Starting a private health clinic in Malta and its financial implications

Abstract

Purpose: The health sector is a rapidly growing sector and is expected to continue growing in the future. The purpose of this study is to determine whether investing in a private health clinic in Malta is feasible and financially viable. Design: The study provides an in depth description and analysis of the process involved in refurbishing the already existing building into a health clinic, including costs and timing for completion. The operational income, including all revenue and other income streams followed by expected expenses incurred by the same health clinic are thoroughly analysed. The study then delves into the findings resulting from several investment techniques. Next, the study presents a sensitivity analysis and the results from changes in the scenario which address the study’s objectives and research questions. Findings: Several investment appraisal techniques were used to assess whether starting a private health clinic in Malta is feasible or not. The financial assessment concludes that this project is feasible. Conclusion: In the beginning, the project would operate at minimal profits but over time as demand increases the clinic would continue operating at healthy profit margins. This study shows that investing in such a project would yield a positive result given the time length used and would add value to investors’ wealth. Implications: This study shows that the investment discussed in the study is attainable.