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Daycare Business Plan Template

business plan for daycare center pdf

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Updated March 08, 2022

A daycare business plan is a written document outlining the mission, objectives, and strategy of a child care business. The plan can be used to guide internal operational plans as well as inform prospective investors or lenders. Typically, a daycare business plan should include an executive summary, company and management description, market analysis, and financial information.

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StartupBiz Global

Starting an ECD Day Care Centre Business Plan (PDF)

Day care business plan

Early childhood development (ECD) refers to that stage where young children are taught or cared for by people other than their family, or in settings outside of the home. This is typically before the age of normal schooling. Day care refers to the daytime supervision of children. Thus, an ECD day care business focuses on the daytime care and supervision of young children who have not yet reached normal schooling age.  A day care business is a very lucrative and profitable business venture. In the past it was common for parents to stay at home with their children during the day, therefore Early Child Development (ECD) day care centers were seen as more of a luxury than a necessity. Today, only one a few children stay at home with their parents during the day. Challenging economic and financial times have prompted many parents to seek employment. In this regard, in most homes, both parents rarely have time to spend with their toddlers. This has led to increased demand for childcare services. Therefore, the ECD day care business is one of the most lucrative in the world today. With parents becoming busier and children being born every day, it is unlikely that you will struggle to find clients for your preschool business. This article will outline how to start the ECD Day Care business, and the day care business plan – PDF, Word and Excel.

Market Research

While childcare services are in high demand, it is important to note that there are many other daycare centers already in existence. Thus you have to carry out a market research. This includes assessing the demand and supply of day care centers in your area. As part of your market research, you should interview your potential customers i.e. talk to several parents and families, asking what kind of day care services they could benefit from. Identify the day care center businesses which are already operating in your area i.e. your competitors. Note their strengths and weaknesses, and plan on how you can distinguish yourself from the competition. Ways of distinguishing your business include the kind of facilities at your daycare center, and the nature & quality of services which you offer. Most importantly you require a detailed day care business plan before you venture into this business.

Business Model

You can charge your services by the hour. This is because some parents or guardians might not leave their children there daily. The other approach fits well for those who leave their children daily. You can charge them as if you are charging school fees. It could be weekly, fortnightly, monthly, or even quarterly. Parents or guardians can pay more for other specialist services you might choose to offer. You can extend to product sales for things like children toys, books, clothing, and the like.

Location and Premises for a Day Care

Obviously the ECD Day care centre should be located close to your target market. This is usually in the residential areas where your target market resides. One of the biggest challenges to overcome when starting a day care centre is find suitable premises for it. Suitable sites may be difficult to find or they maybe just too expensive. You have to make a decision on the size and type of premises that you require. This will be determined by the intended size and services of your ECD Day care centre. Usually you will have to rent an already existing building, and renovate it till its suitable to be a day care centre. Sufficient parking should be provided for staff and visitors. The premises should have a large playground for the kids. Take into consideration the impact of playground noise on the neighbourhood. Consider impact of vehicles and increased traffic especially with respect to drop off and pickup of children. Ideally the front entrance should be equipped with a security system and/or intercom. The structure and layout of the building should be such that it does not pose difficulties in the supervision of children or danger to children. The premise you settle on should have sufficient square footage for children to play, eat and sleep. Also, it should be big enough to make it easy to separate kids into different age groups. Also consider the space that will house the toys, furniture, and storage. The indoor space should be large enough to accommodate the desired number of children. The costs of acquiring or renting the premises should be included in the business plan for ECD Centre.

Competitive Analysis

Context and associated circumstances matter.

The ECD day care business’ competition dynamics depends on the context in question. Some locations do not have any ECD day care centers. Some locations have one or several. Find out where existing ECD day care centers are located. Some are located in central business districts, some at the peripheries of central business districts. Other ECD day care centers are located within residential neighbourhoods. The point here is that ECD day care centers can be situated anywhere. It is contextual and premised on wide-ranging circumstances. To not do guesswork you must find out who your competitors are, if any. It might not be surprising to find that you could be breaking new ground in a particular location.

Figuring Out How To Offer A Superior Value Proposition

This brings us to another competition dynamic. Why would parents or guardians prefer to find someone to babysit as opposed to using an ECD day care center? A look into that can help you understand what you would need to do to make your ECD day care center competitive. If there are indeed direct competitor ECD day care centers close-by, study them. Find out about their services, the prices, operating hours, the types of clients they serve, their location and why that location, amongst others. There is never a shortage of ways through which you can differentiate your ECD day care business.

There is a lot of equipment which is required for a preschool. This includes various types of play equipment (for both indoors and outdoors), safety equipment, computers, kitchen equipment, furniture, education equipment and cleaning equipment. Other requirements include toys, children books, arts and crafts materials. There is also need of safety devices (e.g., first-aid kits, carbon-monoxide detectors, smoke alarms, fire extinguishers, child-proofing supplies, etc.). If you decide to offer transport services to the children, you will have to purchase a vehicle. The preschool business plan should cater for the costs of purchasing the furniture and equipment.

Permits/Licenses, Insurance & Business Bank Account

Permits or licenses.

Get the ECD day care business formally registered as a business or company. You might have to get it registered with an applicable regulatory board. This will depend on the laws that apply to your specific region. In some places, an ECD day care business must get registered with a regulatory education board. You have to find out what applies to your context. You must also check with your respective local authorities. They might need to ratify and formalize your operations by giving you an operating license. At the end of the day you must ensure you are licensed properly or you have all the requisite permits. Your personnel that handle the children also need to be properly certified.

Insurance & Business Bank Account

You are dealing with young children here; your ECD day care business must be comprehensively covered. Insurance cover must cater for property and the children as well. You would not want a situation where something happens and you have no insurance cover. Not only will it lead to material or human damage or loss; you can end up in jail. Protect your personal monies from any liabilities that may stem from the ECD day care business. You can do this by opening a business bank account for your ECD day care business. That way the finances will not mix.

Capital for ECD Day Care Centre

One of the most important factors to consider when starting a business is seed capital. For a day care business, you will need to have a substantial amount of money. This money will cater for the premise to be rented, the furniture and equipment. Also, you will need to draft a budget for your business. When drafting a budget be sure to reserve a certain amount of money for future monetary needs. When drafting a budget, it is important to consider how many employees you will be hiring and whether you will be renting space or using already existing space either in your house or in your commercial premise. Also, calculate the amount of money you will require to spend on furniture, toys and other equipment. The amount of money will vary depending on the nature and size of your daycare center. That’s it’s very important to have a good and detailed daycare business plan.

