing hospital.

 

Objective of carrying out a Market Feasibility Study for a Healthcare Facility

• Format suitability, whether if Tertiary - Single, Multispecialty or Multi-super Speciality

• Evaluating the suitability of the proposed facility location

• Identifying the right Specialities to be provided by the Healthcare Facility for the location

• Understanding the Critical Gaps in the Private Healthcare provided in the planned catchment by the key factors that Doctors in the area look for from such Facility

 

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Why and How Hospital Feasibility Study Done?
 

 

Carrying out a Market Feasibility Study helps

• New investors looking at opportunities in Healthcare delivery space

• Completing a thorough competitive analysis given the healthcare service lines being explored.

• Carrying out a demand analysis for the space or medical services provided by the proposed facility

• Projecting the trends that are shaping what these markets will look like in the future

• Funding agencies in examining infrastructure investment in regions with less healthcare facilities

• Overseas players wanting to replicate a successful chain model in India

• Medical Suppliers looking to penetrate the Corporate Hospital market

• Preparing Detailed Project Report (DPR) based on Market Analysis

 

Methodology & Approach to a typical Hospital Feasibility Study

 

 

• Establish the Doctor Group to be surveyed depending on the preferred specialities. To include:

  • General Practioners

  • Consultant Physicians

  • General Surgeons

  • Specialist Doctors

• Use a combination of Qualitative Surveys & Quantitative Surveys. The Qualitative Surveys being free flowing interview taking about 45 minutes for each Doctor and Quantitative Surveys, based on a more structured approach taking about 30 minutes for each.

• Survey will be structured to evaluate the prospects for the new Hospital based on the following factors.

   

  • Adequacy of Hospitals with these specialities in the Core Area

  • Quality of these Hospitals based on

    • Facilities & Infrastructure for handling advanced treatments

    • Patient Satisfaction

    • Treatment quality

  • Doctor Recommendations on specialities and others.

  • Location suitability

  • Competition evaluation

  • Format suitability – Primary, Secondary and Tertiary and if Tertiary

    • Single Speciality

    • Multispecialty

    • Multi-super Speciality

 

• Results that can be expected from our Hospital Feasibility Report

  • Format recommendation: To begin as a Multi Specialty Hospital and then transform into a Multiple Super Speciality.

  • Super Speciality recommendations like

  • Secondary care speciality recommendations

  • Supporting specialities to complement the specialities offered and cater to the general needs of the area.

  • Business model recommendations : Corporate Image model, Speciality driven

 

Hospital Project Report and Business Plan

 

Hospital Project Report Preparation

Based on the Market Information gathered through the Study and decision taken on the Services / Procedures to be offered, both clinical and diagnostic, we prepare the Project Report cum Business Plan for the proposed Hospital, covering the Phases of growth, over a 10-year period.

Based on the study and if needed, we work out the Costs based on segments of Patients using the Hospital's Services.

• For lower range patients, i.e., providing very affordable care

• For mid to higher range patients i.e., providing a For Profit, Private Hospital type care.

 

Capital Costs and Revenues will be worked accordingly to determine feasibility of each option. This report will be the very basis for the decision on the mix of treatment to be provided.

The Project Report cum Business Plan would include

• Details of the Project

• Project Description

• Locational Advantages

• Market Analysis

• Hospital USPs / Differentiating Factors

• Risk Analysis & Contingency Plan

• Demographics

• Service and Revenue Mix

• Stacking Plan

• Bed Distribution

• Market Plan

• Staffing Plan

• Projected Financials

• Estimated Project costs including

  • Construction Costs

  • Equipment Costs

• Fixed Costs

• Variable Costs

• Operating Costs

• Estimated Income

• Projected Profitability Statement

• Projected Cash Flow Statement

• Projected Balance Sheet

 

 

Healthcare Due Diligence Study

 

Operational Due Diligence Study of the entire Hospital to examine in detail the existing Infrastructure, Facilities, Equipment, Licenses and Approvals, Staff, and other Resources. The coverage primarily under each of these heads would be: Read More...

 

Manpower Planning and Recruitment Assistance

 

Based on the Stagewise Roll Out Program as given in the Business Plan we prepare the Organogram covering the Senior and Middle Level Staff, Clinical and Non-Clinical.

On approval of this Staff Master List by the Hospital Management we will provide the Qualifications, Experience and Privileges for each Post, as well as information for placing the recruitment advertisements.

All these requirements will be in compliance with the National Accreditaiton Requirements - the NABH

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