1.

EXECUTIVE SUMMARY

Population of Pakistan has been increasing with the greater percentage. It has become very difficult for the
Government to provide health facilities to large number of populations. This arise a strong need of private
hospitals with modern technology and better infrastructure.

This pre-feasibility study provides guidelines for setting up a private hospital. The project is having a capacity of

 100 private rooms

 200 Semi-Private rooms
 1400 beds for general ward
 350 beds for labor ward
 50 bed for ICU / CCU
 50 beds for emergency.

The outdoor facilities would include a diagnostic clinic consisting of a complete medical laboratory and a
radiology department. For this project it is recommended to construct or acquire a purpose-built building at
location of the city with multiple roads, so that easy access of people in City and vicinity areas can benefit. The
many roads connecting the Hospital will help emergency access feasible for patients particularly in densely
populated areas.

The total project cost is estimated at Rs. 11.53 Billion including a capital cost and working capital of Rs. 11.03
Billion and Rs. 500 million respectively. Projected IRR, NPV and Payback period for the proposed project are
20%, Rs. 500 million and 20 years respectively. The project will provide direct employment opportunities to
20,000 persons including medical and non-medical personnel.

Availability of reputed consultants play a major role in the success and popularity of private hospitals. It is
suggested that consultants from a wide range of specialties should be attracted for the hospital. The key
success factor in this business is the availability of renowned consultants in the hospital. The consultants are
the main reason for good patient base of the hospital.

Additionally, integration of Medical, Dental, Physiotherapy and Allied Health Schools, including Public Health
and Hospital Management Schools will enhance the flow of Post-graduates and overall career growth of
Students, Medical Officers, Post-Graduates, Assistant Professors, Associate Professors, Professors and Emeritus
Professors

Following Degrees shall be offered by the institution:

1. MBBS
2. BDS
3. DPT (Doctor of Physiotherapy.)
4. MPT
5. Nursing Graduation/certification.
6. MPH (Masters of Public Health.)
7. MHM (Masters in Hospital Management)
8. MCR (Masters in Clinical Research).
9. FCPS in various Subjects.
10. MS & MD in various Subjects.
11. Various PhD Programs including HIV/AIDS, Infectious Diseases among others.
12. Masters in Occupational Therapy.
13. Masters in Speech Therapy.

14. Other relevant programs of Rehabilitation therapy.

PURPOSE OF THE DOCUMENT:

The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs
in project identification for investment. The project pre-feasibility may form the basis of
an important investment decision and in order to serve this objective, the document /
study covers various aspects of project concept development, start-up, and production,
marketing, finance and business management.

The purpose of this document is to facilitate potential investors in “Private Hospital &
Institutions” by providing them with a general understanding of the business with the
intention of supporting potential investors in crucial investment decisions.

The need to come up with pre-feasibility reports for undocumented or minimally

documented sectors attains greater imminence as the research that precedes such
reports reveal certain thumb rules; best practices developed by existing enterprises by
trial and error, and certain industrial norms that become a guiding source regarding
various aspects of business set-up and its successful management.

Apart from carefully studying the whole document one must consider critical aspects
provided later on, which form basis of any investment decision.

Mission Statement:
The Hospital’s mission is to promote the health and well-being of the local population through providing high
quality, accessible medical care, and education for people of all backgrounds and ages. The hospital is
committed to providing services that will surpass the patients’ expectations, resulting in profitable and
successful business.

Vision Statement
At Hussain Lakhani International Hospital, we hope to deliver high-quality health services with compassion,
dignity, and respect to all, without exception. To achieve this, we are striving to be the unmatched leaders in
improving quality and reducing the cost of health care for patients in the community.

