Health

Information on a Health project for consideration by IFC should include the following categories. These are organized primarily for financing investments and managing risks of hospitals, clinics, diagnostic centers or laboratories, the most common area of investment thus far for IFC in this sector. Therefore, they will have to be adapted in varying degrees for use in other types of healthcare projects, such as health insurance schemes, telemedicine companies, on-line health care services (e-business), equipment leasing, etc.

Privately organized, yet “not-for profit” health institutions will need to demonstrate a capacity to operate in a business-like manner and to maintain regular “surpluses” to qualify for support on IFC’s market-based terms.

1. Executive Summary

2. National and Local Health Sector. 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
• Organization chart
• Management team
• Current operations (beds, services offered etc.)

4. Financial Performance. What is the sponsor’s financial history?

• Revenues, main product groups
• Variable cost structure, main elements
• Fixed cost structure, main elements
• Capital structure and cost
• Audited financial statements past 3 years in US$

5. Strategic Plan. Where the Company wants to be in 10 years broadly speaking and how it plans to get there?

• New strategy and goals (target markets, customers, cost reduction programs, repositioning...)
• 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)
• Financing plan

7. 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

8. 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