The expenses for operating daycare center business include rent, wages, food, transport, advertising, licencing, insurance, food and utility fees. So the expenses of running a daycare center are quite substantial; however, so are the profits that accrue from your business. Your revenue will come from the money which the customers pay for their children to come to your ECD day care center. When you follow all the requisite legal avenues without cutting corners, you will be able to recoup your investment within a short period of time.


Staff & Management

To be successful as an ECD day care business owner, it is important that you hire qualified and well-trained staff. When hiring staff for your business, it is important to outline a clear criterion to follow. This criterion may include experience working with children, education background, and a clean criminal record. Another important tip is to ensure that each one of your clients signs a contract. This contract will outline what services your business will be offering as well as the fee. The contract should also include a policy statement. The required staff depends on the size of the early childhood education centre. You need child minders, teachers, assistants, kitchen staff, security and logistics personnel. The ECD Day Care Centre business plan should cater for the salaries and wages costs.

As with any other business, it is important to maintain books of accounts that show clearly how much money you spend on running the business. The financial statements should also indicate how much profits your business makes. Also, do not mix business and personal funds.

Marketing Strategies

Be visible online.

If you want your ECD day care business to be quickly discovered, be visible online. It might seem unnecessary but putting up a website for your ECD day care business is paramount. There are countless people who will search for such businesses online. Set up social media accounts for the ECD day care business as well. Include clear and actionable details on all your online content. Include an up to date Google Maps location of the place. Include high definition visuals outlining the facility, services, and prices. Always post regular and engaging content.

Inspire, Solicit, And Propagate User-Generated Content

When it comes to the ECD day care business, word of mouth and referrals are the secret. Often time parents or guardians will only leave their children at ECD day care centers recommended by others. This is usually people who would have used (or use) the ECD day care center. People whose word they trust. This means you can spread brand awareness by inspiring your clients to make positive reviews and testimonials. By propagating such user-generated content you increase the likelihood of more clients who value such social proofs.

Approach Parent Or Guardian Communities

You can push your marketing by identifying parent or guardian communities. For instance, you can tap into residents associations. You can tap into employee groupings. You can even tap into business people or entrepreneur groupings. You can do this offline or online. You can sell you ECD day care business to such communities and generate substantial leads.

There are many reasons why starting a daycare business is a hugely rewarding venture. The demand for child care services is on the increase. The number of women in their childbearing years joining the labor force has increased and will continue to increase. Every year millions of children are being born. Thus your day care business is assured of customers. To attract more clients through referrals, ensure that all children in your day care are well cared for nurtured and play in a safe environment. The primary customers of your day care center will be working mothers and small families that want a place where they can leave their children. A proper marketing strategy should be included in your day care centre business plan.

Working with children can be stressful. However, given that children are usually honest, working with them can be a breath of fresh air especially if you have worked with adults in the past. Therefore, apart from being a highly lucrative business venture, starting a preschool business is also emotionally rewarding. This is especially true since you get to learn and understand human development and different human personalities. Starting a daycare business is challenging; however, this is something that applies to all businesses. Additionally, you will recover the money you invest when starting the business once your ECD center is up and running.

Keys To Profitability

Reputation is important in this line of business. Clients want peace of mind knowing their children are safe. Many security risks these days. They also want an ECD day care center that provides holistic services. Your ECD day care business must provide a better alternative to a client just finding someone to babysit at home. You have to sell and provide benefits and convenience. Cost management is important since enrolment is typically not that big. You need to keep your operating costs at bay to maximize on profits. Inspire customer loyalty and reward referrals to enjoy business growth.

Ascertain the presence of a market before starting an ECD day care business. Not every place is ideal for an ECD day care center. Find cheaper ways of starting it e.g. renting or converting your or part of your house. Find out as much as you can from target parents or guardians prior.

Pre-Written Day Care Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the day care business, we encourage you to purchase our well-researched and comprehensive ECD centre business plan. We introduced the business plans after discovering that many were venturing into the preschool business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global day care business plan will make it easier for you to launch and run your day care business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a day care centre. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the ECD business.

Uses of the Preschool Business Plan (PDF, Word And Excel)

The day care business plan can be used for many purposes including:

Contents of the Day Care Business Plan (PDF, Word And Excel)

The business plan for ECD Centre includes, but not limited to:

The day care business plan package consists of 4 files

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of students, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Day Care Business Plan (PDF)

day care business plan pdf

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The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

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I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

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Get the ECD Day Care Centre Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

day care business proposal

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your day care business! Check out our collection of business plans  , and more business ideas .

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6+ Daycare Business Plan Examples in MS Word | Google Docs | Pages

Daycare business plan, 6+ daycare business plan examples, 1. daycare business plan template, 2. animal day care business plan, 3. child care business plan template, 4. daycare center business plan, 5. day care services business plan, 6. fairview daycare business plan, 7. printable daycare business plan, what is a daycare business plan, how to compose a productive daycare business plan, what are the parts of a business plan, how can i attract parents to my daycare, what are the various types of business plans.

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Legal Templates

Home Business Business Plan Daycare Business Plan

Free Daycare Business Plan

Download our template and create a business plan for your daycare!

Updated January 3, 2023 | Legally reviewed by Brooke Davis

When you are ready to start a daycare business, you need an effective plan that outlines how you will get there. High-quality child care is in high demand, but you must be prepared for the challenges of starting a new business. A solid business plan will get you off on the right foot before you even open the doors of your new facility.

With these helpful tips, you can learn how to make a business plan for a daycare center. Whether you are looking to watch over young children or even need a dog daycare business plan, Legal Templates is here to help you get started.

Why You Need a Business Plan for Your Daycare Business

How to write a business plan for a daycare.

  • Management Team

Daycare Business Plan Sample

A business plan sets the stage for how you will operate your business and how you will get it running. A daycare is no different. Opening a daycare requires intensive planning, legal compliance, and an understanding your market.

A daycare business plan template walks you through the steps needed to build a proper path forward. Every successful business is properly planned from the beginning, not as you go along.

A sample daycare business plan pdf or word document lays it out for you. You can learn how to put it together and what you need to include. Many business plans help you get your head around what you still need to do to prepare.

Some are designed to recruit potential investors to your cause. Either way, you need a business plan to prepare you for the challenges and successes ahead.

Kids at daycare

Knowing how to write your daycare business plan can be tricky without some help. You may not have done this before, but a daycare business plan example can help. Follow these writing tips in each section to create a strong business plan for your future daycare.

1. Executive Summary

The initial section of your business plan is the executive summary. This part of your plan is an introduction for whoever reads it. It is designed to offer an overview of the remaining sections. It should be concise and add only summary details—this is not the section for intensive details or data.

The executive summary will highlight what your daycare business will look like and the most important section of your entire plan.

