Financial Feasibility
Testing whether the project's money story adds up - and where it breaks.
Financial feasibility works out the complete financial case for a hospital project: the capital required, how it can be funded and serviced, the operating cost and revenue build-up, and the returns, debt service and sensitivities that decide whether the numbers hold. It is the financial dimension of the go/no-go decision, distinct from the wider viability view that adds demand and operations.
What this service covers
- Capital cost build-up and phasing
- Funding structure: equity, debt and grants
- Revenue and cost projections for the analysis period
- Return measures: NPV, IRR, payback and DSCR
- Pre-operative and start-up cash impact
- Working capital and financing costs
- Sensitivity and break-even analysis
- Funding gap and structuring options
- Assumption register and their confidence
- Documented financial case for decision-making
Our process
- Build the capital and funding structure
- Project revenue and operating costs
- Run return and debt service analysis
- Stress-test with sensitivities
- Identify funding gaps and structuring options
- Document the financial case
Frequently asked questions
How is financial feasibility different from financial planning?
Financial planning develops the ongoing financial model and plan of the hospital once it is running. Financial feasibility is the earlier, decisive test of whether the project's capital, funding and returns work.
How is it different from project viability analysis?
Viability analysis integrates demand, competition and operations into the overall go/no-go. Financial feasibility is the financial dimension of that decision.
What does it need as inputs?
Capital scope, assumed funding, market volumes, reimbursements, tariffs and operating costs - developed during the feasibility stage.
Does it guarantee financing?
No - it establishes whether the financial structure is sound and identifies the funding structure and gaps institutions will assess.
What does the customer receive?
A financial case with returns, debt service, sensitivities and the funding structure recommended for the project.