Consulting Services Agency for Medical Organizations

Abstract

The growing population worldwide causes an increase in demand for better-managed healthcare institutions. However, the health management system in Azerbaijan lacks professionals who can cope with the new trends in health management. Hospitals worldwide get assistance from healthcare consulting firms to improve their performance. However, there is no consulting firm in the health sector that can fill the gap in Azerbaijan. This capstone project will evaluate the feasibility of opening and operating a consulting firm for medical institutions and includes the assessment of the current market from many aspects for introducing a new type of consulting firm named “Consulting Services Agency for Medical Organizations” in Baku. The first part of the paper includes the types of services a consulting firm can provide, based on the current literature regarding the importance of and demand for these services. Secondly, a market analysis of the Azerbaijan economy and the business environment was carried out. Lastly, surveying 43 private and public hospitals operating in Baku, the business's demand and possible revenue were studied. Also, this data was analyzed to form the customer profiles, projected income, and growth strategy. The results show that there is a need for specific services to be provided by consulting firms. After evaluating the initial costs for set-up and variable costs of the business, it is concluded that the consulting firm can be opened and successfully operate in Azerbaijan. Financial projections confirm possible positive profits in the first year of operation, but substantial profits will be earned in the third year.