Feasibility Analysis
Healthplex® Associates’ unique approach to strategic planning emphasizes education. We work with our clients to develop a strategic plan that “fits” their organization, rather than force a template that comes from some other project. With Healthplex® Associates, every center, every project is a study of one.
HPA sees its mission as not just developing a fitness organization, but also adapting a fitness organization to a healthcare delivery system. After all, we too, are hospital and health system people.
Our approach to project planning is designed to minimize project risk and financial exposure to the client. This is accomplished through the completion of a product called a Feasibility Study. One of the key questions at this early stage is whether or not there is enough unmet demand to support a Healthplex. The extent of this demand will dictate the probable size, major components and general profitability of the proposed center. The cost of this study is very modest and, in the case of adverse findings, the client may elect not to proceed further in the project planning. While there are many components of a plan for a new wellness center, the principal categories include the final site selection and procurement, final project sizing, financial feasibility analysis, establishment of protocols for integration with client medical programs, medical component space planning, marketing and construction planning. Included in the Feasibility Study is the operations business plan which precisely defines the fitness component, identifies its goals, and serves as its blue print. The basic components include accurate financial projections by a team that knows the business. This helps allocate resources properly, prepare for unforeseen complications, and to make good business decisions.
Elements of a typical Feasibility Study include:
- Fit with hospital strategic plan, mission and organization
- Description of the fitness club (concept, size, location, etc.)
- Fitness competition analysis
- Membership demand by type
- Year-to-year membership growth
- Site description
- Project sizing
- Establishment of protocols for integration with client medical programs
- Capital equipment and supply analysis
- Breakeven analysis
- 5year pro-forma income projections (profit & loss statements)
- Project cost assumptions
- Recommendations and action plan
