Financial Feasibility

Management consulting and implementation services for both Greenfield and Brownfield hospital projects

Hospital feasibility report helps in visualizing the financial health of the business. The assignment will clearly define the total cost of the project and projected cash flow for a said duration. It also encourages or warns the promoters about the financial stance and take calculate risk while venturing. If the project is not feasible, then our consultants will guide the promoters on what to do to make the project financially viable. The final report forms the basis for seeking funds – loan or investment.

Bankers and Investors need a detailed working on the assumptions and calculations. They also expect to justify the assumptions either through facts or through market survey. The final document will be a ready document for the finance institute to consider for funding.

Role of Hospital Consultant……

Any Charted Accountant or Bankers, can do the financial feasibility. What they miss is the domain knowledge of Hospital.

Hospital consultants having good experience in hospital operations, can add value in terms of justifying the assumptions made for this exercise. We even convince based on our assumptions because we would do it scientifically.

Many times bankers engage Hospital consultants to validate the report especially to seek opinion on the assumptions made. In such case, the fee towards this expertise will be again passed across the client.


Where all this report will help?

Very key report to raise funds for the hospital project. Funding can be either in the form of Bank loan or Investments. Bankers look for certain indicators and investors looks for return on investment and exit clauses.

Market survey inputs shows that the project is not financially viable?

It may so happen that the findings from the market survey challenges the sustainability of the hospital. As a promoter, one can either change their plan or take it as a challenge and ventures into it. In such cases, we as hospital consultants will advise on what all things to check on before venturing. We also help in strategising to make the project sustainable and later towards realizable profits.

I need investment, how much I need to divest?

Based on the Net Present Value derived against the projected revenue and expenses, our CA will help derive the valuation of the hospital. But lot many other factors come into place before fixing the premium for the shares. There is a systematic way to calculate this and most of the financial institutions adopt a formula to derive the value of the hospital.