Proposal for a Hospital

Global Cardiology Institute

BY:

PANKAJ MOHAN SHARMA

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TABLE OF CONTENTS
1. Promoter’s Background
2. Objectives of Study
3. Healthcare in India Medical Tourism
Scenario
4. Health Insurance Scenario
5. Location Analysis of Jaipur
6. SWOT Analysis
7. Proposed Hospital Profile
8. Budgetary Considerations
9. Expected Revenue and break – even Analysis

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PROMOTER’S BACKGROUND

Dr PANKAJ MOHAN SHARMA, MBA, MHA A CARDIOLOGIST and

health care Market leader, presentably works as a Cardiology
Innovative Business Consultant in India. He proposed to set-up a Multi
speciality Tertiary Health care Hospital with Cardiology main focus
ground to cater to the Population of Jaipur (RAJASTHAN) India. He is
specialist In Cardiology and Business Management consultant. He has
seven years experience in cardiology innovation, marketing, hospital
development and Business planning.

Mr Brian Flugg CEO, He is CEO Based in USA with multifocal

cardiology development and Research, working with Global Heart care
project of MY1 Heart

Mrs Sosan - An Eminent Business woman and cardiology nurture

The Global cardiology consultant

The Group is interested in conducting a detailed exploratory market

research and financial feasibility to understand the demand and supply
of health care and relevant market opportunities to make a conclusion
for the upcoming proposed project in JAIPUR.

The Detailed Project Report comprises primarily of two main

parts:

Market Research: understanding the need gap and requirement for a

multi specialty hospital; assess the healthcare delivery systems of
competitors, and a review of all stake holders on the lacunae and
strengths.

Financial Feasibility: To derive the Project cost details, Income and

Expenditure estimates, Break –Even Analysis and other important
projections, a comprehensive Feasibility study was done.

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OBJECTIVES OF STUDY
1. To perform feasibility analysis for a hospital at the Jaipur
Rajasthan.
2. To give an estimate of budget required for the project.
3. To calculate the expected profits and the break – even point for the
project.
4. To Emphasis on expansion of the project.

To establish a Hospital in Cardiology excellence in India for health healing and

learning of humanity. This is a multispeciality hospital which will cover all the
speciality of medicine Surgeries, paediatrics, ophthalmology and Surgery

Our Prime focus is to establish a global cardiac care centre for the
cardiology Excellence, which will provide world class cardiac care,
angioplasties, bye pass operation, Open heart surgeries with latest
advancement in cardiology treatment

This will be first hospital in India which will provide Interventional Cardiac
Radiology services during cardiac procedures,

Apart from cardiology our aim is to provide world class neurology services,
world class ophthalmology services, Infertility centre, world class nephrology
and dialysis centre, rhematology centre, world class paediatric Neonatology
centre with excellence, World class critical care services, world class
laproscopic and key hole surgeries centre, world class orthopaedic surgeries
and trauma treatment centre in our hospital premise.

With the hospital we will run a Nursing college for production of speciality
nurses, Our Nursing College will be art of nursing institution and will work with
the hospital from the start up date.

Second phase is to establish a Medical college of capacity 100 students in a

year with the attached hospital and to extend the hospital to 700 beds
capacity.

This Project Report is presented for the start up funding.

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HEALTH CARE IN INDIA

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 Indian Healthcare Industry to Double in Value by 2012
 Rising income levels

 Changing demographics

 Shift in disease profile from chronic to lifestyle diseases to propel

the growth

 The health infrastructure across Indian states is projected to grow

by an average of 5.8 percent per annum between 2009-2013, taking
the total expenditure in 2013 to USD 14.2 billion

 Of the 32 Indian states that the report considered, the six states of
Rajasthan, Maharashtra, West Bengal, Uttar Pradesh, Tamil Nadu
and Andhra Pradesh are forecasted to represent approximately 50
percent of the expenditure for 2009-2013 period.

