Hospital Feasibility Study Calculator

Run a quick financial feasibility study for a new hospital — project revenue, operating costs and indicative IRR over 5 years based on bed count, occupancy ramp and ARPOB.

Result

Year	Occupancy	Revenue

Notes & assumptions: Occupancy ramps: Y1=30%, Y2=50%, Y3=user-set, Y4=Y3+8%, Y5=min(Y3+15%,85%). EBITDA margin assumed 18% Y1, 22% Y2, 26% Y3-5. Debt at 11% pa, 12yr tenor. IRR is indicative equity IRR from EBITDA stream.

Disclaimer: This tool provides an indicative estimate for general planning only and is not professional, legal, financial, medical or engineering advice. Reference values are editable defaults that vary by location, vendor, regulation and date. Verify critical figures with a qualified professional. Varada Nexus accepts no liability for decisions made using this tool.

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FAQ

What is a good IRR for a hospital project?

Typically 15–22% equity IRR is considered acceptable for Indian private hospitals; super-specialty tertiary hospitals can target higher returns given higher ARPOB.

What is ARPOB?

Average Revenue Per Occupied Bed per Day — a key hospital performance metric combining bed occupancy and revenue intensity.

How long to break even for a hospital?

Cash break-even typically 2–4 years; accounting/investment break-even 6–10 years for a greenfield hospital depending on scale and payer mix.