How to Conduct a Feasibility Study for Health Service

A health services feasibility study decides the viability of creating a new health services operation. Feasibility studies are an integral part of the funding, marketing and development process of a new business and should provide for the most cost-effective and cost-efficient means of delivering a new service. These studies should also confirm the need for special capital and the viability of long-term financial returns, while recommending a course of action, a realistic estimate of how much the total project will cost and the time needed to become fully operational.

Instructions

• 1

  Research your target market thoroughly to determine if there is a gap in services your company could exploit or if there is a need for the service you wish to provide. You should also study the demographics of the population where the health service is to be placed, including the age, income group and social class of the people to be serviced.

• 2

  Plan and conduct a feasibility study. A feasibility study contains two important parts: data collection and analysis. Determine what data should be collected. For a health service this includes local taxation information, businesss laws, the cost of renting/building the health service center plus labour and material costs. The study can also predict likely patient inflow and income generated. In the analysis phase, the study aims to make sense of the data gathered, comparing projected income against projected costs.

• 3

  Write an executive summary. Usually the first page of a feasibility study, a summary should contain a general view of what the project is about, as well as the service's possible threats, competitions, weaknesses and strengths. It also describes briefly the needed requirements for operating the project, as well as any financial projections.

• 4

  Write a description of the health service to be created. Explaining the goals and objectives of the project, this page details important aspects of the project as clearly as possible and answers whatever doubts and questions that may arise concerning the proposed service.

• 5

  Conduct a business risk assessment. The risk assessment should consider all possible internal failures, such as internal control, staff training and lawsuit costs, along with eternal threats to the business, including possible competitors and any changes to local/national laws or the overall business environment.

• 6

  Define the service's operating requirements. This means defining the amount of capital needed to start the business, required infrastructure, medical equipment, vehicles, human resources, training, paperwork and so on. This is a vital part of a feasibility study, as it involves elements that enable the project to work. Understating the different needs of the project may end in possible failure.

• 7

  Estimate the projected financial returns and the time estimated for the service to repay costs. This should include a study of the costs of the treatments offered compared to leading rivals, plus best and worst case scenarios and the most likely outcome. Remember that financial returns can be unpredictable and rough estimates concerning the time needed for a return of investment should also be included.

• 8

  Draw a conclusion from your findings. Write your recommendations regarding the proposed health service. In order for this project to be approved, it is important to summarize all that has been reported and elaborate on the advantages, as well as areas of opportunity, that the project may bring.