This section may provide information such as:

  • A business address
  • Phone number, email address, and other contact information
  • List of owners
  • Banking information
  • Start date for the daycare
  • Client base
  • Market niche
  • Factors for success

The executive summary lets you make a case for why your particular daycare will be successful and competitive. It is also the section that helps you sell yourself and your business to potential investors who may play a critical role in getting your daycare started. Provide a mission statement that reflects your goals for the daycare and your motivation for starting your business.

2. Management Team

Your daycare business plan should include important information about your management team. The first part of this section may address ownership of the business itself. It should outline all important ownership details, such as:

  • Legal names of every owner
  • Each owner’s proportionate share
  • The format of ownership percentage (i.e. stocks, capital investments, etc.)
  • The format of the business (Corporation, LLC, etc.)
  • Contact information for each owner

You want everyone who reads this business plan to know who has a stake and how their interests are represented. These details are a crucial part of business formation and preventing costly legal disputes in the future.

The management team section should also include the profiles of your management staff. These are the people who will run the business day-to-day, and they should be properly vetted before being put in charge. Your business plan should list the management teams’:

  • Names and positions
  • Summary of responsibilities
  • Credentials and education background
  • Prior employment or experience
  • Early childhood education licensing or other credentialing
  • Management experience
  • Salary and benefits
  • Past success in a similar role

This information should clearly demonstrate why these are the right people for the job. Not only does it help you know how your business will run, but it also shows others you have a proper plan in place for your daycare.

3. Products and Services

This section lets you talk about why you are starting this business in the first place. You will outline the services or products you intend to sell to consumers. For a daycare it should outline the following:

  • Who is being cared for: Children, elderly adults, or pets?
  • Business hours
  • Staff costs and required credentials
  • Will you offer food, diapers, and other child-care products?
  • How will you measure sales metrics

Daycare is typically considered a service, but product sales are also often a part of this model. Your plan should properly account for how you will handle this dual purpose and how it fits into your business model.

4. Customers and Marketing

You need to identify your market and how you will get customers into your daycare. This section will focus on the need for daycare services in your area and the types of customers you expect to get. Identification of customers is a key part of a business plan and should include details like:

  • How many parents need childcare services?
  • What costs can families be expected to pay for your services
  • The community you will target
  • Demographic data for potential customers

With your customers in mind, you can focus on your marketing strategies. You want to differentiate yourself from your competitors and ensure that the community knows your new business. The daycare business plan must outline how you will achieve these goals. A marketing strategy should combine both traditional and digital marketing methods, including:

  • Open houses
  • Word-of-mouth advertising
  • Advertisements in the paper or yellow pages
  • Billboards or other ads
  • Television, radio, or internet advertisements
  • Social media pages

5. SWOT Analysis

A SWOT analysis will address your daycare’s strengths, weaknesses, opportunities, and potential threats. This analytical method examines your company and how it will operate. It puts each of the four metrics into a visual matrix to help prospective business owners quickly identify favorable and unfavorable factors that may affect their business venture.

A SWOT analysis should focus on how your daycare services can perform against competitors. It may address factors like:

  • Any threats the daycare may face
  • Competitive advantages and why they would be successful
  • Areas that may be improved over time
  • Technology or resources the company may use to increase efficiency
  • Internal factors that may affect economic success

Detailed SWOT sections show investors you have done your homework and give you valuable data to make informed business choices.

6. Financials

A business plan should address the unique financial situation you face. Your daycare business plan should demonstrate your break-even amounts and expected profit margins. It will also address the costs and the areas of revenue you expect. You will want to address the following:

  • Enrollment fees
  • Payment plans
  • Cost of supplies and materials
  • Employee costs
  • Regulatory costs
  • Additional program offerings and revenue
  • Necessary loans or capital improvements

A well-developed budget can demonstrate expected cash flows versus expected expenditures. Knowing how to handle these costs will be incredibly helpful in starting your daycare.

7. Operations

Your operational plan should outline specific procedures your business and staff will follow. It will list employees and those in management positions and their responsibilities. As in your management section, a detailed “chain of command” is important. Staff are an important part of your operations and should be detailed here.

One of the most important aspects of a daycare operation is its location. You should address the following:

  • The facility’s address
  • The type of area it is in (residential, commercial)
  • The space available and amenities
  • Why is it a prime location
  • Accessibility to the community for drop-off

You should also list your business hours and the services you will have available at different times. Child daycare centers differ in when they offer care—whether during the day, evenings, or even on weekends. If you are doing other forms of daycare, you may even utilize late or overnight hours. You get to decide how you run your business, but operations should be clearly outlined in your business plan.

8. Appendix

The appendix section allows you to include other documents that add to your business plan. They may include legal documents like licensing credentials, insurance information, and business formation documents. Additional documents in this area are meant to support your business plan. The appendix might also include the following:

  • Reference letters
  • Photographs of the facility, locations, or general area
  • Market research data
  • Compliance Requirements

The appendix is a flexible section that lets you add supporting documents and other relevant information. Only add details that are helpful to your business plan. The appendix does not need to be lengthy or filled with fluff.

Legal Templates has the daycare business plan sample you need to construct your plan. With this sample at your disposal, you can formulate a business plan for your daycare to show to investors or for your purposes.

You may also use a business plan builder template to help you construct your daycare business plan step by step. See the sample below to help you get started.

Daycare business plan screenshot

You can download a business plan in Word or create your daycare business plan using our document builder.

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Daycare Business Plan

business plan for daycare center pdf

With the majority of parents staying out of the home throughout the day, the daycare (childcare) business has turned into an extremely bankable one in recent years.

If you have the right resources and more importantly, are good with children. If you have ever dreamt of starting a daycare business , then you are at the right place!

Though certain sections are common to all business plans, you’ll need to customize the outline as per the needs and requirements of your business.

Industry Overview

The U.S. childcare market size was valued at USD 54.3 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 3.9% from 2020 to 2027.

This rise in demand has come from the increasing number of working parents. Earlier parents had to quit their careers to take care of their children, but that has changed due to better daycare facilities.

Now, if you plan on entering this competitive childcare market, you must know that the daycare business is based on the foundation of trust more than anything. Hence, providing quality services and having a clean image in the market is of utmost importance.

Studies show that a lot of daycare businesses fail in their first three years due to reasons ranging from poor management to lagging finances. You can combat all of these and many more troubles if you enter the industry with a well-rounded daycare business plan.

What is a Daycare Business Plan?

A daycare business plan is an equivalent of a roadmap in your business journey. A plan helps you understand what you’re getting yourself into.

It helps you understand the market, figure out where you stand in it, know your target audience better, and formulate better marketing and financial strategies.

Overall, it makes your decision-making process faster and more effective and prevents you from feeling clueless at any point in your business journey.

Moreover, it also helps you get investors and helps your employees and partners understand what your business stands for. It gives the people in your business a feeling that you have a vision and know what you are doing with your business.

