medical company business plan

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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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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Healthcare and Medical Business Plan

JUL.15, 2013

A healthcare business plan is a document that outlines the strategies, goals, and financial targets of a healthcare venture. Writing a healthcare business plan helps you understand your market, competitors, and funding sources. It also guides your operations, marketing, and growth.

This article explains how to write a business plan in healthcare using an example. Refer to our medical practice business plan for tips and best practices to make your business plan professional and persuasive.

Healthcare Business Plan Example

To illustrate the process of writing a healthcare business plan, we will use Oaktree Family Health, a fictional family medical clinic based in San Francisco. This medical clinic will offer general and preventative healthcare services. For more services, please check our dentistry startup business plan .

The business plan for Oaktree Family Health comprises several essential components, which include:

• Executive summary
• Industry analysis
• Product offering
• Customer focus
• Management team
• Marketing plan
• Financial plan

We will outline each component and provide tips on how to write it effectively.

Healthcare Business Plan Executive Summary

Oaktree Family Health is a family medical clinic in San Francisco that offers quality and affordable healthcare for low to moderate-income people. We provide general and preventative healthcare services. We target the residents and workers in the San Francisco Bay Area who have limited access to healthcare due to various factors.

We are seeking $250,000 in funding to start and operate our clinic. We will use the funds for the following purposes:

• Lease and renovate a 2,000-square-foot facility
• Purchase medical equipment and supplies
• Hire and train four medical practitioners and four supporting staff
• Obtain licenses and permits
• Launch a website and social media accounts
• Conduct marketing and advertising campaigns

We expect to generate $1.2 million in revenue in the first year, with a net profit margin of 15%. Oaktree Family Health is an attractive business opportunity that benefits our investors and community. Refer to our wellness business plan for detailed coverage.

Industry Analysis

The healthcare and medical industry is experiencing significant growth, with various sectors contributing to its expansion. Some key statistics and growth rates include:

• The global healthcare market is projected to reach $665.37 billion by 2028. (Source – Insider Intelligence )
• Healthcare profit pools are estimated to grow at a 4 percent CAGR from $654 billion in 2021 to a larger amount in 2026. (Source – McKinsey )

The growth of the healthcare industry is driven by several factors, such as:

• Aging population
• Rising health awareness
• Technological innovation

The healthcare industry can be segmented into various categories:

• Physicians and clinics
• Home health care
• Others such as dental, optical, chiropractic, and alternative medicine. We have covered these in our business plans for pharmacy .

Advertising and Promotion in Healthcare Business Plans

The advertising and promotion section of your business plan for a healthcare startup shows how you market your services to your customers. It also tells your marketing effort goals, budget, and metrics. The advertising and promotion section should have these elements:

• Marketing goals
• Marketing budget
• Marketing mix
• Marketing metrics

Here is an example of an advertising and promotion section for Oaktree Family Health:

Oaktree Family Health’s Marketing Goals

• Increase brand awareness and recognition among low to moderate-income people in the San Francisco Bay Area who have limited access to healthcare by 50% in the first year.
• Generate at least 500 leads and 100 new customers per month in the first year, with a 20% conversion rate and an 80% retention rate.
• Boost sales and revenue by 25% in the first year, with a 15% net profit margin.

Oaktree Family Health’s Marketing Budget

Our budget for the first year is $50,000, which is 4% of the projected revenue. The initial investment and cash flow will fund the budget. We will use the budget as follows:

• Website development and maintenance: $10,000 (20%)
• Social media marketing: $10,000 (20%)
• Online advertising: $10,000 (20%)
• Offline advertising: $10,000 (20%)
• Public relations and events: $10,000 (20%)

Oaktree Family Health’s Marketing Mix

Our marketing mix consists of the following elements:

