Terms of Reference for
Commercial Feasibility Study of
Telecom Foundation
Hospital
Introduction
Telecom
Foundation (TF) is a welfare trust registered under Charitable Endowment Act
1890 and notified through an SRO 1194 (1) 91 dated April 11, 1991.
TF is serving for the welfare of PTCL employees and other beneficiaries
under the law. TF is managing welfare projects related to education, health,
and other such activities, which provide better support and social welfare to
PTCL employees and others.
TF has
planned to establish a hospital in Islamabad keeping in view the welfare aspect
and objective of providing most modern and advanced medical facilities.
The project under discussion is envisaged to provide good quality In/Out
patient treatment with state of the art diagnostic facilities.
The project also includes provision for training for medical staff and a
department for advanced technologies like Biomedicine, Bio-Medical / Genetic
Engineering, and such other domains. The
project has to be commercially viable as well as sustainable for its welfare to
TF legal beneficiaries.
The
Consultant has to submit a report in compliance of the Tasks elaborated
hereunder along with Time Schedule for each activity and confirmation of
Schedule of Payments. Telecom
Foundation may also consider “alternate options” for feasibility
report format and schedule of payments.
TF has
obtained a plot in Islamabad (Sector H-8) measuring 3 to 4 acres, next to Shifa
International Hospital. TF has
already made sufficient advancement in developing the Building Design for 3 to 4
storeys and details about planning, designing, and drawings are available.
The Capital Development Authority has also approved the project plan.
Study Objectives
The
objective set forth for the feasibility study are briefly presented below:
Ø
To study feasible means and
measures for providing advanced medical facilities to PTCL employees and other
beneficiaries on subsidized basis.
Ø
To study the extent and
possibility of providing such facilities to private patients and other target
groups on commercial basis to make the project viable & sustainable.
Ø
To study the commercial viability
of project comprehensively.
Ø
To identify necessary project
inputs required for successful completion and sustainable operation of hospital
with highest efficiency and quality.
Ø
To formulate operational strategy
and implementation plan.
Ø
To formulate an implementation and
monitoring plan with feedback system
Contents of Study
The
study is envisaged but not limited to cover following areas in detail, however
any modification may be favorably considered if found suitable in achieving the
targeted objectives and formulation of more feasible plan:
1.
To identify and analyze market potential for establishing a major and
advanced hospital in Islamabad.
2.
To identify various target customers and potential service groups, their
required needs and their potential payment strength.
3.
To identify establishment of low or high facilities collectively or
separately.
4.
To study and analyze operation of similar existing setups for available
facilities, profitability, level of expertise etc. in the study area.
5.
To study and formulate a differentiation strategy for the project, if
required.
6.
To quantify resources for the project.
7.
To suggest a detailed project implementation plan along with a resource
allocation plan.
8.
To quantify projected financial requirements for fixed capital and
working capital including projected financial statements, cash flow statement,
schedules of sources of revenues/operating expenses based on different levels of
scenarios, Financial analytical statements (IRR, Pay back period, Break even
analysis, Financial ratios analysis) and any other foreseeable requirements for
minimum 5 years.
9.
To quantify maintenance need for various facilities including routine,
periodic, special maintenance and rehabilitation.
10.
To formulate and suggest most suitable and comprehensively defined
execution plan for achieving the set forth objectives, identifying short term
and long term strategies.
11.
To suggest measures for Quality Control, High Efficiency and Operational
Excellence.
12.
To define a monitoring and feedback system for the proper implementation
of approved strategy.
13.
To identify foreseeable other business opportunities to be undertaken as
project keeping in view the nature and mandate of Telecom Foundation.
Task 1: To identify and analyze market potential for
establishing a major and advanced hospital in Islamabad.
The
consultant will conduct a detailed survey/data collection with analysis, which
will broadly explore and identify the market potential of a major hospital in
Islamabad. This activity will
closely analyze the already established Health Care Facilities and their level
of service. A major consideration
may be given to the requirement of TF legal beneficiaries.
Outcome
of Task 1:
Available
market potential for establishment of a major hospital.
Task
2: To identify various target customers and potential service groups, their
required needs and their potential payment strength.
Broad
parameters such as quantum of target customers, financial grouping, financial
strength of customers are vital factors to be analyzed for commercial viability
of large investment projects. The
consultant would consider the essential target customers, target groups and
private patients in order to analyze market potential for the provision of such
services. The consultant will
prepare an estimate for potential customers from each target groups.