Also, you get to set clear goals that give you a direction to work and put your efforts in.

Why is a Daycare Business Plan Important?

Everything you do for your business should add value to it. And here’s how a daycare business plan can add value to your business:

It gives you a sense of direction

There are several ways you can go with each business decision. A business plan helps you understand what would work best for your business then.

It helps you understand your target audience better

Planning your business gives a better form and structure to your research. Which at the end of the day helps you understand your customers better. It also helps you analyze what it means for your business.

It helps you understand your competition better

Imagine there’s a popular daycare center in your city and several parents swear by it. Now, this could mean several things for your business.

You’ll have to pick a different location, know the daycare service’s weaknesses and offer better services by working on that area for your business.

You can also pick the things they are doing right, and inculcate the same in your strategies.

It helps you convince your investors

Though making the right prediction is difficult, having a rough idea of your business’s sales and financial potential is important to get investors on board.

Investors want to know the scalability of your business before they invest in it. A good and realistic prediction of returns makes it easier to convince investors.

It keeps you updated with the latest business trends

A business plan is a living document that grows alongside your business. It also helps you have a foresight of changing trends and act on time for getting the best results for your business.

What does a Daycare Business Plan Look Like?

If you are planning to start a new auto or car repair shop, the first thing you will need is a business plan. Use our sample Daycare Business Plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new auto repairing shop, spend as much time as you can reading through some examples of Children’s & Pet business plans .

Moreover, business plans come in different forms to fit the current state of your business.

Apart from that, there are a few major sections that should be included in every business plan.

Daycare Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

  • Executive Summary
  • Keys to Success
  • Company Summary
  • Timothy Bernard Kilpatrick
  • Start-up Summary
  • Locations and Facilities
  • Service Description
  • Competitive Comparison
  • Sales Literature
  • Fulfillment
  • Future Services
  • Industry Analysis
  • Market Segmentation
  • Market Analysis
  • Market Needs
  • Market Trends
  • Market Growth
  • Business Participants
  • Competition and Buying Patterns
  • Main Competitors
  • Strategy and Implementation Summary
  • Value Proposition
  • Competitive Edge
  • Positioning Statement
  • Pricing Strategy
  • Promotion Strategy
  • Marketing Programs
  • Sales Forecast
  • Sales Programs
  • Strategic Alliances
  • Web Plan Summary
  • Website Marketing Strategy
  • Development Requirements
  • Management Summary
  • Organizational Structure
  • Timothy B. Kilpatrick
  • Carolyn Steverson
  • Candice Harris
  • Management Team Gaps
  • Personnel Plan
  • Projected Profit and Loss
  • Projected Cash Flow
  • Projected Balance Sheet

What to Include in Your Daycare Business Plan?

A good daycare business plan consists of a certain number of well-defined sections, the following sections can help you in writing an excellent business plan.

1. Executive Summary

The executive summary section is one of the most important sections of your business plan because it not only forms the first section of your business plan but also acts as a pitch for potential investors who can provide you with funds for your daycare business.

It consists of your company’s vision and mission, its USP, objectives, and also expected revenues.

Writing the executive summary section of your plan at the very end, so you can sum up your plan properly is a good tip to remember.

2. Services

In this section, you should give out a clear idea of what your services are and whom it caters to. You should define your target market, your niche, the area your services will be extended to, etc.

As a daycare center, you should have a clear idea of the age group you will cater to, what is the preferred location of your target audience, how you come off as a service to your customers, and so on.

3. Market Analysis

Market analysis can be of great help to any business, it can help you understand what you are getting yourself into, who your competitors are, what your client base expects out of you, and where you stand in the current market situation.

Hence, market analysis immensely improves your understanding of the industry you are getting into. In the case of a daycare center knowing the best practices of childcare that exist in the market can be of great help.

4. Web Plan

In today’s internet-based world, most busy parents looking for a daycare center online. Hence, having a strong and reliable web presence is crucial to the success of your daycare business. Thus, including a web strategy in your business plan is necessary.

Always remember, as a daycare service coming off as a trustworthy and reliable institution is crucial for your business to work.

5. Management and Organizational Structure

Having a well-structured management system is especially crucial for a daycare service. It not only helps your business run smoother, but it also makes you look more responsible and reliable in front of the parents or the primary caregivers.

In this section, you should include the structure of your organization, details about people on various levels in your company, a solid system for tracking everyone’s work and progress, the areas your team is excelling at, and the areas your team is lagging in.

6. Financial Plan

One of the chief reasons for several daycare services running out of business is poorly managed finances or running out of funds to keep going.

Planning your finances in the early stages of your business saves you from encountering such a problem later on.

Hence, planning your finances is mandatory while writing a business plan.

Daycare Business Plan Summary

In conclusion, apart from having a good image as an organization, a well-managed team, a clearly defined niche, thorough research of the market and an excellent financial plan is crucial to the success of a daycare business.

After getting started with Upmetrics , you can copy this sample daycare business plan into your business plan and modify the required information and download your daycare business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

business plan for daycare center pdf

Business Planning Resources

We have plenty of  free business planning resources  available to help you with your planning. You can download our resources to learn all about business planning.


Not found what you are looking for? Explore our 200+ sample business plans to find match for your business.

business plan for daycare center pdf

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Business Plan for Investors

Senior Daycare Business Plan Example

FEB.10, 2014

Senior Daycare Business Plan Example

Senior Daycare business plan for starting your own business

If you want to start a business where you can make money while being useful for the society, a senior daycare business can be a good option. In this business plan for senior day care center pdf, you will learn in detail how to open a senior day care center. The senior daycare business is a relatively new one and that means there is not a lot of competition in this field. All you need to do is do proper business plan development and you can make serious money in this niche. Many of the details of this business will closely resemble reiki practice business basics .

Executive Summary

2.1 the business.

Eastwood Senior Home will be a registered senior daycare service provider in Austin, Texas. If you ask what is a adult day care, the business will cater to the needs of the people who have to go to work and want their parents/loved ones taken care of. This senior day care business plan will look in detail how the business will be started and operated.

2.2 Management of Senior Daycare Business

It is very important to have a good management structure for starting a senior day care business with success so that we can make a good profit from it.  If you want to have a business plan for angel investors , management is the most important part.

Eastwood Senior Daycare will be managed by three managers. They will be look after the operations, public relations, and human resource of the business.

2.3 Customers of Senior Daycare Business

Unlike a pharmacy business plan , this business will serve a number of different customer types. It is necessary to decide which customers we will be serving in order to start and operate the business the right way.

2.4 Business Target

Just like a retirement home business plan , this business has a target to improve the quality of life for senior citizens of the area. This target will be achieved by the following goals:

Senior Daycare Business Plan Example - 3 Years Profit Forecast

Company Summary

3.1 company owner.