 While the Indian healthcare system has grown manifold over the
past few years, it has yet not been able to keep pace with the rapid
rise in the population. One example of that is the availability of
hospital beds in our country —against a world average of four beds
per 1,000 population, India lags behind at just over 0.7 presently.”
There is a growing need to deal with the issues of urban healthcare
infrastructure as rural to urban migration has significantly increased
the demand for these services.

 The Indian healthcare industry is estimated to double in value by

2012 and more than quadruple by 2017. The main factors propelling
this growth are rising income levels, changing demographics and
illness profiles, with a shift from chronic to lifestyle diseases. This is
likely to result in considerable infrastructure. The healthcare sector
in India is undergoing a phase of reform propelled by rapid economic
growth. Apart from the healthcare providers, emerging markets such
as diagnostic chains and medical device manufacturers are attracting
increasing amounts of investment.

 In comparison to all 32 states, Rajasthan forecasted to maintain its

dominance as the state with highest cumulative healthcare
infrastructure expenditure, with spend of $ 7.3 billion between 2009
- 201cture challenges and opportunities.

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The Indian Healthcare Industry-An Overview

 India's healthcare sector has been growing rapidly and estimated to

be worth US$ 40 billion by 2012

 Revenues from the healthcare sector account for 5.2 per cent of the
GDP, making it the third largest growth segment in India.

 The sector's growth will be driven by the country's growing middle

class, which can afford quality healthcare.

Growth drivers

 Medical Tourism

 Telemedicine

 Healthcare services outsourcing

 Diagnostic services

 Increasing awareness

 Medical insurance

 Aging population

 Growing urbanization

 Low cost treatment

Pharmaceutical companies are going online to shorten the development

and approval cycle of new drugs.

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MEDICAL TOURISM IN INDIA OR HEALTHCARE TOURISM
 Indian hospitals are fast becoming the first choice for foreign
patients owing to easy access to visa facilities, coupled with the best
emerging medical infrastructure, which will help India earn to an
extent of US$ 1.86 billion in foreign exchange by 2012. Currently,
India's earnings through medical tourism annually are an estimated
US$ 821.40 million.

Medical tourism can be broadly defined as the provision of 'cost

effective' private medical care in collaboration with the tourism industry
for patients needing surgical and other forms of specialized treatment.

Jointly facilitated by the corporate sector involved in medical and

healthcare as well as the tourism industry - both private and public.

India has originated as one of the most important hubs for medical
tourism.

A nice blend of top-class medical expertise at attractive prices is helping

more and more Indian corporate hospitals to lure foreign patients,
including patients from developed nations such as the UK and the US,

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for high end surgeries like Cardiac By-Pass Surgery or a Knee/Hip
Replacement.

 A combination of many factors has lead to the recent increase in

popularity of medical tourism.

 Exorbitant cost of healthcare and medical facilities in advanced

countries,

 ease and affordability of international travel,

 favourable currency exchange rates in the global economy, rapidly

improving technology and high standards of medical care in the
developing countries

Salient Features

 Low cost medical treatment

 High quality medical care

 Low wait time for critical treatments

 Fluent English speaking staff

HEALTH INSURANCE SCENARIO IN INDIA

 With less than 10 per cent of the population having some sort of
health insurance, the potential market for health insurance is huge.

 Indian health insurance business is fast growing at 50 per cent and

is expected to continue growing at this pace.

 The sector is projected to grow to US$ 5.75 billion by 2010,

according to a study by the New Delhi-based PHD Chamber of
Commerce and Industry.

 One-fifth of India's population is likely to have a medical insurance

by 2015

 Estimated increase in consumer spending on healthcare from US$

2,054 per household in 2005 to US$ 3514 per household by 2015.

 In some cases, the Government is partnering with the private sector

to provide coverage at a low cost. The Yashaswini Insurance

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 scheme, launched in 2002 in Karnataka by a public-private
partnership.

NEED FOR MULTI SPECIALITY HOSPITALS

100 Doctors interviewed

 All facilities under one roof.

 Most advanced facilities.

 Provides Basic Facilities at a rock bottom price with the same

quality.

 They can attract talent.

 Indian Healthcare Industry-Growing and Innovating High Tech Area.

 Change in attitude towards healthcare.

