Setting up a hospital requires skills that you may not learn in medical schools. These skills can be devising a sustainable business plan, obtaining finances, being more visible to potential patients, and so on. The process is undoubtedly long-drawn and, without prior knowledge, can be a series of trials and errors before bearing fruit.
Nonetheless, the below-mentioned sections cover certain aspects you should know if you want to start your own hospital.
How to open a hospital?
A slew of formalities precedes a hospital set-up. You need to obtain several licences and permits, which include:
- Land and construction
Select a non-agricultural land and acquire permission from the local authority and government to open a hospital wing. Obtain approvals on documents like architect’s plan, land deed, and the sorts.
Seek permission from the local board concerning a sewage and drainage system.
- Electricity and water
Procure permit for water supply and electric meters in the hospital. Gauge the water supply required beforehand to ensure you have sufficient finance for your medical business.
- Fire and health licence
Obtain a fire licence from the local municipality council to attest that the hospital will not pose dangers to the life of patients and health workers. A health licence is necessary before you can open the hospital facility and start treating patients.
Other than these, you need to register the hospital under the Clinical Establishment Act, 2010 (if applicable), Companies Act, 2013, and a one-time registration of the concerned directors. Acquire hospital finance to get these licences.
Strategies to set up a hospital
Start with a basic plan to open a private hospital business. Two of the foremost considerations are its location and the facilities that you intend to provide. Location plays a determinant role in the undertaking’s success. Evaluate factors like competition and accessibility via public transport facilities to select a suitable location. Decide the services your establishment will encompass after factoring in the local population’s median age.
Once your sort out these details, consider the steps mentioned below. These steps will guide you on how to start a sustainable hospital business.
1. Devise a business plan
Prepare a comprehensive business plan. It should detail every minute expense you need to account for in setting up the hospital facility and carrying out day-to-day activities. This step should ideally be the first step when considering setting up a hospital.
Then, estimate revenue projections and chalk out the roadmap to achieve the same. Spread out expenses only with potential revenue in mind and set aside a nest egg for daily activities when preparing the hospital plan. A detailed plan is also vital to obtain the necessary finance for the endeavour.
2. Acquire hospital finance
Once you have a comprehensive plan, approach financial institutions to set things in motion. In this regard, Bajaj Finserv offers dedicated doctor loans, which you can obtain by submitting only a handful of professional and personal documents.
In most cases, the application gets approved within 24 hours*. Before applying for a loan for doctors, evaluate all the expenses you intend to address with it to avoid under or over-borrowing. Consider the cost of procuring or leasing equipment or hiring staff before proceeding.
3. Buy equipment and machinery
To gain a competitive edge, buying state-of-the-art equipment is imperative. Consider a medical equipment loan to cushion the strain of such investments. Also, you can set up advanced communication systems and computers to speed up administrative processes.
These factors, although initially expensive, pave the way for a profitable and sustainable medical facility. Develop a comely décor, institute strict hygiene measures across the board, and keep sizeable spaces to accommodate more patients as and when necessary. Obtain a doctor loan if any of these outlays exceed the owned capital.
4. Marketing the hospital
Knowing how to open your own hospital is not sufficient for it to be gainful. It is also essential to be visible and effectively communicate your services to the targeted audience. Create an online presence and be consistent. Provide valuable information to establish credibility among patients.
Starting a new hospital can be an overwhelming undertaking. It is important to devise and evaluate everything to the last detail. You need to gain a robust understanding of finance for the business to ensure sustainability.
How much does it cost to set up a hospital in India
The cost of setting up a hospital in India depends on several factors. Are you looking to start a small private hospitalwith specialised care or a hospital with several facilities for general care? How many patients should your hospital be able to accommodate? Once you answer these questions, you will need to find suitable land for the construction of the hospital. The cost of land and construction will depend on the location of your hospital.
Your hospital plan will have several departments such as administration, OPD, emergency care and others. A basic OPD can cost Rs. 50,000 onwards. Each department will require specific equipment to operate. The cost of a high-end dental chair can be around Rs. 2-3 lakhs.
In-patients wards with around 10-20 beds can cost Rs. 5 lakh and upwards. Add around Rs. 5 lakh for purchasing an ambulance with life support. In addition, you have to spend more than Rs. 10 lakh for basic operation rooms and storage facilities. If you plan to put advanced medical equipment in diagnostic rooms, your cost will go up by more than Rs. 20 lakh.
In addition to the infrastructure, you will need funds to hire doctors and specialists who can operate the high-end equipment in your hospital. There will be hospital maintenance costs as well.Other than the essential expenses, you have to set aside funds to cover unexpected requirements in your plan while setting up your hospital business