HealthCare Set-Up: Importance Of Feasibility Report Before Setting Up

Healthcare is the noblest profession of all since it directly imparts health and protects lives. However, along with the altruistic approach of touching the lives of thousands of people, you as a healthcare investor also need to be able to predict whether your healthcare venture will be profitable.

You may be having many questions …will my venture be successful…will I get a good return on investment…All your questions can be answered with a project feasibility report. A project feasibility report is a comprehensive qualitative and quantitative predictive analysis of your plan.

A project feasibility report is a comprehensive qualitative and quantitative predictive analysis of your plan.

For your healthcare set-up, a feasibility study may comprise of a complete report regarding the legal nitty-gritties, Healthcare policies, spectrum of expertise involved, site and infrastructure elements, market analysis, competitor studies and financial assessment.

A feasibility study is like a roadmap that can help you stay on your path and steer away from roadblocks and traffic jams.

Feasibility study is a must for you as a medical entrepreneur because it can determine the financial viability of your goal and can help you determine whether it justifies the investment and efforts.

Benefits Of a Feasibility Study

• Gives you insights about your target audience

• It Helps you identify your niche and USP

• you deal proactively with challenges .

• Helps you determine if your project is practical and profitable.

• Identify your potential suppliers, vendors and buyers.

• Helps you be aware of any barriers to entry or likely obstacles.

• organize funds and align investments.

• Helps you estimate your earning potential and set competitive tariffs.

• Hospertz healthcare are experts in the field of healthcare management consultancy and can assist you in every way possible.

• Helps you narrow down on a site with the right built up area.

• Helps you plan your space and design.

• plan your workforce requirements and investments.

You may feel that a feasibility study is a big investment but the cost of not doing a feasibility study can be much more as it can lead to poor decisions and long-term losses.

Factors that are assessed in the feasibility study

Financial Feasibility :

Even in healthcare, the bottom line and the ability to break-even is of paramount importance. Your dream healthcare set-up has to be profitable along with being excellent. A project feasibility report can help you determine the future financial health status of your venture and calculate the potential return on investments. It can also help you determine the time period before you reach break-even point and start garnering profits. This can help you in aligning resources. The feasibility report will give you an accurate picture of the funds that you will be needing at every step encompassing a spectrum of processes from end-to-end. Thus, you will get an accurate picture of your project financials and your potential profit ratios.

Legal Feasibility :

A feasibility report will list down all the legal requirements that you have to gather before you set up your own healthcare facility.  It will also note down guidelines so that your policies and procedures are aligned to the law requirements.

Operational Feasibility :

There are many gears and wheels that have to move in tandem for the working of a healthcare facility. A feasibility study can assess this is a step-wise and well-phased manner so that lacunas or gaps are determined in advance and you can proactively deal with these challenges.

Technical Feasibility : Advanced technology is an integral part of healthcare. This encompasses an umbrella of things like medical equipment, digital systems, software and machinery. A feasibility report can enumerate and streamline all your requirements in this front and help you assess if you have the budget for procurement.

Market feasibility :

This will give you a detailed analysis on the market trends, your core referral sources, type of competition you are likely to face, expected changes in paradigm so that you can adapt and position your healthcare venture perfectly. Profiling of patient data, country data, state data, city data, locality data and target audience data will be done in an end-to-end manner. The major players in your segment will be listed so that you can get a curtain raiser on your likely competition.

Price Feasibility :

When you provide a service like Healthcare, price becomes a very sensitive issue. Deciding on a tariff is a very complicated process which depends upon multi-fold factors like specialization, location, facilities, competitive pricing, perceived benefits, type pf room etc. E.g., In a hospital, the price for consultation for a patient staying in a Deluxe room is higher than for a patient who has booked a general ward.

Infrastructure feasibility :

A lot of things go into the makings of a healthcare facility…furniture like sofas in the waiting room, storage options, beds in rooms, waste disposal systems, electrical and plumbing facilities. A feasibility report can help you determine your requirements of all these nitty-gritties and plan for their purchase with consideration to potential patient turnover and expected patient volumes in OPD or IPD per day.

Some headings that will be included in a feasibility study are :

Objective

This sub-heading will clearly define the aims of conducting a feasibility study. It will frame the entire scope of the feasibility report in a concise yet clarified manner.

Methodology : Under this, the steps undertaken and the method followed to outline the feasibility study will be conveyed.

Thrust areas : Under this heading, the best possible areas for you to focus on will be revealed

Timelines : A realistic project timeline is a principal factor that can determine the success of your venture. A project that drags on and on will become a big drain on your finances.

Need Gap analysis : Need Gap Analysis is an analytical tool. A comparison of your current state to your desired future state is made and strategies and action plan are devised to bridge the identified gap.

Growth drivers : Growth drivers are certain internal and external factors that can help your enterprise succeed. You can augment these factors to get phenomenal growth.

SWOT analysis :

A SWOT analysis is a management concept which is used to make a comparison between the pros and cons of any venture. This will help you make a comparative analysis between your strengths and weaknesses…these are internal factors and external factors like market opportunities and threats on the other side. Internal factors will include your team, your certifications, your experience, your location and external factors will include competitors, government regulations etc.

To put in a nutshell, a feasibility report is a predictive business tool and it can give you much-needed insights of whether your enterprise will be successful before you jump into the band wagon of healthcare entrepreneurship…be it setting up your own unit, expansion or merger with another operation.

A feasibility report can spur you on towards your goal and also help you avoid making costly blunders or invest in impractical enterprises. You can take help from specialized hospital consultancy firms to create a well-conceived and detailed feasibility study which will evaluate every aspect of your project before the venture kickstarts.

Hospertz has the technical know-how and the experience to curate a feasibility report that can take your dream from concept to completion.

Dr. Vishal Jadhav

hospertz@gmail.com

+91 9820833149 / 9867712705