project hospital fin all business summary[1]

Proposal for a Hospital Global Cardiology Institute

BY:

PANKAJ MOHAN SHARMA

of 33

TABLE OF CONTENTS

1. Promoter’s Background2. Objectives of Study3. Healthcare in India Medical Tourism Scenario4. Health Insurance Scenario5. Location Analysis of Jaipur6. SWOT Analysis7. Proposed Hospital Profile8. Budgetary Considerations9. Expected Revenue and break – even Analysis

PROMOTER’S BACKGROUND

of 33

Dr PANKAJ MOHAN SHARMA, MBA, MHA A CARDIOLOGIST and health care Market leader, presentably works as a Cardiology Innovative Business Consultant in India. He proposed to set-up a Multi speciality Tertiary Health care Hospital with Cardiology main focus ground to cater to the Population of Jaipur (RAJASTHAN) India. He is specialist In Cardiology and Business Management consultant. He has seven years experience in cardiology innovation, marketing, hospital development and Business planning.

Mr Brian Flugg CEO, He is CEO Based in USA with multifocal cardiology development and Research, working with Global Heart care project of MY1 Heart

Mrs Sosan - An Eminent Business woman and cardiology nurture

The Global cardiology consultant

The Group is interested in conducting a detailed exploratory market research and financial feasibility to understand the demand and supply of health care and relevant market opportunities to make a conclusion for the upcoming proposed project in JAIPUR.

The Detailed Project Report comprises primarily of two main parts:

Market Research: understanding the need gap and requirement for a multi specialty hospital; assess the healthcare delivery systems of competitors, and a review of all stake holders on the lacunae and strengths.

Financial Feasibility: To derive the Project cost details, Income and Expenditure estimates, Break –Even Analysis and other important projections, a comprehensive Feasibility study was done.

of 33

OBJECTIVES OF STUDY

1. To perform feasibility analysis for a hospital at the Jaipur Rajasthan.

2. To give an estimate of budget required for the project.3. To calculate the expected profits and the break – even point for the

project.4. To Emphasis on expansion of the project.

To establish a Hospital in Cardiology excellence in India for health healing and learning of humanity. This is a multispeciality hospital which will cover all the speciality of medicine Surgeries, paediatrics, ophthalmology and Surgery

Our Prime focus is to establish a global cardiac care centre for the cardiology Excellence, which will provide world class cardiac care, angioplasties, bye pass operation, Open heart surgeries with latest advancement in cardiology treatment

This will be first hospital in India which will provide Interventional Cardiac Radiology services during cardiac procedures,

Apart from cardiology our aim is to provide world class neurology services, world class ophthalmology services, Infertility centre, world class nephrology and dialysis centre, rhematology centre, world class paediatric Neonatology centre with excellence, World class critical care services, world class laproscopic and key hole surgeries centre, world class orthopaedic surgeries and trauma treatment centre in our hospital premise.

With the hospital we will run a Nursing college for production of speciality nurses, Our Nursing College will be art of nursing institution and will work with the hospital from the start up date.

Second phase is to establish a Medical college of capacity 100 students in a year with the attached hospital and to extend the hospital to 700 beds capacity.

This Project Report is presented for the start up funding.

of 33

HEALTH CARE IN INDIA

of 33

Indian Healthcare Industry to Double in Value by 2012 Rising income levels

Changing demographics

Shift in disease profile from chronic to lifestyle diseases to propel the growth

The health infrastructure across Indian states is projected to grow by an average of 5.8 percent per annum between 2009-2013, taking the total expenditure in 2013 to USD 14.2 billion

Of the 32 Indian states that the report considered, the six states of Rajasthan, Maharashtra, West Bengal, Uttar Pradesh, Tamil Nadu and Andhra Pradesh are forecasted to represent approximately 50 percent of the expenditure for 2009-2013 period.