CRITICAL FACTORS
Following are the factors critical for the success of Private Hospital venture:
Engagement of well-reputed consultants from wide range of multidisciplinary
diagnostic and medicinal areas:
 Appointment of trained, highly skilled and professional Paramedical Staff
 Maintaining high standard of patient care, comfort ability, and hygienic environment
for the patients; trained and courteous nursing and other administrative staff is
strongly required for customer satisfaction
  Modern and reliable diagnostic services which would include a fully equipped
Radiology Department consisting of X-Ray, ECG and Ultra Sound Equipment and a
dependable Medical Laboratory for routine medical examinations
 Formation of organizational system especially for creating integration among
different departments and diagnostic operations
 Establishing strong linkages with suppliers for sourcing quality medical supplies on
time couple with economical prices
 Reasonable and competitive fees, positioned against competitors fees
 Location considerations for easy access of the patients
 Careful market analysis of the surrounding population should be carried out before
determining the services to be provided in the hospital.
 The doctors working in the hospital should be registered with the Pakistan Medical
and Dental Council (PMDC).
Prior sanction / approval from the government through Pakistan Atomic Energy Commission
(PAEC) is also required in case of the equipment being installed in the hospital such as X Ray

machines, as they emit radiation and has to be sanctioned / approved. PROJECT

COST SUMMARY
Project Economics

All the figures in this financial model have been calculated for providing
different medical care facility to around 200,000 patients in the year one,
followed by a subsequent increase of 10% annually. The patient occupancy in
year 1 is estimated at 60%.

The following table shows the internal rate of return, payback period and net
present value of the proposed venture.

Table 2: Project Economics

Balance Sheet of the said Hospital

Share capital & Reserves Rs in million/-

Authorized Share (10 each)
Ordinary share capital
Issued, subscribed and paid
capital
 Share premium account
Surplus on revaluation of PPE
Unappropriated profit
Non-current Liabilities
Long term financing 500,000,000
Deferred Taxation 2,000,000
Current Liabilities
Trade and other payables 1500,000
Unclaimed Dividend
Markup accrued
Short term financing 4,500,000
Current portion of LTF 1,500,000
TOTAL EQUITY & LIABILITIES 509,500,000
Non-Current Assets
Property Plant and equipment 200,000,000
Investment property 10,000,000
Intangible assets 175,000,000
Long term investment at cost
Long term deposits
Current Assets
Stores, spare parts and loose part 25,000,000
Stock in Trade 10,000,000
Trade Debts 1,200,000
Loans and advances considered 1,800,000
good
Trade deposit and other 1,300,000
receivables
Investment Held to maturity 80,200,000
Cash and Balances 5,000,000
Total Assets 509,500,000
Profit and Loss Statement:

Net Revenue 1,200,000

Other cost 400,000
Operating cost 600,000
Finance Cost 600,000
Profit before taxation -400,000
 Provision for taxation -200,000
Profit after taxation -600,000
Other comprehensive income
Cash flow statement:

SWOT Analysis

The following SWOT analysis details the major strengths and weaknesses

within the hospital and describes the opportunities and threats facing

Pathai Teaching Hospital & Allied Health Schools.

Strengths

 Rare competitive projects within the area of the project: There are no

hospitals that are providing similar services to the ones that will get

provided by Pathai Teaching Hospital & Allied Health Schools.

 Providing advanced surgery services.

 Excellent location. The location is prime for business, as the

population of the area is rising and this will create demand for a

proper healthcare facility.

 Exempting medical equipment from income tax: the government does

not tax organizations that are buying medical equipment.

 Medical staff availability: The organization is looking forward to adding

highly qualified and experienced members of staff to steer it towards

its goals.

Weaknesses
  New investment experience in the Interior Sindh province. However,

the organization will counter this by conducting proper market

research to understand the market that it is getting into.

Opportunities

 Contributing to unemployment reduction. The hospital will create a

huge number of employment opportunities for people in the area

together with its surroundings.

 Providing teaching opportunities for the students of the college of the

medicine/ University of Al-Qadisiyah.

 Providing medical services for the nearby governorates

Threats

 Electricity issues in the Region.

Security Issues in the area and vicinity