How to Start, Run and Manage a Hospital Successfully

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Having a hospital business may require intensive planning and large capital… Knowing the right ways on how to start a hospital business can save you from the fuss and additional expenses from starting it.

Just like any other businesses, you need to have a well-constructed business plan that will guide you through all the needs of the business and the goals that you need to achieve. A strategic action plan is needed in order to smoothly start and run a business like this. 


Having your own hospital can be very ambitious knowing that you have well-built establishment, professional group of personnel, and a huge amount of capital. 

Just like any other businesses, you need to have a well-constructed business plan that will guide you through all the needs of the business and the goals that you need to achieve. 
A strategic action plan is needed in order to smoothly start and run a business like this.

You can either choose constructing your own building or find a building that is already built and then renovate it. You can also have the option of leasing an already existing building if you don’t have budget in constructing your own building. Finding a strategic location is also important. This means that your hospital must be easily-accessible to a larger population especially during emergencies.
When it comes to facilities, make sure that you the devices are up-to-date and safe. You have to contract or coordinate with suppliers of facilities and other hospitals need.



Medical associations-Management and marketing is the next move.
Hire professionals that are well-trained and knowledgeable .Maintaining the reputation of hospitals.
building is the GP’s office, staff room that is ideal for staff members to rest, enough number of washrooms is important because sanitation is a priority in hospitals.

You can also build treatment rooms, diagnosis rooms, and other rooms that can make patients comfortable. You can add some benches, radiators, and drink machines for patients and visitors, you have to build a reception desk and hire the most accommodating receptionist to man it.

Points to consider


This has to be chosen well, because if there are already some hospitals in the locality, then it will be difficult to pool in patients. Also, the hospital needs to be set up in an area which has good transportation facility or is close to a railway station. Considering the cost of real estate, a huge financial investment is required.


One has to be sure what set-up is planned and what infrastructure is required. A pediatric, orthopedic, gynecologic, oncology, pathology, imaging, etc. facility in the hospital all require different facilities.




Land allotted for agriculture cannot be used. To start building the hospital wing, several permissions from local authorities need to be taken. Numerous documents need to be approved, like land deed, architect’s plan, etc.An occupation certificate is obtained after clearing all formalities.


As per the requirements of the hospital, permission has to be taken from the local governing body to obtain electric meters and water supply. Water requirement has to be calculated, which for any setup is approx 100 litres per day.


Proper disposal of waste requires a well planned sewage and drainage system, which is done after permission is sought from the local board.


This is very vital aspect and permission of Municipal Corporation is required for installing incinerators required to dispose of medical waste and body parts.



A Fire licence is necessary to prove that the hospital will not cause any damage or loss of life and needs to be procured from the local municipal council.  Procuring a health licence is vital to provide health care to the patients.

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Take care of all these:

  1. Doctors, their qualifications and registration numbers recorded
  2. Nurses and working shifts discussed and set
  3. Medical equipment and instruments purchased
  4. Computers and other hardware devices set up
  5. Engineers and staff required for maintenance, plumbing, medical gas pipelines, air conditioning, etc. set

Multiple medical laws and ethics must be followed at every step. A set of guide lines and eligibility criteria have been put forth by our government for hospitals, which provide services to central government health scheme beneficiaries.A tremendous amount of planning, large finances, approvals, certifications, licences and guide lines need to be followed while setting up a hospital in India. It might be well worth it at the end, but needs ample time and mammoth effort to pool together the resources in place.Contributed by Dr. Rachita NarsariaReferences:

  1. Avantika Ghosh. Healthcare woes :India has got 1 govt hospital bed for 879 people. New Delhi, Sat Aug 24 2013, 12:26 hrs.
  2. Cygnus research. Pre-feasiblity report on Speciality and Multi- Speciality hospitals in India. July 2009.Region India. 205 pages.ID:1071214.
  3. Research Foundation of Hospital and healthcare administration.
  4. Central Government of India. Central Government Health Scheme, Nirman Bhavan. New Delhi.
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