MHM Feasibility Study Outline

1. Executive Summary (1 to 2 pp)

1.1 Name of institution/health unit
1.2 Level of the healthcare unit/institution under the new classification of hospitals and other
health facilities
1.3 Ownership
• Sole proprietorhip
• Partnership
• Corporation
1.4 Location
1.4.1 Head office
1.4.2 Floor area & land area
1.5 Brief description of the project
1.6 Project Summary
1.6.1 Market feasibility
1.6.2 Technical feasibility
1.6.3 Management feasibility
1.6.4 Financial feasibility
1.6.5 Socio-economic impact
1.6.6 Contingency Plan

2. Introduction
2.1 Brief discussion and significance of the variables of the study thru literature review (APA
citation needed)
2.2 Brief background of the locale of the study and the rationale why you are doing the
study
2.3 State main objective and significance of the feasibility study
2.4 Scope delimitations
2.5 Definition of Terms

3. Market Study
3.1 The market
3.1.1 Geographical considerations (illustrated with map better)
3.1.2 Demographics of the place
3.1.3 Psychographics
3.1.4 Research data, do a market research to support the market study in determining
the market demand
3.1.5 Target market of this project
Demand & supply
-Level of patronage - the markets being served & markets that are
unserved & underserved
-Evidence of the imbalance of need & service, if any
3.2 SWOT
3.2.1 Environmental analysis (use SWOT grid)
3.2.2 Brief paragraph about significant findings of the SWOT and effect to the
organization
3.2.3 Competitive grid
3.3 Industry Environment and Macroeconomics (Porter’s Five Forces)
3.3.1 Threat of New Entrants
3.3.2 Power of Buyers
 3.3.3 Power of Suppliers

3.3.4 Products Substitutes

3.3.5 Intensity of Rivalry
3.3.6 Impact of Porter’s to the Feasibility Study
3.3.7 Inflation and Interest rates

3.4 Marketing Objectives

-KRAs (Sales, Profit, Market Share)
3.5 Marketing strategies
3.5.1 Positioning Statement
3.5.2 Product – identify product or products
3.5.3 Price – show price of your product
3.5.4 Place (location plus your distance of coverage in km (radius ) of geographical
markets that you will serve
3.5.5 Promotions
-Promotional mix (boxes only, explanation goes into Appendix)
-Gantt chart of activities (further explanation of projects goes into Appendix)

4. Technical study
4.1 Objectives of the study – what technical requirements do you need to
serve the market needs or conditions
4.2 Infrastructure, machines, equipment, tools – give a short description (any details,
place in Appendix)
4.3 Two quotations (to be placed in the Appendix) within 6 months of issuance for
medical equipment and devices to be purchased from suppliers and the bill of
materials for the construction /renovation of the area signed by an
architect/engineer to support the financial study. Without these you cannot
continue with your Financial Study
4.4 GANTT Chart for Technical Study

5. Management Study
5.1. Form of business ownership to be adopted and the rationale
• Single or partnership attach registration from DTI
• Corporation SEC registration;
• Authorized capitalization; paid up capital
• Latest audited financial report
5.2 Organizational structure of the mother organization and fuctional organization of
the unit/department under study
5.3 Manpower requirements of the unit/institution with salaries/honorarium and
mandatory contributions written in tabular form
5.4 Job specifications and job descriptions (titles & what each position does in general,
details will be in Appendix)

6. Financial Study
6.1 Total project cost (Php 5 Million and above) to include – acquisition of fixed assets
land, building, medical equipment and devices, machinery and construction /
renovation.
6.3 Sources of financing
6.3.1 Sources selected or proposed for both long-term and short-term
 Financing (Bank Loan: 60% medical equipment, 70% land and building, 80%
commercial area [Note: Working Capital as well as Furniture and Fixtures are not
part of the computation of the loanable amount])
6.3.2 Alternative sources e.g. leasing, sale and lease back, etc.
6.3.3 Joint Venture (JV) /partnership – outline how you will proceed with JV or
partnership in detail.
6.4 Construct projected cash flows
6.4.1 Assumptions
6.4.2 Projected cash inflows
6.4.3 Projected cash outflows
6.4.4 Projected net cash inflows(outflows)
6.5 Apply technically accepted budgeting techniques
►Derive Weighted Average Cost of Capital or Cost of Capital
►Calculate Net Present Value
►Calculate Internal Rate of Return
►Calculate Discounted Payback Period
►Calculate Profitability Index

7. Socio-economic study – social and economic impact of the project on the

community or country

8. Contingency Plan – to identify different alternatives that the proponent of the study
can use in case some unexpected events arise. They are back up plans that support the
organization when actual plan fails. Should include possible high, moderate, minor impact
risks that may completely disrupt the normal operations of your business and its proposed
risk management response.

9. Summary, recommendations, Conclusion – This is based on the objectives and problems

raised in the study.

10. References (use APA format)

11. Appendices

Revised August 21, 2021

jpa