LOCATION ANALYSIS OF JAIPUR

Jaipur is the last well planned city of India, located in

the desert lands of India, Rajasthan. The city which
once had been the capital of the royalty now is the
capital city of Rajasthan. The very structure of Jaipur

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resembles the taste of the Rajputs and the Royal
No. of large and medium scale running units: 48 No.
families. In the present date, Jaipur is the major
of small scale units: 19,544 No. of industrial areas: 19
business centre for the natives of Rajasthan with all
(Bagru, Bassi, Bais Godam, Bindyaka, Dudu, Hirawala,
requisites of a metropolitan city.
Jetpura, Jhotwara, Kaladera, Kanakpura, Kartarpura,
Malviya Nagar, Phulera, Renwal, Sanganer, Shahpura,
Sitapura, Sudarshanpur and Vishwakarma)
Jaipur district is a centre for both modern and
traditional industries. The main industrial products
include: acetylene gas, ACSR (Aluminium Conductor
Steel Reinforced) cable, all-purpose flour (maida),
atta flour, ball bearings, bottling of LPG, ceramics,
pottery, cold roll strips, corrugated boxes, deoiled
cakes, durries, dyeing and printing, edible oil,
electronic items, engraving on brass items, ferrous
and non-ferrous castings, gems and jewellery, general
engineering and manufacturing, granite slabs and
tiles, hand-made paper, handicraft items, halogen
automobile headlamps, "hawai" chappals (sandals),
household electrical appliances, HT steel strips,
iodised salt, lamps, laminated springs for railways,
marble statues, marble tiles & slabs, moulded plastic
components for electronics, nitrochlorobenzene,
oxygen gas, perfumes, pigments, plastic containers,
P.P. multifilament yarn, PVC cables, PVC doors, PVC
footwear, canvas shoes, Portland cement, ready made
garments (clothing), re-roller products, semolina
(suji), steel furniture, steel ingots, stone grits,
synthetic leather, suits & shirts made of synthetic
materials, tablets and capsules, two way radio and
line, washing soap, wheat, woollen carpets, refined
vegetable oil and vanaspati ghee heavy Steel
fabrication, brass and lacquer work, enamel work,
gems and jewellery, granite tiles, handlooms, marble
statues, printed cloth and textiles, ready made
garments, woollen and silk carpets.
Jaipur has been ranked 31 among the 50 Emerging
Global Outsourcing cities. Genpact and Infosys have
their BPO already established and running
successfully. In fact Genpact has the fastest growing
location in Jaipur. Real Estate business is flourishing

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well from last 2–3 years. Some of the companies
already present here include MICO, Coca Cola, IBM,
Ericsson and NEI popularly known as NBC Bearings.
Jaipur also has Reserve bank of India and many other
prominent international banks. India's largest
integrated IT SEZ Mahindra World City is located in
Jaipur. Master planned by Jurong Constructions
Singapore it covers nearly 3,000 acres (12 km2) of
land off Ajmer highway and has already attracted
major companies like Infosys, TCS, Wipro, Tech
Mahindra, Truworth and Bank. India’s one of a kind
World Trade Park is also under construction in
Malaviya Nagar. It will be having luxury hotel,
business halls, five screen multiplex, underwater
restaurant and many showrooms of international
brands. In coming years it will be the hub for modern
business development in Jaipur. Jaipur is soon
planned to have an International Convention Centre
and a Golf course. A film city near Agra highway is
also in the pipeline.
Tourism is a significant part of Jaipur's economy.
Some of the world's best hotels are located here.

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Page 13 of 32
Hospitals in JAIPUR

HOSPITALS BED STRENGTH(APPROX)

SMS Medical college 700
Fortis 350
S D M HOSPIAL 300
GANDHI HOSPITAL 100
SONY 200
AMAR JAIN 150
Birala 200
Monilake 780
APPLO 300

Total Population( JAIPUR) 3,300,000 (2009)

Bed ratio (present) 1.8
Total Beds Required 10,000(WHO recommendation 3 per
1000 population)
Beds Available 6000(APPROX)
Bed Deficit 4000

Disease prevalence’s in JAIPUR

Heart attack, Blood Pressure, Angina, Unstable angina, COAD, TB.

