The Mandate
A physician group operating two urgent care clinics adding a third location engaged Feasibility Study Consultant to prepare a third-party feasibility study supporting a SBA 504 financing request for a project located in Madison County, Alabama. Total project capitalization fell within the $3M-$5M band. The capital provider, a SBA Certified Development Company, required documentation consistent with current program review standards. The analytical question put to the team: Did Huntsville-area population growth and urgent-care utilization support a third clinic at the proposed site.
Engagement Scope
- Primary market area defined as a 5-mile drive-time
- Comparable supply set of 12 properties
- Demand model framework: service-area urgent-care utilization and capacity-capture build
- Financial projection horizon: 10 years
- Site inspection completed; operator interviews where applicable
- Primary data collection through field reconnaissance and third-party market data
Methodology Applied
Primary Market Area
The PMA was defined as a 5-mile drive-time from the subject site, calibrated to the demand catchment behavior typical of healthcare assets in Alabama. The boundary captured the population, employment, and competitive supply base relevant to the subject's operating thesis.
Supply and Demand Reconciliation
The comparable supply set comprised 12 properties operating within the PMA or in directly substitutable submarkets. Demand was modeled using a service-area urgent-care utilization and capacity-capture build approach over a 10 years horizon. The reconciliation tested whether incremental supply, including the subject, could be absorbed within the projection window without compromising stabilized occupancy assumptions.
Capture Rate Calibration
The subject's capture rate was calibrated against the absorption capacity of the PMA. The analysis concluded that PMA absorption capacity exceeded subject build-out by a factor of 2.2 across the projection window, with a stabilized capture rate of 4.6%.
Exhibit 1: Comparable Supply Set, Alabama PMA
[Table or chart rendered in delivered report.]
Exhibit 2: Demand Projection Summary, 10 years Horizon
[Table or chart rendered in delivered report.]
Exhibit 3: Subject Capture Rate vs. PMA Absorption Capacity
[Table or chart rendered in delivered report.]
Analytical Conclusions
- Madison County population grew at a 3.4% trailing CAGR with documented urgent-care capacity constraints.
- Comparable urgent care clinics cleared 38 to 52 daily patient encounters at stabilization.
- Sponsor's two existing clinics operated at 92% appointment-block utilization.
- Aggregate portfolio DSCR of 1.44x cleared the 504 program review threshold.
Deliverable
The delivered report ran 118 pages with 27 exhibits distributed across nine analytical sections, plus appendices documenting comparable supply data, demographic inputs, and financial projection assumptions. The document was prepared to the documentation standards of the SBA Certified Development Company. The corresponding SBA 504 review framework guided exhibit selection and supporting documentation.