writing a business plan for medical practice

Medical Practice Business Plan Template

Written by Dave Lavinsky

Medical Practice Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their medical practices. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a medical practice business plan template step-by-step so you can create your plan today.

Download our Ultimate Medical Practice Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your medical office as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a medical practice, or grow your existing medical practice, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your medical practice in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Medical Practices

With regards to funding, the main sources of funding for a medical office are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for medical practices.

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How to write a business plan for a medical business.

If you want to start a medical private practice or expand your current one, you need a business plan. Below we detail what should be included in each section of your business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of medical office you are operating and the status. For example, are you a startup, do you have a practice that you would like to grow, or are you operating practices in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the industry. Discuss the type of practice you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of medical office you are operating.

For example, you might operate one of the following types of medical practices:

• Group medical practice : this type of medical practice consists of two or more physicians providing medical care in the same facility. The physicians typically have different specialties, which allow them to collaborate and consult with each other.
• Private medical practice: this type of medical practice involves only one physician working along. A private practice usually serves a limited number of patients and operates with a small staff.
• Hospital-based medical practice: this type of medical practice is an ancillary medical office that is owned by a nearby hospital. The hospital will manage the practice and employ the doctors and nurses to work in their facilities and ancillary clinics.

In addition to explaining the type of medical practice you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What is your business model?
• What is your mission statement?
• What milestones have you achieved to date? Milestones could include the number of patients served, number of positive reviews, reaching X amount of patients served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your business structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the medical industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the medical industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the medical industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your medical office? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, seniors, and anyone needing a type of medical service.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of medical office you operate. Clearly, families would respond to different marketing promotions than seniors, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other medical offices. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes hospitals, clinics, teledocs, and online health forums.

With regards to direct competition, you want to describe the other practices with which you compete. Most likely, your direct competitors will be other practices located very close to your business location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of medical services do they provide?
• What areas do they serve?
• What types of patients do they serve?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide services that your competitors don’t offer?
• Will you provide faster patient waiting time?
• Will you provide better patient service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a medical office, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of practice that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, in addition to medical services, will you provide nutrition and diet guidelines, insurance claim processing, family and loved one communication, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your practice. Document your location and mention how the location will impact your success. For example, is your medical office located near a school, a busy neighborhood, an office complex, or an urban setting, etc.? Discuss how your location might be the ideal location for your patients.

Promotions : The final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Commercials
• Social media marketing
• Local radio advertising
• Word-of-mouth

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. It should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your practice, including patient and family communication and scheduling, managing appointments, inventory of medical supplies, accounting, billing, payroll, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth patient, or when you hope to reach $X in revenue. It could also be when you expect to expand your medical practice to a new location.  

Management Team

To demonstrate your practice’s ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your management team members have direct experience in managing medical practices. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a medical practice or a physician or nurse in the local medical field.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new patient at a time or multiple new patients offering a variety of medical services ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your medical practice, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

: Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a medical practice:

• Cost of furniture and build-out
• Cost of medical supplies and equipment
• Payroll or salaries paid to staff
• Business and medical malpractice insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of medical services your practice will offer, types of patients you will be targeting, and the areas your practice will serve.  

Putting together a business plan for your medical practice is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful medical practice.  

Medical Practice Business Plan FAQs

What is the easiest way to complete my medical practice business plan.

Growthink's Ultimate Medical Practice Business Plan Template allows you to quickly and easily complete your Medical Practice Business Plan.

Where Can I Download a Medical Clinic Business Plan PDF?

You can download our medical clinic business plan PDF here. This is a business plan template you can use in PDF format.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of medical practice business you are operating and the status; for example, are you a startup, do you have a medical practice business that you would like to grow, or are you operating a chain of medical practice businesses?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan advisors can give you a winning business plan.

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How to Write a Business Plan for Medical Practice

Last updated: 04 / 08 / 22

You learn a lot in medical school, but business planning isn’t a focus. However, many health care practitioners go on to run their own businesses where developing a business plan becomes essential.

If you’re planning to start your own practice, or you’re taking over someone else’s medical business and want to run it effectively, it’s a good idea to spend some time working out the details and putting together a formalised plan first. You may also want to get professional advice on your business planning, and any other aspects of running your medical practice you’re not sure about. In the meantime here are a few business planning basics to get you started.

Why have a business plan for your medical practice?

While it can be tempting to just dive right in and start setting up your new medical practice, a business plan can help you get prepared and make sure you stay on the right track as your practice grows.

A solid business plan is the foundation of any successful medical practice. With a business plan you can identify potential issues upfront and devise a strategy to avoid them. You can also set realistic goals for your business to help you keep moving in the right direction. If you’re looking for funding at any stage, you’ll also need to have a business plan. Most medical practices will struggle to get a business loan without a solid business plan in place.

What to include in your medical practice business plan

Your business plan should include the following:

• A summary of your business, including the medical services you provide, your location, and the history of the business.
• Financial information including projected cash flow, outgoings like medical equipment, marketing and practice management software costs and projected turnover.
• Operational factors like trading hours, fees, staffing and potential suppliers
• Risk identification and management – details of how you will manage the biggest potential risks, e.g. malpractice insurance, other insurances, data security and your credentialing process.
• Marketing – how you will get new patients and retain the existing ones.

As well as all the information about your medical practice and strategy, it’s also important to set goals and targets for your new venture. These should be in your business plan so you can keep track of them and make sure you’re working towards them consistently.

Making sure you have a solid business plan

So how do you make sure your medical practice business plan is solid? It’s very easy to have your plan in your head, but if you don’t get it out, it’s going to be hard for anyone else, especially the other providers and support staff in your practice to implement it. So the first step is to put it down on paper, or in a word document.

Once you’ve got a detailed plan on paper, don’t just put it in a drawer and leave it. Business planning should be a regular task for you and your business partners. Once you have your business plan in place, make sure you review it at least once a year, preferably more and update it as your business priorities change.

Writing a business plan for your medical practice might seem like a time consuming task, but it’s well worth the effort. With a strong business plan, you can grow your practice, achieve your goals and avoid many of the pitfalls that can trip up practice owners who haven’t taken the time to plan ahead.

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Medical Practice Business Plan Template

Written by Dave Lavinsky

Medical Practice Business Plan

You’ve come to the right place to create your Medical Practice business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Medical Practices.

Medical Practice Business Plan Example

Below is a template to help you create each section of your Medical Practice business plan.

Executive Summary

Business overview.

Fresno Medical is a new medical practice located in Fresno, California. Our goal is to provide affordable healthcare to individuals and families living in the area and surrounding communities. We offer general and preventative healthcare for all ages, including checkups, screening tests, and immunizations.

Our medical practitioners and supporting staff are well-trained and have a passion for improving the health and well-being of our clients. We serve our patients not just with our knowledge and skills but also with our hearts. We aim to help our patients experience the best healthcare possible while maintaining relationships that last a lifetime.

Service Offering

Fresno Medical practice will focus on providing primary care services to every family member, from infants to adults. Some of the general and primary care services we provide include:

• Immunizations: flu shots, COVID boosters, measles, mumps, polio, etc.
• Annual checkups
• Pediatrics: checkups, developmental screening, immunizations, etc.
• Health screenings: blood pressure, cholesterol, depression, diabetes, etc.
• General health counseling

Fresno Medical will work with local and national insurance companies to ensure that every patient can afford our services. If the patient’s insurance does not cover all of their medical costs, Fresno Medical will provide payment plan options so that they are not overwhelmed by their medical bills.

Customer Focus

Fresno Medical will primarily serve the community of Fresno, California. The community consists primarily of middle to lower income residents who need access to affordable medical care. Many of these residents are hesitant to go to hospitals or other medical facilities due to their costs. We will offer lower prices, flexible payment plans, and flexibility when working with insurance companies to accommodate this demographic.

Management Team

Fresno Medical is owned and operated by Jessica Wells, who has been working as a doctor at local hospitals for 15 years. Throughout her career, she has worked for hundreds of patients and families with all their general and preventative care needs. Though she has never run a medical practice herself, she has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Fresno Medical will also employ nurses, expert medical staff, and administrative assistants that are passionate about helping the local community.

Success Factors

Fresno Medical will be able to achieve success by offering the following competitive advantages:

• Location: Fresno Medical’s location is in a high-traffic area that is easily accessible to thousands of residents. It’s visible from the street with many people walking and driving to and from work on a daily basis.
• Patient-oriented service: Fresno Medical will have a staff that prioritizes the needs of the patients and educates them on the proper way to take care of themselves.
• Management: Jessica Wells has a genuine passion to help the community. Because of her previous experience and reputation in the medical community, she is fully equipped to open this practice.
• Relationships: Jessica Wells has developed strong connections with her patients and fellow staff throughout her career. Many patients have expressed interest in following Jessica to her new practice, and some former colleagues have shown interest in working for the clinic. Jessica also has relationships with medical equipment suppliers and insurance companies.

Financial Highlights

Fresno Medical is currently seeking $400,000 to launch. The capital will be used for funding capital expenditures, staffing, marketing expenses, and working capital.

The breakdown of the funding may be seen below:

• Clinic design/build: $100,000
• Medical supplies and equipment: $130,000
• Three months of overhead expenses (payroll, rent, utilities): $100,000
• Marketing and advertising: $50,000
• Working capital: $20,000

The following graph below outlines the pro forma financial projections for Fresno Medical.

Company Overview

Who is fresno medical.

Fresno Medical is a medical practice located in Fresno, California. We offer general and preventative health care for all ages. We offer immunizations, pediatrics, health screenings, and more. Our medical practitioners and supporting staff are well-trained to improve the health and well-being of our patients.

Fresno Medical is run and owned by Jessica Wells, who has been a doctor in the local medical community for 15 years. She has helped hundreds of patients and families with their general healthcare needs throughout her career. She also has gained knowledge and experience in the operations and marketing aspects of the medical business, which will prove indispensable for this private practice.

Fresno Medical’s History

After years of working with patients in hospital settings, Jessica Wells decided to establish a private practice. She wanted to develop a closer relationship with her patients, which was difficult to achieve while working in a large hospital. With this goal in mind, Jessica incorporated Fresno Medical as an S-corporation on March 15th, 2023.

Since its incorporation, the medical practice has achieved the following milestones:

• Found a clinic space and signed a Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Hired a contractor for the office build-out
• Determined equipment and fixture requirements
• Began recruiting key employees with previous healthcare experience
• Drafted marketing campaigns to promote the practice

Fresno Medical’s Services

Fresno Medical will focus on providing primary care services to every family member, from infants to adults. The costs will depend upon the materials used, the physician’s time, and the amount designated for each procedure. Some of the general and primary care services we provide include:

• Immunizations: flu shots, measles, mumps, polio, etc.

Fresno Medical will maintain privacy according to HIPAA regulations. All patients will be welcome, including those without insurance. However, we expect most patients to utilize their insurance plans to pay their costs. The medical practice will work with local and national insurance companies to ensure that every family can afford our services. After billing insurance, Fresno Medical will provide flexible payment plan options so that no patient is overwhelmed by their medical bills.

Industry Analysis

Healthcare is a human right that everyone deserves access to. The medical industry will always be a necessity as it is the industry keeping society alive and well. Therefore, the medical industry is expected to continue to grow as the population grows. This is especially true for private practices, as there is a rising demand for small, patient-focused clinics that provide top-tier medical services.

Furthermore, the demand for private physicians has been on the rise. Hospitals have been low on rooms and beds the past few years, and nurses and doctors have been overworked. This has led to an increased demand for more medical professionals and private practices that can help lessen the load of larger hospitals.

Moreover, the pandemic instilled the importance of quality healthcare and practices in the general population. We expect that people all around the world will now put in more effort towards taking care of their health and getting the care and screenings they need.

According to Facts & Factors, the global private medical market is expected to experience a compound annual growth rate (CAGR) of 12.5% over the next five years. This is enormous growth that is rarely seen in other industries. Furthermore, there is a growing demand for more primary care physicians as the general population aims to prevent developing chronic and preventable diseases. According to Grand View Research, the primary care market will experience a CAGR of 3.2% over the next 10 years, which is also moderate growth.

With such a demand for more medical practices and a greater emphasis on general health, we believe that Fresno Medical is starting at the right time and will see great success.

Customer Analysis

Demographic profile of target market.

Fresno Medical will serve the community residents of Fresno, California, and its surrounding areas. The community of Fresno, California has thousands of middle-class individuals and families seeking an affordable medical practice to take care of all their health concerns.

The demographics of Fresno, California are as follows:

Customer Segmentation

The company will primarily target the following customer segments:

• Middle-class individuals
• Hospital patients

Competitive Analysis

Direct and indirect competitors.

Fresno Medical will face competition from other companies with similar business profiles. A description of each competitor company is below.

City Metro Hospital

Founded in 1968, City Metro Hospital is one of the most popular hospitals in the area. Thousands of residents get all their primary care and emergency care needs taken care of with City Metro. It provides almost every service you can think of and enlists the help of thousands of doctors, nurses, and other expert medical professionals.

Though City Metro Hospital will continue to thrive, it does not foster an environment designed for long-lasting relationships. Since the pandemic, the hospital has been overwhelmed with patients and a staff shortage. This has led to doctors seeing thousands of patients and a tremendous increase in wait times. Fresno Medical will offer a more intimate setting where patients and doctors can create a long-lasting relationship that spans decades.

Quality Doctors

Quality Doctors is a private medical practice that provides highly personalized medical care. Quality Doctors includes a team of dedicated healthcare professionals with dual residency in emergency medicine and internal medicine. The practice offers same-day/next-day appointments, telemedicine, office visits, and home visits. Services offered by Quality Doctors include primary care, urgent care, and virtual visits.

Like City Metro Hospital, Quality Doctors is a large care system that cares for thousands of patients. This means that patients also do not get a close relationship with their doctor, which many crave. Furthermore, Quality Doctors has put much of its money and services toward emergency care in recent years and reduced its primary care services. Patients who want a lasting relationship with a primary care doctor will feel more welcome with Fresno Medical.

Johnson Community Care

Established in 1949, Johnson Community Care is a private medical practice with multiple locations. Patients all around the state can receive care at any location near them. Each site provides primary care services, emergency care, pharmacy services, and lab testing. Instead of heading to multiple locations to get all of these services, patients can get all their healthcare needs taken care of in one building.