Positive Factors
81% Literate population

Densely Populated 7,214/ Km²

Majority of High and Middle income group

Good sewerage system

Huge scope for further development

Population of Jaipur city (2009) excluding suburbs is around 3,300,000

(approx). Total bed strengths (which includes Private and Government
Hospitals) are 6000 approx. So number of beds per 1000 population is 1.8,
but according to WHO standards it should be 3. So we are short of 4000
beds in Pune. And this shortage will increase in future.

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IT Services sector remains a major driver of the economy and jobs created
here Rajasthan NRI Diaspora and first-generation of successful technology
entrepreneurs are encouraging a renaissance of entrepreneurial activity.

JAIPUR is emerging as a prominent location for tourism and manufacturing

companies to expand.

25% of income of JAIPUR comes from Handy craft, export, semiprecious

– Precious stones cutting, Apparels and IT sector.

JAIPUR has the sixth largest metropolitan economy and the highest per
capita income in the country.

Negative Factors
Reputed hospitals like Fortis, Apollo SDM, and Birla

Market penetration not difficult for newcomer

High Real estate rates

Scarcity of Trained Doctors, Specialist, Nursing staff (common problem of

whole India)

Congested space around hospital premises

SWOT ANALYSIS

Strengths:

1 JAIPUR is called as Pink City of India; it is as huge Tourist Destination

from all over world. Also it is gallery of Export, hub of IT industry, thus we
expect high employer base utilisation of insurance a hospital services.
Medical Tourism is best Business Approach for Jaipur

2: Easy Availability of skilled doctors and trained Para-medical

staff and investments required to uplift the current status of the
healthcare. Jaipur is known for Education Hub for Medical Education in
India

Weakness-- No significant

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Opportunities: Changes in demography and socio-economic mix are
altering the population's disease profile and increasing the incidence of
lifestyle diseases thus increasing the demand for beds

Threats: Steep population growth with lack of proper healthcare policies,

Infrastructure and accessibility to the healthcare for all is challenge in the
coming days.

LAND FEASIBILITY SURVEY

A Land Feasibility Study is conducted to evaluate and determine the

suitability of the soils relative to a parcel of land where an on-site sewage
system would be used
Erosion & Sediment The site is assessed according to its current erosion
and sediment loss conditions and then a new plan is designed proposing a
new topography for sediment control and erosion prevention.

Proper Water Supply

Proper Sewage System

PROPOSED HOSPITAL

GLOBAL CARDIOLOGY INSTITUTE & MULTISPECIALITY

HOSPITAL
Colour: Red signifies the colour of life and the courage to deal with
emotionally disturbed customers

Mission

To serve and enrich the quality of life of patients suffering from diseases,
through the efficient deployment of technology and human expertise, in a

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caring and nurturing environment with the greatest respect for human
dignity and life.

Vision

Global Cardiology Hospital will strive with excellence to fulfil the needs of
the community in its chosen field of medical treatment and grow to be the
biggest and most respected name in quality healthcare business in the
country.

Global Cardiology Institute & Multispeciality Hospital

It will be 200 bedded Research Hospital which will be accomplished in 3

phases

Rationale: - Availability of land

Availability of finances

Competitors

First Phase 200 beds; it will take one and half year to commence the
Hospital after acquiring the land. (OCT 2009- MARCH 2010). Hospital +
Angel Investors tie up (joint venture)

Angel Investor will be investing 75 crores in three phases 25 crores into

my business.