While the Indian healthcare system has grown manifold over the past few years, it has yet not been able to keep pace with the rapid rise in the population. One example of that is the availability of hospital beds in our country —against a world average of four beds per 1,000 population, India lags behind at just over 0.7 presently.” There is a growing need to deal with the issues of urban healthcare infrastructure as rural to urban migration has significantly increased the demand for these services.

The Indian healthcare industry is estimated to double in value by 2012 and more than quadruple by 2017. The main factors propelling this growth are rising income levels, changing demographics and illness profiles, with a shift from chronic to lifestyle diseases. This is likely to result in considerable infrastructure. The healthcare sector in India is undergoing a phase of reform propelled by rapid economic growth. Apart from the healthcare providers, emerging markets such as diagnostic chains and medical device manufacturers are attracting increasing amounts of investment.

In comparison to all 32 states, Rajasthan forecasted to maintain its dominance as the state with highest cumulative healthcare infrastructure expenditure, with spend of $ 7.3 billion between 2009 - 201cture challenges and opportunities.

The Indian Healthcare Industry-An Overview

India's healthcare sector has been growing rapidly and estimated to be worth US$ 40 billion by 2012

of 33

Revenues from the healthcare sector account for 5.2 per cent of the GDP, making it the third largest growth segment in India.

The sector's growth will be driven by the country's growing middle class, which can afford quality healthcare.

Growth drivers

Medical Tourism

Telemedicine

Healthcare services outsourcing

Diagnostic services

Increasing awareness

Medical insurance

Aging population

Growing urbanization

Low cost treatment

Pharmaceutical companies are going online to shorten the development and approval cycle of new drugs.

of 33

MEDICAL TOURISM IN INDIA OR HEALTHCARE TOURISM

Indian hospitals are fast becoming the first choice for foreign patients owing to easy access to visa facilities, coupled with the best emerging medical infrastructure, which will help India earn to an extent of US$ 1.86 billion in foreign exchange by 2012. Currently, India's earnings through medical tourism annually are an estimated US$ 821.40 million.

Medical tourism can be broadly defined as the provision of 'cost effective' private medical care in collaboration with the tourism industry for patients needing surgical and other forms of specialized treatment.

Jointly facilitated by the corporate sector involved in medical and healthcare as well as the tourism industry - both private and public.

India has originated as one of the most important hubs for medical tourism.

A nice blend of top-class medical expertise at attractive prices is helping more and more Indian corporate hospitals to lure foreign patients, including patients from developed nations such as the UK and the US, for high end surgeries like Cardiac By-Pass Surgery or a Knee/Hip Replacement.

of 33

A combination of many factors has lead to the recent increase in popularity of medical tourism.

Exorbitant cost of healthcare and medical facilities in advanced countries,

ease and affordability of international travel,

favourable currency exchange rates in the global economy, rapidly improving technology and high standards of medical care in the developing countries

Salient Features

Low cost medical treatment

High quality medical care

Low wait time for critical treatments

Fluent English speaking staff

HEALTH INSURANCE SCENARIO IN INDIA

With less than 10 per cent of the population having some sort of health insurance, the potential market for health insurance is huge.

Indian health insurance business is fast growing at 50 per cent and is expected to continue growing at this pace.

The sector is projected to grow to US$ 5.75 billion by 2010, according to a study by the New Delhi-based PHD Chamber of Commerce and Industry.

One-fifth of India's population is likely to have a medical insurance by 2015

Estimated increase in consumer spending on healthcare from US$ 2,054 per household in 2005 to US$ 3514 per household by 2015.

In some cases, the Government is partnering with the private sector to provide coverage at a low cost. The Yashaswini Insurance scheme, launched in 2002 in Karnataka by a public-private partnership.

NEED FOR MULTI SPECIALITY HOSPITALS

of 33

100 Doctors interviewed

All facilities under one roof.

Most advanced facilities.

Provides Basic Facilities at a rock bottom price with the same quality.

They can attract talent.

Indian Healthcare Industry-Growing and Innovating High Tech Area.