Though Johnson is a highly successful medical practice, its major downfall is that it only provides services to those with its unique insurance plan. Therefore, anyone who has insurance through another company or plans provided by their employer cannot receive care at Johnson without paying out-of-network prices. Fresno Medical will partner with many insurance companies and provide flexible payment plans to help as many patients as possible.

Competitive Advantage

Fresno Medical enjoys several advantages over its competitors. These advantages include:

• Relationships: Jessica Wells has developed strong connections with her patients and fellow staff during her career. Many patients have expressed interest in following Jessica to her new practice, and some former colleagues have shown interest in working for the clinic. Jessica also has relationships with medical equipment suppliers and insurance companies.

Marketing Plan

Brand & value proposition.

The Fresno Medical brand will focus on the company’s unique value proposition:

• Client-focused healthcare services, where the company’s interests are aligned with the customer
• Service built on long-term relationships
• Big-hospital expertise in a small-clinic environment
• Moderate pricing for all preventative and general health services

Promotions Strategy

The promotions strategy for Fresno Medical is as follows:

Fresno Medical understands that the best promotion comes from satisfied patients. The clinic will encourage its patients to refer their friends and family by providing healthcare benefits for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

We will maintain a social media presence to attract local clients looking for a new doctor or medical practice. We will post information about our team, services, and general health tips for better wellness. To create a genuine connection with our patients, we will also use social media to engage with them and answer any questions they may have about our practice.

Fresno Medical will have an informative and attractive website featuring all its services and referrals from other satisfied patients. The website will be highly informative and be designed in a way that is friendly and eye-catching.  

Fresno Medical will invest in a high SEO presence so that the clinic is listed at the top of the Google or Bing search engine when a potential patient is researching private medical practices in Fresno, California.

Fresno Medical’s pricing will be significantly lower than big hospitals. We will partner with as many insurance companies as possible to ensure that our patients’ medical care is covered. For services not fully covered by insurance, we offer a flexible payment program so patients are not overwhelmed by their medical bills.

Operations Plan

The following will be the operations plan for Fresno Medical.

Operation Functions:

• Jessica Wells will operate as the CEO of Fresno Medical. She will run all the general operations and executive functions of the company. She will also provide basic medical care for patients until she can hire a full medical staff.
• Jessica is joined by Mindy Keller, who will serve as the Marketing Manager and run all of the marketing and advertising efforts.
• Jessica is also joined by Rhonda Smith, who will work as the Receptionist of the clinic and the Administrative Assistant for the company.
• Jessica is also joined by Cindy Nguyen who will be the company’s Head Nurse. She will manage and train incoming nurses and provide medical treatment to patients.
• Jessica will continue to hire a team of medical staff to treat the medical practice’s growing patient list. The team will consist of doctors, nurses, physicians, and other necessary medical staff.

Milestones:

Fresno Medical expects to achieve the following milestones in the following six months:

• 4/202X Finalize lease agreement
• 5/202X Design and build out Fresno Medical
• 6/202X Hire and train initial staff
• 7/202X Kickoff of promotional campaign
• 8/202X Launch Fresno Medical
• 9/202X Reach break-even

Fresno Medical is owned and operated by Jessica Wells, who has been working as a doctor at local hospitals for 15 years. Throughout her career, she has worked with hundreds of patients and families and taken care of all their general and preventative care needs. Though she has never run a private medical practice herself, she has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

The medical practice will also employ nurses, expert medical staff, and administrative assistants that are passionate about helping the local community.

Financial Plan

Key revenue & costs.

The revenues for the medical practice will come from the fees it will charge the patients and their insurance for the health care services it provides.

The cost drivers for the company will include the payroll of the staff, lease on the office building, medical supplies and equipment, and marketing costs.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Year 4: 100
• Year 5: 125
• Annual lease costs: $40,000

Financial Projections

Income statement, balance sheet, cash flow statement, medical practice business plan faqs, what is a medical practice business plan.

A medical practice business plan is a plan to start and/or grow your medical practice business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Medical Practice business plan using our Medical Practice Business Plan Template here .

What are the Main Types of Medical Practices?

There are a number of different kinds of medical practices , some examples include: Group medical practice, Private medical practice, and Hospital-based medical practice.

How Do You Get Funding for Your Medical Practice Business Plan?

Medical Practice businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

A well-crafted medical practice business plan is key to securing any type of funding.

What are the Steps To Start a Medical Practice Business?

Starting a medical practice business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Medical Practice Business Plan - The first step in starting a business is to create a detailed medical practice business plan that outlines all aspects of the venture. This should include market research on the medical industry and potential target market size, information the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your medical practice business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your medical practice business is in compliance with local laws.

3. Register Your Medical Practice Business - Once you have chosen a legal structure, the next step is to register your medical practice business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your medical practice business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Medical Practice Equipment & Supplies - In order to start your medical practice business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your medical practice business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful medical practice business:

• How to Open a Medical Practice

How to create a business plan for a medical practice

Starting a medical practice is no small feat. You may consider it lucrative and the right step for your career but have you considered all that it takes to start and run a medical practice? This is what a business plan is for. 

A business plan is a strategic planning document that lays out in detail the objectives and goals of a company and also how the company plans to achieve its goals. A business plan can be considered a road map for any business that details a business’ profile, products and services, marketing, financials, operations and organizational structure.

Developing a business plan requires strategic planning to identify the mission and vision, target audience, operations and financials of your medical practice. This is a crucial step when starting your medical practice. In this article we will share about how to write a business plan for a new medical practice.

Why you need a business plan for a medical practice

Just like any other business, a business plan is very important before starting a medical practice. In a recent Sermo poll, 52% of respondents indicated it is important to get a business plan for your medical practice and we will share reasons why. 

• A business plan helps to define the core essence of your medical practice. With a medical practice business plan, you can properly define your practice’s vision, mission, goals and target audience.
• With a medical practice business plan, one can properly estimate the financial cost of starting up as well make financial projections for a time period. 
• A medical business plan can help define marketing for your practice and set SMART marketing goals.
• A medical business plan helps to strategically identify and define all the stakeholders relevant to your practice and their role in the success of your practice. 
• A SWOT analysis is a core part of any business plan. This will help the medical practice understand its strengths, its competitors, opportunities and the environment where it plans to operate in. 

Types of business plans for a medical practice

There are different types of business plans for different business types. For a medical practice, these two types of business plans are most common: traditional business plan and lean business plan. 

A traditional business plan is a more robust type of business plan that covers a wide range of topics regarding business planning. A traditional business plan usually covers areas such as products and services, financing, marketing and organizational structure. It is often used as a guide for business operations and an effective tool for communicating the medical office business plan to investors and business partners. 

A lean business plan on the other hand is a more succinct version of a traditional business plan. A lean plan is faster and easier to write. It focuses mainly on strategy, financials, important dates, milestones and activities. Think of a lean business plan as being more straight to the point. Some people use this business plan when trying to grow their business and achieve certain goals at specific timelines. 

How to create a medical practice business plan

There are different medical practice business plan templates but most cover four major key areas which are company profile, sales and marketing, operations and financials. 

Let’s take a look at what an ideal business plan template for medical practice should look like. 

1. Executive Summary 

The executive summary is usually the first section in a business plan. It should briefly describe the medical practice, products and service offerings, target audience, the organizational structure and financials. 

Executive summaries should be kept short and are usually no longer than a page. However, it should have as much important information as possible. The executive summary is usually the page of interest when your business plan is being reviewed by investors and business partners. 

2. Company description 

This section of the business plan allows you to define your medical practice in full detail. It should include the practice’s vision and mission statements, its goals and objectives and products and offerings. 

This section should detail the type of medical services your medical practice will be offering. If there are other medical experts who will be supporting your offerings, this is a good section to define that. This section should also describe your target patients. 

 By creating an ideal patient profile, medical practices can better describe their target patients. The ideal patient profile should describe patients best suited for the types of services you offer and who can afford to pay for your services. 

3. Market Analysis

Your medical practice is most likely not the only medical practice in your location and there may be alternative options where your patients may go for treatment or medical services. The market analysis section in a medical business plan should describe the current market for your services and present competitors. 

The market analysis section may require conducting a market research to understand the patient demographic and your competitors. 

4. Marketing and Sales

The importance of marketing in a business cannot be overemphasized. In a Sermo poll, 64% of physicians indicated attracting and retaining patients as the biggest factor in the success of a new practice. The marketing and sales section of a medical business plan should describe how the medical practice intends to attract and retain its target patients. It should describe the marketing plan, marketing activities and the marketing goals of the medical practice. 

When describing this section, keep in mind the 7Ps of marketing. This includes the product, people, price, promotion, place, packaging and positioning. Each of these must be considered when developing a successful marketing strategy. 

The marketing and sales section is also a good place to include a SWOT analysis. A SWOT analysis is a critical analysis of the Strength, Weakness, Opportunities and Threats of the medical practice. 

5. Operations

The Operations section is a very important part of the business plan. It describes how the medical practice will work. Things to cover include, working hours, staff strength, location, technology, outsourcing and logistics. 

The operations of a medical practice is very sensitive and it would help if a lot of things are defined before starting the business. For instance, the location and layout of your medical practice should be well captured and defined in the medical business plan. You should also consider outsourcing. Are you handling medical billing in-house or will it be outsourced? Will you be handling recruitment or it will be outsourced to a staffing agency? 

Also supplies and logistics of medical materials should be considered and defined. If your medical practice will have a pharmacy, how will the drugs be sourced? These are some of the important questions that should be answered in this section. 

6. Milestones and Timelines

This section involves setting and defining achievable milestones and corresponding deadlines. This way it is clear what needs to be done and by when it needs to be completed. 

For setting up a medical practice, milestones can include major events like renting a place, purchase of medical equipment, recruitment of staff and set up of medical devices. 

7. Organizational structure

A business plan is not complete without defining the organizational structure and/or team that will carry out business operations. In this section, define the management team and their required qualifications. It is also important to define roles of the management team and projected salaries. 

At this point, one can also add in the hiring plan for other members of the organization. Define the other roles, how they will be recruited, skill set of interest and how much they will earn.

8. Financial plan

A solid financial plan must be included in every business plan. For a start up medical practice, the financial plan should include start up costs. The financial plan should also include a cash flow forecast that shows projections of cash inflow and outflow over a time period. This is usually broken down on a monthly basis. 

A good financial plan should tell a story of how the business will grow income-wise. If your medical practice has already been established, other financial statements like income statements, balance sheets and cash flow statements will help give a better picture of the financial stability of your medical practice. 

9. Appendix

This is a section reserved for miscellaneous topics. Other supporting documents such as pictures, charts, reference letters that may be of interest can be added in this section.

Building a successful medical practice starts with writing a good medical business plan. Start by strategically thinking about your medical practice. Using the guide above of a private practice business plan template, you can think through all the important aspects of starting your medical practice and write an effective business plan that will help the process. 

Don’t do it alone, get help from other physicians

For more useful tips that will help you start up your medical practice, sign up on Sermo today. Engaging with more than 1 million physicians across 90 specialties and 150 countries, Sermo offers a unique physician-first online community that allows clinicians to communicate about issues that are important to them and their patients.

More physician resources

A complete guide to paid physician surveys

What is Continuing Medical Education (CME)?

Maximizing your survey earnings: Tips for physician survey participants

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How to Write a Business Plan for a Private Clinic: Complete Guide

• January 3, 2023

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your private clinic, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your private clinic.

Whether you want to open a primary care or a specialized clinic (e.g. plastic surgery, chiropractor or any other type of medical clinic), use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a private clinic?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write an executive summary for a private clinic?

Provide a precise and high-level summary of every section that you have included in the business plan of your construction business. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

• Business overview : describe your medical clinic, where it is located, and what type of inpatient or outpatient care you offer. Also, mention the services and treatments you specialize in and the average price per treatment
• Market analysis : a comprehensive market analysis includes details about your market. Provide information about your target audience (children vs. elderly, health conditions, outpatient care trends and preferences, etc.), as well as the market size , growth and competitors. 
• People : introduce your construction business’ management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, mention how the company will be structured (management roles and reporting lines)
• Financial plan: how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart with your key financials (revenue, gross profit, net profit )
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Medical Clinic Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Medical Clinic Business Overview

In this section, you should explain in simple terms the type of clinic you wish to open. Here are a few questions you may want to answer:

• Where exactly is your medical clinic located? And why did you choose that location?
• What type of medical clinic are you opening (franchise vs. independent)?
• Are you opening a primary care or a specialized health clinic?
• Which medical services will you provide? For whom (what is your target audience)?
• What is the capacity of your private clinic? How many beds? How many doctors/specialists will there be?
• What will be the legal structure of your company (partnership, corporation)?

a) Rationale

Before we jump into the business, it’s always good practice to give an overview of the rationale behind this project. In other words: why did you decide to open such clinic in your area today?

For example, if there are no plastic surgery clinics in the area despite strong market demand, you could come in to fill the existing market gap after conducting a proper market analysis. 

b) Business Concept

Now, it’s time to explain your business model. Firstly, business owners can choose between independent practices or franchising. 

But that’s not all. You must also decide on the specific type of clinic you want to open. And that’s only possible after answering the following questions; 

• Will you specialize in primary care or specialty medicine?
• Is this a franchise or an independent clinic?
• Is this a solo, group or hospital-owned practice?

What are the different types of medical clinics? 

Here are a few business models commonly used by medical professionals:

• Solo practice : you will be the main partner of the clinic and have full control. A major pitfall of a solo practice is the high startup costs for leasing the property, purchasing the medical equipment, managing administrative functions and marketing your business
• Group practice : you partner with other physicians or practitioners instead. This business model comes with fewer responsibilities, with well-defined roles for every individual. Also, it provides easy access to capital, lowering the startup and operating costs along the way
• Hospital-owned practice : a medical clinic within the hospital premises. Here, you work with a fixed schedule, getting limited freedom compared to a solo practice. But the upside is that you can capitalize on the hospital’s resources, making it easier to establish your practice and market it to your target audience. 

c) Treatments and Services

In addition to the business model of your clinic, let’s now take a look at the services and treatments you offer.