• Product – Oaktree Family Health provides general and preventive healthcare services like check-ups, minor surgeries, and gynecology. The services are affordable, accessible, and personalized, meeting the client’s needs and preferences. The services are delivered by well-trained and compassionate medical practitioners and staff, using advanced technology and equipment.
• Price – Oaktree Family Health charges reasonable fees and accepts cash, credit cards, and insurance. It also offers discounts and payment plans for eligible clients based on their income and health. The pricing strategy is value-based, which reflects the value and benefits of the services, as well as the costs and risks of providing them.
• Place – Oaktree Family Health operates from a 2,000-square-foot facility in San Francisco. The facility is close to public transportation, schools, and community centers. It has ample parking space and a modern and comfortable environment.
• Website: Professional, user-friendly site with info on services, prices, location, contact details
• Social media: Active accounts on Facebook, Twitter, and Instagram
• Online advertising: Google, Facebook, Yelp, Instagram ads
• Offline advertising: Newspapers, magazines, radio, flyers
• Public relations and events: Press releases, interviews, health fairs, workshops, seminars

Oaktree Family Health’s Marketing Metrics

Our marketing metrics consist of the following indicators and methods:

• Website Traffic – Measured with Google Analytics to evaluate performance
• Conversion Rate – Calculated and optimized with Google Analytics
• Customer Satisfaction – Measured via surveys, reviews, ratings, testimonials
• Sales and Revenue – Tracked with accounting software and financial statements

OGSCapital for your Healthcare Business Plan

The experienced business planning advisors at OGSCapital offer end-to-end support for healthcare enterprises needing to create an effective business plan. Our knowledgeable team works hand-in-hand with clients to grasp your healthcare business vision, targets, and necessities. With OGSCapital’s customized guidance, healthcare organizations receive skilled assistance through every step of crafting a business plan—from initial research to final presentation.

We have helped thousands of entrepreneurs and businesses across various industries and regions to achieve their goals and dreams, and we can do the same for you. Whether you start a new healthcare business, expand an existing one, or seek funding or partnership, we can help you create a business plan for healthcare services to impress and persuade your target audience.

Frequently Asked Questions

1. What are the components found in a business plan?

The key components of a medical-related business plan are an executive summary, company description, market analysis, organization and management plan, products or services, marketing and sales strategy, financial projections, and an appendix. Refer to our medical transportation business plan to learn more.

2. Can I write a business plan myself?

Yes, you can write a business plan for a healthcare organization yourself. However, we recommend consulting experts like OGSCapital or using business plan templates like the industrial hemp business plan to ensure you cover all crucial information.

Download Medical Business Plan Sample in pdf

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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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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BUSINESS STRATEGIES

How to create a medical supply business plan

• Annabelle Amery
• Sep 5, 2023

When starting a business in the medical supply industry, creating a comprehensive and clear business plan is crucial to lay a strong foundation for success. This plan serves as a roadmap that guides the business owner through key aspects of the business's development and growth.

Crafting a well-structured medical supply business plan is not only essential for navigating the complexities of the medical industry, but also attracting potential investors, securing financing and establishing credibility.

Ultimately, a well-crafted medical supply business plan forms the bedrock of starting a successful medical supply venture, guiding the business toward achieving its goals in a dynamic and critical sector.

Looking to create a online business and get started with eCommerce ? Take Wix’s eCommerce website builder for a spin.

Benefits of starting a medical supply business plan

Writing a comprehensive business plan offers numerous advantages for any type of business . As it regards your medical supply business, a business plan is helpful for:

Attracting funding: A well-crafted business plan acts as a powerful tool to attract potential investors and raise money for starting a medical supply business. Investors want to see a clear understanding of the market potential, revenue projections and strategies for growth. A comprehensive plan demonstrates the business owner's commitment and professionalism, increasing the likelihood of obtaining financial support.

Resource planning: Starting a medical supply business involves a thorough understanding of the resources, supplies and staff needed to establish and operate the business smoothly. A detailed business plan forces you to research and outline the necessary equipment, regulatory compliance, logistics, staffing and partnerships. This clarity ensures that all aspects of your business are considered and addressed adequately.

