Mar, 2014     

Feasibility Analysis and Modeller

Redseer created a Feasibility Analysis Modeler for a large hospital chain. It has been designed as per the functionality procedures of the hospitals. This modeller can help the user in conducting all types of financial analysis for a new centre or for any existing centre.

Firstly, the financial projections along with the detailed P&L and Cash-Flow statements benchmarked with competitors over 5 years was provided to the client. This helped the client determine the current scenario of the competitors. Sensitivity analysis was done by our special analyst team and how the financial projections will change with the change in key parameters like OPDs, IPD Conversion, Pricing, growth rate etc. was determined. Sensitivity Analysis helped in creating scenario-based projections. The financial projection helped in planning the entire model for the hospital and gives an idea of the current layout as well. Detailed analysis help in the prioritization of services, based on their contribution towards revenue and cost. After the financial projection, the Optimum Hospital configuration was done to determine whether it is feasible for the hospital to add other services (like IVF etc.) for a particular location. A detailed analysis of revenue and cost items was done to analyse the contribution of each component in revenue and cost. The overall feasibility for the centre was then projected.

Our team prepared a Gantt chart tool to plan and track tasks, resources, and timeline for the hospital. Multiple hospitals were taken into account and their financial structure was studied by the team. Numerous interviews were scheduled with industry experts to capture the minute details of the functional procedures of a hospital. New services were analysed based on market data and clear recommendations were provided. These factors, therefore, resulted in the making of the Modeller. Recommendation on Feasibility of centre based on IRR is also provided along with it.