The owner of Eastwood Senior Daycare is Clint Eastwood. Clint has worked as a caregiver for seniors on a freelance basis for 10 years and then did a job in a day care center for seniors for another five years. He has the experience and expertise in this business and is just the right person to start this business.

3.2 Why the Senior Daycare Business is being started?

The reason Clint is starting this business is that he always wanted to do something for the society. He also wanted to start a business of his own. This business is a way that he can do something for the society while making good money. He also knows in detail how to start a senior day care business and can start and run this business effectively.

3.3 How the Senior Daycare Business will be started?

Step1: Planning

If you want to know how to start a daycare for adults, the first thing you need to know is the planning of the business. This is the part where you need to conduct a feasibility study and prepare the senior citizen day care center floor plans so that the business can be started.

Step2: Registration

The next thing that you need to do is to get the business registered. As this business will include attending to the very specific needs of people and providing them with medical attention if needed, it must be properly registered and insured. This step will closely resemble the one for non-emergency medical transportation business plan .

Step3: Establishing the Daycare Center    

Once the business has been registered, the next step will be to establish the facility. The facility will be designed and scaled according to the needs of the area where it is being made. The building will be small in the start but will be constructed in a way that it can be extended in the future if need be.

Step4: Marketing  

The next logical step of starting the business will be to make the business known to the people. Social, print and electronic media channels will be used to make sure that anyone needing the service in the area knows of the existence of the business.

Senior Daycare Business Plan Example - Startup Cost

Now, we have to decide the service that our adult day care service will be providing. As the field is quite a vast one, we can introduce different formats of an adult day care program so that everyone in the need of the service can find one that suits them the most. If you want to know how to start adult day care or how to start a day program for adults with disabilities, the services you will be providing need to be clear.

Eastwood Senior Daycare will provide the following services:

Basic Senior Daycare

This will be the standard daycare package for normal seniors who do not need any special care.

Daycare for Physically Challenged Seniors

This service will cater to the needs of the seniors who have physical limitations and can’t move around or do normal activities on their own.

Daycare for Mentally Challenged Seniors

The mentally challenged seniors affected by Alzheimer’s disease, or other such conditions will be taken care of by this service.

Long-Time Senior Care 

The families who want to leave their senior members with us for extended periods of time can avail this service.

Marketing Analysis of Senior Daycare Business

If you want to know how to open a senior daycare center, you’ll need to run a complete marketing analysis of the industry to see if the business can actually be feasible and profitable. Clint ran a marketing analysis of the business and found out that starting an adult daycare in the area can bring massive profits. This is because there is no such service provider in the area but there is a lot of demand for the service.

5.1 Market Trends

The next step in knowing how to open a senior daycare center is having a look at the market trends of the industry. It can be seen that the market is a relatively new one. People have just started opening an adult day care recently. It has also been pointed out that there is not even a single senior day care facility in the city. This makes the business a very lucrative one to start.

5.2 Marketing Segmentation

The customers of Eastwood Senior Daycare will be from the following market segments.

Senior Daycare Business Plan Example - Marketing Segmentation

5.2.1 Families of Seniors

Families who want their seniors taken care of will be one of the main market segments for the business.

5.2.2 Retired Seniors

Retired seniors who do not have anyone to take care of them will also be among the customers of the business, they will pay for their own care.

5.2.3 Hospitals

Hospitals that have more seniors than their staff can take care of will also be one of the main sources of income for the business.

5.2.4 Care Homes

Senior care homes who are under staffed to take care of all the seniors they have will also be served by the business.

5.3 Business Target

5.4 Product Pricing

Eastwood Senior Daycare will charge premium prices for the service. This is because no one is offering the services in the area and people need them. This gives the perfect opportunity to charge any price for the services.

Marketing Strategy

The next thing that is important for starting this adult day care manual is the marketing strategy of the business. It is necessary to get the adult day care license, without which we cannot provide these services. Clint knows in detail how to start a senior center because he has a complete marketing strategy for the business and all that remains is to execute it now. This business is closely related to a physical therapy business plan .

6.1 Competitive Analysis

The next step in knowing how to open an adult day care center is to run detailed competitive analysis of the business. Here is what’s discovered in the analysis:

6.2 Sales Strategy

One of the main benefits of adult day care business is that a simple sales strategy can work for it and unlike a business plan medical diagnostic centre , we don’t have to make a detailed one. Here’s the strategy for this business:

6.3 Sales Monthly

Senior Daycare Business Plan Example - Sales Monthly

6.4 Sales Yearly

Senior Daycare Business Plan Example - Sales Yearly

6.5 Sales Forecast

Senior Daycare Business Plan Example - Unit Sales

Personnel plan

Like any business that is focused at providing services instead of products, senior day care business plan needs a lot of people to run the right way. This business plan for senior day care center pdf addresses this point in detail too. Here we will see what is the detail of the people that will be needed to run the business effectively. To answer the question how to start senior day care business, here is a plan of people needed to run this business.

7.1 Company Staff

The following people will be needed to run the business:

7.2 Average Salary of Employees

Financial plan.

The last thing that we need to cover is the adult day care cost. This is a relatively low-cost business that can be started with a small investment. The elderly day care cost is low because we don’t need to buy an inventory or specialized equipment for this business. Here are the costs that will be involved in starting this business:

8.1 Important Assumptions

8.2 break-even analysis.

Senior Daycare Business Plan Example - Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Senior Daycare Business Plan Example - Profit Monthly

8.3.2 Profit Yearly

Senior Daycare Business Plan Example - Profit Yearly

8.3.3 Gross Margin Monthly

Senior Daycare Business Plan Example - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Senior Daycare Business Plan Example - Gross Margin Yearly

8.4 Projected Cash Flow

Senior Daycare Business Plan Example - Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Sample Business Plan for Senior Day Care Center in pdf

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Infants and toddlers are fragile, little saplings who need the utmost care and affection. Being able to take care of them well positively affects their holistic growth and even their well-being when they grow up. Unfortunately, not all parents can give their children the attention they need. Some kids are left with nannies who may not have any genuine concern for them. You may also see Daycare Business Plans .

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South post child development center: Childcare :: Ft. Belvoir :: US Army MWR

Опубликовано: January 19, 2023 в 2:47 pm

Автор: alexxlab

Категории: Child

Childcare :: Ft. Belvoir :: US Army MWR

Joann blanks cdc, north post cdc, fort belvoir north cdc 1# and #2, woodlawn cdc, south post cdc.


Full Day/Part Day/Hourly Care

Ages 6 weeks-Kindergarten*

  CDCs are on-post child care centers that offer full-day, part-day and hourly care for children in nationally accredited environments.