Means- $ 15 million USD for first phase of hospital and nursing college

1. Purchase of land

2. Second Phase 100 beds hospital

3. Third Phase nursing paramedical college

Final phase-- For the Second Year – development of Medical/

dental college-- $ 25 Million USD

Here we will focus on First phase of hospital and nursing college,

Nature of the Hospital (GLOBAL CARDIOLOGY INSTITUTE and

NURSING COLLEGE)

The Global cardiology Institute & Multispeciality Hospital will be a high

end hospital with the following characteristics:
 250 bedded acute care tertiary healthcare facility with specialty and
super specialty services
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  Full outpatient department, inpatient department and primary care
services
 It will have a state of the art radiology imaging centre
 It will be fully digitised and paperless with all clinicians and
departments using an Electronic Patient Record system at all times
 It will provide an intimate, friendly and caring environment
 Its design and processes will be patient‐focussed
 High staff to patient ratios for personalised care
 Providing the highest standards of cleanliness, comfort, safety and
convenience
 State of the art medical equipment and evidence based protocols
It will be staffed by selected, highly‐qualified healthcare professionals to
ensure highest quality practices

THERAPEUTIC SPECIALITIES

• Ortho
• Cardiology
• Gynaecology
• Paediatrics
• ENT
• Sex clinic/ counselling centre
• Rehabilitation centre
• Psychiatry
• Dental
• Wellness centre
• Ophthalmology
• Medicine
• Surgery

SUPER SPECIALITY

1) Liver Transplant and Digestive Diseases

2) Joint Replacement
3) Women and Child Care
4) Trans Nasal Brain Tumour Surgery
5) PELD Minimal Access Slipped Disk Surgery
6) Urology and Andrology

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 7) Obesity Surgery

DIAGNOSTIC SERVICESS
o Radiology: CT scan, MRI, bone mineral densitometry,
mammography, ultrasound, x‐ray
o Laboratory: biochemistry, haematology, serology, microbiology,
clinical pathology, histopathology

Other support services

o Endoscopies, blood bank and blood components, dialysis, non‐
invasive cardiology such as echo, stress testing, holter, and ECG

IT Driven tools and service

 Hospital management system

 Billing

 Inventory

 Accounts management

 Records management

 ERP solution

 Telemedicine and medical informatics

 Decision support system that improves diagnosis and treatment

 Healthcare players are establishing ways to give customers easy

access to pertinent information

 Pharmaceutical companies are moving to speed development and

delivery of new drugs

Hospital Peculiarities

 Micro-processor based implant able in patients.

 CPU-driven technology supported by artificial intelligence.

 Robotics in OTs

 Robotics in Path-labs / Research.

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  Laser Technology in surgery

 Instrumentation in medical and surgical practices.

 IT tools for net-working examination, diagnostics, treatment rooms

and OTs.

 IT Tools along with artificial intelligence and microprocessor

technologies for equipment maintenance and trouble shooting.

 IT tools for generation of disease specific data.

USP

• Quality healthcare services with state of the art medical facilities

under one roof

• Well qualified staff

• Excellent customer patients services

• Easily accessible and competitively priced.

• Customized designs to suit the varying needs of different customers

(patients)

• Constant interaction with the patients and strong bonding with them

• Promoting healthy India

Floor Wise Design:

Basement:-

 10 OPD’s
 Diagnostics, Lab
 Waiting lobby

Ground Floor

 Lord Tara Temple

 Reception,
 ADT department
 Billing Department
 Blood Bank

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  Cafeteria
 Children Play Area
 Emergency Department
 Admin Department
 ATM

First Floor

 OT
 SICU
 Labour Room
 NICU
 PICU
 ICCU
 CATH LAB
 CARDITHORACIC OT
 CTVS ICU
 HDU

Second Floor

 General Ward
 Twin Sharing
 Semi -Deluxe Rooms
 Library

Third Floor

 General Ward
 Deluxe- Rooms
 Suite

Fourth Floor

 Tele-Medicine Department
 Conference Hall
 Yoga Area
 Ayurvedic Department

ESTIMATED MANPOWER

Department of Laboratory
Nurses in the Hospital
Medicine
Nurses in I.C.C,U/ ICU 12 Section Head 1