Change in attitude towards healthcare.

LOCATION ANALYSIS OF JAIPUR

of 33

Jaipur is the last well planned city of India, located in the desert lands of India, Rajasthan. The city which once had been the capital of the royalty now is the capital city of Rajasthan. The very structure of Jaipur resembles the taste of the Rajputs and the Royal families. In the present date, Jaipur is the major business centre for the natives of Rajasthan with all requisites of a metropolitan city.

No. of large and medium scale running units: 48 No. of small scale units: 19,544 No. of industrial areas: 19 (Bagru, Bassi, Bais Godam, Bindyaka, Dudu, Hirawala, Jetpura, Jhotwara, Kaladera, Kanakpura, Kartarpura, Malviya Nagar, Phulera, Renwal, Sanganer, Shahpura, Sitapura, Sudarshanpur and Vishwakarma)

Jaipur district is a centre for both modern and traditional industries. The main industrial products include: acetylene gas, ACSR (Aluminium Conductor Steel Reinforced) cable, all-purpose flour (maida), atta flour, ball bearings, bottling of LPG, ceramics, pottery, cold roll strips, corrugated boxes, deoiled cakes, durries, dyeing and printing, edible oil, electronic items, engraving on brass items, ferrous and non-ferrous castings, gems and jewellery, general engineering and manufacturing, granite slabs and tiles, hand-made paper, handicraft items, halogen automobile headlamps, "hawai" chappals (sandals), household electrical appliances, HT steel strips, iodised salt, lamps, laminated springs for railways, marble statues, marble tiles & slabs, moulded plastic components for electronics, nitrochlorobenzene, oxygen gas, perfumes, pigments, plastic containers, P.P. multifilament yarn, PVC cables, PVC doors, PVC footwear, canvas shoes, Portland cement, ready made garments (clothing), re-roller products, semolina (suji), steel furniture, steel ingots, stone grits, synthetic leather, suits & shirts made of synthetic materials, tablets and capsules, two way radio and line, washing soap, wheat, woollen carpets, refined vegetable oil and vanaspati ghee heavy Steel fabrication, brass and lacquer work, enamel work, gems and jewellery, granite tiles, handlooms, marble statues, printed cloth and textiles, ready made garments, woollen and silk carpets.

Jaipur has been ranked 31 among the 50 Emerging Global Outsourcing cities. Genpact and Infosys have their BPO already established and running successfully. In fact Genpact has the fastest growing location in Jaipur. Real Estate business is flourishing well from last 2–3 years. Some of the companies already present here include MICO, Coca Cola, IBM, Ericsson and NEI popularly known as NBC Bearings.

Jaipur also has Reserve bank of India and many other prominent international banks. India's largest integrated IT SEZ Mahindra World City is located in Jaipur. Master planned by Jurong Constructions

Singapore it covers nearly 3,000 acres (12 km2) of land off Ajmer highway and has already attracted major companies like Infosys, TCS, Wipro, Tech Mahindra, Truworth and Bank. India’s one of a kind World Trade Park is also under construction in Malaviya Nagar. It will be having luxury hotel, business halls, five screen multiplex, underwater restaurant and many showrooms of international brands. In coming years it will be the hub for modern business development in Jaipur. Jaipur is soon planned to have an International Convention Centre and a Golf course. A film city near Agra highway is also in the pipeline.

Tourism is a significant part of Jaipur's economy. Some of the world's best hotels are located here.

Hospitals in JAIPUR

HOSPITALS BED STRENGTH(APPROX)

SMS Medical college 700

Fortis 350

S D M HOSPIAL 300

GANDHI HOSPITAL 100

SONY 200

AMAR JAIN 150

Birala 200

Monilake 780

APPLO 300

Total Population( JAIPUR) 3,300,000 (2009)Bed ratio (present) 1.8Total Beds Required 10,000(WHO recommendation 3 per

1000 population)Beds Available 6000(APPROX)Bed Deficit 4000

Disease prevalence’s in JAIPUR

Heart attack, Blood Pressure, Angina, Unstable angina, COAD, TB.

