How is financing important in hospital?

For a doctor, setting up his/her own practice is a dream. If you too have such a goal …there might be many questions in your mind. How much will it all cost. When will a break-even point be reached How will you gather the finances?

If you are planning to self-finance the venture, it is good. However, if you feel you may need funds, it is better to take the help of Healthcare Consulting Firms for financial planning and budget allocation. They will offer you expert guidance on the course of action. They will be in the best position to aid you as they will be having inherent knowledge of as well as access to various funding sources like capital markets, financial institutes, venture capitalists and banks. After a proper assessment of your requirements vis a vis the sources available, they will help you choose the opportunity which is the best suited to you, thereby reducing time, hassles and efforts.

Some factors that can influence your budget of investment

Your site : A site that is accessible and centrally located will be costlier than a site that is outside the city. Hence the former will be costlier. Moreover, a site that is based in a metro or a tier 1 city will be more expensive than that based in a tier 2 or tier 3 city. You will have to make designing and architectural investments aligned with your facility size, speciality, your expected footfall and your clientele.

The size of your organization : The bigger the set-up…the more are the funds required.

Equipment : Healthcare equipment is usually a costly affair because you have to make provision for funds for both one-time investment and long-term maintenance and operation.  You will also have to procure software that can ease your day-to-day operations.

Workforce : Healthcare establishments necessitate the employment of a skilled workforce. Since the job profile is highly technical, the reimbursements are generally high too. You will have to make provision for this considerable investment.

Technology investments : Technology is needed in each and every aspect of your healthcare facility, be it the operation of your equipment, your electronic accessibility, digital screening, record keeping and telemedicine.

Hence, you will have to make a budget provision for the technology set-up for your facility.

Common Sources of financing

External loans : If you have to apply for an external loan, be sure to invest in a feasibility study and a well-conceived business plan curated by a professional healthcare consultancy firm. This will pave your way in getting the loan without hassle. Many banks and funding houses offer healthcare professionals loans on good interest rates.

Venture capital funds : Several venture capitalist firms give healthcare enterprises financial assistance. They help by assuring that there is a continuous cash flow and optimize your investment to generate profits.

Collaboration : If you are planning on having a big set-up, you can think about collaborating with other investors. Collaboration can make funds available, give you a wider patient reach and enhance profits. For e.g., …you are an orthopaedic who wants to start a surgery set-up, you can collaborate with a reputed physiotherapist and a rehabilitation expert. The patient gets the advantage of more services under one roof and you get the advantage of share in investment.

Financial planning includes several aspects

Budget Allocation : Everything…from a pen used at the reception desk to a complicated machine requires money.  To finance this plethora of medical needs, you will require a big capital that has to be divided into several heads and sub-heads to give you a clear picture of anticipatory costs.

Profit Planning : Just having a top-notch healthcare set-up is not enough, it has to be profitable too. Predictive quantitative and qualitative assessments of when break-even point can be achieved and when profits will be garnered can help you gain the trust of your investors.

Resource optimization : Planned resource optimization by deciding the priority of your needs for investment can help you minimize immediate costs.

Plan against an eventuality : Insurance provides you a safety net when you are trying to walk on the tight rope of running a new business.  Invest in a premium insurance plan to guard against any contingency.

To summarize, there has been a drastic change from the earlier conventional methods of financing healthcare facilities in India. Earlier, economizing and cost-cutting was considered right whereas today -investment to give mandate to quality is of highest priority. Setting up a new healthcare unit is an uphill task. Garnering finance is one of the first steps that has to be taken care of in this tedious trek.  This is an enormous challenge for most first-time enterprisers with their inexperience in financial matters plus their chaotic schedules. If you agree with this, hire the services of a competent healthcare consulting firm. Out leasing this task can make the burden of your financial worry light and give you the time and energy to focus on your core happiness…making your patients well.

If you need a helping hand in planning the finances of your healthcare unit, look no further …consult Hospertz.

Dr. Vishal Jadhav

hospertz@gmail.com

+91 9820833149 / 9867712705