Feasibility Study for Hospital Palhano Memorial

1. Introduction

This business case presents a feasibility study for the establishment of a 117-bed hospital in Londrina, Paraná. The proposed hospital have a total area of 8,680 square meters and is intended to serve the healthcare needs of the local population. The study encompasses economic and financial analysis to assess the viability of this venture.

2. Project Overview

The project was contracted by a group of local investors and was led by João Marcelo Alves, the COO of PRODOCs. Over the course of 9 months, PRODOCs collaborated with Evolutio Gestão em Saúde to conduct a comprehensive economic and financial feasibility study for the hospital. This study aimed to provide insights into the potential profitability and sustainability of the proposed healthcare facility.

3. Scope of Work

- Analyzing the healthcare market in Londrina, including demand for hospital services, competition analysis, and growth trends.
- Assessing the regulatory environment and compliance requirements for establishing and operating a hospital in Paraná.
- Estimating the capital investment required for constructing and equipping a 117-bed hospital, including infrastructure, medical equipment, and IT systems.
- Forecasting operational expenses, including staffing costs, maintenance, utilities, and administrative expenses.
- Projecting revenue streams based on expected patient volumes, healthcare services provided, and reimbursement mechanisms.
- Conducting sensitivity analysis and risk assessment to identify potential challenges and mitigation strategies.

4. Key Deliverables

- A detailed market analysis report highlighting demand drivers, patient demographics, and competitive landscape.
- Financial projections, including income statements, balance sheets, and cash flow statements for the first five years of operations.
- Investment appraisal techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period to evaluate the financial viability of the project.
- Recommendations and strategic insights based on the findings of the study, outlining the potential risks and opportunities associated with the hospital venture.