Positive Factors

81% Literate population

Densely Populated 7,214/ Km²

Majority of High and Middle income group

Good sewerage system

Huge scope for further development

Population of Jaipur city (2009) excluding suburbs is around 3,300,000 (approx). Total bed strengths (which includes Private and Government Hospitals) are 6000 approx. So number of beds per 1000 population is 1.8,

of 33

but according to WHO standards it should be 3. So we are short of 4000 beds in Pune. And this shortage will increase in future.

IT Services sector remains a major driver of the economy and jobs created here Rajasthan NRI Diaspora and first-generation of successful technology entrepreneurs are encouraging a renaissance of entrepreneurial activity.

JAIPUR is emerging as a prominent location for tourism and manufacturing companies to expand.

25% of income of JAIPUR comes from Handy craft, export, semiprecious – Precious stones cutting, Apparels and IT sector.

JAIPUR has the sixth largest metropolitan economy and the highest per capita income in the country.

Negative Factors

Reputed hospitals like Fortis, Apollo SDM, and Birla

Market penetration not difficult for newcomer

High Real estate rates

Scarcity of Trained Doctors, Specialist, Nursing staff (common problem of whole India)

Congested space around hospital premises

SWOT ANALYSIS

Strengths:

1 JAIPUR is called as Pink City of India; it is as huge Tourist Destination from all over world. Also it is gallery of Export, hub of IT industry, thus we expect high employer base utilisation of insurance a hospital services. Medical Tourism is best Business Approach for Jaipur

2: Easy Availability of skilled doctors and trained Para-medical staff and investments required to uplift the current status of the healthcare. Jaipur is known for Education Hub for Medical Education in India

Weakness-- No significant

of 33

Opportunities: Changes in demography and socio-economic mix are altering the population's disease profile and increasing the incidence of lifestyle diseases thus increasing the demand for beds

Threats: Steep population growth with lack of proper healthcare policies, Infrastructure and accessibility to the healthcare for all is challenge in the coming days.

LAND FEASIBILITY SURVEY

A Land Feasibility Study is conducted to evaluate and determine the suitability of the soils relative to a parcel of land where an on-site sewage system would be used

Erosion & Sediment The site is assessed according to its current erosion and sediment loss conditions and then a new plan is designed proposing a new topography for sediment control and erosion prevention.

Proper Water Supply

Proper Sewage System

PROPOSED HOSPITAL

GLOBAL CARDIOLOGY INSTITUTE & MULTISPECIALITY HOSPITALColour: Red signifies the colour of life and the courage to deal with emotionally disturbed customers

Mission

To serve and enrich the quality of life of patients suffering from diseases, through the efficient deployment of technology and human expertise, in a caring and nurturing environment with the greatest respect for human dignity and life.

of 33

Vision

Global Cardiology Hospital will strive with excellence to fulfil the needs of the community in its chosen field of medical treatment and grow to be the biggest and most respected name in quality healthcare business in the country.

Global Cardiology Institute & Multispeciality Hospital

It will be 200 bedded Research Hospital which will be accomplished in 3 phases

Rationale: - Availability of land

Availability of finances

Competitors

First Phase 200 beds; it will take one and half year to commence the Hospital after acquiring the land. (OCT 2009- MARCH 2010). Hospital + Angel Investors tie up (joint venture)

Angel Investor will be investing 75 crores in three phases 25 crores into my business.

