Introduction
Selecting the right location is a critical component of the business model and significantly impacts return on investment metrics. For the successful establishment of a new healthcare facility, a thorough site assessment is required, which analyzes both risks and opportunities.
Solution
The site selection process involves several key steps:
- Defining the Available Budget, Target Audience, and Core Activities: Identifying the foundational elements of the business model, such as available resources and the target audience, is essential for decision-making. For example, with an investment budget of 500 million HUF (1.3 million EUR), it is possible to establish a healthcare facility with a floor area of 1,000 square meters.
- Initiating Demographic Research: Analyzing the population and potential patients, including the age distribution, employment rates, and income levels of the area. For instance, in a region where 60% of the population is aged 18-65, establishing a general healthcare center may be advantageous. Both fundamental and technical analysis can be applied to evaluate the available research data.
|
City |
City 1 |
City 2 |
City 3 |
City 4 |
|
Population |
29,200 |
31,312 |
27,675 |
25,751 |
|
Settlements within 20 km |
49 |
38 |
16 |
21 |
|
Settlements with >5,000 inhabitants |
0 |
3 |
4 |
5 |
|
Population within 20 km |
30,257 |
71,659 |
52,801 |
72,491 |
|
Total Population |
59,457 |
102,971 |
80,476 |
98,242 |
|
Males within 20 km |
19 |
25,5 |
21 |
33 |
|
Females within 20 km |
20 |
27,5 |
22 |
35 |
|
Total within 20 km |
39 |
53 |
43 |
68 |
|
Average Coverage per 1,000 Inhabitants |
17.71 |
17.71 |
17.71 |
17.71 |
|
Local Coverage per 1,000 Inhabitants |
16.08 |
17.36 |
17.44 |
18.45 |
|
Average Referral Rate (18-35) |
24% |
24% |
24% |
24% |
|
Average Referral Rate (36-50) |
20% |
20% |
20% |
20% |
|
Average Referral Rate (51-65) |
12% |
12% |
12% |
12% |
|
Actual Referral Rate (18-35) |
20% |
24% |
17% |
22% |
|
Actual Referral Rate (36-50) |
19% |
20% |
28% |
24% |
|
Actual Referral Rate (51-65) |
13% |
9% |
12% |
15% |
|
Referral Intensity (18-35) |
40 |
40 |
40 |
40 |
|
Referral Intensity (36-50) |
32 |
32 |
32 |
32 |
|
Referral Intensity (51-65) |
8 |
8 |
8 |
8 |
|
Number of Higher Education Institutions |
1 |
2 |
0 |
1 |
|
Large Companies in the Area |
1 |
6 |
2 |
4 |
- Evaluating the Research: The collected data is assessed to select the optimal location. The expected patient flow is estimated based on average national and regional demographic data, as well as industry-specific traffic projections broken down by age group. Our key performance indicator (KPI) is the calculated local coverage frequency.
- Considering Key Indicators: For the successful placement of the facility, the following indicators are crucial:
-
- Distance and Location of the Target Audience: For example, the goal is for 80% of the target audience to reach the facility within a 30-minute travel time.
- Types of Target Audience: Identifying the proportions of physical workers, intellectual workers, factory workers, and retirees. For instance, if 40% of the target audience consists of intellectual workers, it is important for the facility to be located near workplaces.
- Assessing Transportation Options: Analyzing the transportation options available to the target audience to ensure the facility is easily accessible. For example, having at least 3 bus routes and a tram line nearby can provide a significant advantage.
- Incorporating Social and Regional Characteristics: Understanding the cultural, economic, and social specifics of the area helps optimize operations. For example, in a region where 20% of the population is elderly, geriatric services may be particularly important.
Results
As a result of the site selection process, the reach and activation of the target audience can be expressed relative to the market average. Based on the evaluated metrics, it can be concluded that 85% of the target audience is accessible to the facility, and an estimated 50% of the population is expected to actively utilize the healthcare services. This metric is 10% higher than the market average.
Conclusion
Thorough site selection is one of the keys to success in establishing a healthcare facility. The analysis, which considers the target audience, transportation options, and social environment, ensures the successful implementation of the project. For example, selecting a location that offers easy access to 100,000 potential patients significantly increases the chances of success.
Recommendation or Client Testimonial
The procedures applied during the site selection process ensured that we opened our facility in an environment with the highest interest and demand for our services.
