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Sep, 2017

How to go about setting up a medical day care center

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A medical center or a diagnostic center is a place many types of medical services are available under one roof which makes it easy for a customer to get the consultancy services as well as tests done at once without going to a hospital. A medical center is a clinic along with pathology lab, radiology, mammography, audiometry, spirometry, counselling, ultrasounds, regular checkups etc. Some medical centers even offer day care facility for cancer patients so they don’t have to go to hospitals every time for chemotherapy and regular checkups.

Why is a medical center required?

The healthcare industry has been on a rise in recent times. As the population of India is increasing, the doctor to patient ratio is decreasing and medical care is getting expensive day by day. One doctor can only handle a very limited number of patients. There are very few hospitals that offer all kinds of medical services, but they may be few and located at a distance from the city center. That’s why medical centers are required in every area so that it will be easy for patients to get quality services at cheaper rates than the amount bigger hospitals charge without having to travel a lot.

Medical center also offers regular health checkups for corporate companies and their employees from time to time.

Medical centers also offer emergency home visits so that patients can take advantage of it and get medical help when required at home.


Healthcare has become one of India’s largest sectors – both in terms of revenue and employment. Healthcare includes hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, medical services, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services, and increasing expenditure by public as well private players. Main reason for growth being very low doctor to patient ratio in the country and lack of affordable healthcare services.

According to IBEF (India Brand Equity Foundation), during 2008-20, the market is expected to record a CAGR of 16.5 per cent. The total industry size is expected to touch US$ 280 billion by 2020.

Resources required to start a medical center:


Location is an important factor for a medical center to be successful. The entrepreneur must decide the location carefully. It should preferably be in a residential area where there are not many medical centers or hospitals in 5kms radius. It should also be in place where there is not much noise nearby as it will bother the patients.


Qualified team of employees of any organization can make or break the business. They are the most important factor for a business to be successful. A medical center is required to hire a qualified doctors, nurses and technicians. They also need to hire housekeeping staff, receptionist, canteen manager etc.

Medical Equipment:

The entrepreneur will also need to avail various medical equipment and inventory for the medical center. Be sure to buy from a trusted vendor with AMC available each year. Some equipment like X-Ray machine have certain guidelines that needs to be followed for legal practice as it emits radiation. The entrepreneur must be aware of the rules and regulations regarding each medical equipment and follow the guidelines properly.


For a business to get its customers, the marketing plan should be good and effective. It ca be done by word of mouth, social media, distributing flyers, conducting health camps in various schools, religious places, housing societies etc.

Licenses required:

There are various licenses required to start a medical center, it may vary from state to state. Below are the licenses that are required in Maharashtra:

  1. Registration under Shop establishment act (known as Gumatsa in Maharashtra)
  2. GST
  3. Udyog Aadhar MSME online registration
  4. Incorporation Certificate (In case of a private limited company)
  5. Fire Control license.
  6. Permission from Pollution Control Board.
  7. AERB License (for X-Ray machines)
  8. PNDT (for Sonography machines)
  9. Separate electricity connection from Maharashtra State Electricity Board. (as few medical equipment require more power than what is supplied by the State)

The medical center is also required to appoint certified personnel to handle and dispose the bio waste generated by the medical center.

Services offered:

The services that can be offered in a medical center:

  1. Day care center for cancer treatment and other medical problems.
  2. Specialist / Super specialist consultation- OPD with 5 rooms where specialist can consult.
  3. Emergency medical services.
  4. Health checkup.
  5. Corporate health services.
  6. Stress test.
  7. Audiometry / Spirometry.
  8. Integrated approach to health care. (Homeopathy, Ayurvedic approach, Acupuncture)
  9. Medical supplies.
  10. MRI scans.
  11. CT scans.

Day-Care center caters to the patients undergoing surgeries and procedures that do not require overnight stay in the hospital. Typical facilities that are provided at a modern day care center could be:

  • Oncology lab.
  • Expertise of eminent consultants.
  • Competent and dedicated technicians and nurses.
  • No overnight stay.
  • Faster recovery.
  • Minimal or no disruption to regular routine.
  • Therapeutic and Palliative Treatment like chemotherapy.
  • Minimal Invasive surgical / urology / gynae procedures.
  • Medical and domiciliary care like Intravenous fluids / Intravenous antibiotics / blood transfusion / fluid tapping / FNAC / cultural swab.
  • In-house pathology services also available.


  • X-Ray / Sonography / Stress test / ECG & EEG facility
  • All basic and advanced vaccinations for all ages


A team of qualified psychologists to ensure mental well-being of our patients by providing counselling. Counseling is a range of techniques based on dialogue, communication and behavior change and which are designed to improve the mental health of a client or patient, or to improve group relationships (such as in a family). This kind of therapy will help address specific forms of diagnosable mental illness, or everyday problems in relationships or meeting personal goals.


Mammography is the process of using low-energy X-rays (usually around 30 kvp) to examine the human breast, which is used as a diagnostic and screening tool. The goal of mammography is the early detection of breast cancer, typically through detection of characteristic masses and/or macro calcifications.

Audiometry: It is a noninvasive and painless test for hearing which measures the ability of a person to hear sounds, frequencies, or pitches.

Spirometry: It is a common type of pulmonary function test (PFT) that measures how well a person can move air in and out of their lungs.

Entrepreneur’s Qualification / Investment:

In order to start a medical center, an entrepreneur must be having a lot of knowledge about the field of medicine and the medical market in the country. A medical background will be a positive factor for the business.

The entrepreneur will be required to do a lot of research before starting the medical center. It is a time consuming and capital-intensive process. They will be required to make a feasible business plan and strong marketing strategy.

The entrepreneur must be also ready to invest in its business as medical equipment are expensive.

For starting a medical center, one can get finance through various sources like nationalized banks, private banks, and financial institutions. There is not much scope for working capital in restaurants as the working capital cycle is only of 7-10 days and the payment is done on the spot at once by the customers.

A snapshot of the typical formal financing terms and conditions is given below:

Particulars Contribution by Bank Contribution by Entrepreneur
Capital Investment 75% 25%
Working Capital Gap (Raw Materials/Stock+Debtors-Creditors) 75% 25%
Tenure of Loan 5-7 years  
Moratorium 6 months to 1 year  
Can be funded by Scheduled Commercial Banks, Co-Operative Banks
One can also enjoy the Mudra Yojana Scheme & Standup Scheme launched by the Government of India

You can even contact us at, if you require help with your financing.


Our experience in helping a medical center to start business:

We have helped a team of doctors to set up a medical center in the suburbs of Mumbai. It started running its business in August 2017.

After months of planning, researching, and executing, a team of doctors and professionals started their own medical center along with a qualified team of doctors and advisors. It is located in the suburbs of Mumbai.

The services offered by the medical center are:

  • Cancer day care
  • Radiology
  • X-Ray
  • Pathology
  • Mammography
  • Audiometry
  • Spirometry
  • Counselling
  • Stress Test
  • Emergency medical services
  • Corporate health checkups
  • Homeopathy

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