June 2011 - Fortis Healthcare
June 2011 - Fortis Healthcare
June 2011 - Fortis Healthcare
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Asset Light Model (200 Beds)<br />
Land 13%<br />
Other<br />
Equip<br />
12%<br />
Medical<br />
Equip<br />
Building &<br />
Utilities<br />
25%<br />
50%<br />
CAPEX<br />
Revenues<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
38%<br />
40%<br />
Cash Breakeven<br />
EBITDAR<br />
Breakeven<br />
Indicative Hospital Operating Model<br />
Book Breakeven<br />
31%<br />
33%<br />
36%<br />
[1.3x – 1.5x of CAPEX]<br />
Besides<br />
elongated book<br />
28%<br />
breakeven<br />
period, <strong>Fortis</strong>’ to<br />
6%<br />
witness higher<br />
17%<br />
23%<br />
returns on its<br />
8%<br />
investment<br />
16% 20%<br />
ROCE = 51%<br />
28%<br />
ROE = 39%<br />
Cost of set up is<br />
` 60-90 lacs/ bed 30%<br />
Occupancy 85%<br />
(100)<br />
Debt: Equity – 1:1<br />
x<br />
18%<br />
38%<br />
(16%)<br />
11%<br />
23%<br />
30%<br />
31%<br />
Year 1 Year 2 Year 3 Year 4 Year 5<br />
28%<br />
29%<br />
Variable Personnel SG&A Cost EBIDTAR* Rent<br />
4x<br />
5%<br />
27%<br />
<strong>Fortis</strong> to invest<br />
only on Medical<br />
and Other<br />
equipment (~37%<br />
of project cost).<br />
21<br />
*EBITDAR is Earnings before Interest, Tax, Depreciation, Amortisation and Rent/lease
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