For example, a plastic surgery clinic with reconstructive procedures could offer the following treatments:

• Head/face/eyes (Facelift, forehead lift, eyelid lift, ear pinning, hair replacement surgery, nasal surgery, nose reshaping, etc.)
• Mouth and teeth (oral surgery)
• Breasts (Breast augmentation, breast reconstruction, breast reduction, breast lift)
• Abdomen (Liposuction, tummy tuck, etc.)
• Hand and upper limb 
• Skin (Chemical peel, vein removal, scar revision, tattoo removal, dermaplaning, laser skin resurfacing)

d) Pricing Strategy

Lenders and investors will want to see your pricing strategy . We recommend you create a summary table with the main services you offer as well as their prices.

You can start by determining the average cost of similar medical services in your area before making your pricing list. 

When creating your pricing structure, consider the necessary elements, like the local regulations and whether most consumers rely on insurance bodies to cover their medical expenses or fund them from their pockets.

e) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry? 

3. Medical Clinic Market Overview

One of the most important steps when writing a medical clinic’s business plan is understanding the market you’re in. Try to address here the following questions:

• Industry size & growth : how big is the industry in your area? What is its growth/decline rate, and what factors contribute to its growth/decline in the region?
• Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them? 
• Customer analysis : who is your target market ? What type of inpatient and/or outpatient treatments do they need?

a) Medical Industry Size & Growth

The cosmetic surgery industry was worth $20.1 billion in 2022 (+2.3% CAGR from 2017-22).

In total, there were 22.4 million procedures in 2019: that’s an average price per procedure of around $900.

In terms of plastic surgeons, there were approximately 7,000 in the US in 2020 .

b) Competition Overview

In addition to an overview of the market size, you should also describe who are your competitors in the area where you plan to open your clinic.

Find useful information about your competitors’ biggest strengths and weaknesses , products and services , and marketing strategies.

For example, create a summary table that compares your competitors’ treatments, marketing strategies, pricing ranges, target audience, etc. 

c) Customer Analysis

Finally, take some time to understand your target audience. Here are a few elements you must look into:

• What is the average spend per capita on medical procedures (for example plastic surgery)?
• How often do people need such treatments?
• The most sought-after treatments
• What’s the average price of a treatment / service?

4. Sales & Marketing

The next section of your medical clinic’s business plan should outline your customer acquisition strategy. Start by answering the following questions:

• What are the different marketing strategies you will use? 
• What are your unique selling points (USPs)?
• How will you track the success of your marketing strategy ? 
• What is your customer acquisition cost (CAC)? 
• What is your marketing budget? 
• Will you consider any offers or promotions to attract new clients? 

What marketing channels do private clinics use? 

A few marketing channels used by clinics include; 

• Content marketing on social media and blogs
• Email, SMS marketing
• Online local listing (Google Business)
• Word-of-mouth advertisement, recommendations
• PPC ads, Facebook ads, etc. 

5. Management & People

You must address two things here:

• The management team and their experience / track record
• The organizational structure : different team members and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your private clinic.

For the partners of the clinic, describe their duties, responsibilities, and roles. Also, highlight their previous experience and track record.

For the receptionists, personal assistants, office managers, medical assistants, etc. no need to go into a lot of detail, especially as it’s likely you won’t have hired them yet before you get the funding you need, which is the objective of this business plan.

Organization Structure

Even if you haven’t already hired anyone yet, you must provide a chart of the organizational structure defining the hierarchy of reporting.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a private clinic.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your private clinic is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your private clinic
• The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a private clinic, startup costs are all the expenses you incur before you open your clinic.

These expenses typically are: the lease for the space, the renovation costs, the equipment and furniture.

Logically, the startup costs vary depending on the size of your clinic, the treatments you will offer (and therefore the equipment you need), the quality of the equipment and furniture, whether you buy the real estate or rent a commercial space, etc.

b) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your private clinic. Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 15%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of patients you can receive in a day or week;
• The number of procedures you can perform ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing (prices of treatments and services) and your sales volume (number of customers). Indeed, a small change in these assumptions may have a significant impact on your revenues and profits.

7. Use of Funds

This is the last section of the business plan of your private clinic. Now that we have explained what your private clinic’s business model and services are, your marketing strategy, etc., this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any private clinic business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit for the space, the renovation and equipment?

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

Privacy Overview

Medical Practice Business Plans

Chiropractic business plan.

Betcher Chiropractic is a start-up business that treats every patient with the philosophical approaches of individualism and holistic medicine.

Chiropractic Clinic Business Plan

Accurate Chiropractic is the second start-up by a business-savvy chiropractor in Florida. The owner will leverage his medical acumen and financial know-how to produce high profits.

Chiropractic Services Business Plan

Sports Chiropractic Center will provide quality care to athletes with sports-related injuries.

Family Chiropractic Business Plan

Advanced Chiropractic Clinic will provide quality chiropractic services to people of all ages. The clinic will utilize new equipment and a trained staff, able to care for the individual needs of every

Family Medicine Clinic Business Plan

The mission of Park Square Family Medicine is to promote the health and well-being of the local population by providing accessible, high-quality medical care for people of all ages.

Occupational Health Business Plan

Workwell is a nonprofit, occupational medicine program designed to reduce health care costs.

Physical Therapy Massage Business Plan

Healing Touch Massage, an established in-home business, will open an office downtown, seeking to acquire clients in the medically-required, insurance-paid massage market niche.

Psychological Health Center Business Plan

Amesbury Psychological Center is a multidisciplinary behavioral health care facility that offers mental health and substance abuse services to the communities of the Merrimack Valley in Massachusetts.

Sports Therapy Business Plan

Cyclist Repair Center is a start-up sports therapy clinic, offering massage therapy, physical therapy, and personal training, specifically geared for competitive and recreational bicyclists.

Home Health Care Business Plan

CaringCompanion provides high-quality, personalized home health care services to seniors and individuals with disabilities, letting them maintain independence and comfort within their own homes.

What do you get when you take your dedication to helping people and combine it with a good business plan? Success! Here’s a collection of sample business plans for medical practices, dental offices, and clinics, that should help you on your way.

If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.

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Insights for those starting, managing, and growing independent healthcare practices

Get expert tips, guides, and valuable insights for your medical practice

July 26, 2023

10 min read

Practice Growth

Starting a Practice

Free template: How to create a business plan for your new practice

Your medical practice business plan is a living document that evolves as your practice grows. Here’s how to build it from scratch.

Most Popular

At a glance.

• A medical practice business plan is crucial for establishing direction, estimating finances, and evaluating competition.
• Creating an effective business plan involves gathering relevant data, making conservative financial projections, seeking expert input, and planning for risks.
• The 8 essential sections of a thorough medical practice business plan include the executive summary, business model details, market research, staffing model, 12-month budget, and more.

Medical schools and residencies prepare doctors to provide quality patient care but not to create a medical practice business plan. Yet a business plan is a key part of reaching new patients and supporting existing ones.

An effective medical practice business plan will:

• Establish a roadmap for your practice
• Estimate your revenue and expenses
• Evaluate the competition

Creating a thorough business plan may feel like an onerous roadblock to moving forward. However, plotting your direction in advance will keep you on track later on, and will set you up to effectively serve your patients.

Why you need a business plan for your medical practice

Whether you plan to start your own practice or take over someone else’s, a robust business plan is necessary. When you develop a comprehensive business plan full of intention, clear thought processes, and fine details, you demonstrate your commitment to your practice, community, and discipline.

A solid business plan effectively positions you to prevent surprises that could completely derail your practice and reputation.

“ A solid business plan effectively positions you to prevent surprises that could completely derail your practice and reputation.  ”

If you plan to seek investors or business partners for your practice, a thorough business plan demonstrates that you have both a vision and the empirical data and financial goals required to back it up. It also establishes and communicates the direction you intend to take your practice.

If you do not plan to seek outside investors, your medical practice business plan is still a key tool for the most important investor: you. Working through the 8 parts of a plan will help you evaluate the landscape, establish your foundation, and move forward with your practice.

That said, writing your business plan is not the same as establishing your budget. However, you will need to create a detailed budget so you can incorporate some of that information into your comprehensive business plan.

What is involved in developing a healthcare business plan?

As you develop your medical practice business plan, think of how you approach diagnosing a patient: a systematic process. While it may vary by practitioner, you typically:

• Get to know your patient
• Ask about symptoms and history
• Dig deeper into factors that are relevant to the current issue
• Collect data from tests
• Develop an initial diagnosis
• Seek additional counsel when appropriate
• Revisit the diagnosis if needed
• Discuss the findings and prognosis with your patient
• Schedule treatment and follow-up

The business plan creation process is similar.

Translating the process to your medical practice’s business plan

Getting to know your patient translates into defining your mission and vision. What do you want to accomplish? What is your role in your community?

Asking about symptoms and history will lead you to gather relevant documents, certifications, and professional memberships; research other local practitioners; and investigate why your practice’s focus is needed. Just as you need to know how the body’s systems fit together, you need to know how your practice will fit into the market.

Digging deeper into factors relevant to the current issue involves getting into the numbers. Evaluate:

• Your selected location
• Fee structure
• Insurance company partners, if any
• Target patient volume
• Staffing needs
• Services, whether legal, financial, or practice growth
• Equipment, medical, and office
• Maintenance and upkeep cost estimates
• Ongoing costs, including rent or property taxes

Collecting data requires gathering facts. Avoid using more lucrative or optimistic numbers. Build your plan based on conservative estimates to set your practice up for success. Determine what benchmarks to establish and measure success.

Develop an initial diagnosis by evaluating whether you’ve made inaccurate assumptions or missed key components. Revisit areas you need to and gather new information.

Seek additional counsel in this process. Your legal and financial advisors are an important resource as you create your plan, not just as you execute it. You may also consult your staff about parts of your plan in which they have expertise. Finally, partnering practitioners should agree with the plan’s approach and direction.

“ Your legal and financial advisors are an important resource as you create your plan, not just as you execute it.  ”

Revisit the diagnosis. Consider the input and adjust your assumptions, numbers, and benchmarks.

Discuss the diagnosis and prognosis with your investor(s). In this step, share your completed business plan with the individual(s) with whom you are working.

Set a follow-up plan to evaluate your progress after certain periods of time.

How to build your medical practice business plan document

It’s one thing to theoretically know how to approach your medical practice business plan and another to sit down and create it. This 8-section outline will give you an idea of the crucial parts of your document.

Make a copy of this sample business plan template that you can customize and use for your practice.

1. Executive summary

In the executive summary, summarize your business model. Incorporate the information you developed while getting to know your practice.

Include an overview of information such as the practice location, services, target patient, local demographics overview, any relevant business history associated with the practice, and your mission and vision for your practice and its community impact. This is also where you will define any existing barriers to moving forward.

“ Your executive summary is an understanding and compelling argument for why the community needs your services.  ”

Your executive summary is an understanding and compelling argument for why the community needs your services. It will highlight how you will fill a need that is not met in the current environment.

This is the section that will get you invited to the investor’s table, as it were. It is the bait on the hook of your argument.

Pro tip: Save the executive summary for last. Once you have the information from the other areas you will research and develop, it will quickly come together.

2. Detailed business model

Define your services and how you’ll manage prospects who fall within and outside those services. Specify your hours of operation. Define and describe your physical office space.

If you intend to offer telehealth , describe how. Define the number of staff you’ll employ, their roles, and how you plan to add staff as your practice grows. Detail the equipment you’ll use and why it’s essential.

Determine which vendors you’ll use for a variety of functions, including office cleaning; non-office hours emergency call management; office, medical, and exam equipment and furniture; office and medical supplies, software; marketing; and physical and digital security .

3. Comprehensive market research and positioning

Provide hard data on the demographics of your local geographic area and how they support your practice. For example, do enough people in your area need your services? What is the median income in the area, and how has that influenced your target fee structure?

“ Define your insurance partners, how their fee structures align with yours, and how competitive your proposed fees are.  ”

Define your insurance partners , how their fee structures align with yours, and how competitive your proposed fees are.

Outline your local competition, the reasons you can be sure there is enough market availability for your new practice, and why your practice is positioned for success above your competition.

4. Detailed staffing model

Even if you plan to be the only provider in your practice, you will still need a plan to answer calls, file insurance claims, maintain files, manage billing , process payroll, and order supplies, among a host of other tasks to keep your practice running smoothly.

In this section of your medical practice business plan, list what positions you will fill and how many people you will need in each. Include compensation, along with any budgeted overtime, as well as benefits and tax considerations. Also, note when you will target hiring each throughout the year.

5. Projected 12-month income and budget

Show the math regarding how many patients you will serve for each service you will offer, your projected fee for each service, and your anticipated overhead expenses.

Your overhead will include items such as:

• Staffing expenses based on the total number of staff and projected salaries.
• All office-related expenses for equipment, supplies, maintenance, utilities, software, marketing, staff recruitment, and temporary services.
• Anticipated vendor expenses such as off-hours call service, telehealth subscriptions, lab processing fees, janitorial services, etc.
• Maintaining licensure, subscribing to professional journals, and attending conferences to stay current.

Make sure to account for one-time or short-term expenses, such as an extra administrative position to cover a known busy month, as well as for ongoing expenses.

6. Potential risks and mitigation

What risks can you anticipate as you open your practice? This is the section where you will think of worst-case scenarios and what you would do were they to become a reality.

Consider scenarios such as:

• A patient sues you. The United States is a very litigious society. What sort of malpractice insurance or bonds do you need to obtain?
• A staff member gets injured at work. In addition to the mandatory worker’s comp, how else would you support them? And what does your insurance cover?
• You get injured at work. How can you protect the longevity of your well-being and that of your practice?
• Another global pandemic hits. How will you staff and maintain patient treatment protocols, what specialized supplies will you need to purchase, what type of insurance rate hikes could you anticipate based on the last pandemic’s model, etc.
• A natural disaster hits. Depending on your geography, are you likely to experience a flood, fire, earthquake, tornado, hurricane, or blizzard? Are there emergency supplies you can keep on hand? Are there specific ways you can shore up your facility to make it more stable — and when would you make those changes? What specialized insurance do you need to purchase?

Talk to a seasoned physician who can provide some mentorship. Ask what they’ve faced during their years of practice and what you need to know to be prepared. Then take that information into meetings with your lawyer and insurance broker.

7. Implementation plan

In your project implementation plan, outline the steps you need to take to open your practice, what milestones you will hit, and an associated date for each major and sub-task. Whether you use formal project management software or create a project plan in a spreadsheet or other document, include that detailed information in this section.

