Strategic Business Development Plan for a New Cardiovascular Clinic (Case Study: PT Hasna Medika, Expansion in Bali Area)

ABSTRACT: PT Hasna Medika is a company managing multiple cardiovascular health facilities such as clinics and hospitals in Indonesia. As of the writing of this research, the company has 5 cardiovascular clinics and 2 cardiovascular hospitals in Java. As a strategic partner of the BPJS Kesehatan or the national health coverage in Indonesia, Hasna Medika seeks to contribute to the improvement of heart health facilities in Tier 2 and Tier 3 cities throughout Indonesia, where they have a huge gap between the number of secondary healthcare facilities providing heart health services with the population needing it. Thus, the company is now looking to expand its business operation to the island province of Bali, where they have received support from the local cardiologists. Several locations have been proposed and Kabupaten Karangasem in the east of Bali has been chosen as the location for the newly planned heart clinic. The weighted score has shown that Karangasem has yielded the highest score of 3.05 after analysing several factors such as the chance to establish cooperation with BPJS, the ratio of secondary health facilities to the number of populations, the demography and availability of cardiologists in the area. Subsequently, the financial projections are supported by data based on the other existing Hasna Medika branches have shown a feasible project. NPV which is greater than 0 and IRR above the WACC are also obtained as indicators of project viability. That said, The US Index of 1.94 has also been calculated, which signifies a desirable and maximised loan financing. Lastly, a funding composition of 80 % loan and 20% equity has yielded maximum profit. The clinic is targeted to start construction next year in April 2023 and will take approximately 9 months until completion