Financing for Health Projects

We are happy to discuss project proposals informally and advise on next steps. As a minimum requirement for applying for financing, we require a written project plan. Information should include the categories set out below. These are organized primarily for financing investments in hospitals and clinics and will need to be adapted for other types of health care projects, such as, health insurance, telemedicine, etc.

1. Executive Summary
   
   
2. National/Local Health Sector and Target Market. Can the market absorb the services to be provided by the project?
   
   Regulatory framework
   Analysis of the sector
   Demand: market segments, size, growth, and projections
   Supply: key players, competitors, market positions, differentials, prices, quality of services
   Potential changes in the sector (regulation, competition, etc.)
   Potential changes in the market (growing unemployment, changes in demand profile, etc.)
   
   
3. The Company, Sponsors, and Management. Who owns, controls, and runs the company?
   
   History
   Shareholders
   Organizational chart
   Management team
   Partners/alliance – local and international
   Current operations (beds, services offered, etc.)
   
   
4. Financial Performance. What is the sponsor’s financial history?
   
   Revenues, main service lines
   Variable cost structure, main elements
   Fixed cost structure, main elements
   Capital structure and cost
   Audited financial statements for the past three years in US dollars
   
   
5. Strategic Plan. Where the company wants to be in 10 years and how it plans to get there?
   
   New strategy and goals (target markets, customers, cost reduction programs, repositioning, etc.)
   Company strengths
   Company weaknesses
   
   
6. The Project. How will the project help fulfill the goals outlined in the strategic plan?
   
   Goal and strategic fit
   Investments (description and cost)
   Specialties and services proposed
   Referral system
   Links with local medical community
   
   
7. Project Financing Plan
   
   Proposed debt/equity ratio
   Sources of financing
   What is required from IFC
   Security package
   
   
8. Activity Projections
   
   Bed numbers
   Occupancy rate
   Lengths of stay
   Number of inpatients
   Number of outpatients
   
   
9. Financial Projections. What is the project’s expected financial performance and impact on the company?
   
   Income statement
   Balance sheet
   Sources and uses
   Project’s internal rate of return
   
   
10. Risks and Issues. Are there any other issues that can affect the company or the project?
    
    Non-profit or cooperative status
    Opportunities and threats
    Project strengths and weaknesses

General guidance on applying for support from IFC may be viewed at: How to Apply for Financing.