8. Exit strategy

You’re just opening or growing your practice — why would you plan to leave it? Plans change, retirement becomes attractive, large conglomerates buy smaller practices, or a host of other scenarios could happen.

“ Just as you worked through the risks section, there is value in thinking ahead to determine your plan when you are ready for something different.  ”

Just as you worked through the risks section, there is value in thinking ahead to determine your plan when you are ready for something different. Will you sell your practice? How will you transition your patients? What will happen with valuable equipment and supplies?

Identifying these items and addressing what you feel will be the best way to step away from what you are currently creating will make the process more manageable later.

How detailed is an effective business plan?

You know what process to use and the broad sections to include in your business plan, but how detailed should you get?

While you don’t want your business plan development goal to be a target length, a solid business plan typically ends up being somewhere between 30 to 40 pages. This information will include graphs and charts that demonstrate your demographic research, specific equipment needs for positive community impact, budget numbers, etc.

Your business summary and exit strategy sections should not exceed 20% of your overall business plan. Both will provide a high-level overview; neither is the section where you will get into excruciating details.

However, the other 6 sections of your business plan will get into the fine details. Each section should provide narrative information as well as specific numbers that are itemized by topic and category.

Keep your business plan alive

Even though your medical practice business plan can provide information for potential investors, partners, and financiers, it is ultimately the mirror of what you want your business to become. This should be a living document you update and change as your priorities and focus evolve.

“ As you move forward and grow your practice, set yourself up for a larger vision.  ”

As you move forward and grow your practice, set yourself up for a larger vision. Adding 3- and 5-year projections to your 12-month business plan will help refine your sense of your purpose and direction.

By creating a medical practice business plan, you create confidence in not only your ability to attract patients, but also your ability to run the business that serves them long term.

Further Reading

You Might Also Be Interested In

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Karmin Gentili

Karmin Gentili has several years of freelance writing and editor experience. After over 25 years in corporate management roles, she has further elevated her skills by receiving multiple certifications, including copywriting and SEO specializations. Her love of writing motivates her to use those skills to develop content so others can work toward achieving their goals.

Reviewed by

Lauren Wheeler, BCPA, MD

Dr. Lauren Wheeler, MD, BCPA, is a former family medicine physician who currently works as an independent healthcare advocate as well as a medical editor and writer. You can get in touch with her about anything writing or advocacy at her website www.lostcoastadvocacy.com .

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10 Steps to Create Your Medical Practice Business Plan

#4. Perfect Your Business Operations

Business operations is how your practice functions day-to-day. While a plan allows you to come up with strategies, business success is mostly an outcome of quality execution. The scope of business operations span across every function like finance, marketing, HR, and so on. Even though business operations can only begin post launch, you can start learning about operations.

Best organizations aim for process-driven and result-oriented operations. — For instance, you can use methods like  Objectives and Key Results  (OKRs) — a collaborative goal-setting process that helps you improve organizational performance.

While a general management experience allows you to deal with many scenarios, you can also list down and think how to go about the critical ones. For example:

• What should your staff do to deliver the best experience?
• How can you resolve patient issues quickly?
• How will you conduct monthly performance reviews?

#5. Bring a Financial Discipline

Working capital, billing, rent, mortgage, taxes, insurance, utilities,… there are too many things to account for. Unlike other areas like operations and marketing, you may not be able to make quick decisions for finances. So the earlier you get involved in financial planning, the better is your ability to control the outcomes.

If you don’t have any financial expertise, use basic calculations including investments, recurring expenses, and income. You can consider financial projection for upto three years to get an approximate idea about your finances. To bring financial discipline to your practice, you must use budgeting. Budgeting ensures that you will have enough money for the things you need and reduce overspending on unnecessary things.

#6. Don’t Ignore Marketing

Marketing is more than advertising and brand building. It includes several other things like getting feedback from customers, doing competitor analysis, and pricing correctly. So marketing is not a gimmick, but an important process for growth of any business. If you are not marketing, you could be leaving the growth of your practice to chance.

Even when you don’t want to advertise, there are a few other great ways of promoting your practice. For example, asking your patients for reviews on Google Maps will improve your visibility in local searches. Another great way is to post content like blog articles, videos, podcasts, etc that your patients find useful and get to know about you.

Since every practice has its own unique factors like demographic, location, etc, marketing requirements differ. So the marketing has to adapt to your unique situation rather than going for mainstream ideas. For example, if your patients are of an older demographic in a rural area, radio ads could be the best way to get the word out about your practice.

Marketing deserves special attention in your business plan. Your plan can focus on gaining maximum exposure to your potential patients. Even if that requires additional investments. By prioritizing growth over recouping investments early, you create a long-lasting traction for your practice.

#7. Check Government Laws & Regulations

The US federal, state, and local authorities have rules to protect the public, promote access to care, and to ensure that medical providers adhere to the rules. Laws and regulations are complex. So you need to have a thorough understanding of them before starting your practice.

This is a list of a few important laws and regulations for healthcare providers in the US:

• Healthcare Quality Improvement Act (HCQIA)
• Children’s Health Insurance Program (CHIP)
• Hospital Readmissions Reduction Program (HRRP)
• Health Insurance Portability and Accountability Act (HIPAA)
• Patient Safety and Quality Improvement Act (PSQIA)
• Affordable Care Act

You can learn more about US healthcare laws and regulations  here .

#8. Hire the Best

People are the heart of any organization. Having the right staff relieves you from everything else and let’s you focus more on providing better healthcare. It’s almost like putting everything else on auto-pilot. However, recruiting is not easy. You may have to put more effort than you planned for hiring. Additionally, you must research and plan for competitive salaries, work schedules, and training.

Here are a few websites to find experienced staff for your practice:

• Healthcare eCareers
• JAMA network
• Medical Jobs

#9. List Down Equipment and Other Requirements

The most straightforward part of your business plan is to list down all the equipment and essentials. Here’s a short list you can use:

• Clinic Equipment:  Stethoscopes, exam tables, otoscopes, blood pressure monitors, and other monitors
• Office Equipment:  Computers, printers, network equipment, phones and payment machines
• Supplies:  General medicine, disinfectant, anaesthetic, gloves, scalpels, syringes, gauze, and bandages
• Network Services:  Phone networks, internet, utilities
• Clothing:  Lab coats, uniforms, and name tags
• Furniture:  Tables, chairs, and decor

#10. Perform a SWOT Analysis

SWOT is an abbreviation for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis allows you to have a clear overview of your practice. It will force you to look at your practice from new perspectives. This final step is one of the most crucial ones.

To create a SWOT analysis, you can critically analyse all areas of your practice and list down your conclusions in columns with S, W, O, and T. While strengths and weaknesses are internal factors, the opportunities and threats are external factors to your practice. The conclusions must be simple, objective, and short.

Towards Launching Your Practice

A business plan allows you to define, strategise, and gain clarity through all areas of your medical practice . Remember that a business plan is not set in stone. Planning is a continuous activity, and needs periodic reviews and updates. You are always moving through the plan-execute-review cycles. Though it may seem complicated, investing time for thoughtful planning can make your practice successful.

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How To Write a Business Plan for Medical Practice in 9 Steps: Checklist

By henry sheykin, resources on medical practice.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan

Welcome to our blog post on how to write a business plan for a medical practice in 9 simple steps! As the healthcare industry continues to experience growth and evolution, starting your own medical practice can be a rewarding and lucrative venture. According to the latest statistics, the demand for medical services is expected to increase by 16% over the next decade, providing ample opportunities for aspiring healthcare providers.

Before diving into the specifics of creating a business plan for your medical practice, it is crucial to research and analyze the market landscape. Understanding the current market trends, identifying potential competitors, and identifying your target audience are key factors that will guide the success of your practice.

By conducting a comprehensive feasibility study, you can assess the financial viability of your medical practice, ensuring that it is sustainable in the long run. This study will help you determine the break-even point, analyze revenue streams, and estimate expenses, allowing you to make informed decisions for your practice.

Defining the mission, goals, and objectives of your medical practice will provide a clear direction for your business. These benchmarks will guide your decision-making process, shape your company culture, and help you build a strong brand presence in the healthcare industry.

A well-rounded marketing strategy is crucial for promoting your medical practice and attracting patients. From digital marketing initiatives to traditional advertising methods, creating a comprehensive plan will help you stand out from the competition and highlight the unique services you offer.

Furthermore, adhering to legal and regulatory requirements is essential when starting a medical practice. Familiarize yourself with the laws and regulations that govern the healthcare industry in your area to ensure compliance and avoid any unnecessary legal setbacks.

The location and facilities of your medical practice also play a vital role in its success. Consider factors such as accessibility, competition in the area, and patient demographics when choosing a location. Additionally, determining the necessary facilities and equipment will help you provide top-notch care to your patients.

Identifying the staffing requirements and defining the roles and responsibilities of each position is crucial for the smooth functioning of your practice. Assemble a qualified team of healthcare professionals who align with your vision and can deliver exceptional care to your patients.

Last but not least, creating a preliminary budget and financial projections will help you understand the financial aspects of your medical practice. This includes estimating start-up costs, projecting revenue and expenses, and establishing financial goals for your practice.

By following these 9 steps, you will be well-prepared to write a comprehensive business plan for your medical practice. Stay tuned for our upcoming posts, where we will delve into each step in more detail, providing actionable tips and insights for success!

Research And Analyze The Market And Potential Competitors.

Before starting a medical practice, it is crucial to thoroughly research and analyze the market and potential competitors to gain a clear understanding of the industry landscape. This step is essential to ensure that your medical practice can thrive in a competitive market and meet the needs of your target audience.

Begin by conducting market research to identify the demographics, trends, and demands of your target market. Use various resources such as industry reports, market studies, and surveys to gather data on the current healthcare landscape.

Additionally, analyze the potential competitors in your area. Identify their strengths, weaknesses, pricing strategies, and services offered. This analysis will help you identify gaps in the market and opportunities for differentiation. Understanding your competitors will allow you to position your medical practice uniquely and offer services that meet unmet needs.

Identify The Target Audience And Determine Their Needs And Preferences

One of the crucial steps in developing a business plan for a medical practice is identifying the target audience and understanding their needs and preferences. This information will help you tailor your services to meet the specific requirements of your potential patients.

Start by conducting thorough market research to determine the demographic profile of your target audience. Consider factors such as age, gender, occupation, income level, and geographic location. This will provide valuable insights into the type of medical services they may require and how you can best serve them.

Once you have identified your target audience, it is important to delve deeper into their needs and preferences. Research their healthcare preferences, such as their preferred treatment methods, healthcare providers, and expectations for quality of care. This will help you understand the gaps in the current market and tailor your services to address those needs.

Tips for Identifying Target Audience and Determining Their Needs and Preferences:

• Conduct surveys or interviews with potential patients to gather first-hand information about their healthcare preferences.
• Stay updated with industry trends and innovations to anticipate the evolving needs of your target audience.
• Analyze data from existing healthcare providers in your area to identify common preferences and trends among patients.
• Utilize online tools and resources, such as social media listening, to understand conversations and sentiments related to healthcare in your target audience.

By understanding your target audience's needs and preferences, you can develop a unique value proposition and differentiate your medical practice from competitors. This information will also guide your decision-making in terms of the services, branding, and marketing strategies that will resonate best with your target audience.

Conduct A Feasibility Study To Assess The Financial Viability Of The Medical Practice.

One of the crucial steps in starting a medical practice is conducting a feasibility study to evaluate the financial viability of your business idea. This study will help you determine if your medical practice will be able to generate enough revenue to cover costs and generate a profit.

During the feasibility study, it is important to thoroughly analyze the market and identify potential competitors to understand the demand for your services and how you can differentiate yourself from others in the industry. This will allow you to identify opportunities and potential challenges that may impact the financial success of your medical practice.

To assess the financial feasibility of your medical practice, it is essential to develop a comprehensive financial plan that includes estimating the initial costs of setting up the practice, such as equipment, licenses, and renovation expenses. You should also consider ongoing operational costs, including rent, utilities, supplies, insurance, and staffing expenses.

Creating financial projections is a critical aspect of the feasibility study, as it will help you forecast anticipated revenue streams and expenses over a specific period. These projections should be based on realistic assumptions and take into account factors such as patient volume, fee structure, and reimbursement rates from insurance providers.

Feasibility Study Tips:

• Consult with industry experts or hire a healthcare consultant to assist in conducting a thorough feasibility study.
• Consider engaging a financial advisor to ensure accurate and reliable financial projections.
• Gather data from a variety of sources, including market research reports, industry trends, and local demographics.
• Assess the potential risks and challenges associated with your medical practice and develop strategies to mitigate them.
• Regularly revisit and update your feasibility study as your medical practice evolves.

By conducting a feasibility study, you can make informed decisions about the financial viability of your medical practice. It will provide you with a deeper understanding of the market, potential challenges, and financial implications of your business idea, helping you plan for success and mitigate risks.

Define The Mission, Goals, And Objectives Of The Medical Practice.

In order to establish a successful medical practice, it is crucial to define the mission, goals, and objectives that will guide its operations and shape its future growth. These elements provide a clear direction and purpose, aligning the efforts of the healthcare provider and the staff towards a common vision. Defining the mission, goals, and objectives also helps in attracting and retaining patients, as they can see the value and purpose behind the practice.

The mission statement of the medical practice should encapsulate its overarching purpose and the principles it stands for. It should clearly communicate the unique qualities and services that set the practice apart from its competitors. This statement serves as a guiding light, guiding the healthcare provider and the staff in their everyday decision-making process and overall approach towards patient care.

While the mission sets the broader purpose, goals provide specific targets that the medical practice strives to achieve. These goals should be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound), providing a clear framework for assessing progress and success. They can include objectives such as increasing patient satisfaction, expanding services or specialties offered, improving efficiency in administrative processes, or developing partnerships with other healthcare providers or organizations.

Objectives:

Objectives are tangible actions or milestones that are set in order to achieve the goals defined by the medical practice. They serve as stepping stones towards the ultimate goals and help in monitoring progress. Objectives can be related to various aspects, such as patient care, staff training and development, financial management, or community involvement. By breaking down the goals into smaller, achievable objectives, the medical practice can focus on making continuous improvements and measure its success along the way.

