Due Diligence

Due Diligence hospital audit process report services and implementation services for both Greenfield and Brownfield hospital projects

Due Diligence hospital audit process report Services

Due Diligence

Due diligence (Hospital audit – infra, finance, operations) is an activity to look into the overall functioning of the hospital, with an emphasis on its financial health. This is one of the key indicators for buying or selling a functional or non-functional hospital. It can also be a diagnostics to look into the pilferages in a smooth functioning of the hospital with remarkably low revenue or margin.

Some bankers not having in-house domain consultants may require assistance in looking into the assumptions and to compare it to the industry standards. Such Due Diligence hospital audit process report services will help the financial institutes to take a decision on funding such projects.

Our consultants, has good exposure in conducting on ground Due Diligence of functional hospitals for banks.

Assisting investors to decide on their investment.

Due Diligence of Hospitalis an activity to understand the financial health of the hospital – a Greenfield or a Brownfield.

We assess the “projected business” of the Greenfield and the “balance sheet” of the Brownfield hospital. The basic objective remains the same ‘whether the hospital will do good or is it doing good. This key information helps the investor to take concious decision on their investments.

Investor especially if he is investing to a tune of Rs 50 lakhs or more, it is worthwhile doing a Due Diligence to understand the risks associated with the hospital.


Is it worth investing into this activity?

If a investment firm is investing, then by default they do this activity either in-house or hire consulting firm. But if you are an independent doctor or a private investor, it is worth spending time on Due Diligence as it will definitely help you to take the right decision.

If the project is not fit for investment, consultants will get to know within 15 days. But if the project seems to be good, a consultant needs 60 mandays minimum to scrutinize the project and advise the investor accordingly.

Its a Greenfield Hospital, promoted by Group of doctors with good repute.

We are sure that if the hospital is mobilizing funds from the market or banks, they would have done their business plan.

We as Hospital consultants conduct a hybrid survey wherein we independently conduct a market survey and compare that to the promoters business plan. It is also important for us to look into their business plan and understand ther patient mobilizing strategies. In most of the time, especially for speciality or super-speciality hospitals, strategies has to be strong as more than 70% of the patients are from referral networks.

We then validate the strategies and the combine our findings with their strategies to derive the financial feasibility report. Based on our report, the investor works on.

Is the study methodology same for Brownfield hospitals also?

It is slightly different, wherein instead of Business plan, we consider the Balance sheet to check on the financial health of the hospital. We cross check the services offered and compare that to the business made. We also compare these indicators to industry standards to access the level of deviation.

We then discuss with the promoters to understand their future plan and application of funds. We then analysethat prospectively and draft a report to advise the investor.