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 Number of Technicians for
Nurses in S.C.C.U 9 6
fairly automated lab
Number of
Nurses in I.C.C.U 0 Technicians manual/fairly 9
automated lab
Nurses in N.I.C.U 7 Senior Technicians 1
Nurses in Special ward 12 Total Technicians 10
Nurses in Deluxe ward 4 Relievers 3
Attendants for Automated
Nurses in Double ward 7 6
Lab
Nurses in Single ward 19 Relievers for Attendants 0
Nurses in General ward 8 Reception cum Clerk 1
Nurses in Day care 4 Relievers for Clerks 0
Nurses in Operation Theatre 5
Nurses in OPD 7 Department of Imaging Sciences
Nurses in Casualty ward 7 Section Head 1
Number of Technicians for
Nurses in Labour Room 1 2
routine X-rays,
Total Nurses in the
Special procedures like
Hospital(Including 30% 90 4
myelography
of Relievers)
barium investigations, HSG
etc.
Physiotherapy Department Relievers 1
Physiotherapists 1
Physiotherapists
0 Department of Ultra Sound
Aide/Junior Trainee
Senior Physiotherapists 0 Number of Technicians 2
Total Physiotherapists 1 Attendants for Ultra Sound 4
Relievers 1
Pharmacy Department
Pharmacists for Indoor Department of ECG & 2D ECHO
1
Issues
Pharmacists for OPD
2 Technicians with Echo 5
Issues
Junior Pharmacists 0 Relievers 2
Senior Pharmacist 0
Pharmacy Aide 0 Special Services
Chief Pharmacist 1 Blood Bank 0
Total Staff in Pharmacy 4 Health Check Up 1
X-Ray 0
General Maintenance Infection Control Nurse 1
Manpower required 9 Nurse Clinical Specialist 1
Total staff - special
Relievers 3 3
services
Total Staff in General
12
Maintenance

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Security Department Food Service Department
Security guards (Including
5 Dietician 1
gateways & Special areas)
Relievers 2
Security Supervisor 5 Cook 3
Total Staff in Security
12 Cook Helper 3
Department
Dishwasher/Attendant 3
Sterile Supply Department Storekeeper 1
Technician required Total Staff in Food
3 11
including Relievers Service
Supervisor shift 1
Total Staff in
4
Sterile Department

Laundry Department
Laundry Operator 5
Laundry Orderly / Assistant 2
Laundry Staff 7
Relievers 2
Total Laundry Staff 9
Shift Supervisor / shift 1

Housekeeping Department Primary Secondary Tertiary

Staff in Housekeeping 0 0 77
Total Housekeeping Staff : (Including 30%
Relievers) 0 0 100

Total Manpower required in 315

Hospital :
COMPETITOR ANALYSIS:-

FORTIS HOSPITAL

• Department of medical genetics

• Clinical Genetics
• Cytogenesis
• Molecular genetics
• Metabolic genetics
• Ayurveda/ Panchkarma
• Homeopathy
• Dentistry
• Clear vision clinic
• Voice clinic

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 • Obesity clinic
• Cardiology
• Neurology
• Kidney transplant
• Cancer treatment
• IVF centre
• Neuro Trauma Unit

SDM HOSPITAL

• Accident and Trauma Care

• Acupressure Clinic
• Anaesthesiology
• Button Hole Surgery for Gall Bladder removal
• Blood Bank
• Cancer Centre with facilities for Radiotherapy, Surgical Oncology
and Chemotherapy
• Cardiac Centre
• Chest Medicine
• Corneal Transplants with Eye Bank facility
• Day Care Centre
• Dental Centre with laboratory and facilities for Maxilla Facial
Surgery and Dental Implants
• Dermatology
• Eleven well equipped Operation Theatres including separate
Operation Theatres for cardiac and neurosurgery
• Endocrinology and Dialectology
• ENT Department
• Gynaecology and Obstetrics Department with labour rooms
• I.C.U./ C.C.U./ P.I.C.U./ N.I.C.U.
• Intensive Care Unit for trauma and other cases
• Lithotripsy and Urology including Nd : YAG Surgical Laser
• Mobile 'C' Arm Units
• Neonatology for highly specialized infant care and Neonatal
Surgery
• Neurology and Neurosurgery
• Ophthalmic Laser & Automated Perimetry
• Ophthalmology with facilities for radial keratotomy
• Orthopaedic Department
• Orthopaedics, Rheumatology and Physiotherapy
• Paediatric Intensive Care Unit
• Paediatrics , Paediatric Surgery and Paediatric Urology