Success planning: Creating a business plan enables business owners to develop a clear roadmap for success when starting a medical supply business. The plan outlines objectives, strategies and key performance indicators that guide your business's growth trajectory. It helps in setting measurable goals and tracking progress, allowing adjustments to be made to stay on course.

Identifying challenges and opportunities: A thorough market analysis within the business plan helps identify trends, challenges and opportunities in the medical supply industry. Understanding the competitive landscape, customer needs and industry shifts allows the business to tailor its offerings to meet market demands effectively.

Sustainability: Creating a financial plan within the business plan offers insights into revenue projections, expenses and profitability. It ensures that the medical supply business is financially viable and can sustain its operations in the long run. This plan also helps in managing cash flow and making informed decisions about budget allocation.

How to write a medical supply business plan in 6 steps

In the sections below, we’ll guide you through six essential steps to help you craft a comprehensive medical supply business plan that sets the stage for a thriving venture in the healthcare industry.

Executive summary

Business and domain names

Market analysis and research

Operations plan, marketing and advertising plan, financial plan, 01. executive summary.

The executive summary is a succinct overview of your medical supply business plan, providing a snapshot of the entire document. It encapsulates the essence of your business, its objectives, strategies and key points. This section is crucial as it often serves as the first impression for potential investors and stakeholders.

To craft a clear executive summary for your medical supply business, focus on introducing your medical supply business, its mission and its unique value proposition in the industry. Summarize the potential market demand for medical supplies. Then, highlight the types of medical supplies your business will offer, emphasizing any innovative or specialized items.

Describe what sets your medical supply business apart from competitors, such as quality, pricing, distribution network or customer service. You should also provide a glimpse into your revenue projections and growth potential, showcasing the financial attractiveness of your venture. Finally mention the initial funding required to launch your medical supply business and support its early operations.

Here’s an example of an executive summary for a medical supply venture: “MediAid Supplies is a pioneering medical supply business committed to providing healthcare professionals and facilities with the essential tools they need to deliver exceptional patient care. Our mission is to bridge the gap between quality medical supplies and their availability, ensuring that healthcare providers can focus on their vital roles without concerns about procurement challenges.

In an ever-evolving healthcare landscape, MediAid Supplies emerges as a reliable partner, offering a wide range of medical equipment, devices, and consumables. Our dedication to quality, affordability, and timely distribution positions us as a leader in the medical supply industry.

MediAid Supplies anticipates substantial revenue growth by addressing the escalating demand for reliable medical supplies and our commitment to unparalleled customer service. To achieve our vision, we are seeking strategic partnerships and investments that will support our expansion and outreach efforts.”

02. Business and domain names

Selecting a strong business name is crucial for a medical supply business to establish brand identity, build trust, and resonate with industry stakeholders. A well-chosen name should reflect professionalism, reliability and the scope of medical supplies offered. It's essential to ensure the chosen name is not already trademarked and is available for registration.

Using a business name generator can provide inspiration and generate creative ideas for your medical supply business name. Once the company name is finalized, securing a matching domain name for your business website is equally important in today's digital age.

Note: once you’ve settled on a business name and decided on the best structure for your business, you’ll want to register your business .

03. Market analysis and research

Incorporating a comprehensive market analysis and research section in your medical supply business plan is crucial. This section delves into understanding your target market, competitors and industry trends. It helps you craft effective marketing strategies and make informed business decisions.

04. Operations plan

The operations plan outlines practical aspects, such as the location of your medical supply business, premises design, equipment procurement, inventory management and staffing needs. It ensures you have a clear roadmap for effectively managing daily operations.

05. Marketing and advertising plan

The marketing and advertising plan lays out strategies and campaigns to effectively promote your medical supply business. It should highlight strategies such as digital marketing, trade shows, partnerships with healthcare facilities and campaigns that showcase the quality and reliability of your supplies.

