How to Start a Successful Healthcare Business?


“Health is wealth” It is truly a great written quote. A person spends his whole life running for money, but in that way, he loses his most valuable asset, his health. He then spends his hard earned money to pay the hospital bills. A man does not understand the value of something until he loses it or pays a heavy amount for it. Starting a healthcare business can become a good choice through which you can care people, who are suffering from health related challenges. If you are an entrepreneur and have interest in healthcare service, it’s a perfect article for you.

When a person is healthy, he does not even spend his very little time in maintaining that health. And when he becomes ill or something happens to his health, then he understands the value of it, then he starts healthcare it. 

Health is something which is costless and free, anyone can become a healthy man without paying a single penny. But still people don’t not want to invest in their health, 

Instead, they prefer paying in hospitals. 

People have seen a lot of dangerous diseases, and now they started taking their health issues seriously. Healthcare businesses are earning a lot of money in the past few years, and this segment has a lot of opportunities in future.

Although starting a healthcare business requires larger investment, but it is worth of it. 

Let’s see all the figures you have to consider to start a successful healthcare business. 

How much it costs you to start a healthcare business?

It totally depends upon you that you want to start it as a clinic, a huge hospital or a kind of empire of your business. If you want to start your own clinic, then. The cost of your location, heavy and needed equipment, registration, furniture and fixtures, staff and any other expenses, will cost you around Rs. 1 to Rs. 10 lakh.

The amount may vary according to the salary of your staff, the rent you pay for the clinic, the quality of equipment you use, the furniture you use, etc. 

As said, the higher you want to go up, the more steps you have to climb every time. 

The cost will increase automatically if you want to set up your healthcare business at a higher level.  

How much can you earn in healthcare business? 

Earning by offering healthcare services to people is a very common but profitable business idea.  It is obvious that you have to invest a large amount of your money, efforts and energy to start. But when your business sets up perfectly, then it can be a continuous money making machine for you. Hiring a professional doctor cost you a huge amount of money, but the amount he can earn for you is incomparable to his salary. 

And if you want to be the doctor, then you must have to know an important thing. The salary structure you will get offered by hospital owners or government. 

Firstly you can do an internship of 1-2 years to know the basics. You get a salary of about Rs 3,000 to Rs 20,000 during your internship,depending upon the place where you are as an intern. 

After that you can earn upto Rs 15,000 to Rs 80,000 when you finish your post graduation, at the age of around your early 30s. It also depends upon from where you have done your post-graduation. After that, finally at the age of around 35, you are able to earn on an average around Rs 75,000 to Rs 2 lakh per month.

Some doctors even earn about Rs 3 lakh to Rs 5 lakh per month.  

What are the requirements to start a hospital? 

Land and building will be the first and most important requirement you have to fulfill to start a hospital. You have to lease the land or you have to buy a new one. If we talk about a multi speciality 100 bed hospital, then an OPT (ocular photodynamic therapy) area is required. There will be an area for diagnostic, an emergency room is compulsory to have, a separate room which is called operation theatre is mandatory, must have an ICU room.

You have to make wards, such as general ward, semi private ward and private ward.

You have to follow a strategic planning process to plan your healthcare  business, 


the medical care and the medical services you offer. You have to include pathology, pharmacy, cath-lab, a coronary care and some other departments too, to be a step ahead than general hospitals. 

If you want to provide your patients with the facility of dialysis, then you can do that too.  You also have to set up an administrative block, where your HR, IT and the executive of corporates sit together and manage the administrative work and all the paperwork. 

If you are starting a multi speciality hospital then some basic specialities such as, 

Neurology, cardiology, necrology must be present. 

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What are the regulations and licenses you have to take to start a hospital? 

Firstly you have to take license from CMO (Chief Medical Officer). After that you have to take license under a clinical establishment act. This license is not for every state in India, it works in 14 states only. If you are starting pharmacy, then you have to take drug and shop license. If you are housing radiology unit in your hospital then you have to take license from AERB. 

After knowing all this you must be curious to know how to start it, then don’t worry here is the step by step process to guide you that.

How to start your own healthcare business? 

1) Strategy planning

You have to make a business strategy of your healthcare business, a plan. 

Planning your business with strategy leads it towards strategic development. 

You have to plan how will you care health, how you render health services, care services.

If you have severe patients then how will you healthcare it, how will your health it. 

You have to think over some questions such as

  • Where you build or start your hospital?
  • How you hire professionally expert doctors? 
  • How to minimise the cost involved in starting healthcare business? 
  • How to increase the profits of your hospital? 
  • How to increase the efficiency in your hospital?
  • How to work effectively in lower budget? 

2) Taking all the necessary permits and licenses 

Following the rules and regulations made by our government was compulsory for every person who wants to do any job or want to start any business. The permissions and licenses secures you from the problems you face later in the time.  The above mentioned licenses are mandatory to acquire if you want to start your hospital. 

3) Acquire land

After planning, it is the time to execute your plan. You have to take the land on lease or you have to buy a new one. This process may take some more time than usual in paperwork. You can acquire it at any place but having a hospital at urban residential area helps in rapid growth of the hospital. 

4) Registration

If you want to start your hospital as a private limited company, then firstly you have to register it under the ROC (Registrar Of Company) of your area. You have to find enough number of directors for your private limited company. You have to give their complete information while registration.

And if you want to start it as a one person company, a partnership, a limited liability partnership, then you can do that too, you just have to analyse the pros and cons of any form you choose.  

You also have to make the Article Of Association (AOA) and Memorandum Of Association (MOA) of your hospital, which states that all the activities are carried out under a corporate entity. 

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5) Tie up

As your business is in health industry and you have patients too.Then tying up with care health insurance companies will serve you additional income. By doing so, you only have to suggest needy patients to buy some kind of insurance policy from a particular insurance company. 

After that, you will get some percentage of your commission for selling an insurance policy. 

6) Waste product treatment

As you will cure people and help them to recover from their any kind of disease or injury, then it also requires a lot of materials such as, bandages, cotton, various drugs,

different type of chemicals, plaster of Paris and many other stuff. Now, not every item is fully efficient, waste will also produce from your hospital. 

And you cannot throw this kind of waste anywhere in the environment. You have to find out various different ways to reduce the generation of biomedical waste from your hospital. As well as you have to find out some solutions to treat the existing biomedical waste. 

You have to install heavy incinerators to burn down the medical waste.You have to try different ways to dispose the ways such as Autoclaving, microwaving, using chemicals, etc. 

7) Build a website

You may think that what is the need of website in health industry, but it plays a very crucial role in any aspect in any business.You don’t have to think too much about advertising and marketing of your hospital, hiring a web developer and a good content writer can do that for you on your website. 

You can provide free consultancy services on your website and then later you can attract health conscious people from it. Rendering free consultancy services for some-time helps you in setting up a good goodwill in the market. Money comes and goes but goodwill is one of the greatest asset of any business. You can show the achievements of your hospital, the qualifications of your doctors, their challenging but successful projects on your website. 

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