You are a first-time healthcare entrepreneur and you have decided to construct your own hospital. You have the aspiration of making it a haven of compassionate care and setting a benchmark in terms of medical excellence. You have visited and meticulously studied many top-notch hospitals. You might have noticed that along with the quality of healthcare, the experience of the doctor panel and the overall ambience…one thing sets these successful healthcare units on a pedestal above their competitors and that is their location.

Site selection is one of the first steps that should be undertaken while embarking upon the journey towards hospital construction. A hospital’s location determines its accessibility to its target audience and assures their convenience. Hence, it should be your priority to choose the right location for your hospital.

Benefits of choosing the right hospital site

1. Improves accessibility
2. Enhances footfall
3. Improves visibility
4. Augments profits
5. Helps you score over competition.

Since location is such an important factor and it will be a determinant to your hospital venture’s profitability in the long run, you should plan your location after careful research and thoughtful analysis. Here are some common pitfalls that you must avoid while making this decision.

Do not

1. Choose an inaccessible site

Convenience is one of the deciding factors of hospital selection…hence choose a site that is well-connected by roads and easily accessible by public transport. Convenience and ease of access can enhance the overall patient experience and build your hospital’s brand image. Try to zero in on a central location, so that your hospital is within easy reach of your target audience.

Accessibility may mean some or all of the following

• Proximity to public transport facilities
• Location near a junction
• Location near a residential complex
• Parking facilities

2. Choose a site that does not have utilities

The steep price of real estate within Tier 1 and tier two cities may make you consider constructing your hospital on the outskirts of your city. However, keep in mind that a hospital needs gallons of water for its functioning. Water is needed for drinking, cleaning, sterilization, and many other purposes. If your site is not connected by municipal and city water pipes, it will be a mammoth task to arrange water.

Another factor to consider is the continuous supply of electricity. If you plan construction in a secluded place on the outskirts, there is the possibility of load shedding and power cuts. A hospital with life support systems cannot operate without continuous supply of electricity. You will have to avert these using invertors and generator.

3. Choose a site that is way above your budget

Location and size are two main factors that drive the cost of a project. Land costs in tier 1 and tier 2 cities are hitting the roof. Be careful to stay within the limits of your budget. Investing in land which is centrally located in a metro city may cut a big hole in your pocket and you may have to wait for many years to breakeven and make profits. Many a times, you will have to compromise and settle on a site that does not tick on all your boxes due to budget considerations.

4. Forget about expansion

Always plan ahead. Choose a site that can accommodate your current infrastructure needs and can also adapt when you want to go for expansion. You may need to add wings or floors after a few years so make sure that you invest in a location that will give you scope to do so. If you choose a location in a cosmopolitan city where there is a skyrocketing premium on land, you might have to think only about vertical growth when you expand.

Also remember to plan for additional space for grounds, parking, lawns, garden etc.

5. Forget about disposal facilities

Tons of solid, liquid, and biohazardous wastes are generated in a hospital. These have to be disposed of safely in a way that they do not cause harm to health and the environment. Ensure that your chosen site has access to the area’s waste disposal services before you make the investment. Also ensure that your site has space to build your own sewage treatment plant as this is mandatory in some municipalities.

As a healthcare entrepreneur, you will agree that the location of a hospital has a great deal of impact on its future success. This is because location has the power to enhance your hospital’s visibility and brand image. Choosing a site that is exactly in accordance with your budget limits, your expansion aspirations, your projected footfall etc can be a challenging task.

It is better to avail of the services of Healthcare Consultancy firms to help you sieve through the many location options and arrive at the right site for your dream project.

If you need any help in this endeavour, contact Hospertz, a leading Hospital consultancy firm of India with more than two decades of experience in this field.

Blog has been written by Dr. Vishal Jadhav, a veteran in the field of hospital consultancy with a rich experience of more than 20 years and founder of the Healthcare Consultancy Firm, Hospertz.

Dr. Vishal Jadhav, Director
hospertz@gmail.com
+91 9867712705/ 9820833149