Remember to keep your branding consistent no matter where you promote your business. Start by learning how to make a medical logo and then create your own with the use of a medical logo maker .

06. Financial plan

The financial plan is a critical component of a business plan for a medical supply business. It provides a comprehensive overview of the financial aspects of your business, including startup costs, funding sources, revenue projections, expenses and the time frame for reaching profitability. This section helps you demonstrate the financial viability of your business and assists potential investors and lenders in evaluating the potential return on their investment.

Startup costs and funding

Outline the initial investment required to launch your medical supply business. This includes expenses, such as:

Costs associated with procuring the initial inventory of medical supplies, equipment and devices.

Costs for leasing or purchasing a suitable location, interior design and furnishing.

Expenses for business registration, licenses, permits and compliance with industry regulations. For example, starting an LLC where costs vary between states.

Costs for creating a strong brand presence, including logo design, website development and marketing campaigns.

Estimate costs for utilities, insurance, salaries and any other recurring expenses for the initial period.

Funding sources

Identify the sources of funding you intend to utilize to cover your startup costs. These sources may include:

Personal savings: Investment from your personal savings or assets.

Bank loans: Securing loans from financial institutions.

Investors: Attracting equity investors who provide capital in exchange for ownership.

Partnerships: Partnering with other businesses or individuals to pool resources.

Revenue projections

Provide an estimate of your medical supply business's potential revenue over a specific period. Consider factors like the average transaction value, volume of sales and the pricing strategy for your products. Projections can be broken down by months or years to give a clear understanding of your growth trajectory.

Expenses and costs

Detail the anticipated expenses that your medical supply business will incur. Categorize them into fixed costs (rent, utilities, salaries) and variable costs (inventory, marketing, shipping). This breakdown helps you assess your business's cost structure and manage cash flow effectively.

Profit and loss projection

Present a profit and loss (P&L) projection that outlines your expected revenue and expenses over a specific period. The P&L statement calculates your net income or loss by subtracting total expenses from total revenue. This projection provides a clear picture of your business's financial health and potential profitability.

Break-even analysis

Perform a break-even analysis to determine the point at which your medical supply business's total revenue equals its total costs. This analysis helps you understand the minimum level of sales required to cover your expenses and begin generating profits.

Time frame for profitability

Indicate the expected time frame for your medical supply business to become profitable. This depends on various factors, including market demand, pricing strategy, marketing efforts and operational efficiency. Providing a realistic estimate helps stakeholders understand when they can expect a return on their investment.

Cash flow forecast

Prepare a cash flow forecast to track the inflows and outflows of cash in your medical supply business. This forecast helps you manage liquidity, plan for expenses and ensure you have adequate funds to cover operational needs.

Medical supply business plan example: MediCare Supplies

This draft business plan provides a really great starting point for creating your very own medical supply business plan. Remember to customize the content to your specific goals, target market, and location. Make sure to regularly review and update your business plan as your business grows to ensure its relevance and future success.

MediCare Supplies is a forward-thinking medical supply business aimed at providing high-quality medical equipment, devices, and consumables to healthcare facilities and professionals. Our mission is to enhance patient care by ensuring seamless access to reliable medical supplies. Leveraging our industry expertise and commitment to excellence, we aspire to become a trusted partner in the healthcare sector.

Company and domain names

Company name: MediCare Supplies

Domain name: www.medicaresupplies.com

Our chosen company name, "MediCare Supplies," signifies our dedication to supplying essential medical resources that contribute to the well-being of patients. The corresponding domain name, www.medicaresupplies.com, reinforces our commitment to providing a convenient online platform for healthcare professionals to access our products and services.

