What is Market & Financial Feasibility?

Market & Financial Feasibility is a study that evaluates the viability and sustainability of a hospital project, based on the market demand, competition, costs, revenues, and risks. It helps to determine the optimal size, location, services, and funding of the hospital project, as well as the expected return on investment and break-even point. Market & Financial Feasibility is an essential step for planning and designing a hospital, as it provides a realistic and comprehensive assessment of the project's potential and challenges.

How to conduct Market & Financial Feasibility?

Market & Financial Feasibility can be conducted by following these steps:

• Define the objectives, scope, and assumptions of the study, such as the target market, catchment area, service mix, bed capacity, etc.
• Conduct a market analysis, which involves collecting and analyzing data on the current and future health care needs, preferences, and trends of the target population, as well as the existing and potential competitors and collaborators in the market.
• Conduct a financial analysis, which involves estimating and projecting the capital and operating costs, revenues, cash flows, profitability, and sensitivity of the hospital project, under different scenarios and assumptions.
• Evaluate the feasibility and viability of the hospital project, based on the market and financial analysis, and using various indicators and criteria, such as net present value, internal rate of return, payback period, debt service coverage ratio, etc.
• Prepare a feasibility report, which summarizes the findings, conclusions, and recommendations of the study, and provides a detailed and realistic business plan for the hospital project.