How to start a hospital business in India?

Success of a hospital depends on the quality of services, technically skilled staff, and a good reputation in the market. While it should not deviate from the core objective of offering the best treatment, other important factors like profitability should not be kept aside. Even if the hospital charges a little bit more than others, it becomes popular. When an entrepreneur starts with the idea of establishing a good hospital in the town, it starts with the conceptualization stage and traverse to a full-fledged business plan. A detailed analysis and assessment reveal the extent of assistance needed to carry out the task.

Permits and approvals

The task of establishing a hospital in India involves a series of legal formalities, permissions, and permits. There are various authorities involved in the process, and it is a time-consuming task. Hence, it is important to start the efforts well in advance. 

  • Land acquisition: If you do not own land already, then land acquisition may be quite taxing. It is important that the land is approachable, transportable, and non-agricultural. If the land is not designated for healthcare establishment, necessary changes have to be done.
  • Documentation: Land deeds, corporate permissions, company documents, construction permit, and tax identification papers are critically important. Required NOC (No Objection Certificate) are required from Municipal Corporation, pollution control board, health department, etc.
  • Electrical supply and water connection: It needs to be obtained from the respective departments. Sewerage and sanitation connection are other important aspects. Indian government issues stringent norms for the treatment of Bio-Medical wastes produced by hospitals, disposal units need to be established before the hospital becomes functional. Around 1000 square feet area has to be kept reserved for it. If the hospital is small in size, it should get hooked to the companies that carry and dispose of medical waste.
  • Fire approval: Municipal corporation issues fire safety certificate after studying the facilities provided by the hospital for fire safety. 

Money matters

If the entrepreneur has deep pockets, money shouldn’t be a constraint. Even if it needs help from the financial institutions, banks or private money lenders, there are no hurdles in the path.  They have relatively simpler and easier norms for healthcare industry.

Department-wise planning

After finalizing everything about permits and finances, it comes the turn of a department-wise planning. 

  1. Selection of vendors for acquiring medical equipment, purchase, and installation.
  2. Human resource planning, preparation of resource matrix, interview and selection of doctors, medical staff, nurses, housekeeping people, etc.
  3. Office automation and engineering services: Procurement of IT systems, medical automation systems, air-conditioning, plumbing, electrical maintenance, air handling, medical gas pipelines, and civil works.
  4. Appointing advisors and consultants: Consultants for structural engineering, hospital management, architecture, and fire prevention.
  5. Tax, audits, and compliance: Appointing tax consultants, auditors and chartered accountants, legal advisors and standardization consultants.

Growth in healthcare services in India causes affordability of people for good quality medical services. People are ready to pay a little higher for better services. A good hospital can be established by doing a thorough preparation and research.