Outcome
of Task 2:
Identification
of various customer groups with estimates of their level of requirement, their
expected number and potential for payment strength
Task
3: To identify establishment of low or high facilities collectively or
separately.
Based
on the results of Task 2 the consultant will analyze target social-classes and
pinpoint the level of medical facilities required by them.
This aspect should also be analyzed for payment potential of prospective
customer group. The consultant will advise that whether there exists any
market opportunity for establishing a hospital for two different classes of
customer. Project would then have
to be planned to cater this multi-level segmentation.
Outcome
of Task 3:
Analysis
of various customer groups, their estimated number with their potential for
payment. Based on analysis suggest
multi-level segmentation of project or otherwise.
Task
4: To study and analyze operation of similar existing setups for available
facilities, profitability, level of expertise etc. in the study area.
The
consultant will carry out study and analysis if major hospitals operating in the
area of study having similar characteristics. The study shall include the provided facilities, level of
charges, their operational cost etc. Based
on study the consultant will quantify the requirements, charging structure for
various services such as OPD visits, Specialists Consultations, Laboratory
Testing, Diagnostic charges, Room charges etc.
The consultant will analyze the gathered information and would
realistically calculate estimated expenditure and income from the establishment
of TF Hospital.
Outcome
of Task 4:
Identification
of level of resources required. Estimates
of income and expenditure based on estimated customers.
Task
5: To study and formulate a differentiation strategy for the project, if
required.
After
having analyzed similar functional projects, the consultant will model this
project on what is readily/freely available in the existing health care market.
A strategy would have to be worked out to differentiate this project from
others in facilities, expertise, and other operating advantages (including but
not limited to diagnostic facilities i.e. pathology, MRI, CT Scan etc.
MIS on management & administration, accounts, indoor / outdoor
patient handling, and education & training of medical / paramedical staff,
keeping in view their regular advancement and knowledge acquaintance with latest
research & new technologies. Suggestions
will be welcomed for establishment of study centers for new arena of health care
e.g. Bio / Genetic Engineering etc).
Differentiation
strategy would have to be based on some tangible factors like facilities, highly
experienced and foreign qualified medical team, better level of Operation
Theaters, higher grade equipment, high level of postoperative and medical care
etc. This differentiation strategy
should offer a significant comparative advantage, which would help in broadening
customer-base, based on reliable data.
Outcome
of Task 5:
Differentiation
plan containing comparative advantages over the existing similar projects
including specialized services and induction mechanism.
Task
6: To quantify resources for the project.
Resource
requirement analysis should consider space, equipment, material, human
technology / facilities, maintenance and waste disposal management.
Keeping in view the objectives and project requirements, the consultant
will carefully quantify all necessary resources to establish, make the hospital
functional, well maintained and adequately operated.
The consultant will suggest a resource induction plan keeping in view of
implementation plan.
Outcome
of Task 6:
Estimate
of resources including human, material, equipment, specialist services,
security, approach to the facility, accessories, furnishing, space, technology
requirements, stores, maintenance, management and operational would be
finalized.
Task
7: To suggest a detailed project implementation plan along with a resource
allocation plan.
Based
on the gathered information, data, and analysis, the consultant will formulate a
detailed implementation program suggesting preferred mechanism of project
realization and implementation. Depending
on the feasibility of implementation plan, the consultant would suggest various
courses of action, their timing and management instruments necessary for proper
implementation accruing the objectives of establishing hospital in real time
frame.
The
parameters should also include size of hospital, type and extend of facilities
to be offered, outline of various departments, space utilization, pattern for
various departments based on number of outpatient / inpatient and other
important factors. The priority and
stages of implementation should be closely worked out keeping various angles but
primarily keeping the commercial element of the project.
The future extension and up-gradation should also be considered during
finalization of concept of implementation strategy.
Outcome
of Task 7:
Detailed
implementation plan with extension and expansion program.
The consultant should be able to suggest any deviation / amendments or
adjustments based on the financial viability of project.
Task
9: To quantify maintenance need for various facilities including routine,
periodic, special maintenance and rehabilitation.
Since
the project is required to provide services to public, it is therefore necessary
that all foreseeable systems must be functional during the operation and at the
time of necessary maintenance has to be planned and included in the operation
mechanics of the project. The
consultant is required to propose a detailed maintenance program for all
facilities suggesting level and timing of various activities in the form of
routine, periodic, special maintenance. A
rehabilitation / up-gradation plan should also be included.
