Feasibility Analysis and modeler Teaser document March, 2014 Motherhood

Feasibility Analysis Modeler: Introduction Snapshots Illustrative from a previous exercise Key Points RedSeer Feasibility Analysis Modeler has been created specifically for hospitals Modeler can help the user in conducting all types of financial analysis for a new center Please see the following slides to understand the key analyses that can be done using the modeler SOURCE: RedSeer knowledge base

How can Feasibility Analysis and Modeler help? Key points Key deliverables Description Financial Projections Detailed P&L and Cash-Flow statements benchmarked with competitors over 5 years Sensitivity Analysis How will the financial projections change with change in key parameters (OPDs, IPD Conversion, Pricing, growth rate etc.) Optimum Hospital configuration Is it feasible to add other services (like IVF etc.) for a particular location? Detailed analysis of revenue and cost items What is the contribution of each component in revenue and cost? Overall feasibility of location What is the IRR for a center? 1 2 3 4 5 SOURCE: RedSeer knowledge base

Detailed Financial Projections 1 Detailed Financial projections - P&L and Cash Flow Statement are provided Financial Projections Snapshots Detailed Financial Projections SOURCE: RedSeer knowledge base

Sensitivity Analysis can help in creating scenario-based projections 2 Sensitivity Analysis: Scenario-based analysis can be done with change in OPDs, IPD conversions, growth rates and other parameters Sensitivity Analysis Snapshots Sensitivity analysis- Change in revenue with change in OPDs Sensitivity Analysis can help in creating scenario-based projections SOURCE: RedSeer knowledge base

Optimum Hospital Configuration 3 New services are analyzed based on market data and clear recommendation are provided Optimum Hospital Configuration Snapshots IVF is not recommended for this set-up Projections for client # of procedures per month Clear recommendations on addition of new services and hospital configuration Small IVF Market SOURCE: RedSeer knowledge base

Cost and revenue components are analysed in detail Detailed analysis of revenue and cost items 4 Cost and revenue components are analysed in detail Detailed analysis of cost and revenue Snapshots Pharmacy accounts for 15% of revenue Detailed analysis can help in prioritization of services based on their contribution towards revenue and cost SOURCE: RedSeer knowledge base

Go/ No-Go recommendations based on IRR (Internal Rate of Return) Overall Feasibility 5 Go/ No-Go recommendations based on IRR (Internal Rate of Return) Overall Feasibility Snapshots Recommendation on Feasibility of center based on IRR SOURCE: RedSeer knowledge base

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