Our thorough market analysis indicates a growing demand for reliable medical supplies due to the expanding healthcare industry. Research reveals the need for a comprehensive supplier that offers a wide range of high-quality products. Our target audience includes hospitals, clinics, nursing homes and private practitioners seeking efficient procurement solutions.

Location: Strategically situated near medical facilities to facilitate timely deliveries and direct engagement.

Premises: A well-organized and efficient warehouse designed to accommodate our inventory and streamline operations.

Equipment: Cutting-edge inventory management systems and logistics software to optimize distribution and minimize errors.

Staffing: A team of experienced professionals in procurement, logistics and customer service to ensure seamless operations and client satisfaction.

Our marketing plan includes:

Digital presence: Making a website , optimizing it for search engines and maintaining active social media accounts to reach a wider audience.

Strategic partnerships: Collaborating with healthcare associations, medical facilities and industry influencers to increase brand visibility and credibility.

Educational content: Sharing informative blog posts, videos and webinars that provide insights into medical supply trends and best practices.

Email campaigns: Regular newsletters and updates to keep customers informed about new products, promotions and industry news.

Startup costs and funding:

Inventory procurement: $100,000

Warehouse setup: $30,000

Website development and branding: $20,000

Initial marketing: $15,000

Operational expenses (1st Quarter): $25,000

Total startup costs: $190,000

Funding sources:

Personal savings: $60,000

Bank loan: $100,000

Investment from partners: $30,000

Total funding: $190,000

Revenue projections:

Year 1: $500,000

Year 2: $800,000

Year 3: $1,200,000

Operating expenses:

Rent and utilities: $2,500 per month

Employee salaries: $100,000 per year

Marketing and advertising: $20,000 per year

Inventory restocking: $150,000 per year

Insurance and compliance: $5,000 per year

Profit and loss projection:

Year 1 net profit: Variable based on revenue and expenses

Break-even analysis:

Fixed costs (annual): total fixed costs (rent, salaries, etc.)

Average revenue per month: estimate average monthly revenue

Break-even point: fixed costs / average revenue per month

Time frame for profitability: MediCare Supplies anticipates achieving profitability within the first year of operation by executing effective marketing strategies and catering to the growing demand for reliable medical supplies.

Interested in other business ideas?

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Medical Business Plan

You cannot start and run a successful medical business without writing and implementing a comprehensive business plan.   A business plan gives you a complete framework for researching and analyzing the market, identifying possible opportunities, financing the project, and scaling it all together. Here are some of the best examples of medical business plans worth having a look.

Medical Practice Business Plan Template

• Google Docs

Size: A4, US

Medical Laboratory Business Plan Template

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Fertility Clinic Business Plan Template

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Pharma or Drug Sales Plan Template

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Best Medical Business Plan Examples & Templates

 medical business plan example.

Size: 8.86 MB

If writing a medical business plan were easy, every business aspirant would do it with ease. To be clear, a comprehensive business plan for a new healthcare facility takes time to put together. But, what if you are green in this in the first place? The best thing to do is to look at a sample plan to get a clear picture of what a comprehensive strategy for a health facility looks like. This PDF file is a unique sample of a well-written business strategy for a healthcare facility. The plan covers everything you need to know about establishing a healthcare center, from business objectives and guiding principles to demographic analysis and their access to care.

Printable Medical Business Plan

Size: 780 KB

It doesn’t make sense to start a medical business without a strategy in place. You need to identify your audience, sturdy the market, conduct a SWOT analysis , and develop a marketing technique. This calls for a comprehensive business plan and here is an example that you can download and use as a guide to writing your own strategy. This sample will help you to understand a few things. First, you’ll learn how to write a clear summary of the proposed medical business. Second, you will see what a detailed business description looks like. Third, you will dive deep into learning and understanding the competition. Then, you will learn about financial strategy, which is important for starting and running a healthcare business at scale.

