Is the plan going to work?
This is the biggest question in the mind of every promoter or investor who invests in a hospital project. Howsoever noble the cause is, if the hospital project is not market and financially viable, nothing makes sense. A financial feasibility study is a pre-requisite before going into designing and planning the hospital. we back at hospaccx always believe going for market and finical feasibility study for any healthcare business plays a vital role.
The fund is not only required in case of a new hospital but also needed in other situations like:
- During the introduction of add-on service.
- The acquisition of high-end medical equipment.
- Reestablishing a variety of internal operations.
- Renovation or expansion of an existing healthcare facility.
- Construction of a new inpatient, outpatient, or another ancillary service center.
What We Do in a market and financial feasibility study :
At Hospaccx, we have a team of financial experts, who have assisted many hospitals, in successfully assessing the market and financial feasibility of their proposed business plan . In all the cases, our 12 years of experience and a thorough understanding of the details, helped our clients to make informed decisions and financial projections.
We follow a two-way approach:
- Market Feasibility
- Financial Feasibility
While making a Market Fesability, we study various factors like the type and size of the hospital, the presence of other hospitals, patient flow, market requirement, and gap identification of services, etc. It gives us a clear picture of whether the market is ready for the new hospital or healthcare business or not. Once done, we move on to study the financial feasibility of the project analyzes factors like capital required, operative expenses, direct costs, income and expenses projections, equity VS debt ratios, and the potential for revenue which will offset both.
We make a market and financial Feasibility report, which helps us in the clients in the following ways:
- They serve as first guidelines and tells you too clearly whether you should take the next step or not. It will save you from making a big dent in your pocket by spending on a non-viable project.
- The study is regarding qualitative and quantitative data to check if they the project is bankable i.e they can also be used as a base to obtain loans/funding for your project.
- They help you focus on some other aspects of your hospital plan too, which otherwise remain unnoticed
- It is exhaustive: hence it covers the worst scenario and probability of business gain/loss over a period.