* In some communities, Kindergarten children may be located in the School Age Center

Army School Age Centers provide care during:

business plan for daycare center pdf

* Depending on school configuration

Looking for a Teen Babysitter? Looking to be a Teen Babysitter? CYS offers training following the 4-H babysitter curriculum in becoming a certified Teen Babysitter. Teen military family members in grades 7 and up who wish to to expand and market themselves for babysitting jobs can be placed on the babysitter’s referral list with parent permission.

business plan for daycare center pdf

CYS offers Babysitting Referral Services for registered families. Babysitters on the referral list are 13 years or older, have certification in First Aid and CPR, and are trained in: 

Stop by Parent Central Services or go back to the Register section to find out more information.

CYS provides additional child care beyond the regular facility opening hours.

business plan for daycare center pdf

business plan for daycare center pdf

Units interested in the VCCUS program should contact Parent & Outreach Services for more information.

CYS offers parents a Friday or Saturday night out on the town for children ages 6 weeks through 5th grade. We provide a snack and developmentally appropriate activities for your child.   

Contact Parent & Outreach Services for more information. 

* Available at select communities

CYS Services offers parents a day out on Friday or Saturday for children ages 6 weeks through 5th grade. We provide meals and snacks and developmentally appropriate activities for your child.    

business plan for daycare center pdf

Military Child Care dot com is your portal for child care at installations around the world. Children can only be placed in child care after submitting a request for care through Military Child Care com.

Rivanna Station CDC is a sub-installation of Fort Belvoir located in Charlottesville Virginia, home to the U.S. Army’s National Ground Intelligence Center with elements of the following Intelligence Community organizations: selected components of the Defense Intelligence Agency, the National Geospatial-Intelligence Agency and others. Rivanna Station Child Development Center offers personnel within this community full day care services providing a safe and healthy environment for early childhood development and preschool programs.

business plan for daycare center pdf

The Center on the Social and Emotional Foundations for Early Learning (CSEFEL) is focused on promoting the social emotional development and school readiness of young children birth to age 5.

CSEFEL is a national resource center funded by the Office of Head Start and Child Care Bureau for disseminating research and evidence-based practices to early childhood programs across the country.

business plan for daycare center pdf

The Teaching Pyramid (PDF)

The Pyramid Model provides guidance for early childhood, special education and early intervention personnel, early educators, families and other professionals on evidence-based practices for promoting young children’s healthy social and emotional development. The goal of the CSEFEL Pyramid Model Implementation in Army Child and Youth Programs is to ensure that staff members are well-equipped with the knowledge and skills necessary to promote the social and emotional development of children and address challenging behavior.

Fostering Healthy Social and Emotional Development in Young Children Tip Sheet (PDF)

business plan for daycare center pdf

Social-Emotional Competence of Children (PDF)

There is growing evidence that social-emotional development is associated with better outcomes at home, at school, and in the community. Social-emotional development represents a child’s growing ability to interact with others, to form attachments and relationships, to identify and regulate emotions, and to feel confident exploring the environment.

The Backpack Connection Series was created by TACSEI to provide a way for teachers and parents/caregivers to work together to help young children develop social emotional skills and reduce challenging behavior.

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The Backpack Connection Series includes handouts in four categories:

Read the Backpack Series topics any time!

 Learn more on the CSEFEL website.

Child and Adult Care Food Program (CACFP) provides aid to child and adult care institutions and family or group day care homes for the provision of nutritious foods that contribute to the wellness, healthy growth, and development of young children, and the health and wellness of older adults and chronically impaired disabled people.

Through CACFP, more than 4.2 million children and 130,000 adults receive nutritious meals and snacks each day as part of the day care they receive.

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Home : Child Development Centers, Inc.

2022 Annual Appeal

Click here to give today!

Pre-K Counts Openings!

It’s not too late to enroll your 3, 4, or 5-year-old child!

Click here to view our openings in each county!

Preschool Enrollment

Enroll your 3-, 4-, or 5-year-old for the 2022-23 preschool year today!

Begin the Enrollment Process Now!

Asbury CDC is Erie’s Choice winner for Preschool AND Childcare in Erie!

Thank you all for taking the time to nominate and vote for us!

New Roosevelt location opening March 2023 in Erie!

As seats are filling up quickly, be sure to complete our online enrollment form today!

Secure your child’s seat now!

Teachers Wanted!

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Apply to join our family today!

Updated Parent’s Corner!

Click here to visit the updated Parent’s Corner!

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We are a private, nonprofit organization that provides child care and early childhood education to children in a safe, happy and healthy learning environment.

CDC offers a variety of programs for infants, toddlers, preschoolers and school-age children. Join the CDC family today!

 View all programs and services

Infants and Toddlers

We provide individualized care for your child beginning at 6 weeks of age.

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Curriculum-based programs help to give your child an early educational boost. We offer Free preschool programs based on income, as well as private, tuition-based programs.

Outer Limits

Outer Limits is a free program that gives children and teens the opportunity to participate in sports, the arts and other activities.

90% of Brain Growth Happens Before Kindergarten

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Kindergartens, nurseries (DOE), gymnasiums : Elektrostal : Moscow region : GosRegion

Legal advice: +7-800-301-63-78

State institutions of the Moscow region

+7 (496) 573-22-25

Go to the official website >>

Postal code: 144004 +7 (496) 573-22-25 Senior educator: Nina Zhevlakova, +7 (496) 573-22-25

How to find us: travel by bus or minibus to the Yuzhny shop stop

Elementary school-kindergarten for children with disabilities

Moscow region / Elektrostal

8 (496) 573-27-21

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Kindergarten No. 1 of a general developmental type

8 (496) 576-43-00

) 8 (466) -17-25

Child Development Center-Kindergarten No. 4

Moscow Region / Elektrostal


8 (496) 573-13-33

8 (496) 573-003 9005

Child development center-kindergarten №5

8 (496) 571-65-51

8 (49)6) 571-65-58


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8 (49657) 359-11

8 (49657) 306-03

kindergarten No. 9 of a general developmental type

Moscow Moscow region / Elektrostal

8 (496) 574-22-59

Children’s Development-kindergarten No. 12

8 (496) 573-25-18

8 (496) 573-75-77

, 4 Zapadnaya, 8

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8 (496) 573-81-55; 8 (496) 573-28-75

Kindergarten No. 20 of a general developmental type

8 (496) 573-45-16

Kindergarten No. 22 Combined type

8 (496) 573-16-48

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8 (496) 575-34-52

Kindergarten No. 24 (with groups for children with ONR)

