The short answer
What is a hospital feasibility study?
A hospital feasibility study is a structured assessment of whether a proposed hospital or specialty center can attract enough patients and revenue to be sustainable. It examines the market, competition, specialty and bed mix, capital and operating costs, and how long the project will take to break even.
It is the most important document in a hospital project, and often the most rushed. Many studies are written to justify a decision already made. A useful one does the opposite: it tests the idea, highlights the risks and changes the plan where the evidence says it should.
The cheapest place to fix a hospital is on paper, before anything is built.
Our studies combine market research with an operator's view of how hospitals actually fill beds, so the recommendation reflects real patient behavior, not optimistic assumptions.
When you need it
When you need a feasibility study.
Commission a study before any of these decisions.
- Buying or leasing land or a building for a hospital.
- Applying for a bank loan or raising money from investors.
- Choosing between specialties, or between a specialty center and a multi-specialty hospital.
- Deciding how many beds, theaters and ICU beds to build in the first phase.
- Expanding an existing hospital with a new wing, specialty or location.
Recognize your project here? Book a hospital project consultation and we will tell you where to start.
What is included
What the study covers.
Each section feeds the final recommendation.
Market and demand
Catchment population, disease patterns, insurance and payer mix, and unmet demand by specialty.
Competition
Nearby hospitals and clinics, their specialties, capacity, pricing position and reputation.
Specialty and bed mix
Which services to start with, how many beds and theaters, and how to phase growth.
Capital cost
Building, interiors, equipment, IT and pre-opening costs, with clear assumptions.
Financial projections
Patient volumes, revenue, operating costs, break-even and sensitivity to key risks.
Go-to-market view
How the hospital will attract patients and referrals, and what that will take.
How we work
Five steps, clear outcomes.
Every engagement follows the same disciplined sequence, so you always know what comes next and what you will receive.
Brief
We agree the questions the study must answer, your location options, budget range and timeline.
You get: a clear study briefResearch
We gather market, demographic, competitor and referral data, and speak with local stakeholders where useful.
You get: a market evidence baseModeling
We build the specialty mix, capacity and financial model, and test it against realistic scenarios.
You get: a financial modelRecommendation
We present findings, risks and a clear recommendation, including what to change to improve the project.
You get: a decision you can defendNext steps
If the project goes ahead, the study becomes the foundation for the setup plan and launch strategy.
You get: a roadmap to build
What you receive
Clear documents you can act on.
Every engagement ends with practical outputs your team, partners and lenders can use.
- Feasibility report in plain language
- Market and competition analysis
- Recommended specialty, bed and theater mix
- Capital cost estimate with assumptions
- Financial projections and break-even analysis
- Risk and sensitivity analysis
- Executive summary for lenders and investors
- Presentation and discussion of findings
Part of a bigger plan
One stage of a turnkey hospital project.
Hospital Feasibility Study can be engaged on its own or as part of a full turnkey hospital project, where one strategist owns the plan from the first market study to the months after opening day. Either way, the work connects to everything that comes before and after it.
Questions
Common questions.
How long does a hospital feasibility study take?
Most studies take several weeks, depending on the size of the project, the number of locations being compared and how much local research is needed. We agree a timeline in the brief.
Will a bank accept your feasibility study?
Our reports are written to be clear for lenders and investors, with transparent assumptions. Banks set their own requirements, so we can adapt the format to what your lender asks for.
What if the study says the project is not viable?
Then it has done its job. Often the study shows how to make the project viable, for example by changing the location, specialty mix or phasing. Sometimes it saves you from a costly mistake.
Can you compare several locations?
Yes. Location comparison is one of the most common reasons clients commission a study.
What does a feasibility study cost?
Scope and fees are tailored after your strategy call, based on the size of the project and the depth of research required.