• Involve the entire team in the process of defining the mission, goals, and objectives. This will create a sense of ownership and encourage commitment towards achieving these targets.
• Ensure that the mission, goals, and objectives are aligned with the needs and expectations of the target audience. This will help in attracting and retaining patients who resonate with the practice's vision.
• Regularly review and reassess the mission, goals, and objectives to ensure they remain relevant and adaptable to changes in the healthcare industry and the evolving needs of the patients.

Develop A Comprehensive Marketing Strategy And Outline A Plan For Promoting The Practice.

A successful medical practice requires a well-rounded marketing strategy to attract and retain patients. A comprehensive marketing strategy not only helps raise awareness about your practice but also establishes your brand and builds trust among your target audience. Here are some essential steps to develop a comprehensive marketing strategy and outline a plan for promoting your medical practice:

1. Identify your target audience: Start by understanding your ideal patients and their preferences. Conduct market research to gain insights into their demographics, healthcare needs, and preferences. This information will guide your marketing efforts and help tailor your messaging to resonate with your target audience.

2. Establish your brand identity: Create a strong brand identity that reflects your practice's values, mission, and unique value proposition. This includes designing a logo, selecting brand colors, and maintaining consistent branding across all communication channels.

3. Create a robust online presence: In today's digital age, having a strong online presence is crucial for any business, including medical practices. Build a professional website that showcases your services, expertise, and patient testimonials. Optimize your website for search engines to improve its visibility online.

4. Develop compelling content: Produce high-quality content that educates and engages your target audience. This can include blog posts, articles, infographics, and videos that provide valuable information about healthcare topics relevant to your specialty. Share this content on your website, social media platforms, and through email newsletters.

5. Utilize social media: Leverage social media platforms such as Facebook, Instagram, and LinkedIn to connect with your target audience on a more personal level. Share informative posts, patient success stories, and engage with your followers by responding to comments and messages promptly.

6. Implement targeted advertising: Utilize online advertising platforms, such as Google AdWords or Facebook Ads, to reach a wider audience and drive more traffic to your website. Target your ads based on demographics, location, and keywords relevant to your specialty.

7. Build relationships with referral sources: Establish strong relationships with other healthcare professionals, such as primary care physicians or specialists, who can refer patients to your practice. Attend networking events, provide educational resources, and maintain regular communication to foster these valuable partnerships.

Tips for an Effective Marketing Strategy:

• Monitor and analyze your marketing efforts regularly to identify what works best and adjust your strategy accordingly.
• Encourage patients to leave reviews and testimonials on platforms like Google My Business or healthcare-specific review sites to build credibility.
• Offer promotions or special discounts for new patients to incentivize them to choose your practice.
• Consider partnering with local community organizations or hosting educational seminars or webinars to establish expertise and trust.

By developing a comprehensive marketing strategy and outlining a plan for promoting your medical practice, you can effectively reach and engage your target audience, ultimately driving the growth and success of your practice.

Assess the Legal and Regulatory Requirements for Starting a Medical Practice in Your Area

When starting a medical practice, it is crucial to thoroughly assess the legal and regulatory requirements in your area. This step ensures that you comply with all laws and regulations, avoiding any legal issues or penalties that could negatively impact your practice. Here are some important aspects to consider:

• Licensing and permits: Research the specific licenses and permits needed to operate a medical practice in your jurisdiction. This may include obtaining a medical license for the healthcare provider, as well as any additional permits required by local or state authorities.
• Professional liability insurance: Before opening your practice, evaluate the requirements for professional liability insurance. This insurance provides vital protection in case of malpractice claims or other incidents that may occur during the provision of medical services.
• Healthcare regulations: Familiarize yourself with the healthcare regulations that govern medical practices in your area. These may include regulations related to patient privacy (such as HIPAA in the United States), billing practices, and medical recordkeeping.
• Business structure and legal entity: Determine the most suitable legal structure for your medical practice, such as a sole proprietorship, partnership, or corporation. Consult with a legal professional to ensure compliance with corporate laws and regulations.
• Employment laws: Assess the labor laws and regulations that apply to hiring and managing employees in your area. This includes understanding requirements related to employment contracts, minimum wage, working hours, and employee benefits.
• Consult with an attorney who specializes in healthcare law or medical practices to receive accurate and up-to-date advice on legal and regulatory requirements.
• Stay informed about any changes or updates in healthcare laws and regulations to ensure ongoing compliance.
• Develop a thorough understanding of patient privacy laws and implement appropriate measures to safeguard sensitive patient information.

Determine The Location And Facilities Needed For The Practice.

Choosing the right location for your medical practice is crucial to its success. You need to consider factors such as accessibility, visibility, and proximity to your target audience. Additionally, you need to determine the specific facilities and amenities that are necessary to provide quality care and meet the needs of your patients.

Firstly, consider the accessibility of the location. Is it easily accessible by public transportation or major roads? Will your patients be able to reach your practice conveniently? Assessing the accessibility ensures that patients can easily visit your practice and reduces any barriers to access.

Secondly, think about the visibility of the location. Is it in a high-traffic area or near other healthcare facilities? Visibility plays a crucial role in attracting new patients. A visible location can help increase awareness of your practice and establish trust with potential patients who may be seeking medical services.

Next, evaluate the proximity of the location to your target audience. Understanding the demographics and preferences of your target audience can help determine the best location for your medical practice. Consider factors such as age, income level, and cultural background to ensure that your practice is located conveniently for your target audience.

• Consider conducting market research to identify areas with a high demand for your services.
• Explore lease options that offer flexibility, such as short-term leases or shared office spaces, especially when starting your practice.
• Ensure that the facilities have all the necessary equipment and technology to provide efficient and effective care.

Once you have identified potential locations, evaluate the facilities needed for your practice. Assess the space requirements, such as examination rooms, waiting areas, and administrative areas. Determine if any renovations or modifications are necessary to create a functional and comfortable environment for both patients and staff.

Additionally, consider the amenities and equipment that are essential for delivering quality care. This may include medical equipment, diagnostic tools, and other resources specific to your medical specialty. Ensure that the facilities have the necessary infrastructure to support your practice's operations.

Taking the time to carefully determine the location and facilities for your medical practice is vital to its success. By considering accessibility, visibility, proximity, and the necessary amenities, you can create an environment that meets the needs of your patients and enables you to deliver exceptional care.

Identify The Staffing Requirements And Outline The Roles And Responsibilities Of Each Position

When starting a medical practice, it is crucial to identify the staffing requirements to ensure the smooth functioning of your business. Each position plays a vital role in providing quality healthcare services to your patients. Here are some important steps to help you identify the staffing requirements and outline the roles and responsibilities of each position:

• Assess the workload: Begin by assessing the workload of your medical practice. Determine the number of healthcare providers, administrative staff, and support staff required to meet the demands of your patients. Consider factors such as patient volume, appointment scheduling, office hours, and the scope of services you intend to provide.
• Identify key positions: Once you have assessed the workload, identify the key positions that are essential for the smooth functioning of your medical practice. These positions may include physicians, nurses, medical assistants, receptionists, billing specialists, and office managers.
• Outline roles and responsibilities: After identifying the key positions, outline their specific roles and responsibilities. Clearly define the tasks and duties assigned to each position to ensure clarity and efficiency in daily operations. For example, physicians may be responsible for diagnosing and treating patients, while medical assistants may assist with patient intake and documentation.
• Consider qualifications and certifications: Determine the qualifications and certifications required for each position. A physician, for instance, must have the necessary medical degree and appropriate licensure to practice medicine. Medical assistants may require specific certifications or training to perform certain tasks.
• Emphasize teamwork: Highlight the importance of teamwork and collaboration among staff members. Clearly define how each position interacts with others to provide coordinated care to patients. Encourage open communication and foster a team-oriented culture within your medical practice.

Tips for Identifying Staffing Requirements:

• Consider the future growth of your medical practice and anticipate staffing needs accordingly.
• Solicit input from experienced healthcare professionals to gain insights into staffing requirements.
• Ensure compliance with any state or local regulations governing staff-to-patient ratios.
• When hiring, prioritize individuals who align with your practice's mission and values.

Identifying the staffing requirements and outlining the roles and responsibilities of each position is crucial to the successful operation of your medical practice. By carefully considering workload, qualifications, and teamwork, you can build a competent and efficient team that will contribute to the overall success of your practice.

Create A Preliminary Budget And Financial Projections For The Medical Practice

Creating a preliminary budget and financial projections for your medical practice is a crucial step in ensuring its financial success and sustainability. This step requires careful consideration of various financial aspects, including expenses, revenue projections, and potential sources of funding. Here is a breakdown of what you need to do:

1. Estimate your initial expenses: Start by identifying and estimating all the initial expenses associated with setting up your medical practice. This may include costs for leasing a space, purchasing medical equipment, hiring staff, obtaining necessary licenses and permits, and marketing your practice. Conduct thorough research to gather accurate cost estimates.

2. Determine your revenue sources: Consider the fee-for-service model you have chosen for your medical practice. Determine how much you will charge patients for each service provided and estimate the number of patients you expect to see on a regular basis. This will help you forecast your potential revenue streams.

3. Research potential sources of funding: Explore various funding options that may be available to you, such as business loans, grants, or private investors. Research and understand the requirements and conditions associated with each option to determine which one is most suitable for your medical practice.

4. Create financial projections: Based on your estimated expenses and revenue streams, create a financial projection for at least the first year of operations. Include detailed estimates of your monthly expenses, revenue, and cash flow. This will give you a clear picture of your financial situation and help you make informed decisions.

• Consider consulting with a financial professional or accountant who specializes in the healthcare industry to ensure the accuracy and effectiveness of your financial projections.
• Be realistic and conservative when estimating your expenses and revenue. It's better to underestimate your revenue and overestimate your expenses to avoid financial difficulties later on.
• Regularly revisit and update your financial projections as your medical practice progresses. This will help you track your actual financial performance and make any necessary adjustments.

By creating a preliminary budget and financial projections, you will have a solid financial foundation for your medical practice. This will not only help in securing funding but also enable you to make strategic decisions that will drive the success of your practice in the long run.

In conclusion, developing a comprehensive business plan for a fee-for-service medical practice is crucial for its success and sustainability. By following the nine steps outlined in this checklist, healthcare providers can effectively research and analyze the market, identify their target audience, assess financial viability, define their mission and goals, develop a marketing strategy, understand legal requirements, determine the location and facilities needed, identify staffing requirements, and create a preliminary budget. By thoroughly considering these aspects of the business, healthcare providers can establish a solid foundation for their medical practice and provide high-quality care to their patients.

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How to write a business plan for your medical clinic practice.

Starting a medical clinic practice is a great idea because it allows the practitioner to provide quality healthcare services to patients in a convenient and accessible location.

Additionally, a medical clinic practice allows for increased control over patient care, as the practitioner can customize their services to meet the specific needs of their patients.

However, prior to that, you must have a business plan.

Creating a comprehensive business plan is essential for any new project, especially medical clinic practices. It is important to consider all aspects of the project, such as the target market, operational costs, and marketing strategy, to ensure the project is successful.

In short, a thorough business plan will help ensure the profitability of your medical clinic practice .

What must be in the business plan for a medical clinic practice? What's the basic outline for the structure? Which key financial indicators should be incorporated? What's the fastest way to outline a comprehensive business plan?

Get ready to have all your questions answered in this article.

Additionally, it's worth noting that you have the option to avoid starting your business plan from scratch.

Feel free to download our comprehensive business plan for a medical clinic practice and tailor it to suit your project.

Building a business plan for a medical clinic practice

Is a business plan necessary for your medical clinic practice.

Yes, you need to create a business plan for your medical clinic practice.

Developing a robust business plan will enable you to:

• learn about the medical clinic market
• be aware of new trends and incorporate them into your project
• establish profitability factors for a medical clinic practice
• understand patients' medical needs and expectations to provide personalized healthcare services
• come up with a winning value proposition for your healthcare facility
• research competitor pricing strategies
• find solid competitive advantages for your medical clinic practice
• find a business model that will result in financial success
• create and implement a winning strategy for both short and long-term success
• assess potential risks involved in running a medical clinic, such as patient safety, medical errors, and regulatory compliance

Our team has created a business plan for a medical clinic practice that is designed to make it easier for you to achieve all the elements listed.

How to outline a business plan for a medical clinic practice?

Inside a business plan, you'll find many facts, numbers, and indicators. There should be a clear structure, so it does not look messy.

When we elaborated our business plan for a medical clinic practice , we structured it in a proper way.

You'll encounter 5 sections (Opportunity, Project, Market Research, Strategy and Finances) in total.

1. Market Opportunity

The initial section is named "Market Opportunity."

Our team has gathered essential information and metrics about the medical clinic practice, enabling you to make informed business decisions.

We continuously update all the data to keep it fresh.

2. Project Presentation

The second part is where you introduce the "Project" of your medical clinic practice. You can describe the medical services you offer, such as primary care, specialized treatments, preventive care, qualified healthcare providers, advanced diagnostics, and the unique value proposition that delivers comprehensive and patient-centered healthcare services for individuals and families.

Also, provide a self-introduction at the end of this section.

Discuss your commitment to healthcare, your range of medical services, and how you plan to provide comprehensive and patient-centered care to individuals and families. Highlight your qualified medical staff, your modern facilities, and your dedication to delivering personalized treatment plans and promoting wellness through your medical clinic practice.

We included pre-written content in our business plan. Adjust it to match your idea exactly.

3. Market Research

Following that, we have the "Market Research" section.

In this section, you will find a detailed market segmentation analysis for your medical clinic practice.

It includes a presentation of other medical clinics in the area that will be competing with you. Your clinic's competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

Within the "Strategy" section, a 3-year development plan is outlined, specifying the necessary initiatives to make your medical clinic practice highly profitable.

Moreover, you'll find a comprehensive marketing plan, a strategy to handle risks, and a completed Business Model Canvas within this section.

5. Finances

In the end, the section labeled "Finances" allows you to showcase the financial details and numbers of your project.

How to make an Executive Summary for a medical clinic practice?

The Executive Summary is a concise overview of the business plan of your medical clinic practice.

Make sure it's concise and doesn't go beyond 2 pages. Include only the key features.

This is the beginning of your business plan that the financial institution will see first. It should pique their interest and make them want to read the rest of the plan.

In the Executive Summary of your medical clinic practice, answer these questions: what's your project? what's your market? who are your competitors why are you better than them? who are you? how much money you need to start?

How to do the market analysis for a medical clinic practice?