Means- $ 15 million USD for first phase of hospital and nursing college

1. Purchase of land

2. Second Phase 100 beds hospital

3. Third Phase nursing paramedical college

Final phase-- For the Second Year – development of Medical/ dental college-- $ 25 Million USD

Here we will focus on First phase of hospital and nursing college,

Nature of the Hospital (GLOBAL CARDIOLOGY INSTITUTE and NURSING COLLEGE)

The Global cardiology Institute & Multispeciality Hospital will be a high end hospital with the following characteristics: 250 bedded acute care tertiary healthcare facility with specialty and

super specialty services Full outpatient department, inpatient department and primary care

services It will have a state of the art radiology imaging centre

of 33

It will be fully digitised and paperless with all clinicians and departments using an Electronic Patient Record system at all times

It will provide an intimate, friendly and caring environment Its design and processes will be patient‐focussed High staff to patient ratios for personalised care Providing the highest standards of cleanliness, comfort, safety and

convenience State of the art medical equipment and evidence based protocols

It will be staffed by selected, highly‐qualified healthcare professionals to ensure highest quality practices

THERAPEUTIC SPECIALITIES

Ortho

Cardiology

Gynaecology

Paediatrics

ENT

Sex clinic/ counselling centre

Rehabilitation centre

Psychiatry

Dental

Wellness centre

Ophthalmology

Medicine

Surgery

SUPER SPECIALITY

1) Liver Transplant and Digestive Diseases2) Joint Replacement3) Women and Child Care4) Trans Nasal Brain Tumour Surgery5) PELD Minimal Access Slipped Disk Surgery6) Urology and Andrology7) Obesity Surgery

DIAGNOSTIC SERVICESSo Radiology: CT scan, MRI, bone mineral densitometry, mammography,

ultrasound, x‐ray

of 33

o Laboratory: biochemistry, haematology, serology, microbiology, clinical pathology, histopathology

Other support services o Endoscopies, blood bank and blood components, dialysis, non‐

invasive cardiology such as echo, stress testing, holter, and ECG

IT Driven tools and service

Hospital management system Billing

Inventory

Accounts management

Records management

ERP solution

Telemedicine and medical informatics

Decision support system that improves diagnosis and treatment

Healthcare players are establishing ways to give customers easy access to pertinent information

Pharmaceutical companies are moving to speed development and delivery of new drugs

Hospital Peculiarities

Micro-processor based implant able in patients.

CPU-driven technology supported by artificial intelligence.

Robotics in OTs

Robotics in Path-labs / Research.

Laser Technology in surgery

Instrumentation in medical and surgical practices.

IT tools for net-working examination, diagnostics, treatment rooms and OTs.

of 33

IT Tools along with artificial intelligence and microprocessor technologies for equipment maintenance and trouble shooting.

IT tools for generation of disease specific data.

USP

Quality healthcare services with state of the art medical facilities under one roof

Well qualified staff

Excellent customer patients services

Easily accessible and competitively priced.

Customized designs to suit the varying needs of different customers (patients)

Constant interaction with the patients and strong bonding with them

Promoting healthy India

Floor Wise Design:

Basement:-

10 OPD’s Diagnostics, Lab Waiting lobby

Ground Floor

Lord Tara Temple Reception, ADT department Billing Department Blood Bank Cafeteria Children Play Area Emergency Department Admin Department ATM

First Floor

OT

of 33

SICU Labour Room NICU PICU ICCU CATH LAB CARDITHORACIC OT CTVS ICU HDU

Second Floor

General Ward Twin Sharing Semi -Deluxe Rooms Library

Third Floor

General Ward Deluxe- Rooms Suite

Fourth Floor

Tele-Medicine Department Conference Hall Yoga Area Ayurvedic Department

ESTIMATED MANPOWER

Nurses in the Hospital Department of Laboratory Medicine

Nurses in I.C.C,U/ ICU 12 Section Head 1

Nurses in S.C.C.U 9Number of Technicians for fairly automated lab

6

Nurses in I.C.C.U 0Number of Technicians manual/fairly automated lab

9

Nurses in N.I.C.U 7 Senior Technicians 1Nurses in Special ward 12 Total Technicians 10Nurses in Deluxe ward 4 Relievers 3

Nurses in Double ward 7Attendants for Automated Lab

6

Nurses in Single ward 19 Relievers for Attendants 0Nurses in General ward 8 Reception cum Clerk 1

of 33

Nurses in Day care 4 Relievers for Clerks 0Nurses in Operation Theatre 5Nurses in OPD 7 Department of Imaging Sciences Nurses in Casualty ward 7 Section Head 1

Nurses in Labour Room 1Number of Technicians for routine X-rays,

2

Total Nurses in the Hospital(Including 30% of Relievers)

90Special procedures like myelography

4

barium investigations, HSG etc.