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 • Physiotherapy
• Post Operative Recovery Room for Cardiac, Renal and Microsurgical
cases
• Psychiatry
• Radiation Synovectomy
• Reconstructive Plastic Surgery
• Renal Dialysis Unit
• Respiratory Care Unit for patients needing acute respiratory care
facilities
• Speech Therapy with a Child Guidance Clinic
• Vascular Surgery
• Video-endoscopes Surgeries

MARKETING STRATEGIES

Communication mix

The aim of this exercise is to establish the brand in the minds of the
customers so well that it becomes the first name that customers recall
whenever discussing or thinking about healthcare. The product would be
heavily advertised before launching and then we would involve in
extensive sales promotion. The communication strategy of promoting and
advertising the brand is as follows:

1. Magazines

o Health

o General

o Lifestyle

2. Newspaper ads

3. Hoardings across various places in cities

4. Advertisements in local television shows

5. Sponsoring school events

6. Organising awareness camps and visiting schools

7. Mobile marketing

Public Relations and Publicity

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We have chosen newspapers and magazines because of wide range of our
target audience. Magazines and newspapers are always in the eye
amongst public. Magazines are read for a period of a month, which brings
more attention to an advertisement. We plan to advertise in

• National and local newspapers

• Health Magazines

We further plan to utilise the non personal communications such as

photographs, films and tapes showcasing the facilities of our hospital and
the advantages that the local population will have by getting themselves
treated at a world class hospital as compared to the local nursing homes.

Advertising

1. Internet: We would place display ads and interstitials on websites

like makemytrip.com. This would target the customers who
frequently visit such sites for planning their travel. Also we plan to
place our advertisements on yellow pages.

Promotion activities

1. Hoardings: Visual hoardings to be placed on prime locations of the

city to increase visibility among masses. Also we would place
hoardings in high density residential areas, industrial areas and on
city outskirts.

2. Camps: Blood donation camps and free check up camps would be

arranged in schools and colleges.

3. Event Sponsorships: We would try to grab attention of the prospects

by sponsoring events such as cultural events, sports events etc. We
can even organize marathons.

4. Advertisements to be placed on local and short route buses.

Sales Promotion

11 Tie up with Insurance companies for devising various insurance

cover plans.

11 Tie ups with corporate and educational institutions for annual

health contracts.

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Special packages for economically backward patients, senior citizens,
maternity package, annual health check up package, package for diabetic
patients, physiotherapy package etc. Future Plan

We have devised a plan which would be followed in case of future

expansions. We are planning to implement a Hub and Spoke model which
will help us in expanding our services to areas where we cannot currently
reach due to infrastructure related issues. Issues like transportation,
electricity, public sanitation facilities available in smaller towns and villages
currently don’t allow us to open our super speciality hospitals in these
areas. Even if these are ignored, there would be problems finding good
doctors and other hospital staff who would be willingly ready to work in
such areas. To circumvent these issues, we have come up with this model.

As shown in the above diagram, we will have our fully equipped super
speciality hospital in the cities (Tier 2) built and working successfully as
envisioned in the current expansion plan. But we would not be able to
provide quality health care to smaller towns where a good number of
people reside and are in need of such facilities. This would also form a
part of our Corporate Social Responsibility whereby we will go one step
further than just providing free care in our hospitals by reserving 10%
of our capacity for such cases.

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 Here we will establish small nursing homes with minimal facilities and
having interns and other less qualified staff (but competent enough to
handle minor issues like flu, fever, basic orthopaedic and other basic
services). These staff would be able to give proper diagnostic facility to
the villagers and to the small town people and if they feel that the
patient has some major disease, he/she will refer that patient to the
nearest “HUB” where the person would be treated at subsidised cost
(the exact amount of subsidy that would be provided can only be
decided on regional basis). We would be cross subsidising such
activities with the retained earnings from our business.

These plans, would however, can be implemented only after we have

attained a certain minimum level of competence and profitability which
could take us few years.