Conducting a market study for your medical clinic practice enables you to grasp external factors like patient demands for healthcare services, competition within the healthcare industry, and emerging trends in medical technology and care delivery.

By conducting an extensive market study, a medical clinic practice can understand patient needs, offer comprehensive medical services, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal patient base, increased appointments, and a prominent position in the local healthcare industry.

Here's what we've incorporated into the "Market Research" section of our business plan for a medical clinic practice :

• market trends and data about medical clinics, including patient volumes, medical specialties, and the impact of telehealth services on medical practice
• a compilation of potential market segments for a medical clinic practice
• the competitive review
• the competitive advantages to target for a medical clinic practice

The key points of the business plan for a medical clinic practice

What's the business model of a medical clinic practice, business model of a medical clinic practice.

A medical clinic practice's business model revolves around providing comprehensive medical services, including consultations, diagnostics, treatments, and preventive care. Revenue is generated through patient fees, insurance reimbursements, or additional services such as medical procedures or laboratory tests.

The business model focuses on employing qualified healthcare professionals, maintaining state-of-the-art medical equipment, delivering high-quality patient care, building strong referral networks, and providing exceptional customer service.

Success depends on patient satisfaction, effective medical marketing, regulatory compliance, maintaining strong relationships with insurance providers, and delivering efficient and personalized healthcare services.

Business model vs Business plan

Make sure you don't mix up the terms "business plan" and "business model."

A business model is a framework that outlines how a company creates value, delivers products or services, and generates revenue.

In a business plan, you outline your business model using a tool called the Business Model Canvas.

And, of course, there is a Business Model Canvas (already completed) in our business plan for a medical clinic practice .

How do you identify the market segments of a medical clinic practice?

Market segmentation for your medical clinic practice involves dividing your potential patients into different groups based on their healthcare needs, demographics, and medical specialties.

These categories may include factors such as primary care, specialized medical services, pediatric care, or patients seeking specific medical treatments or procedures (e.g., dermatology, cardiology, women's health).

By segmenting your market, you can offer a range of medical services and solutions that cater to each segment's specific requirements. For example, you might provide comprehensive primary care services for patients seeking general healthcare and wellness management, offer specialized medical services and treatments for specific conditions or diseases, focus on pediatric care and provide healthcare services tailored to the needs of children and families, or specialize in a particular medical specialty such as dermatology, cardiology, or women's health.

Market segmentation allows you to effectively target your marketing efforts, communicate your expertise and services, and provide personalized and compassionate medical care that meets the unique needs of each patient segment.

In the business plan for a medical clinic practice , you will find a comprehensive market segmentation that will help you better understand your potential customers.

How to conduct a competitor analysis for a medical clinic practice?

It's clear that you won't be the only medical clinic practice in your city. There are other clinics providing comprehensive healthcare services and treatments to patients.

Incorporate a thorough examination of your competitors' strengths and weaknesses into your business plan to gain a competitive advantage.

Ensure to uncover their weaknesses (such as long waiting times, lack of specialized services, or poor patient communication).

Why should you focus on these elements? Well, these weaknesses can impact patient satisfaction at medical clinics. By addressing these aspects, you can provide comprehensive medical services, offer short waiting times and efficient appointment scheduling, and ensure a caring and compassionate approach to patient care, establishing your medical clinic practice as a trusted healthcare provider in the community.

It's what we call competitive advantages—work on developing them for a distinct business identity.

Here are some examples of competitive advantages for a medical clinic practice: experienced and qualified medical professionals, comprehensive healthcare services, state-of-the-art medical equipment, efficient appointment scheduling, personalized patient care, strong relationships with insurance providers.

How to draft a SWOT analysis for a health clinic?

A SWOT analysis can help identify potential risks and opportunities for a medical clinic practice, and inform strategic decision making.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a medical clinic practice

The strengths for a medical clinic practice

When we use the "S" in SWOT, we're referring to Strengths, which are the project's internal assets or areas of expertise.

For a medical clinic practice, possible strengths may include: convenient location, highly experienced medical staff, modern equipment, and excellent customer service.

The weaknesses for a medical clinic practice

The "W" stands for Weaknesses, referring to the project's areas or aspects that require enhancement.

In the case of a medical clinic practice, potential weaknesses could include long waiting times, inadequate electronic medical records system, and lack of specialized doctors.

The opportunities for a medical clinic practice

O represents Opportunities in SWOT, referring to the external factors or circumstances that can contribute to the project's growth.

In the case of a medical clinic practice, potential opportunities include offering telemedicine services, expanding into retail health services, partnering with a local hospital for referrals, and establishing a robust online presence.

The threats for a medical clinic practice

When we mention the "T" in SWOT, we mean Threats, which are the potential negative circumstances or factors originating from the external environment.

How to elaborate a marketing strategy for a health clinic?

A marketing strategy is vital in a business plan as it outlines how a business will draw in customers and generate revenue.

A medical clinic practice can gain patients by developing an effective marketing approach that emphasizes the clinic's experienced medical professionals, comprehensive range of healthcare services, and commitment to patient care and well-being.

Patients won't choose your health clinic without proper promotion; highlighting the expertise of your medical professionals, comprehensive services, and compassionate care is crucial.

Are you utilizing marketing tactics to promote your health clinic? Consider offering educational content about different health conditions or preventive care on your website or social media, collaborating with local healthcare providers for referrals, and running targeted advertising campaigns to reach potential patients.

Don't fret if you lack ideas for your project's marketing strategy.

How to build a 3-year financial plan for a health clinic?

A solid business plan must include detailed financial information such as projected income, expenses, cash flow, and balance sheets.

In your business plan, you will have to make revenue projections for your medical clinic practice.

Your business plan's readiness for banks or investors greatly relies on a revenue forecast that is both relevant and credible.

Our financial plan for a medical clinic practice is user-friendly, providing automated validations that allow you to rectify any assumptions swiftly. This guarantees the creation of credible projections with ease and assurance.

Without a doubt, you'll need to come up with a basic budget for starting your medical clinic practice. Don't forget any expense (we have listed them all in our financial plan !).

A key aspect of your financial plan is the break-even analysis, which helps determine whether your medical clinic practice will be profitable or not.

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How to Create a Successful Healthcare Business Plan for Your Medical Practice

It is a common misconception that healthcare practices do not require marketing strategies in the same way that other companies and professions do. However, healthcare should be treated as a business and cater to consumers, or in this case, patients.

A successful business plan is essential for medical practices to attract new patients, retain current patients, and maintain a positive relationship with the community.

Without a business plan, practices may find themselves disorganized, lost, and unable to adapt to any changes in business, such as decreased visits or increased appointment cancellations.

Why is a Business Plan Necessary?

Creating a business plan for your healthcare practice means laying out where you are now and where you want to be in order to fill in strategic goals and benchmarks needed to track progress. Without a finished business plan to rely on, healthcare practices will not have any insight or idea of their returns.

Additionally, the attracting and retaining of patients will not be prioritized or managed. Opportunities for improvement may get overlooked, revenue may not increase, and patient trust may be lost.

How to Create a Healthcare Business Plan

Clearly, a business plan is non-negotiable for healthcare practices. But where do you start? What should you focus on?

Most practices that put together business plans rely on these basic guidelines to get a head start. Keep in mind that any of these parts can be adjusted or changed according to what makes the most sense for your healthcare practice.

#1: Identify Your Ideal Patient

Healthcare practices are essentially promoting services to an audience, or, patients. Start identifying and defining your target audience by assessing who uses your services. Marketing plans should be developed with this target audience in mind in order to be effective.

If you have a wide range of patients varying in age, gender, etc., consider segmenting them into different, smaller groups or learn about what each patient has in common outside of traditional demographics.

#2: Define Your Vision

Solidify your goals by defining them in the largest business plan. Brainstorm and write down goals, significant milestones, and where you see the practice in 3 years, 5 years, etc. Document how you will achieve these goals and set dates for major milestones.

#3: Assemble a Team

It takes a village to run a successful healthcare practice, from the front office staff to third-party contractors. Take this time to document who will be involved with this business plan and to what degree.

Outline roles, responsibilities, and initiatives for each team member. Make sure to tie this all in with your overall vision. For example, if you envision a significant effort in social media marketing within the next year, define the role(s) that will be responsible for this.

#4: Build Patient Personas

When other businesses create their business plans, they often run an exercise to build “buyer personas.” These are essentially profiles that represent ideal customers , based on real data.

This exercise includes giving these personas creative and explanatory names, incomes, budgets, careers, and more, to help guide business and marketing decisions.

In healthcare, creating a patient persona works the same. Sit down with your team and create 1-2 profiles of your ideal patient. Give them a name, a medical condition or need, income, family status, personality attributes, etc. based on your actual patients. For example, a profile might look like this:

“Clever Cathy,” has diabetes, age 65, works in customer service, researches her conditions thoroughly/has lots of questions for doctors, makes 55k per year, has $500 to spend on care today, divorced, 3 kids out of the house.

Having these profiles on hand can help pull focus to your patient's needs during important business decisions.

#5: Perform a SWOT Analysis

Another tool to use for self-assessing your healthcare practice is a SWOT analysis . SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Draw a 2x2 grid labeled with these terms, and start listing examples.

When assessing your healthcare practice's strengths and weaknesses, consider everything from an internal perspective and what you have control over, such as unique services (strength) and only having one provider (weakness).

Writing out your practice's weaknesses helps you to place all of your thoughts for improvement in one clean list. Keep it strictly about what you have direct control over, such as long wait times or outdated appointment booking systems.

Opportunities and threats are both meant to be viewed from an external lens and are things you do not have control over but can either leverage (opportunities) or maneuver away from (threats). Opportunities can include things like new real estate in a better location, while threats can include things like loss of staff.

#6: Finalize and Share

Once you have a full business plan solidified, finalize it and share it with all physicians, staff, board members, executives, and any other stakeholders necessary.

Once everybody is on board, you can begin the rollout, enjoying the support from every team member along the way.

#7: Check-in and Evaluate

Sometimes, a plan that we thought would surely bring in 100 new patients falls flat. That's why it is important to establish a plan to check-in with your goals, benchmarks, targets, plans, etc. to see what is working, and more importantly-- what's not.

Adjust and change your plan as needed, making sure everybody is still in the loop. By measuring and evaluating your business plan consistently, your chances of success improve.

Don't Forget “The 3 Pillars of a Successful Healthcare Practice”

While assembling your new business plan, let's not forget the 3 pillars of a successful healthcare practice : a growing patient base, a stellar online reputation, and a strong online presence.

Keeping these pillars in mind for a detailed business plan, healthcare practices can increase patient acquisition and retention. Make sure to integrate these pillars into your marketing plan!

To conclude, healthcare practices must have a business plan in order to be successful and to keep growing. These plans, as you've seen, can get large and sometimes complicated.

For busy practices, hiring a marketing agency to help handle this plan is a must. It's important to find a healthcare marketing agency that believes in your business plan. This keeps everybody aligned so your practice can see success.

Ajay Prasad

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business plan for doctors

The ultimate business plan roadmap for doctors in private practice.

Kris Borgraeve

November 18, 2021

The simple checklist to start writing your business plan

A business plan for doctors with ambition.

When we help doctors communicate online and attract (more) patients to their private practice, we always include a business strategy process . The checklist partly covers general best practices to create an effective business plan for doctors, and some of the items are relevant beyond your business plan. The answers to these questions often become the DNA of the practice, and I have seen specialists and surgeons create their business success in no time, using a simple checklist like this one:

• Your why: Taking the time to reinspect the main reason why you have chosen to create a private or independent clinic is a success factor in itself. It reconnects you with your purpose. Jot down a few bullet points to summarise why you decided to create your practice. Go back to it from time to time to reconnect with your passion.
• Your goals: Whether this step involves closing your eyes and visualising, or sitting in front of a whiteboard with your eyes wide open. As long as you create clarity about your goals, 12 months and 3 or 5 years from today. What type of patients do you spend most of your time with? What does your team look like? How are your status and reputation?
• Timeline: If you are starting out or upscaling your practice, create a plan with timeframes for each step. If you underestimate the time to move to the next step, it may cost you money or you may lose momentum and team members who don’t have the patience to wait until it all comes together.
• Budget: Do some research on the various costs to run your practice. Consult with a reliable financial expert to crunch the numbers. Also research the real costs that are involved in building a brand, creating a strong profile and activating a systemised GP-referral strategy.
• Market research: Did you know you could get access to the online traffic volumes of your competitors in any major capital city for any specialty? Check who is most visible for which type of treatment or procedure. Research the educational content that is most googled for and work with an expert who knows your local market to create realistic traffic and lead projections.
• Avatars: Envision the type of patient you want to see in your future and ideal practice. Build your avatar with as much detail as possible, from age brackets to preferred suburbs, including income ranges, and places where your ideal patient spends time.
• Focus treatments or services: Many specialist doctors still believe they need to communicate about every little procedure they do. Leading specialists understand the power of subspecialising. Would you rather be one of the 340 orthopaedic surgeons that do hip, elbow, knee, shoulder and wrist procedures? Or one out of 3 who is doing elbow surgery for tennis players?
• Hospital associations: Think ahead and get informed about accreditation options for the hospitals in your catchment area. Read the fine print. Speak to colleagues in another specialty area about their experience with the hospital you are approaching.

With that checklist in mind, you will be best off if you find experts who have a clear focus on the mechanics of an independent or private health practice.

Brand, Market Research and other business planning secrets

Business plan essentials for doctors.

Your practice as a brand is a reality, no matter how big or small your efforts to turn it into a brand. Let me put this in perspective.

Even if you believe you are totally not the type of person to create a brand, you still are creating one. The following fictional scenario has often been a wake-up call in the workshops we run with specialist doctors and it will change your perspective on this concept of ‘brand creation for doctors’.

Do your research. Google your main treatments, procedures or the associated conditions and add the town or city where you work. Take a look at the top 5 specialists and ask yourself if the brand experience is building trust or not.

One of the little-known business secrets for doctors in private practice is the power of digital branding and content marketing . Doctors who have significant resources for patients who are still making up their minds are building a strategic advantage over doctors without a presence.

Where to find help when starting out in private practice?

Business advice for doctors.

As you just start out in private practice, you will be well aware of the advantages of going private. There are many experts who can help you and a popular solution consists of one-stop-shop businesses who have a variety of experts on board, with particular expertise in the area of private practice success and growth.

