The purpose of this paper is to present a procedure for feasibility analysis of new hospitals. The major steps of the procedure proposed consists of determination of location for a new hospital, analysis of the community served, facilities planning, estimation of capital requirements and financial analysis. Technical details of the necessary analyses are covered by providing relevant information most of which is readily available in Korea. The procedure proposed in this paper can be applied not only for the case of the general hospital but also for the case of the clinic.