8 (495) 575-93-65

Child development center-kindergarten №26

Moscow region / Elektrostal 496) 576-05-30

Kindergarten No. 28 of general development type

8 (496) 574-43-10

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8 (496) 575-55-68

kindergarten No. 30 general developmental species

8 (496) 575-97-33

8 (496) 575-97-60

Kindergarten No. 32 of a general developmental type

8 (496) 576-14-41

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8 (496) 574-20-88

8 (496) 574-29-89

Child Development Center-Kindergarten No. 36

8 (496) 574-48-04

9 (496) 574-3003-75 Address:

Kindergarten No. 37 of general developmental type

8 (496) 574-26-81

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Telephone (s):

8 (496) 572-51-73

8 (496) 576-43-55

kindergarten No. 44 of general developmental species

8 (496) 573-20-85

8 (496) 573-17-27

Child development center-kindergarten №46

8 (496) 573-67-22

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8 (496) 575-02-52

Kindergarten No. 50 of a general developmental type

8 (496) 574-27-66

9 (496) 574-3006-7

Kindergarten No. 53 General Development

8 (496) 573-78-94

8 (496) 573-99-31

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Kindergarten No. 55 of a general developmental type

8 (496) 571-83-64

Kindergarten No. 56 of a general developmental type

8 (496) 576-35-82

8 (496) 573-60-71

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Kindergarten No. 63 of a general developmental type

8 (496) 573-66-33

8 (496) 573-63-53

Child Development Center-Kindergarten No. 65

8 (496) 575-58-28

8 (496) 575-11-44

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8 (496) 574-36-68

Southern Federal University | Press Center: SFedU celebrated Lyceum Student’s Day

Southern Federal University | Press Centre: SFedU celebrated Lyceum Student’s Day nine0002 Font size

Line spacing

Information about the educational organization

Lyceum Student Day was celebrated in SFU

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In 1811, on October 19, the Imperial Tsarskoye Selo Lyceum was opened, known as the school that brought up the great Russian poet and writer Alexander Sergeevich Pushkin. The day of its opening became the date of the celebration of the All-Russian Lyceum Student Day. This holiday, according to Anna Dmitrova , director of the SFU Lyceum , is the preservation of the traditions of lyceum education in Russia.

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On this day, the SFedU Lyceum holds many interesting and socially significant events, one of which is a poster contest related to the life and work of the lyceum, in which not only students, but also teachers took part. All works are posted in the Lyceum building, as well as in the official VKontakte group, where you can vote for your favorite work. Also, the literary club prepared tasks on the history of the Tsarskoye Selo Lyceum for the holiday. nine0005

In addition, the election of the chairman of the council of students was held in the lyceum, already from the school bench the children have the opportunity to feel social responsibility to the team of students and teachers.

business plan for daycare center pdf

“I met the SFedU Lyceum last year at an open day, and I was very inspired by the atmosphere of this educational institution and the activities that constantly take place here. It’s great that teachers communicate with students on an equal footing, they are always ready to help and suggest, they are attentive to absolutely every student, and it’s also nice to see that each teacher simply burns with his subject and also tells it interestingly. Being the chairman of the council of students is not only an honor, it is also a great responsibility, and I hope that this will help me gain more self-confidence, develop my leadership qualities and, of course, benefit my Lyceum in the face of its students and teachers” , – Ekaterina Marchenko shared .

Congratulations to Ekaterina on her election to a high post, as well as to all lyceum students on the holiday! We wish you excellent, interesting studies and high achievements!

business plan for daycare center pdf


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Corporate Giants Buy Up Primary Care Practices at Rapid Pace

Large health insurers and other companies are especially keen on doctors’ groups that care for patients in private Medicare plans.

Send any friend a story

As a subscriber, you have 10 gift articles to give each month. Anyone can read what you share.

An older patient sits in a chair in a health clinic’s examination room, talking with a nurse practitioner who perched high up on an examination table and has a laptop in front of her. She has a stethoscope around her neck and both wear face masks.

By Reed Abelson

It’s no surprise that the shortage of primary care doctors — who are critically important to the health of Americans — is getting worse.

They practice in one of medicine’s lowest paid, least glamorous fields. Most are overworked, seeing as many as 30 people a day; figuring out when a sore throat is a strep infection, or managing a patient’s chronic diabetes.

So why are multibillion-dollar corporations, particularly giant health insurers, gobbling up primary care practices? CVS Health, with its sprawling pharmacy business and ownership of the major insurer Aetna, paid roughly $11 billion to buy Oak Street Health, a fast-growing chain of primary care centers that employs doctors in 21 states. And Amazon’s bold purchase of One Medical, another large doctors’ group, for nearly $4 billion , is another such move.

The appeal is simple: Despite their lowly status, primary care doctors oversee vast numbers of patients, who bring business and profits to a hospital system, a health insurer or a pharmacy outfit eyeing expansion.

And there’s an added lure: The growing privatization of Medicare, the federal health insurance program for older Americans, means that more than half its 60 million beneficiaries have signed up for policies with private insurers under the Medicare Advantage program. The federal government is now paying those insurers $400 billion a year.

“That’s the big pot of money everyone is aiming at,” said Erin C. Fuse Brown, director of the Center for Law, Health & Society at Georgia State University, and an author of a New England Journal of Medicine article about corporate investment in primary care. “It’s a one-stop shop for all your health care dollars,” she said.

Many doctors say they are becoming mere employees. “We’ve seen this loss of autonomy,” said Dr. Dan Moore, who recently decided to start his own practice in Henrico, Va., to have more say in caring for his patients. “You don’t become a physician to spend an average of seven minutes with a patient,” he said.

The absorption of doctor practices is part of a vast, accelerating consolidation of medical care, leaving patients in the hands of a shrinking number of giant companies or hospital groups. Many already were the patients’ insurers and controlled the distribution of medicines through ownership of drugstore chains or pharmacy benefit managers. But now, nearly seven in 10 of all doctors are either employed by a hospital or a corporation, according to a recent analysis from the Physicians Advocacy Institute.

The companies say these new arrangements will bring better, more coordinated care for patients, but some experts warn the consolidation will lead to higher prices and systems driven by the quest for profits, not patients’ welfare.

Insurers say their purchase of medical practices is a step toward what is called value-based care, with the insurer and doctor paid a flat fee to care for an individual patient. The fixed payment acts as a financial incentive to keep patients healthy, provide more access to early care and reduce hospital admissions and expensive visits to specialists.

The companies say they favor the fixed fees over the existing system that pays doctors and hospitals for every test and treatment, encouraging doctors to order too many procedures.

Under Medicare Advantage, doctors often share profits with insurers if the doctors take on the financial risk of a patient’s care, earning more if they can save on treatment. Instead of receiving a few hundred dollars for an office visit, primary care doctors can be paid as much as $14,000 a year to manage a single patient.

