“Nursing Home” Project

The project was developed in 2015 to be realized in Moscow and Moscow region. It is focused on the target audience of the geographic area. The total floor area equals 8 000 m2 with estimated amount of beds for 24-hour boarding house of 120, for daytime boarding house of 30, and for attendants and relatives of 30. “Project Med” LLC provided the following services to the Customer -

construction of the business plan, development of the medical concept, financial feasibility study of a project. The investment memorandum for finding and attracting partners or financing was also prepared.

The main idea of the project was to create a nursing home with conception based on 6 main approaches:

1. Full board. 24-hour stay for seniors in the nursing home.
2. Regional Center. Nursing home provides a wide range of services for population over the age of 55, living in Moscow or Moscow Region and eventually covers the whole Central Federal District. The center cooperates with healthcare facilities in Moscow and Moscow Region and with western clinics, if needed.
3. “Smart home” technology. Nursing home will possess “smart home” technology, which will allow disabled patients to use all the modern facilities.
4. Medical care. Medical care 24 hours a day, 7 days a week is the most important part of care giving for elderly people; it allows to provide them with relevant life quality and to support good level of functioning.
5. Medical assistance. Opportunity to arrange medical treatment in Russia`s best clinics along with the foreign ones, including emergency hospitalization, will allow patients to feel secure.
6. Integrated environment and communication abilities. Management goal of the Nursing home is to create integrated environment for elderly people, to provide communication with each other and with the external environment, regardless of physical and age restrictions (through skype sessions, online courses and internet access all over the place, etc.)

Development of integrated hobby classes for people with different social and occupational status – “scientists”, “artists”, “sportsmen” , etc.

The total amount of funding for the project is estimated as 760 million rubles, including capital expenditures (wholly owned building, equipment supply, repair work, “smart home” conception) and operating expenditures (working capital formation and losses in first period of the project), 640 and 80 million rubles respectively.

Meanwhile the net present value of the medical center project, including the terminal value, is estimated as 585 million rubles with internal rate of return of 28% and payback period of the whole project of 6,5 years. Project income after achieving operational effectiveness (in around 4 years) is estimated as 420 million rubles with EBITDA Margin of 40%.