Physiotherapy Department Relievers 1Physiotherapists 1Physiotherapists Aide/Junior Trainee

0 Department of Ultra Sound

Senior Physiotherapists 0 Number of Technicians 2Total Physiotherapists 1 Attendants for Ultra Sound 4

Relievers 1Pharmacy Department Pharmacists for Indoor Issues

1Department of ECG & 2D ECHO

Pharmacists for OPD Issues 2 Technicians with Echo 5Junior Pharmacists 0 Relievers 2Senior Pharmacist 0Pharmacy Aide 0 Special Services Chief Pharmacist 1 Blood Bank 0Total Staff in Pharmacy 4 Health Check Up 1

X-Ray 0General Maintenance Infection Control Nurse 1Manpower required 9 Nurse Clinical Specialist 1

Relievers 3Total staff - special services

3

Total Staff in General Maintenance

12

Security Department Food Service Department Security guards (Including gateways & Special areas)

5 Dietician 1

Relievers 2Security Supervisor 5 Cook 3Total Staff in Security Department

12 Cook Helper 3

Dishwasher/Attendant 3Sterile Supply Department Storekeeper 1Technician required including Relievers

3Total Staff in Food Service

11

Supervisor shift 1Total Staff in Sterile Department

4

of 33

Laundry DepartmentLaundry Operator 5Laundry Orderly / Assistant 2Laundry Staff 7Relievers 2Total Laundry Staff 9Shift Supervisor / shift 1

Housekeeping Department Primary Secondary Tertiary

Staff in Housekeeping 0 0 77Total Housekeeping Staff : (Including 30% Relievers) 0 0 100

Total Manpower required in Hospital :

315

COMPETITOR ANALYSIS:-

FORTIS HOSPITAL

Department of medical genetics Clinical Genetics Cytogenesis Molecular genetics Metabolic genetics Ayurveda/ Panchkarma Homeopathy Dentistry Clear vision clinic Voice clinic Obesity clinic Cardiology Neurology Kidney transplant Cancer treatment IVF centre Neuro Trauma Unit

SDM HOSPITAL

Accident and Trauma Care Acupressure Clinic Anaesthesiology Button Hole Surgery for Gall Bladder removal Blood Bank Cancer Centre with facilities for Radiotherapy, Surgical Oncology

and Chemotherapy Cardiac Centre

of 33

Chest Medicine Corneal Transplants with Eye Bank facility Day Care Centre Dental Centre with laboratory and facilities for Maxilla Facial

Surgery and Dental Implants Dermatology Eleven well equipped Operation Theatres including separate

Operation Theatres for cardiac and neurosurgery Endocrinology and Dialectology ENT Department Gynaecology and Obstetrics Department with labour rooms I.C.U./ C.C.U./ P.I.C.U./ N.I.C.U. Intensive Care Unit for trauma and other cases Lithotripsy and Urology including Nd : YAG Surgical Laser Mobile 'C' Arm Units Neonatology for highly specialized infant care and Neonatal

Surgery Neurology and Neurosurgery Ophthalmic Laser & Automated Perimetry Ophthalmology with facilities for radial keratotomy Orthopaedic Department Orthopaedics, Rheumatology and Physiotherapy Paediatric Intensive Care Unit Paediatrics , Paediatric Surgery and Paediatric Urology Physiotherapy Post Operative Recovery Room for Cardiac, Renal and Microsurgical

cases Psychiatry Radiation Synovectomy Reconstructive Plastic Surgery Renal Dialysis Unit Respiratory Care Unit for patients needing acute respiratory care

facilities Speech Therapy with a Child Guidance Clinic Vascular Surgery Video-endoscopes Surgeries

