Building Financial Clarity for Confident Hospital Investments
Every successful hospital begins with a sound financial foundation. Before construction starts or investments are committed, it is vital to understand whether the project is financially viable — and under what conditions it will succeed.
At Auro Health, our Financial Feasibility Modelling service helps hospital promoters, boards, and investors make data-driven decisions. By combining deep operational knowledge with robust financial analytics, we deliver a clear picture of the project’s techno-commercial viability and long-term profitability.
Auro Health provides financial models that reflect real-world hospital operations — not just theoretical projections.
 Planning a new hospital or expansion?
Let Auro Health help you build a financially viable and data-backed hospital feasibility study.Our Approach
Our hospital feasibility study goes beyond spreadsheets. We integrate clinical service planning, capacity utilization assumptions, local market insights, and cost benchmarks to build a financial model that accurately represents your hospital’s business reality.
Scope of Work
1. CAPEX Validation
We review and validate the total capital expenditure (CAPEX) required to build, equip, and operationalize the hospital — including allied services and infrastructure. This ensures the board’s approved budget aligns with market costs and future scalability needs.
2. Identification of Revenue Streams
Our hospital business model identifies all potential revenue sources, including:
- Outpatient (OPD) and Inpatient (IPD) services
- Surgeries and procedures
- Diagnostic and imaging services
- Pharmacy and laboratory revenues
- Ancillary and value-added healthcare services
This comprehensive revenue mapping creates a holistic view of all income channels.
3. Revenue Projections
We prepare detailed income estimates based on projected occupancy, patient volumes, and average tariffs.
Our model considers:
- Service-wise and department-wise revenue forecasts
- Realistic bed occupancy rates
- Seasonal variations and case mix distribution
- Growth assumptions aligned with local market trends
These projections provide a dynamic picture of hospital performance across the first seven years of operation.
4. Operating Expense Estimation
We estimate operating costs using a mix of industry benchmarks and local standards.
Expenses are categorized into:
- Fixed Costs: Salaries, consultant fees, administrative overheads, and maintenance.
- Variable Costs: Consumables, utilities, housekeeping, and marketing expenses.
This analysis ensures the model captures both predictable and performance-linked costs accurately.
5. 7-Year Financial Forecasts
Our hospital financial model presents a seven-year financial projection covering:
- Annual revenues and operating expenses
- EBITDA and profitability trends
- Cash flow requirements and breakeven timeline
- Sensitivity analysis to simulate best- and worst-case scenarios
This helps stakeholders evaluate project resilience and return on investment (ROI).
6. Profit & Loss and EBITDA Modelling
We develop a detailed Profit & Loss (P&L) statement and EBITDA projection to showcase the hospital’s financial performance trajectory.
The model highlights key metrics such as operating margin, net surplus, and ROI — enabling investors and management teams to make strategic financial decisions confidently.
Methodology
Our methodology ensures accuracy, transparency, and relevance:
- Revenue projections are derived from realistic bed occupancy rates and average tariffs.
- Variable expenses are benchmarked against similar hospitals in the region.
- Fixed expenses are aligned with prevailing salary structures and market standards.
- Financial viability is tested under multiple growth and cost scenarios to assess long-term sustainability.
Why Choose Auro Health for Financial Feasibility?
- Healthcare-Specific Expertise: Exclusive focus on hospitals and healthcare institutions.
- Data-Driven Modelling: Realistic assumptions built on market data and operational experience.
- Strategic Clarity: Translates numbers into actionable business insights.
- Proven Experience: Over 50 hospital feasibility studies across India.
Auro Health’s hospital profitability model is not just a financial document — it’s a strategic tool to guide your investment, expansion, and operational planning.
Deliverables
- CAPEX Validation Report
- Comprehensive Revenue Stream Identification
- 7-Year Financial Feasibility Model
- Operating Cost & Expense Framework
- Profit & Loss (P&L) and EBITDA Statement
- Sensitivity and Breakeven Analysis
- Summary Dashboard for Board Presentation
Transforming Numbers into Strategy
Financial feasibility is the backbone of hospital success. With Auro Health’s Financial Feasibility Modelling, you gain more than a forecast — you gain a clear roadmap to financial sustainability, strategic growth, and operational success.
Popular Question
01. What services/products do you offer?
Strategic planning, market analysis, and performance optimization. Client Discovery & Research – In-depth discovery sessions to understand client needs, goals, and challenges.
02. Where i can find my business growth result?
You can track your business growth results through detailed performance reports and analytics dashboards. We provide insights on key metrics such as website traffic, lead generation.
03. Did you get any business consultant?
"Yes, our team includes experienced business consultants who specialize in marketing, strategy, and growth planning. They work closely with you to understand your challenges.
04. Do you need any business invesment policy?
Yes, having a well-defined business investment policy is essential for sustainable growth. It outlines how funds are allocated, risk management strategies, and expected returns on investment.
05. Do you require a business investment plan?
A business investment plan is crucial for outlining how your company will secure, allocate, and manage financial resources to achieve growth objectives. It helps attract investors.