How to write a hospital business plan

Written by daniel tolliday
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How to write a hospital business plan
Writing your hospital business plan will take some effort. (Hospital image by Raulmahón from Fotolia.com)

The demand for health care services has increased, making this one of the most booming industries in global economics. If you aim to establish a new hospital, one of the first things you must do is obtain financing. Writing a business plan for your hospital is the best way to propose, and then secure, the funding you will need. You must know how much money you will need to start, and then run, your hospital. Your research should encompass every aspect of the hospital from goals, to location and development, to construction, to marketing, to staffing and administration. Writing your plan will require a lot of research, but it will be a tremendous asset to you as you seek funding and make further decisions about your future hospital.

Skill level:
Moderately Challenging

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Instructions

  1. 1

    Emphasise areas of special services your hospital will offer, such as whether or not it will be a children's hospital, or a neurology facility.

  2. 2

    Research the needs of the community. Evaluate what health care needs either aren't being met or aren't being met well. Research the services offered by competing health care facilities in the area and define how your hospital would be different.

  3. 3

    Speak with officials at other hospitals offering the same services you would like to offer but who are not in your area and therefore not in competition with you. Your goal is to find out what types of materials and equipment you will need in your own hospital, as well as the type of facility you will need to operate well. Answers to these questions will help determine the start-up costs and the operational costs for building and running your business.

  4. 4

    Consult with a commercial real estate agent to find possible tracts of land or existing facilities that could be converted to your hospital. Consult with an architect to determine construction or conversion costs for the facility. This stage of the process will help you determine the size and capacity of your hospital as well as your construction or renovation costs.

  5. 5

    Determine the exact types and amounts of equipment and goods you will need to open your hospital, given its intended size and scope. This can be based on the information you obtained in step 3. Research the current prices for everything. This will give you the final numbers you will need for your start-up cost estimates.

  6. 6

    Create a marketing plan and advertising budget for your hospital. Decide upon the types of advertisements you will use to spread the word about your new hospital, and how often they will run. You will need two different sections to your marketing plan, one section for your initial marketing before the hospital opens, and one section for your annual marketing efforts once the hospital is running.

  7. 7

    Determine your staffing and insurance needs based on the size and scope of the hospital you're planning. Determine salaries and estimate the costs of any benefits you would like to offer your employees. Also factor in your other operational expenses -- utilities, office supplies, furniture, replacement of equipment and the restocking of goods. These numbers, combined with your marketing numbers, will provide your estimate of operating costs.

  8. 8

    Draft your business plan. In many ways, the hospital business plan is similar to a standard business plan. Within your plan, you will need to include information on the business and a description of your hospital's goals. It will also need to include your marketing plan, information on the competitors in your area, personnel and operating procedures, and information on operating expenses. Include lots of detailed financial information and an estimated balance sheet and income summaries. Once you have gathered all of the information from your research, writing the proposal will not be difficult.

Tips and warnings

  • You may want to hire a professional editor to go over your document once it has been written. You may also want to hire a marketing consultant to assist you with your marketing plan. Talk with an investment banker for his input as to the type of things that should be address in the hospital business plan that the bank or private investors would need to see.

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