Hospital Financial Model (Excel XLSX)

BENEFITS OF THIS EXCEL DOCUMENT

1. A professional financial model to develop a startup hospital
2. Covers all aspects of starting a hospital and addresses all requirements of prospective owner, co-investors and banks
3. Produces three financial statements, detailed return and sensitivity analysis

HEALTHCARE EXCEL DESCRIPTION

Hospital Financial Model is an Excel template (XLSX) with a supplemental PDF document available for immediate download upon purchase.

🔴 This is a full-scope, professional and yet user-friendly financial model of a 𝘀𝘁𝗮𝗿𝘁𝘂𝗽 𝗵𝗼𝘀𝗽𝗶𝘁𝗮𝗹. I have developed this model with those beginning entrepreneurs in mind who are not familiar with sophisticated financial concepts but need an industry-grade investment banking quality financial model for their startups 🔴

𝙈𝙊𝘿𝙀𝙇 𝙃𝙄𝙂𝙃𝙇𝙄𝙂𝙃𝙏𝙎:

✅ The model provides a 𝗰𝗼𝗺𝗽𝗿𝗲𝗵𝗲𝗻𝘀𝗶𝘃𝗲 𝗮𝗻𝗱 𝗴𝗿𝗮𝗻𝘂𝗹𝗮𝗿 𝗽𝗶𝗰𝘁𝘂𝗿𝗲 of your prospective business and addresses all information requirements of you as an owner, your partners as co-investors and banks as external financing institutions

✅ The model generates the 𝘁𝗵𝗿𝗲𝗲 𝘀𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘀𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁𝘀: income statement, cash flow statement and balance sheet

✅ It also includes detailed 𝗿𝗲𝘁𝘂𝗿𝗻 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 calculating IRR, equity multiple, peak equity exposure, breakeven and payback periods, return on invested capital

✅ 𝗦𝗲𝗻𝘀𝗶𝘁𝗶𝘃𝗶𝘁𝘆 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 included into this model allows to calculate key return parameters at various holding period, amount and cost of debt, exit multiple assumptions

✅ In addition, it performs 𝗞𝗣𝗜 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 specific for a hospital: average annual and daily number of patient visits, daily visits per doctor, average time per visit and others

✅ The model covers a period of 𝟭𝟬 𝘆𝗲𝗮𝗿𝘀 (can be extended if needed) and is illustrated by professionally designed magazine-quality 𝗰𝗵𝗮𝗿𝘁𝘀 📊

✅ Finally, the model covers 𝘁𝗵𝗿𝗲𝗲 𝘀𝗰𝗲𝗻𝗮𝗿𝗶𝗼𝘀 (base case, upside case and downside case) for which you can set different commercial and economic assumptions and immediately examine the effect. A special premise of this model is that scenarios can be switched back and forth from any sheet, which makes this model especially convenient

𝙈𝙊𝘿𝙀𝙇 𝙎𝙏𝙍𝙐𝘾𝙏𝙐𝙍𝙀:

1️⃣ Any new business starts with 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝗮𝗻𝗱 𝗰𝗼𝗻𝘀𝘁𝗿𝘂𝗰𝘁𝗶𝗼𝗻. The model has a very flexible capex section which covers up to 30 specific hospital capex items (more can be added) each having its own cost, acquisition date and useful life period. For certain capex items you can indicate renewal intervals and the model will handle them automatically. The model also handles non-capital startup expenses and inventory stock.

2️⃣ Once the capex program is completed and necessary equipment and materials are purchased, your hospital starts generating profits. The model uses a number of drivers to make a granular analysis of 𝗿𝗲𝘃𝗲𝗻𝘂𝗲𝘀 𝗮𝗻𝗱 𝗽𝗿𝗼𝗳𝗶𝘁𝘀: prices and costs by category and type of treatment, ramp-up plans, monthly seasonality and other assumptions.

Apart from medical service revenues, the model calculates retail revenues and profits from sale of various healthcare products.

3️⃣ The model forecasts 𝗱𝗶𝗿𝗲𝗰𝘁 𝗰𝗼𝘀𝘁𝘀 of services as well as 𝗴𝗲𝗻𝗲𝗿𝗮𝗹 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗮𝗻𝗱 𝗼𝘃𝗲𝗿𝗵𝗲𝗮𝗱 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝘀. It handles various fixed expenses and those which are driven by revenues.

4️⃣ Many startups are partly financed by 𝗱𝗲𝗯𝘁. Drawing debt at right terms provides financial leverage and increases investor returns substantially. In this model you can choose the LTV ratio, interest rate and other loan conditions.

5️⃣ 𝗣𝗿𝗼𝗳𝗶𝘁𝘀 𝗮𝗿𝗲 𝗱𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗲𝗱 at regular intervals as you specify in the model (3, 6, 12 etc. months). In case the project is done by two partners one of which being a Limited Partner (LP) and another one a general partner (GP), when it comes to distributing dividends or exit proceeds the model uses a 4-hurdle carried interest waterfall to calculate the distributions between the partners.

6️⃣ The last stage of the analysis is calculating 𝗲𝘅𝗶𝘁 𝗽𝗿𝗼𝗰𝗲𝗲𝗱𝘀 (or terminal value) required for proper valuation and profitability assessment, even if the shareholders are not planning to exit at that point in time. Exit valuation is done using the Gordon's model; WACC assumptions are derived from Capital Asset Pricing model (CAPM) which uses comparable peer company analysis and your risk premium assumptions.

🔷 Teamed up together, these calculations and schedules are used to build the financial statements (income statement, cash flow statement and balance sheet), calculate returns and perform KPI analysis for your hospital startup project 🔷

Source: Best Practices in Healthcare, Integrated Financial Model Excel: Hospital Financial Model Excel (XLSX) Spreadsheet, Andrei Okhlopkov