Business plan for Hospital

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Health care industry is one of the fastest expanding sectors in India and an all-inclusive hospital business plan can assist business savvy persons to benefit from the wide ranging prospects and risks provided by the money spinning industry.

Preparing an attractive hospital business plan needs intensive research, knowledge gathering of both hospital and healthcare sector. It helps in fundraising or simply optimizing the fiscal statements for the current business. Hospital Business plan writing should be effectively done by following a standard format.

Business plan for Hospital - Things to consider

In various ways, preparation of a hospital business plan is similar to preparing commercial strategies for other sectors. However, there are few industries. The hospital industry is a highly controlled sector, with regulation from the provincial administration to the central and state government dominating many minute explanations of the hospital sector.

Hence, a business plan should address few particular issues and help in resolving any queries of prospective investors, if any. There are number of businesses linked with hospitals and health care, from treatment providers to gate keeping services, so it is significant that the hospital business plan must deal with each and every kind of associated industries.

How to prepare a Hospital Business Plan?

There are few simple steps, adhering to which you can prepare a comprehensive and user friendly Hospital Business Plan. They are:

  1. Highlight areas of exclusive services offered by the hospital, type of hospital, whether it is for children, pregnant women or for special treatments like cancer, etc.

  2. Study the requirements of the society. Assess whether hospital requirements are being attained or not, besides researching on the facilities provided by the rival hospital in the specific field. Describe how your healthcare facilities would be different from the competitors.

  3. Gather information from the top executives of other hospitals providing same healthcare facilities. This will help you in understanding the areas on which your hospital has missed out. Incorporate the missing facilities and locate the kinds of tools you need to install in your hospital. It will indirectly assist in determining the initiating costs and the functional prices for constructing and operating a hospital business

  4. Take advice from the real estate agent to identify the probable area of land where you can construct your hospital edifice. Seek advice from with an architect to verify construction price. This will help in recognizing the range and ability of your hospital along with the construction rates.

  5. Recognize the accurate kinds of tools and products you will require to run your business, in accordance with the planned size and scale. Study the existing costs for every item which will eventually give you the final charges for your set up cost estimates.

  6. Formulate a promotional plan and publicity budget for your business. Settle upon the kinds of promotional channels you will utilize to disseminate your message. It is advisable to prepare two different sections for your promotional plan; one for initial advertising and the second one for yearly marketing efforts.

  7. Locate your personnel and assurance requirements as per the size and scale of the proposed hospital business. Decide remunerations and project the prices of any advantages you will give your staff. It will help in determining functional expenditures such as office equipments, furniture, alternate equipments, replenishing of products, etc. these estimates joined with the marketing estimates will provide an insight into the functional costs.

  8. Summarize your business plan. Within your plan, incorporate all the information on your needs and objectives. Give a brief about your marketing plan, operating methods, rivals, projected balance sheer and other monetary information.

Business plan for Hospital - Format

  1. Executive Summary
  2. Purpose
  3. Mission of the Hospital
  4. Vision of the Hospital
    • Client Service
    • Quality
    • Safety
    • Competence
  5. Business Plan
  6. Strategic Plan
  7. Operational Plan - Services, Charges, Admission strategy, Strategic Policy, and Employee
  8. Hospital features - Beds, staff, medical student recruitment, Operation Theatres, Intensive Care Units (ICUs), etc
  9. Various Hospital Departments such as Radiology, Orthopedics, Obstetrics, General Medicine, etc
  10. Hotel Expansion Plans
  11. Brief on features of expansion
  12. Hotel Tie-Ups
  13. Expenses on various medical equipments and treatment
  14. Operating Expenditure
  15. Revenues
  16. Strengths and Weaknesses
  17. Prospects
    • Geographic
    • Demographic
    • Behavioral
  18. Market Competitors
  19. Income
  20. Role and responsibilities of Executive Director, Operations and staff
  21. Managerial Format
  22. Remuneration
  23. Plan for staff improvement / on the job Training
  24. Fiscal Model Analysis - Recurring prices, initial expenses, etc
  25. Fiscal Estimates
  26. Advertising Plan
  27. SWOT Analysis
  28. Timeline
  29. Contingency and Support Plan
  30. Conclusion