How the client was helped through financial modelling to achieve a 35% ROI in the first year
Background and Challenge
Client’s Background:
- The client is one of the largest private medical center in Eastern Part of India with an aim to provide tertiary level health care in select super-specialty branches of Medicine and Surgery.
- The Client is one of the most distinguished Cardiologists and Senior Consultants in the Indian Medical fraternity and has also established healthcare business in the city of Delhi, India
Challenges Faced by Client:
- Insufficient Resources for Financial Modelling: The client wanted to undertake the comprehensive financial modeling and feasibility analysis, for setting up a 100 bedded Hospital, Hence, they contacted Ken Research and Strategy Advisory to exercise the financial modelling for them.
- Difficulties in curating a Sustainable Revenue Model: In addition, the client had a major focus on identifying new revenue model in limited duration, hence they outsourced this activity to Ken Research.
Hospital and Healthcare Industry at Glance:
- According to the latest IBEF report, the Indian hospital industry accounts for over 80.0% of the total healthcare market.
- The growth of this industry is fueled by increased purchasing power, rising demand for quality healthcare, technological advancements, and the expansion of hospital networks along with sound initiatives by the Indian government.
Approach and Recommendations
Exercise Market Assessment for the Client
- Ken collaborated with its client to curate a detailed analysis for inclusion of parameters that aid in curating a structured financial model and feasibility check on the same.
- Ken Research’s Team exercised a market assessment of Healthcare and Hospital market in India to incorporate major USPs required for the client.
- These discussions gave the client possible indication to get a know-how of the expansion plan.
In-Depth Analysis of Financial Modelling
- The second phase of work focused on analyzing the financial modelling.
- The study included deep dive analysis on the following parameters: Capital Cost Analysis, Variable Cost Analysis, Debt Financing, Break Even Analysis, DCF Modelling, Financial Ratio Analysis and more.
- This helped the client to get clarity on revised and updated financial model for their operations with eminent and noteworthy Primary Research by Ken Research in short span of time duration.
Strategic Partner Roadmap and Quality Recommendations
- After identifying and analyzing the financial modelling, Ken provided Partner Roadmap Strategy to the client for to mark the way forward in an attempt to increase their network reach.
- Ken Research delivered a revised revenue model to the client basis Developing the variable cost structure for the next 5 years, manpower requirement, physical infrastructure requirement and more that helped the client to gain future opportunities with high profitability check.
- Key recommendations, sales strategies and success factors highlighting the operations to be consider were also proposed that helped the client to successfully evaluate the price plan and target opportunity in the market.
Result and Conclusion – Hospital is able to successfully setup a 100 bedded hospital and yielded revenue growth of 25% m-o-m
Deep Dive Modelling Exercise
Ken Research delivered a detailed financial model and a partner roadmap strategy and helped the client to identify a high growth and high profitability revenue model, through a thorough feasibility Analysis
Holistic Approach for In-Depth Business Analysis
Ken Research’s Team followed a comprehensive and holistic approach in analyzing the client’s requirements in identification of relevant and sustainable revenue models and pricing models.
Result Driven Assessments
Thanks to Ken Research's vital analysis and pivotal assessment, the client was able to successfully setup a 100 bed hospital in the National Capital Region of Delhi, India
Business Impact
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35%
ROI generation in first year
-
100
beds hospital set up
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25%
M-O-M revenue growth yielded