BUDGETARY CONSIDERATIONS
Amount Amount
budgeted expenditure
INR in Millions INR in Millions
1. Land cost
15000 Sq.Ft / * 1000 *12 200.00

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 2. Building and auxiliary cost 459.40

3. Cardiology set up 50.00

4. Equipment planning
Echo – Colour Doppler 1.80
Ventilator: 3 2.40
Cardiac Monitor (NIBP) 30 3.00
Defibrillator: 5 1.00
TMT-2 0.30
Central Line Oxygen 0.20
ECG Machine : 10 0.10
Pulse Oxymetre : 5 0.10
Centralized Monitor 0.10
Infusion Pump : 10 0.30
Pace Maker : 05 0.25
Computerized System 0.20
X-Ray :3 0.90
Cardiac Fowler Bed 0.75

IITV 0.90
USG : 2 0.80
Pathology Equipments 1.50
Other material & Medicines 0.20
CT scan 10.00
MRI 15.00
CSSD 15.00
Lab 20.00
Ambulance 4 nos 2.00
Communication System 2.00
IT system 10.00
Miscellaneous 10.00
Total CAPEX 808.20

Working Expenses
Amount budgeted Amount expenditure
(Monthly) (Yearly)

INR in Millions INR in Millions

1. Salaries

NURSES @ Rs. 7000/ *90 0.06

Physiotherapist @ 30000/*1 0.03

Pharmacist @ 12000/* 4 0.05

Maintenance staff @ 6000/* 12 0.07

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Security staff- outsourced 0.05

Technicians @ 7000/*63 0.04

Housekeeping -outsourced 0.05

dietary services @ 5000/ * 11 0.06

Administrative Heads @ 70000 /* 7 0.49

Med.Supr. 0.15

Assit.Med. Supr.@ 40000/ * 6 0.02

CEO 0.20

Administrations @ 20000 /* 12 0.24

Admin Others @ 8000 /*20 0.20

consultants @ 70000 /* 15 0.10

Surgeons' Visit @20000 / *7 0.14

RMO @ 15000/*18 0.27

Special Services @ 12000/*3 0.04

Disaster budget 2.00

Marketing budget 30.00

Fuel Charges (Ambulance and
Generator) @ 35 / * 30* 30 *12 0.31 3.72

Other expenses 0.60 7.20

TOTAL 70.04

EXPECTED REVENUE - Revenue estimation(1st Year)

revenue per revenue per
Sr. Charges
particulars month INR annum INR
no. INR
Millions Millions

OPD patients(20 patients* 30

1 500 3.00 36.00
days * 10 OPD )

IPD patients( 4 patients * 30

2 50,000 6.00 72.00
days )
surgery(70 surgeries per
3 70,000 4.90 58.80
month )

4 Pharmacy( OPD) 3.00 36.00

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 5 Pharmacy( IPD) 1.20 14.40

6 USG( 20usg * 30 days ) 700 0.42 5.04

7 X-ray(15 X-rays * 30 days ) 400 0.02 0.24

8 CT (50 CT per month ) 2,200 0.11 1.32

lab tests( 100 OPD tests * 30

9 500 1.50 18.00
days)
lab tests( 50 IPD tests * 30
10 800 1.20 14.40
days)

11 ECG ( 100 ECG * 30 days ) 200 0.60 7.2

12 Cardiology set up 0.50

Total Revenue generation

21.95 263.90
INR Millions
USD 5.28 Millions

CAPEX

Initial requirement - INR 808.20 Millions

Will be equal to – $ 16.17 Millions

Working capital

Requirement – INR 70.04 Millions

Will be equal to - $ 1.40 Million

Revenue

Revenue generation 1st year – INR 263.90 Millions

Will be equal to - $ 5.28 Million

Expected annual growth - 15 % per annum

--------------------------------------------------------------------

Investor requested to contact

Dr. PANKAJ MOHAN SHARMA

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Q-3, FRU 1, RCH HOSPITAL

SECTOR 30, FARIDABAD, HARYANA

INDIA

E MAIL-- pmsndetwork@gmail.com

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