But experts warn these major acquisitions threaten the personal nature of the doctor-patient relationship, especially if the parent company has the authority to dictate limits on services from the first office visit to extended hospital stays. Once enrolled, these new customers can be steered toward chains of related businesses, like a CVS drugstore or Amazon’s online pharmacy.

UnitedHealth Group is a sprawling example of consolidated services. It owns the major insurer that has nearly 50 million customers in the United States and oversees its ever-expanding subsidiary, Optum, which has bought up networks of doctors and medical sites. Optum can send patients from one of its roughly 70,000 doctors to one of its urgent care or surgery centers.

Senator Elizabeth Warren, Democrat of Massachusetts, is urging the Federal Trade Commission to take a closer look at some of these large deals, which regulators have so far not blocked on antitrust grounds. “I fear that the acquisition of thousands of independent providers by a few massive health care mega-conglomerates could reduce competition on a local or national basis, hurting patients and increasing health care costs,” she wrote to regulators in March.

This consolidation of medical care may also run afoul of state laws that prohibit what is called corporate medicine. Such statutes prevent a company that employs doctors from interfering with patient treatment.

And experts warn of the potential harm to patients, when corporate management seeks to control costs through byzantine systems requiring prior authorization to receive care.

For example, Kaiser Permanente, the giant nonprofit health plan that has exclusive contracts with physician groups, settled a malpractice case for nearly $2.9 million last year with the family of Ken Flach, a former tennis player who contracted pneumonia and died from sepsis after a Kaiser nurse and doctor would not send him for an in-person visit or to the emergency room, despite the urgent pleading of his wife. Kaiser said medical decisions are made by its providers in consultation with their patients and said its “deepest sympathy remains with the Flach family.”

Doctors also chafe at oversight that does not benefit patients. “They are trying to run it like a business, but it’s not a business,” said Dr. Beth Kozak, an internal medicine doctor in Grand Rapids, Mich.

Her doctors’ group has teamed up with Agilon Health, an investor-owned company, to work with Medicare Advantage plans. Dr. Kozak said she has to work longer hours, not to provide better care, but to supply additional diagnoses for patients, which increases federal reimbursements under the Medicare Advantage program. “It’s not because I’m giving better patient care,” she said. “It’s all tied to the billing.”

The corporate consumption of medical care keeps growing. Walgreens Boots Alliance, one of the largest U.S. pharmacy operations, spent $5 billion for a majority stake in VillageMD, a primary care group, and teamed with Cigna to buy another medical group for nearly $9 billion. And short of an outright purchase, UnitedHealth is partnering with Walmart to offer care to older patients.

In promoting the benefits of buying Oak Street clinics to investors, Karen S. Lynch, the chief executive of CVS Health, said primary care doctors lower medical costs. “Primary care drives patient engagement and positive clinical outcomes,” she said.

Many of these companies are building chains of clinics. On a recent tour of an Oak Street clinic in Bushwick, one of 16 centers opened since October 2020 in New York City, patients were typically seen from 8 a.m. to 5 p.m., with a nurse available after hours to field questions.

Ann Greiner, the chief executive of the Primary Care Collaborative, a nonprofit group, defended the recent forays by private companies into this field of health care, saying they are infusing practices with sorely needed funds and may improve access to care for people in underserved areas.

“The salaries of the folks in those arrangements are higher,” she said. “They are providing more comprehensive care in many of those arrangements. They are providing more tech and more team-based care. That’s all investment.”

But these deals also risk shifting the balance from quality treatment to profits, she said.

In recent years, some have invoked the laws banning corporate medicine to challenge these large-scale private operations. Envision Healthcare, a private equity-backed company that employs emergency room doctors, is being sued in California by a unit of the American Academy of Emergency Medicine, a professional group that supports independent practices, accusing it of violating that state’s provisions.

“Envision exercises profound and pervasive direct and indirect control and/or influence over physicians practice of medicine,” according to the lawsuit . The suit maintains that Envision controls the doctors’ billing and establishes medical protocols.

While Envision would not comment on the litigation, it said it “follows an operating structure that is common across the health care sector and widely used by nonprofit, privately held and public groups as well as hospitals and insurers.”

The big insurers find doctors’ groups particularly attractive, although many have reported sizable losses. The acquisition of Oak Street, which has lost more than $1 billion over the last three years, could help CVS’s Medicare Advantage plans improve their quality or “star” ratings and increase payments for one of its plans.

Even small numbers of patients can translate into significant revenue. One Medical, the company Amazon owns, is best known for sleek clinics. The company scooped up a practice specializing in Medicare Advantage. Only about 5 percent of One Medical’s 836,000 members are enrolled in that federal program, but roughly half of its revenue comes from that tiny slice of patients, according to its 2022 financial statements.

Regulators are already flagging questionable methods employed by some practices. In November 2021, Oak Street disclosed that the Justice Department was investigating sales ploys like free trips to its clinics and payment of insurance agents for referrals. One doctor at a center described recruiting patients with “gift cards, swag and goody bags,” according to a shareholder lawsuit against Oak Street.

The lawsuit detailed concerns that doctors were inflating the payments from the federal government by overstating how sick their patients were.

Oak Street says it has not been accused of any wrongdoing by the Justice Department and says the lawsuit is “without merit.”

These private Medicare Advantage plans have been heavily criticized for racking up enormous profits by inflating costs and exaggerating patients’ illnesses to charge the government more than they should.

Under new rules , the Biden administration would eliminate some of the most problematic, overused diagnoses, and doctors and insurers could earn less.

But other pathways to profit also explain why corporations covet these deals. Unlike the caps on insurers’ moneymaking, where a Medicare Advantage insurer has to spend at least 85 cents of every dollar on patient care, there are no limits to how much profit these doctor practices and pharmacy chains can make.

It may be too soon to determine whether consolidated care will improve patients’ health. “So far, when you look across the industry, the record of these acquisitions has been mixed,” said Dr. Sachin H. Jain, the chief executive of SCAN Group, a nonprofit based in Long Beach, Calif., that offers Medicare Advantage plans.

And the investments may not halt the rapid disappearance of the doctor still sought by so many people for ordinary care, including a recent report showing fewer medical school graduates going into the field.

“We’re dealing with incredible levels of burnout within the profession,” said Dr. Max Cohen, who practices near Portland, Ore. Since the pandemic, his low-income patients have become much sicker, he said, with the level of illness “through the roof.”

An earlier version of this article misstated the relationship between Kaiser Permanente, the health plan consortium, and physician groups. Kaiser Permanente said it had exclusive contracts with doctors’ groups, but did not own them.

How we handle corrections

Reed Abelson covers the business of health care, focusing on health insurance and how financial incentives affect the delivery of medical care. She has been a reporter for The Times since 1995. @ ReedAbelson


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