The consultant will also estimate accurately the cost of maintaining all
facilities in the project.
Outcome
of Task 9:
Detailed
maintenance plan with rehabilitation / up-gradation program and its cost effect.
Task
10: To formulate and suggest most suitable and comprehensively defined execution
plan for achieving the set forth objectives, identifying short term and long
term strategies.
The
consultant after performing necessary Financial Analysis (including but not
limited to Cash Flow statement, Profit & Loss statement, Financial Ratios
and analysis, debt services schedule, if any, IFRR, Return on Investment,
Projected financial resource rating, Break-even analysis, Sensitivity Analysis),
will develop for various options of executing the project which are inline to
the objectives of project and financially viable.
Based on calculation the consultant will devise a most favorable strategy
for project realization. It may
include a short term and long term implementation strategies.
Keeping
in view the different constraints consultant will also determine level of
operations to be feasibly undertaken and the level of commercialization to be
targeted for. After finalization of
various levels of execution strategies, consultant will also suggest
customer-charging structure for TF legal beneficiaries and other customers.
In case the project needs any subsidies, grants, financing or aids, the
consultant will carryout necessary financial calculation to arrive at minimum
required financial assistance. If a
commercial loan has to be included in the financing plan, the consultant will
suggest the feasible terms for such mechanism.
Outcome
of Task 10:
Formulation
of detailed execution strategy including short, medium and long-term financially
viable implementation mechanism.
Task
11: To suggest measures for Quality Control, High Efficiency and Operational
Excellence.
It is
important to formulate a detailed and advanced Quality Control and highly
efficient service delivery system for the successful operation and recognition
of newly established healthcare unit. The
consultant will suggest broad outline for developing such system and basic
necessary recommendations towards the successful operation, which could attract
or contribute in sizeable customers to the hospital.
Outcome
of Task 11:
Broad
outline of Quality Control, Efficiency and Operation excellence.
Task
12: To define a monitoring and feedback system for the proper implementation of
approved strategy.
As the
project is of social importance, therefore it has been decided to involve
consultant till finalization of project, subsequent to activity of commercial
feasibility study. The consultant
will be engaged for entire period of realization of project and would be
responsible for provision of proposed-services.
After the feasibility and commercial viability report is approved, the
consultant is required to monitor the steps ahead as advised by the consultant
in detail. The consultant will
design and organize the feedback system for perfect monitoring as per
feasibility study report approved. The
approval of feedback data have to be clearly defined and located, then analyzed
thoroughly for correct inference i.e.
Ø
Inaccuracies in feasibility study
assumption
Ø
Deviation made from feasibility
study report / recommendations
Ø
Sudden / surprise changes in
ground conditions / realities.
Ø
Incorrect / misleading / lack of
data.
The
consultant will then have to analyze thoroughly to ascertain the losses already
incurred, remedies proposed, the cost of remedies and corrections suggested and
the result to be anticipated in terms of calculated time and money.
Further feedbacks on remedies and corrections have also to be designed
and managed and further deviations etc. to be analyzed and so on.
Outcome
of Task 12:
Broad
outline of operation monitoring and feedback / improvement system.
Task
13: To identify foreseeable other business opportunities to be undertaken as
project keeping in view the nature and mandate of Telecom Foundation.
Establishment
of large hospital may generate opportunities for other allied business
opportunities, which may help in improving the commercial viability of project.
It is therefore, suggested that the consultant should closely study the
possibility of such business opportunities and take into account the estimated
revenue in the financial analysis of the project.
Management of such infrastructure component by TF should also be
analyzed. After necessary analysis
the consultant will formulate a detail management plan of such activities.
Outcome
of Task 13:
Allied
business opportunities and potential revenues from such sources.
Deliverables:
Following
should be submitted as per schedule:
1.
Proposal for study
03 Copies
2.
Inception Report
03 Copies
3.
Draft Final Report
05 Copies
4.
Final Report
10 Copies
Schedule of Payments:
|
a)
|
Advance
Payment against Bank Guarantee
|
|
10%
|
|
b)
|
On
submission of draft report
|
Within
one month
|
15%
|
|
c)
|
On
submission of final report
|
Within
one month after draft report
|
15%
|
|
d)
|
On
completion of monitoring
|
About
two years
|
40%
|
|
e)
|
Six
months after completion
|
|
20%
|