MARKETING STRATEGIES

Communication mix

of 33

The aim of this exercise is to establish the brand in the minds of the customers so well that it becomes the first name that customers recall whenever discussing or thinking about healthcare. The product would be heavily advertised before launching and then we would involve in extensive sales promotion. The communication strategy of promoting and advertising the brand is as follows:

1. Magazines

o Health

o General

o Lifestyle

2. Newspaper ads

3. Hoardings across various places in cities

4. Advertisements in local television shows

5. Sponsoring school events

6. Organising awareness camps and visiting schools

7. Mobile marketing

Public Relations and Publicity

We have chosen newspapers and magazines because of wide range of our target audience. Magazines and newspapers are always in the eye amongst public. Magazines are read for a period of a month, which brings more attention to an advertisement. We plan to advertise in

National and local newspapers

Health Magazines

We further plan to utilise the non personal communications such as photographs, films and tapes showcasing the facilities of our hospital and the advantages that the local population will have by getting themselves treated at a world class hospital as compared to the local nursing homes.

Advertising

11 Internet: We would place display ads and interstitials on websites like makemytrip.com. This would target the customers who frequently visit such sites for planning their travel. Also we plan to place our advertisements on yellow pages.

of 33

Promotion activities

11 Hoardings: Visual hoardings to be placed on prime locations of the city to increase visibility among masses. Also we would place hoardings in high density residential areas, industrial areas and on city outskirts.

11 Camps: Blood donation camps and free check up camps would be arranged in schools and colleges.

11 Event Sponsorships: We would try to grab attention of the prospects by sponsoring events such as cultural events, sports events etc. We can even organize marathons.

11 Advertisements to be placed on local and short route buses.

Sales Promotion

11 Tie up with Insurance companies for devising various insurance cover plans.

11 Tie ups with corporate and educational institutions for annual health contracts.

Special packages for economically backward patients, senior citizens, maternity package, annual health check up package, package for diabetic patients, physiotherapy package etc. Future Plan

We have devised a plan which would be followed in case of future expansions. We are planning to implement a Hub and Spoke model which will help us in expanding our services to areas where we cannot currently reach due to infrastructure related issues. Issues like transportation, electricity, public sanitation facilities available in smaller towns and villages currently don’t allow us to open our super speciality hospitals in these areas. Even if these are ignored, there would be problems finding good doctors and other hospital staff who would be willingly ready to work in such areas. To circumvent these issues, we have come up with this model.

of 33

As shown in the above diagram, we will have our fully equipped super speciality hospital in the cities (Tier 2) built and working successfully as envisioned in the current expansion plan. But we would not be able to provide quality health care to smaller towns where a good number of people reside and are in need of such facilities. This would also form a part of our Corporate Social Responsibility whereby we will go one step further than just providing free care in our hospitals by reserving 10% of our capacity for such cases.

Here we will establish small nursing homes with minimal facilities and having interns and other less qualified staff (but competent enough to handle minor issues like flu, fever, basic orthopaedic and other basic services). These staff would be able to give proper diagnostic facility to the villagers and to the small town people and if they feel that the patient has some major disease, he/she will refer that patient to the nearest “HUB” where the person would be treated at subsidised cost (the exact amount of subsidy that would be provided can only be decided on regional basis). We would be cross subsidising such activities with the retained earnings from our business.

of 33

These plans, would however, can be implemented only after we have attained a certain minimum level of competence and profitability which could take us few years.

