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A Successful Green Field Hospital Project

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By Author: sarathy
Total Articles: 16
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Dr.Prasahant Sathe, Co-Founder & Partner,
Sarathy Advisory
A private limited company with medical dominated
partners & venture base
This was planned as a 100 bedded Greenfield hospital
set up in Maharashtra . The promoters had a strong
vision and wanted insights into correct project
implementation mechanism. The risks visualized were
delay in planning ,construction, and commissioning
causing a prolonged gestation and consequent debt
and interest burden and then prolonged break evens
and ROIs .
Our services were sought for knowledge sharing and
comprehensive planning and navigation of this project
based on our previous experience of project planning
of Greenfield hospital projects.
O C T O B E R 1 S T 2 0 1 8 S A R A T H Y A D V I S O R Y
Our intervention was from concept till commissioning but this study restricts to outline
the project monitoring mechanisms that we proposed to mitigate the visualized risks.
1. Major risk mitigated was a delay in timelines and targets which can entail a severe rise of
burden in form of Interest on debt and loss of revenue thro the incoming fees of Year One.
Hence the Project monitoring mechanisms needed to be developed and customized for that
typical environment for eventual success on timelines.
2. We targeted the tripple constraint :
Our Interventions
3. Scope and Concept : The plan was firmly based upon Needs assessment , Defined Entry
strategies , specific Locational /geographic positioning, Sound Business model conception
coupled with Competitive environment assessment and Comparative feasibility studies to
develop a timelined plan for implementation based on a Vision and strategy for project
4. Costs : Identified interdependancies, charted project monitoring mechanisms for critical
milestone tracking. Established a phased review process. All the budgetary and cost
estimates were in place and frozen with 10 percent allowance for variance to assist
resource mobilization in concept phase.
5. Time : The major impacting factor in Greenfield set ups is a delay in executions,
constructions which result in increased debts in form of mounting interest burden at high
cost. We initiated Establishment of policies, procedures, and documentation for planning,
developing, managing, executing, and controlling the project schedule. Analyze activity
sequences, durations, resource requirements, and schedule constraints to create a project
schedule . Penalty clauses instituted in contracts helped achieve the timelines.
Scope Cost Time
The promoters received a
comprehensive project road map
for entire project implementation
phase with specific quarterly
targeted needs.
We could effectively controlled the
delays to avoids rising interest
burdens and ensured optimization
of assets through structured audit
mechanisms and resources to
achieve commissioning targets.
The project negotiated well
through Stage of Planning, Stage of
Construction including Phased
rational capital inflow to suit the
targets and achieve early
This was possible due to SA’s
insights and experience of
greenfield hospital projects .
For more information,
please write to info@sarathyadvisory.com

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