1. Feasibility Analysis and modeler
Teaser document
March, 2014
Motherhood

2. 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

3. 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

4. Detailed Financial Projections1
Detailed Financial projections - P&L and Cash Flow Statement are provided
Financial Projections
Snapshots
Detailed Financial Projections
SOURCE: RedSeer knowledge base

5. Sensitivity Analysis can help in creating scenario-based projections2
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

6. Optimum Hospital Configuration3
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

7. 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

8. 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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