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How to Start a Hospital Business
Is a hospital a business service? What type of business is a hospital?
Healthcare business offers one of the basic needs of every individual, and everyone has at one time or the other required the services of a medical personnel or establishment (hospital, clinic, pharmacy, nursing home, etc).
Most countries have more population than the currently established hospitals can cater for, and so most hospitals are over-stretched, and with the population growth, there is the need for more hospitals.
Starting and managing your own hospital business is very capital intensive and requires a lot of planning to accomplish. You will also need to get the necessary permits from the various regulatory bodies and the government of the country or state you hope to establish the hospital in. You also need to determine the capacity of the hospital you want to open and whether it will be a multi-specialty, specialist, or general hospital.
Here are a few things you should put into consideration when starting a hospital business:
Choose a location that is easily accessible to people in case of emergencies. The area also needs to have a good transportation network and infrastructure, and should be situated close to or in an area with high population density if you want to succeed in the business. Also worth considering is the number of hospitals in the region you have chosen as you may not be able to pool in as many clients if your hospital is situated too close to another one.
Land for the hospital can be purchased or leased and the hospital building must conform to the standards set and agreed on by the medical, technical, and environmental regulatory bodies of the country and locality of the hospital. A lot of documents such as land deed, architectural plan need to be approved by the relevant authorities. If you wish to purchase the land, then you have to consider the systems for medical waste disposal, infection and disease prevention, parking space, and others. You will be given an occupation certificate when all formalities have been cleared.
Medical Equipment and Facility
Medical equipment is a major part of starting up a hospital business and a lot attention should be given to it. Every piece of equipment must be standard, top-notch, and in top form always so attention must be paid to the quality of equipment acquired as the lives and health of your patients could depend on it. Equipment procurement may be costly especially if it has to be imported as custom duties and taxes may apply. It is worthy of note that the kind of hospital will determine the kind of equipment and facilities to be use. For example, an orthopedic hospital and a pediatric hospital will have different needs for hospital supply businesses.
Power and Water Supply
Electricity is essential to running of any establishment, more especially a hospital as majority of the equipment run on electricity, so provision must be made for backup power in case the local power supply fails as may be the case especially in developing countries. You do not want to face a power outage when a critical procedure is being carried out.
Water is also essential in the running of a hospital for various purposes. The water needs of the hospital should be calculated and this may vary greatly depending on the size, capacity, and requirements of the hospital.
Sewage and Biomedical Waste
A waste disposal and drainage system should be properly planned into the construction of the hospital. You may also need to obtain permission from the relevant authorities in order to install incinerators which are required to dispose of body parts and other medical waste. This is important even in low cost hospital business model.
Workers and Members of Staff
Healthcare is a highly sensitive and competitive business to own, and quackery should not be tolerated if you want your hospital to stand out among its competitors. Always hire and invest in employees that re not just qualified and good at what they do, but also have a passion and commitment to deliver quality healthcare to patients. Apart from medical personnel, you will also need engineers, technicians, receptionists, wardens, security, cleaners, and others to ensure smooth running of the hospital.
Permits and Licenses
Various permits and licenses have to be obtained from the state and local government councils, and medical regulatory bodies and associations at different stages of the business development especially at inception.
This will give your hospital the legal grounds to operate freely. In India, among such licenses are: Fire license, which is necessary to show that a hospital will not cause loss of life or damage, and a health license which authorizes you to give healthcare to patients.
Management and Marketing
What might be a business process used at a hospital? A management team has to be set up to handle the running of the hospital. This team is responsible for setting up policies, hiring and payment of staff, among other responsibilities necessary for the hospital to operate smoothly. A marketing team is also necessary to coordinate with other medical associations, manage the hospital’s public image, and create avenues for generating revenue as well.
Starting a hospital is a complex venture and requires a lot of careful planning and consultation.
The above stated points should give you an idea of what is involved. You will need to draw out a detailed business plan and follow a lot of guidelines, obtain various certifications and approvals. It may take a lot of time and effort, but it will be worth it in the long run. Here is how to write a private hospital business plan template - sample business plan for hospital download ppt pdf