BUDGETARY CONSIDERATIONS

Amount

budgetedAmount

expenditure INR in Millions INR in Millions1. Land cost 15000 Sq.Ft / * 1000 *12 200.002. Building and auxiliary cost 459.40

3. Cardiology set up 50.00

4. Equipment planning Echo – Colour Doppler 1.80 Ventilator: 3 2.40 Cardiac Monitor (NIBP) 30 3.00 Defibrillator: 5 1.00 TMT-2 0.30 Central Line Oxygen 0.20 ECG Machine : 10 0.10 Pulse Oxymetre : 5 0.10 Centralized Monitor 0.10 Infusion Pump : 10 0.30

of 33

Pace Maker : 05 0.25 Computerized System 0.20 X-Ray :3 0.90 Cardiac Fowler Bed 0.75

IITV 0.90USG : 2 0.80 Pathology Equipments 1.50 Other material & Medicines 0.20 CT scan 10.00 MRI 15.00 CSSD 15.00 Lab 20.00 Ambulance 4 nos 2.00 Communication System 2.00 IT system 10.00 Miscellaneous 10.00

Total CAPEX 808.20

Working Expenses

Amount budgeted

(Monthly)Amount expenditure

(Yearly)

INR in Millions INR in Millions

1. Salaries

NURSES @ Rs. 7000/ *90 0.06

Physiotherapist @ 30000/*1 0.03

Pharmacist @ 12000/* 4 0.05

Maintenance staff @ 6000/* 12 0.07

Security staff- outsourced 0.05

Technicians @ 7000/*63 0.04

Housekeeping -outsourced 0.05

dietary services @ 5000/ * 11 0.06

Administrative Heads @ 70000 /* 7 0.49

Med.Supr. 0.15

Assit.Med. Supr.@ 40000/ * 6 0.02

CEO 0.20

Administrations @ 20000 /* 12 0.24

of 33

mailto:Med.Supr.@

mailto:Technicians@

Admin Others @ 8000 /*20 0.20

consultants @ 70000 /* 15 0.10

Surgeons' Visit @20000 / *7 0.14

RMO @ 15000/*18 0.27

Special Services @ 12000/*3 0.04

Disaster budget 2.00

Marketing budget 30.00

Fuel Charges (Ambulance and Generator) @ 35 / * 30* 30 *12 0.31 3.72

Other expenses 0.60 7.20

TOTAL 70.04

EXPECTED REVENUE - Revenue estimation(1 st Year)

Sr. no.

particularsCharges

INR

revenue per month INR

Millions

revenue per annum INR

Millions

1OPD patients(20 patients* 30 days * 10 OPD )

500 3.00 36.00

2IPD patients( 4 patients * 30 days )

50,000 6.00 72.00

3surgery(70 surgeries per month )

70,000 4.90 58.80

4 Pharmacy( OPD) 3.00 36.00

5 Pharmacy( IPD) 1.20 14.40

6 USG( 20usg * 30 days ) 700 0.42 5.04

7 X-ray(15 X-rays * 30 days ) 400 0.02 0.24

8 CT (50 CT per month ) 2,200 0.11 1.32

9lab tests( 100 OPD tests * 30 days)

500 1.50 18.00

10lab tests( 50 IPD tests * 30 days)

800 1.20 14.40

11 ECG ( 100 ECG * 30 days ) 200 0.60 7.2

of 33

12 Cardiology set up 0.50

Total Revenue generation INR Millions

21.95 263.90

USD 5.28 Millions

CAPEX

Initial requirement - INR 808.20 Millions

Will be equal to – $ 16.17 Millions

Working capital

Requirement – INR 70.04 Millions

Will be equal to - $ 1.40 Million

Revenue

Revenue generation 1st year – INR 263.90 Millions

Will be equal to - $ 5.28 Million

Expected annual growth - 15 % per annum

--------------------------------------------------------------------

Investor requested to contact

Dr. PANKAJ MOHAN SHARMA

Q-3, FRU 1, RCH HOSPITAL

SECTOR 30, FARIDABAD, HARYANA

INDIA

E MAIL-- [email protected]

of 33

mailto:[email protected]

project hospital fin all business summary[1]

Documents