What you are looking for is an integrated combination of expertise to help you with:

• Financial setup
• Administration and practice management
• Credentialing and hospital accreditations
• Real estate
• Medical technology
• Recruitment and HR

From experience, we know that adding marketing to the mix generally results in outsourcing back to specialist agencies such as Digital Practice. It may work well in transparent partnerships with other providers though, particularly if you have an existing business relationship with a provider in one of the above areas.

At Digital Practice, our focus is on generating income . It is the second most important layer of your business plan, right behind the clinical or surgical skills. The way we attract patient leads for your private practice is based on building online visibility, GP referral marketing and advanced market research into the information needs of your average patients. With the exponential rise of online and digital, this is rapidly becoming the first pillar of any substantial business plan for doctors, not a commodity that is added to the plan long after the above areas have been covered.

To share a remarkable story with you: Many of our top customers have actually started the process in the right order, creating an outline for their future brand first, and then adding the management, location and recruiting steps to their timeline. After all, the location, the team you hire and the management style you introduce, are all going to be part of what your patient experiences as your brand .

3 Thriving private practice business brands

Private practice business models.

The Woom is a Women’s Health brand with a unique brand and a unique business model. It offers the specialised expertise of accredited fertility specialists and gynaecologists, in conjunction with women’s health GPs, dietitians, psychologists and physiotherapists. The clear brand promise is supported by Google-optimised content per main business avenue on attractive, informative content pages. As a result, visibility is predictable and supports the business growth objectives for this ambitious and fresh expert brand in women’s health.

Advance Surgical has a boutique profile around lead surgeon Dr Jon Armstrong. The personal touch, the personability of the team and the transparency around fees and processes offer immediate guidance to the patient when they visit the Advance Surgical website. A variety of forms is available to get in touch, one of which allows patients to verify if they are a candidate for the weight loss surgery types that are offered.

Wexford Gastro has a brand positioning around the catchment area of the Wexford Building which serves as an anchor point for people in the surrounding suburbs. The brand focuses on facilitating patients who are preparing for their gastroenterology procedure, with clear information on what to expect. A fresh, simple and inviting ‘about section’ allows patients to get to know their specialist before they go and see them in a first consultation.

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How To Write a Business Plan for Opening a Medical Practice

After you have finalised (or semi-finalised) your decisions from the  first six steps , it’s time to put it all together in your business plan.

Your business plan should articulate your short and long term strategy, and have details on marketing, staffing, and patient retention plans, as well as how you will get your practice up and running and meet your financial forecasting.

This document demonstrates your organisational and planning skills to key stakeholders, and is essential to have if you intend to secure finance for your practice.

To complete everything you will most likely need to enlist some specialist input from accountants, financial planners, and legal advisors. Our suggestion is to surround yourself with subject matter experts, and reach out to other people in your network who have started and ran successful medical businesses for advice.

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There are many ways to create a business plan for your practice, and no two plans are the same. To get you started, we’ve collaborated with some of our practice owners to get their collective advice on assembling a business plan checklist for you. We have broken this checklist template down with the following segments:

Business Summary

Your business summary is something that is usually written last. It is a short overview of the information following in your business plan and should be no longer than one page. Many people write this piece last, after all the information in their business plan has been collated.

Here’s what should be included in your summary:

• Brief business overview
• Business owner/s biography
• Products and/or services offered
• Competitive advantage
• Operational performance
• Financial position

Business Profile

The Business Profile should include an overview of all the details about your clinic. It should include the why, where, and what.

• Vision, mission, values
• Trading Hours
• Services: in-house/onsite/other
• Service fees: Billing model, bulk billed/mixed pricing
• Accreditation

This segment of the business plan outlines your practice location (either something you have already secured, or your ideal location. You might want to consider including floor plan and any other location based documents in your appendices section.

Outline the following:

• Location address
• Location description
• Buy / Build / Lease (what have you done/what are your intentions)
• Sub letting opportunities – are there any opportunities for allied, pathology, pharmacy
• Fit out and design plans and costs
• Parking: Patients, staff, practitioners
• Access: Public transport, foot traffic, disabled, ambulance
• Area demographics
• Area-based future developments
• Area competition

Marketing Strategy

The Marketing Strategy outlines everything from branding to advertising. How are you going to get new patients coming through your door? What is your branding strategy? Where do you sit in the market?

• Practice name
• Practice brand
• Target market demographic (should tie in with segments of the area demographics)
• Unique value proposition
• Advertising and promotions (online, offers, affiliations)
• Launch plan
• Post-launch plan
• Marketing goals

Competitive Analysis

The competitive analysis section needs to demonstrate the depth of your understanding of the environment you will be opening a practice in. Your competitive advantage should also outline how your clinic is different and why patients will choose you instead of your competitors.

• Opportunity assessment
• Demographic review
• Supply vs demand
• Direct competition list (include services offered, location, pricing etc)
• Your competitive advantage

Business Structure

• The Business Structure demonstrates how the business is/will be legally set up and should indicate that you have ongoing legal expertise to ensure the stability of your practice.
• Growth flexibility (unit trust/partnership etc)
• Exit and succession planning
• Legal framework (Eg: Unit holder agreement)

Supplier Breakdown

In this section, outline the different suppliers you intend to form agreements with for your practice. Include an overview, details of goods, and basic pricing/contract arrangements.

• I.T. hardware and support
• Online booking system
• Medical equipment
• Medical consumables
• Stationary and amenities

The Staffing section is an overview of the strategies you will use to attract and retain staff, practitioners, and list any key staff you already have on the team.

• How will you attract practitioners
• Practitioner remuneration (wages vs contractor and billing %)
• How will sessions be rostered

Medical practices need very comprehensive insurance. In this section outline the cover you have for the piece of mind for your financiers and stakeholders.

• Public liability
• Professional indemnity
• Directors liability
• Workers compensation
• General insurance

Financial Planning

The Financial Planning section should demonstrate that your business is financially viable. Include comprehensive outlines and numbers for the following:

• Budgets: Setup and operating costs
• Funding needed/secured and sources
• Profit and loss modelling
• Tax planning

Phew! Still with us after all that? There’s a lot that goes into creating a solid business plan. Fortunately we’re the experts, and we can help you get things right from the start. Download our Business Plan Checklist  or find out more about how HealthEngine’s suite of tools can help grow your new practice.

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Starting a New Practice? Be Sure To Write a Business Plan Kelly H. Buchheit

Many medical practices have been faced with both financial and practical challenges over the past two years because of the many effects of the COVID-19 pandemic, some temporary and some lasting. As a result, when starting up a new practice, you need to ensure it is designed to survive and thrive in this new environment.

Related Read:  Proactively Overcoming Industry Challenges

You cannot casually assume that if you treat patients and pay the bills on time, your new practice will be fine. You need to plan your operations strategically — and creating a business plan can help provide you with a blueprint for success.

What should it cover?

A good business plan generally should contain:

A Business Description Essentially, this is your medical practice’s mission statement. It could consist of a single sentence, such as: “To run a single-practitioner family medicine practice.” Or: “To run a single-practitioner orthopedic surgery practice focusing on sports and athletic medicine.” But those examples are rather bare-bones. It is a good idea to include more details on your intended practice structure, whether you plan to have a partner and whom you expect your target patient population to be.

A Marketing Plan Marketing is a never-ending aspect of running any business, but it carries more weight when starting up a practice. Plan on developing a website and being on social media platforms such as LinkedIn. Make sure you connect with local physicians and introduce yourself as a potential referral doctor. Based on your practice’s focus, you may even want to visit nursing homes or sporting events — wherever your targeted group of patients might be.

In addition, ask any hospital with which you are affiliated to help you market your new practice. Pharmaceutical reps also are often willing to assist with marketing efforts. Hosting an open house can be another way to introduce your practice to the community.

Financial Budgets Start-up medical practice budgets need one budget for the business and another for the household. Generally, new practices require about six months of working capital for both the business and the household.

The household budget includes how much money you need to live on for six months, including rent or mortgage, taxes, insurance and food. Be generous with yourself, because it is better to estimate on the high end and have more than you need rather than less.

The business budget is more complicated and requires you to make decisions about your practice. For example, if you plan to perform surgery, you will need a surgery suite. This will require a larger space and a bigger budget that includes equipment and staff. After you decide on the appropriate number of staff, you will also need to determine how much to pay them and what kind of benefits you will offer.

A specialized consultant can help with many of these decisions. A pro forma budget covering expenses and income for the first year makes sense, but having one that projects financial activity for two to five years is even better.

A Staffing Strategy Management includes you, of course, but the biggest part of your job is to see patients. You will likely need someone to run your office. Thinking this through will help define your practice and shape the budget. Decide whether you will hire an office manager or administrator or act as your own — at least at first. Determine how many nurses will be needed and whether you will need to hire a specific number of physician assistants or nurse practitioners. Finally, evaluate whether you will need additional full- or part-time staff on board.

Related Read:  A Good Business Plan Can Help Your Practice Thrive

Who can help?

After you have written the initial draft, it is generally a good idea to revise your business plan based on advice from qualified professional advisors such as your banker, your CPA and your attorney. If you consider all aspects of operations and put sound strategies in place, you will better ensure that your new medical practice will get off to a good start and meet the distinctive challenges of these uncertain times.

For more information, contact Kelly Buchheit at  [email protected] . Visit  ORBA.com  to learn more about our  Health Care Group .

One response to “Starting a New Practice? Be Sure To Write a Business Plan”

I read your article and I think it’s very useful and informative. I like how you explained the steps and components of creating a business plan for a new medical practice. I think this is a very important and challenging task that requires a lot of research, planning, and execution. As a former healthcare executive, I know how complex and competitive the medical industry can be.

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How To Create A Business Plan For Your Medical Practice

• Benefits Of Creating A Business Plan For Your Medical Practice
• What Goes into Making a Great Medical Practice Business Plan?
• What to Include in a Business Plan
• Ready to take the next step?

A medical practice business plan is like a roadmap. You can go on your journey without one, but you’re more likely to get lost along the way.

If you’re embarking on a solo practice, looking to open a medical clinic or exploring partnering in a group practice, a business plan can help you not only make sound financial decisions, but maximize your potential for job satisfaction.

Practically speaking, lenders are likely to require a business plan if you need startup cost funding to finance your medical practice or clinic. However, securing financing is only the beginning of the list of reasons to create a business plan. 

A solid medical practice business plan can also help you:

• Build a fulfilling and right-sized roster of patients through geographic, demographic and competitive research
• Plan for appropriate space that also takes growth projections into account
• Determine the people and skills you will need to run an efficient practice 
• Make educated income and expense projections
• Allow all stakeholders to collaborate in shaping the future of the practice
• Create an exit plan (even if that exit might be decades down the road)

A solid plan starts with preparation. Here are some essential to-dos to complete before sitting down to write your medical practice business plan:

1. Get all your credentials and licensing in order

We recommend starting paperwork early, since some licensing requirements can take several weeks or months. The specific requirements may vary depending on the type of practice you’re operating and its geographical location. 

A few of these items may include:

• Medical certifications and licenses for your province
• Professional association memberships
• Credentialing and Hospital Privileges

2. Conduct Preliminary Market Research

Conducting market research can help you create a profitable and personally rewarding practice. Before writing your medical practice business plan consider the following: 

• The volume and types of practices in your geographical location
• The demographics and health of the local population (E.G. Are there any prevalent or underserved chronic diseases? Is the population growing?)
• The average cost to lease or buy space and transportation/parking surrounding available options 
• The proximity of complementary services, such as diagnostic facilities, hospitals, etc.

With preliminary details carved out, you’ll be in a better position to assess viability before creating a more detailed plan.

3. Assess costs and make projections

With rising overhead costs, physicians should spend time to get an accurate idea of the typical costs associated with opening a medical practice or clinic. 

An estimate at this stage might include:

• Rent and utilities
• Renovations, if necessary
• Furniture, medical equipment, office equipment, etc. 
• Licensing and association dues
• Technology, such as an EMR, Practice Management Software and billing software  
• Advisors such as lawyers, accountants, bookkeepers, etc.
• Service needs, if applicable, such as janitorial, laundry, maintenance, sharps disposal, landscaping and snow removal, etc.
• Miscellaneous costs such as staff training, periodicals, office supplies and stationery, signage, etc.

Once you have most of these details at hand, you’re ready to create a business plan for your practice or clinic. A template can provide an excellent guide, however, a simple document containing the following sections is typically sufficient:

Executive Summary

Write a brief overview that covers the important points of your business plan at a glance. The executive summary should not exceed 10% of your plan’s length (e.g. one page for a ten page plan). It can be helpful to think of this section as your brief pitch—and even though this section appears first, many entrepreneurs like to write this section last. 

Participants

Include a description of the people who will be involved in the practice, such as yourself and any other care providers or partners.

Your Practice Profile

Describe the services your practice will provide in brief. If a growth model is relevant, you may include it here.

Market Research

Include what you have discovered about the current marketplace, including what you know about competing providers, any relevant underserved needs, patient demographics and population growth. You can also include a profile for your typical or ideal patient here.  

Implementation Plan

Create a timeline starting from creating your business plan to opening your doors. Describe how you intend to build your patient roster (e.g. marketing plan).

Projections & Budget

Outline your expected expenses and revenue in as much detail as you currently can. Try to predict at least the first 12 months.

An exit strategy is the one part of your plan you will likely not share with investors. However, it’s important to consider how you will transition, retire or recoup your investment, even if it’s years down the road. 

Starting a medical practice or buying out an existing practice can be both challenging and rewarding. A detailed business plan can act as your GPS as you navigate the journey. 

Don’t forget to factor in your own fulfillment as you create your plan. What works for the business should also work for you personally in terms of location, risk tolerance, nearby professional and personal networks, roster makeup and more. If your practice fulfills you both professionally and personally, it’s all the more likely to be successful.

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Did you find what you are looking for.

Whether you plan to start a professional medical practice or a veterinary clinic, you need a clear roadmap to drive it to success.

Need help writing a business plan for your healthcare business?

This library of healthcare and medical business plan examples here can inspire and guide you as you begin to plan your business. So, don’t worry; we got you covered on that part.

Let’s learn more about these sample health and medicine business plans, starting with their benefits.

Benefits of using an industry-specific business plan example

Believe it or not, using an industry-specific business plan example is the best and probably the quickest way of writing a business plan.

