Many physicians have the aspiration of establishing their own healthcare facility where they can provide top-notch care for their patients on their own terms. However, being busy medical professionals with hectic schedules, they get muddled and confused by the financial nitty-gritties and the commercial nuances. If you too are in this situation, read on.

Starting a hospital is no laughing matter. It has a labyrinth of intricacies and involves mammoth costs. There may be many questions and doubts running through your mind. How much will be the total cost? How will you collate all the funds? When will you see profits?

All these questions are natural. We will try to give you some answers.

The cost or the budget of your investment will depend upon several factors.

1. The choice of location

Sites in tier 1 and 2 cities will cost more than in smaller towns and villages. Moreover, if you choose a location that is centrally located in a city, your real estate costs may go up.

2. Construction and infrastructure costs

A major chunk of your funds will be utilized for the construction of your facility and the various aspects of infrastructure development right from interior design to furniture and furnishings to decoration. The choices you make here will also increase or decrease your costs.

3. Equipment cost

Every size, type, specialty, or kind of hospital needs an array of medical equipment. Your overall budget will depend upon the type, degree of advancement and number of instruments you need to procure. Medical equipment procurement involves both one-time investment and long-term maintenance and operation costs.

4. Your team

You cannot be a one-man or woman army. Your hospital will have a team of skilled professionals who will be the face of your set-up. you will have to allocate funds for their recruitment, remuneration, retainment, and training.

5. Computer systems

Digitalization is the need of the hour, be it in the operation of your equipment, digital screening, record keeping etc. This will also require a lot of funding.

To garner so many funds, you will have to make a lot of arrangements and do a lot of tedious paperwork. 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 formulate a sturdy financial strategy for your hospital, and help you collate all the documents needed to garner funding and also guide you on how to make a business plan to present before your potential investors.

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 funding option

which is the best suited to you, thereby reducing time, hassles.

They will also help you navigate through the twists and turns of financial chaos which every start-up faces in the first few months.

Common Sources of financing

External loans

If you are going to self-fund your venture, then there is no worry. However, if you have to apply for an external loan, be sure to invest in a feasibility study and a well-curated business plan. Professional healthcare consultancy firms employ a diverse cohort of financial experts who will customize these to fit your requirements. Armed with these prerequisites, you will get an external loan easily without having to leap over any hurdles. Many banks and funding houses

offer such loans on good interest rates to doctors.

Venture capital funds

Several venture capitalist firms give healthcare enterprises financial aid which can ensure that you have a continuous cash flow to deal with day-to-day expenses.

Collaboration

If you are planning to start a multi-speciality hospital, you can collaborate with other like-minded doctors and investors. This can give you a broader patient base, minimize your risk, make required funds available and enhance your bottom line.

Just garnering funds is not enough, a healthcare consultancy firm can also provide you with 360-degree solutions in other aspects of financial planning like

1. Budget Allocation

Your funds will have to be thoughtfully divided into several heads and sub-heads to give you clarity about the approximate total investment. A healthcare consultant can aid you in this.

2. Pricing protocol

Healthcare consultants can help you set a menu or price protocol for your facilities and services after doing an in-detail study of your expertise, your core USPs, competitor’s pricing, infrastructure and ambience of your medical centre and many other parameters.

3. Need analysis

  Before investing in any asset, a healthcare consultancy firm will conduct an impartial need analysis in order to determine whether the investment is justified.

4. Priority planning

Financial experts can help you determine which assets to immediately invest in and which to save for a later date so that you can minimize wastage of funds.

5. Create a sinking fund

The healthcare landscape is a volatile and unpredictable one. Financial consultants will aid you in choosing a premium health insurance plan that can protect you in any unfortunate eventuality and provide you with a financial safety net.

6. Profit Planning 

Healthcare financial consultants can provide you predictive quantitative and qualitative analyses of the timeline of your hospital. They can tentatively forearm you with the idea of when your break-even point can be reached and when profits will begin to pour in. This timeframe will help you carefully plan your investment.

To summarize, establishing a new healthcare centre is like walking through a snowstorm. You cannot see what the next mile will bring, and your feet can sink anytime. Financial planning done with the help and support of a professional hospital consultancy firm can help you navigate through this challenge. If you need a trustworthy partner to take the burden of financial planning off your shoulders, look no further …consult Hospertz, a leading hospital management consultancy firm of India.

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