Financial Planning
Structuring the capital and operating financial model behind a hospital project.
Financial planning builds the financial model a hospital project runs on: capital cost structure across land, construction, equipment and pre-operative costs, the funding mix, the operating profit and loss through ramp-up, cash flow, debt service and return markers. We build it on documented assumptions so promoters and lenders can see what drives the numbers and how sensitive they are.
What this service covers
- Capital cost structure covering land, building, equipment, consultancy and pre-operative costs
- Funding mix and structure across equity, debt and project timelines
- Operating revenue and cost build-up across service lines
- Profit and loss projection through the ramp-up period
- Cash flow and working capital requirements by phase
- Debt service, DSCR and covenant headroom analysis where debt is involved
- Return indicators including payback, NPV and IRR
- Sensitivity and scenario testing of the key financial drivers
- Documentation inputs for funding discussions and investment committees
- A phased financial plan tied to the implementation schedule
Our process
- Frame the project's funding and return objectives
- Build the capital cost and funding model
- Build the operating revenue and cost model
- Run scenario and sensitivity analysis
- Document the financial plan and funding case
- Align the plan with revenue and cost planning
Frequently asked questions
How is financial planning different from revenue model development?
Revenue model development focuses on the revenue side - volumes, tariffs and payer mix. Financial planning combines revenue with capital costs, funding and operating costs into the full financial model.
What happens if the assumptions change?
The model is built on explicit assumptions with sensitivity testing, so changes in occupancy, tariff or cost can be re-run quickly and the impact shown transparently.
Do you recommend a funding structure?
We model funding structures and show the implications of equity, debt and phasing choices so the decision can be made on evidence. The final structure is decided by the promoter and financiers.
What inputs do you need from the hospital?
The proposed scope and phasing, service mix and demand inputs, cost estimates available, and the funding and return expectations being tested.
How does this support the detailed project report?
The financial plan provides the financial chapter and funding basis that the detailed project report consolidates.