Evaluating Entry into the Healthcare Delivery Business for an Investee Company of a Private Equity Firm


The client, a private equity firmwas evaluating the entry into the healthcare delivery business for one of its investee company.The investee company had conducted a series of meetings with the doctors based in Kolkatta, who prepared a business model to enter the healthcare delivery business. The client requested UC to conduct the strategic due diligence of the proposed business model by the doctors andalso recommend the financially viable alternatives to enter this industry.

Our Approach

To evaluate the entry into the healthcare delivery business for the client, UC adopted the following approach:

  • Conducted a series of meetings with the doctors inKolkatta to understand the proposed hub/spoke model
  • Developed financials for an ‘as-is’ business model and captured the key assumptions in the financials
  • Conducted an in depth interview with doctors, surgeons, hospital administrators,medical equipment suppliers, etc. to understand the economics of healthcare business. The interviews were conducted in Kolkatta as well as key locations across India
  • Visited districts in West Bengal to understand and analyse the feasibility of setting UP spoke locations (secondary care hospitals)
  • Profiled key hospitals in Kolkatta as well as across India
  • Assessed and analysed key gaps/ issues in the ‘as-is’ business model and on the financial viability of the project
  • Recommended changes in the proposed business model in terms of specially spoke locations and hospitals
  • Conducted another round of discussions with hospitals and industry experts to validate the recommended changes
  • Prepared detailed financials and developed scenarios to assess the financial alternatives.


The client received a detailed insight of the healthcare delivery business in India. It also received a business model with its different scenarios to assess the financial alternatives of the proposal.