Financial Model, Health Care, Hospitals, Wellness

10-year Financial Projections, 5-year Financial Projections, Accounting, Business Valuation, Cap Table, Cash Flow Analysis, Cash Flow Projections, Cash-on-Cash Multiple, CFO, DCF Model, Debt Amortization, Debt Schedule, Debt Service Coverage, Discount Rate, Excel, Financial Analysis, Financial Feasibility, Financial Model, Financial Modeling, Financial Projections, Financial Statements, Financing, Forecasting, Income Statement, Interest Accrual, Investment Multiple, Investor Cash Flows, Levered Yield, NPV (Net Present Value), Price Per Room, Private Equity, Pro-Forma, Profitability Analysis, Rental Income, Return on Invested Capital (ROIC), Return on Investment (ROI), Revenue Projections, Scenario Analysis, Sensitivity Analysis, Staffing, Startup Financial Models, Terminal Value, Three Statement Model | Three Financial Statements, Valuation, Venture Capital

Video Tutorial:

Recent Upgrade: On the initial acquisition / development / construction cost schedule the user can now define if each row is subject to debt financing or not and the percentage financed. This still flows into a construction loan with interest-only options and then to a p+i. Also, updated the staffing and other fixed costs schedules so that if operations take longer than 12 months to begin, the starting year cost amount pulls from the initial cost instead of increasing by the yearly growth rate.

My wife worked in an assisted living facility for a bit, and her insight was integral to building the bottom-up assumptions for this financial model. The revenue and expense assumptions are a good fit for any type of assisted living facility, nursing home, or general care home. Build a complete financial simulation for up to 10 years that includes cash flow forecasting, equity requirements over time, and potential returns (IRR/equity multiple/NPV). The user can test out various room rates and staffing costs, and see what is feasible / plan out best or worst-case scenarios, and more.

Initial Development / Acquisition
– Monthly schedule for the initial purchase price of the facility and/or construction and development costs
– Up to 6 schedules with 20 slots each in order to make it easy to break down costs by type
– A percentage of these costs can be defined as financed through the construction loan vs. equity

For Revenue:
– Up to 5 room types
– Each room type has an up-charge depending on the ‘tier of care’
– Up to 6 tiers of care are applied to each room type (so 30 unique room type monthly rent rates)
– Define the count of rooms for each room type / tier of care combination
– Define the base room rate rent and the upcharge rent for each tier of care
– Define the average annual increase in room rates

For Expenses:
– Granular staffing assumptions for an in-house team, therapy team, and their rates
– An area for outsourced therapy teams and their rates, as well as outsourced professionals and their fees
– Plenty of slots for all areas, and they are defined as base salary / rate, count, payroll taxes/benefits percentage
– A separate annual increase in costs for in-house vs. outsourced staffing

Output Reports:
– Three statement model (monthly and annual income statement, balance sheet, and cash flow statement
– Annual Executive Summary
– DCF Analysis and Contribution / Distribution summary by month (IRRs converted from monthly to annual)
– Cash Flow waterfall with joint venture logic (IRR Hurdles)
– Cap Table with monthly contribution/distribution summary and IRR per funding round/investment
– Lots of nice visualizations

The nature of this financial model is sort of a mix between a traditional real estate operator and a general startup business. I put the debt structure in as having an option for an interest-only construction loan (which can accrue interest), terms for p+i, and an option for a refi as well. There is an annual DSCR (debt service coverage ratio) displayed.

Terminal value based on trailing 12-month EBITDA multiple.

This is a comprehensive financial template with a wide range of flexibility for all sorts of use cases. There is an entire section for sanity checks that make sure all the cash flow details and financial statements are balanced with each other.