Doubt it? Hold, this may change your perception; an extended list of the benefits of using an industry-specific business plan template.

• Inspiration : Reading a business-specific template can be incredibly helpful in getting content inspiration. Furthermore, it helps you gain insights into how to present your business idea, products, vision, and mission.
• Risk-free method : You are taking a reference from a real-life, let’s say, health coaching business plan—so you know this plan has worked in the past or uses a method subscribed by experts.
• Deep market understanding : Analyzing and reading such examples can provide clarity and develop a deeper market understanding of complex industry trends and issues you may not know but relate directly to the realities of your business landscape.
• Increased credibility : A business plan developed using an example follows a standard business plan format, wisely presents your business, and provides invaluable insights into your business. There’s no question it establishes you as a credible business owner, demonstrating your deep business and market understanding.
• Realistic financial projections : Financial forecasting being a critical aspect of your plan, this real-life example can help you better understand how they project their financials—ultimately helping you set realistic projections for your business.

These were the benefits; let’s briefly discuss choosing an medical business plan template that best suits your business niche.

Choosing a Medical and Health Care Business Plan

This category itself has 30+ business plan templates for various healthcare businesses. With many similar business types and templates, you may not find the most suitable one through manual scrolling.

Here are the steps to consider while choosing the most suitable business plan template.

Identify your business type

Are you going to be a rehabilitation providing nature therapy? Or a medical lab? Or planning on starting an urgent care center?

Asking yourself these questions will help you identify your business type, which will help in choosing a niche-specific business plan template.

Once you identify your business type, you can choose between templates for different business segments.

Search for the template

We have an in-built search feature, so you can easily search for a business-specific template using your business name as a key term. Once you have the search results, choose the most suitable one. Simple as that.

Review the example

Look closely at the content of the sample business plan you are considering. Analyze its sections and components to identify relevant as well as unnecessary areas.

Since all the Upmetrics templates are tailored to specific business needs, there won’t be many fundamental customizations. However, a hybrid business model targeting multiple customer segments may require adjustments.

For instance, if you plan to start a medical practice that also provides urgent care services—you may need to make necessary adjustments in some of your business plan sections based on your service offerings.

No big deal—you can view and copy sections from other business plan examples or write using AI while customizing a template.

That’s how you find and select the most suitable medical business plan template. Still haven’t found the perfect business plan example? Here’s the next step for you.

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Medical Clinic Business Plan Sample

OCT.12, 2016

Introduction

The demand for health care is constant in spite of changes in the economy across the globe. Starting a professional clinic will help promote the health and wellness of the community that you live. You also get the opportunity to make money doing what you love, providing quality health care services

To ensure that your plan succeeds, you need to hire a professional to write your business plan for a medical clinic . OGS Capital is a reputed company that specializes in providing medical clinic business plan writing services. Our professionals have vast hands-on experience and are members of professional bodies, so you can be sure that you will get value for the money and time that you invest in this project.

Plan Summary

The plan summary is also referred to as an abstract. It should be placed at the start of the medical clinic business plan to give readers an idea of the clinic that you intend to establish even before they start perusing through the other pages.

It Is imperative to make sure that all facts that you include in this section are factual to paint a positive image to the target audience. Some of the details of your clinic that you should include in this section are clinic’s name, mission statement, and objectives.

Our team will help you create this section to give your business plan for a medical clinic an upper hand when you present it to potential investors . We will also give you additional facts to enable you set up the clinic successfully.

This includes;

• How to market your health care services
• How to hire employees
• How to build and retain your credibility and reputation

In certain businesses, the location is critical and to some extent this applies to a medical clinic. Easy access to the clinic is important, so being close to main highways is a consideration.

Car parking facilities for your clients and visitors will also need to be considered. This could be part of the business or a nearby private car park.

Another important consideration is visibility. Your medical center can act as a superb billboard in the right location.

Your business plan for a medical clinic should cover all these points and more.

Competitive Analysis

Health is a growing business and there are plenty of competitors. Your medical clinic business plan should describe your closet competitors and why they are successful.

The plan will also explain what your business will do differently to stand out from the competition. One easy way of doing this is by using a competitor matrix. Make a list of competitors and then columns for attributes. This is an easy way to compare your business to the competitors.

Business Structure

The business plan for a medical clinic needs to describe how your business is structured from the top down. If it’s an existing business, include a brief history of the company.

You should also describe the legal structure and ownership of your company, whether sole-trader, partnership or limited company.

You may also need to include information on the mission statement, intellectual property and the business location.

Marketing Strategy

Your marketing plan needs to consider several topics, including where your business is positioned in the market, your pricing structure and how you plan to promote the business.

Is the business focussed on offering value for money or is it aimed at the high-end of the market. There are many pricing strategies, and your medical clinic business plan pdf should identify which strategy you intend to implement and why.

Using our medical clinic business plan template , describe the products and services your business will offer.

How do your planned products and services meet the needs of your target market. Do your competitors offer similar products, and if so, why will your business stand out?

In the medical business there is constant change, so include how your medical clinic business plan will plan to find and offer new products and services.

The key members of the management team should be identified and their role described. This should also include details of why they are suitable for that particular role. Don’t forget to identify other important members of your team.

You can include brief bios with details of their experience and education.

Using our free sample business plan for a medical clinic to guide you.

Financial plan

The financial plan provides precise details on how you will get the capital to start the clinic. The financial plan also goes the extra mile to highlight how the money will be spent.

It is important to make sure that the plan is accurate as simple mistakes could cost your potential business investors. Our financial experts will work on this section to ensure that the medical clinic business plan  is foolproof and capable of starting and safeguarding it from financial challenges down the road.

Registration Process

There are regulations that govern establishing of health care clinics. You need to adhere and follow the stipulated processes to get all the necessary accreditation documents.

The investors need to know that you have what it takes to start a health clinic, and so it is imperative to provide details of how you intend to complete the registration process.

We have professional business plan writers in the health care sector that can help you understand the registration process to overcome the challenges along the way. Our medical practice business plan template will ensure you produce the perfect medical clinic business plan .

How to order writing business plan medical clinic

Get in touch with us today for more details on how we can write a medical clinic business plan example for you by filling the contact us form. We look forward to working on your medical clinic business plan .

Download Clinic Business Plan Sample in pdf

Professional OGS capital writers specialized also in themes such as dental practice business plan , wellness business plan , senior center business plan , reiki practice business plan , pharmacy business plans , occupational therapy business plan and many others.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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START UP: Writing a Concierge Medicine Practice Business Plan

Have you ever thought about starting a direct-pay medical practice or other variation of a private medical practice? Well, whether you are concerned about the Affordable Care Act, looming Medicare cuts or a board certified physician curious about what the next few years in your practice will look like, there are a few things to consider before investing the time, money and energy to bring your direct-pay or concierge medical practice to market.

While the conversion to a direct pay and concierge medicine practice may be timely, a common question we receive at Concierge Medicine Today (CMT) is how to attain capital for starting a direct-pay or concierge medical practice. The answer lies in your planning and relationships with the appropriate types of people that can help you.

Related Resource>> SELF-TEST: Are You Ready To Be A Concierge Doctor? The 5 Questions You Should Ask Yourself Before You Begin

“In today’s economy, many have drained their savings accounts, and maxed out their personal credit lines,” say one concierge healthcare consultant. “Because of this they [doctors] need to reach out to others to get this money. The solution lies in coming up with a well thought out and professional, private-pay business plan for your practice that can be submitted to healthcare consultants, your attorney and a trusted accountant. Unfortunately, many people [doctors] have never learned how to write a proper business plan and immediately look to the Internet to search for a concierge medical practice business plan sample or template they can purchase. In my opinion, this is the wrong solution.”

TIP #1: Don’t Buy a Concierge Medicine Business Plan “Sample”

When purchasing a business plan sample from the Internet, people often force their concept into the boilerplate template rather than creating a plan that highlights it. A friend of CMT had recently made this type of purchase. He filled in the blanks and talked about it with us. Our first question was how he had determined that within his first five years he would have 15% growth annually. His unsure answer, “it was in the business plan sample.”

CMT has put together several resources and outlined below a few steps that should set you on a path to finding new patients for your new private-pay medical practice and hopefully to higher annual sales as well.

TIP #2: Interview Several Healthcare Consultants

There are certain areas that healthcare consultants and industry experts focus on to help physicians change their business model from an insurance and managed care practice to a direct-pay, cash-only or retainer-based business model. For example, when assessing your practice for potential economic viability and success in the marketplace, your current patient-base makeup, local demographics, patient surveys and your bedside manner all factor into the review process. . Most available ‘canned’ business plan templates don’t cover these types of intangibles critical to your to success.

Recently, CMT attended a seminar in Florida that was designed to help physicians learn more about direct-pay medical business models. When the speakers explained to the attendees that this type of practice business model is highly relational, one physician raised his hand unapologetically and said, ”so you’re telling me I have to be nice to my patients.” Shockingly, there was nothing funny about it.

TIP #3: Set Realistic Expectations for Your Time

When you sit down to start writing your plan, you must remember that this is a business model based on service and fulfillment. If you are clear with your patients about what it is that you are going to deliver to them in the form of medical services, it will be much easier to introduce the program concept to your patients at the right time, with the right message.

A long-time reader of CMT based in Atlanta, GA (ranked number 5 as the most popular places for concierge medicine practices in the U.S.) told us that the reason she was leaving her concierge physician was because for nine months she was seen by her doctor only one time. Otherwise, every other visit she was treated by the nurse practitioner.

Those that use the excuse that they cannot write a business plan are the same people who have never thought out all of the aspects of starting a direct-pay, concierge or retainer-based practice. In other cases they may have thought out the service or business aspects, but have not taken the time to identify and understand information voids that exist in their planning process. Questions your private-pay business plan should answer:

• What local alliances or relationships can you leverage with other businesses to help yours?
• In terms of fees, what can the local market/demographic support?
• How will the skills of your staff, their knowledge of the industry and track record of implementation support this shift?
• What existing problem or problems exist that your practice is trying to solve simultaneous to the shift in practice and business model?
• What solutions does your practice have in place to resolve the problem(s)?
• How much will it cost to solve these problems now?
• How will solving these problem(s) make your practice financials look in one, three and five years, when considered in the context of your shift toward a private-pay practice model?
• How much cash do you need to find a path to profitability?

TIP #4: Choose Your Model. Then Define it and Make it Unique to You, Your Area and Your Patients.

This becomes another stumbling block doctors will run into. Doctors call CMT monthly and want to learn more about the various nuances of this industry. They quickly learn that there are several attractive business models that could be implemented and be suitable to a specific demographic and geography. But you must write a business plan with a practice model in mind that is suitable for your local area and demographic makeup.

The business plan you write for your future practice must make sense to those whom you will serve. Unfortunately, many consultants prefer one medical practice model over another, so it’s important to choose a consultant to with experience across various business models and knowledge of proven models that have been successful in similar locales. Be careful, there are a lot of companies out there that know nothing about this industry.

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TIP #5: Cash, Insurance, Medicare. What plans, if any, Will You Participate In?

Several years ago, CMT wrote a story that’s been published many times over and has become one of the most copied and popular reads online about the difference between direct primary care and concierge medicine. Direct primary care (DPC or sometimes called direct care) is a term often linked to its companion in health care, ‘concierge medicine.’ Although the two terms are similar and belong to the same family, concierge medicine is a term that fully embraces or ‘includes’ many different health care delivery models, direct primary care being one of them.

Similarities Direct care practices, similar in philosophy to their concierge medicine lineage, bypass insurance and go for a more ‘direct’ financial relationship with patients and also provide comprehensive care and preventive services for an affordable fee. However, direct care is only one branch in the family tree of concierge medicine.

Direct care, like concierge health care practices, removes many of the financial barriers to ‘accessing’ care whenever care is needed. There are no insurance co-pays, deductibles or co-insurance fees. Direct care practices also do not typically accept insurance payments, thus avoiding the overhead and complexity of maintaining relationships with insurers, which can consume as much as 40 cents of each medical dollar spent, according to CMT analysts.

Differences Direct care is a ‘mass-market variant of concierge medicine, distinguished by its low prices.’ Simply stated, the biggest difference between ‘direct primary care’ and retainer based practices is that direct care takes a low, flat rate fee whereas concierge medicine models (although plans may vary by practice) typically charge an annual retainer fee and promise more ‘access’ to the doctor.

Both health care delivery business models are providing affordable, cost-effective health care to thousands of patients across the U.S.

“This primary care business model [direct primary care] gives these type of providers the time to deliver more personalized care to their patients and pursue a comprehensive medical home approach,” said Norm Wu, CEO of Qliance Medical Management based in Seattle, Washington. “One in which the provider’s incentives are fully aligned with the patient’s incentives.”

One additional word of advice: once you have written your private-pay medical practice or concierge medicine business plan, do as many smart physicians have done, have it reviewed and read by a trusted friend in business or a relative. After they have read it, have them give you a verbal explanation as to how they think your new practice model will work, based on your plan. If they do not understand the plan or cannot explain the practice model concept from what you have provided, there is a very good chance that a patient in the coming months ahead will not understand the practice concept(s) either.

This article originally appeared in Concierge Medicine Today or The Direct Primary Care Journal , leading independent publications in their respective fields. Posts by the author and these publications do not represent an endorsement of FON or its services.

FON is a leading integrative health and medicine business development and strategy consulting firm. FON specializes in custom solutions for growing patient volume , developing programs , and increasing product sales . Our practical business models are driven by innovative marketing, clear messaging, and customer engagement via branded storytelling.

Contact us today to schedule a complimentary 30-minute consultation to discuss your business development or personal brand needs.

Michael Tetreault  serves as editor-in-chief of the award-winning publication,  Concierge Medicine Today   (CMT) and  The Direct Primary Care Journal   (DPCJ). Michael has many years of experience as a marketing, public relations, sales and brand manager. He is considered an expert in the field of concierge medicine and direct primary care. Michael has authored such titles as:  Branding Concierge Medicine ;  The Marketing MD ;  The Doctor’s Guide To Concierge Medicine  with co-author and publisher, Catherine Sykes;  The Five Entrepreneurial Laws of Marketing  and more. Michael’s latest book,  Branding Concierge Medicine , became a best-selling title in its category on Amazon.com and now ranks in the top 2% of all Amazon.com e-books sold.

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