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BUSINESS ADVISOR
Stephen Earnhart
10 Steps to a Winning Feasibility Study
How to ensure your facility makes the right business decisions.
Say you're thinking about
Financial feasibility studies
outsourcing leave little to chance, telling your coding and you which opportunities to billing services, pursue and which projects
changing laundry to pass on because they'd services or updating an OR for a new
piece of equipment
— how do you decide? You could listen to the company rep, who'll tell you you'll save 50%. You could go with
your gut feeling on whether you'll save money. Or you could do a feasibility study.
My company has done about 50 such studies per year (for 20-plus years) for various investors, hospitals, surgeons, insurance companies and other related parties. That's a lot of number-crunching. But the
most important number: 45% of financial feasibility studies have resulted in negative recommendations. These don't-do-its have meant
about $92 million a year wasn't spent on projects that eventually would have failed.
This article serves as a first step in deciding whether to pursue an opportunity — that is, is it feasible to move forward? There'll be more