Free Medical Business Plan Example

Size: 88 KB

It is important to understand that a business plan does not have to be complicated. It doesn’t have to be dozens or hundreds of pages either. In fact, you can set up and run a successful medical business with a very simple business plan . This PDF document is an example of a very simple business strategy, which a clear indication that even lean business plans can help you take a step in the right direction. This plan covers a number of sections, including an executive summary for the proposed business, proposed services, market evaluation, and marketing approach. Click the link above to download the PDF file.

Medical Practice Business Plan Example

Size: 237 KB

This PDF document is one of the most comprehensive medical business plans that you can read to understand what a professionally written business strategy looks likes. The 37-page file features a unique outline, which makes the entire document easy to scan. This file has a lot of information. From the executive summary and market sturdy to SWOT and market analysis , there is quite a lot to learn. The author uses a simple language throughout the document. So, whether you are green to writing a business proposal or you just need a simple example for reference, this is a good template to download.

Medical Startup Business Plan Example

Size: 219 KB

You cannot start and run a successful business without a plan. In fact, many businesses that begin to operate without a strategy often close within the first six months. This happens across various industries, even in medical business. Now that you have made up your mind to start a medical business, you first need to write a business plan. If you have never written one before, don’t worry. You can just download this PDF file, read the entire strategy example, and then use the same knowledge that you pick from it to write a comprehensive business plan of your own. Click the link above to download this template.

 Medical Business Plan Example for Clinic

Size: 262 KB

Ask every serious entrepreneur what it takes to start and run a successful business and they’ll tell you that the first thing you need is a business plan. This tells you that a successful business depends on a comprehensive strategy . Now that you have made up your mind that it is time for you and your stakeholders to start a clinic in your locale, it’s important to write a business plan before investing money in the project. The plan will enable you to determine whether the business is feasible to pursue. By finding, connecting with, and studying the target market, it becomes easy to understand your business even before starting it. Download this medical plan for the clinic to learn more.

 Private Hospital Business Plan Example

Size: 2.15 MB

Even if you have enough funding to start a private hospital, you’ll need to do in-depth research and then come up with a solid business plan that will help you set up the enterprise. At the end of the day, your goal is to run a successful business . This is something you can’t do if you start with a proper strategy. Remember, the success of your private medical startup will depend on the structure of the plan. The success of the upcoming business will depend on the structure of the plan. In other words, a business plan is a must-have.

 Simple Medical Business Plan Example

Size: 141 KB

You already know that it is difficult to run a successful business without a plan. So, if you want to set up a new medical facility in your area, first start by writing a business plan for the foreseen startup. The PDF file above is a unique example of a business plan that you can use for reference. This guide is important because it focuses on the most important elements that make up a comprehensive business plan.

 Comprehensive Business Plan for Medical Facility

You can use this sample template to write a comprehensive business plan for a medical facility. Some of the highlights include identifying challenges and determining their respective opportunities. This gives you a clear understanding of the market that you would like to target so that you can align your medical services to their needs once you start operation.

 Short Medical Business Plan Example

Size: 264 KB

If you are the kind of a medical business enthusiast who prefers to write a short business plan, this example is suitable for you. The content of the file includes an executive summary, market analysis, business growth, marketing strategy, and financial projection.

Text prompt

• Instructive
• Professional

Create a study plan for final exams in high school

Develop a project timeline for a middle school science fair.

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How to Launch a Healthcare Startup: The Guide to Building Great Health-tech Products

How can you start a healthcare startup.

The journey of building a successful medical technology product begins with a viable idea. Happily, there exist countless opportunities for technology integrations in the healthcare, medical, and wellness industries…so many that it’s almost impossible to run short of potential innovations in this sector. 👨‍⚕️💻 

However, few health tech startups survive the early stages … 🚧

Let’s learn everything there is to know about starting your own healthcare business in the United States (or anywhere else across the globe): the steps necessary to start a healthcare startup, including health-tech technology, IT team, risks, potential project costs, and much more. 👇

Healthcare (and health-tech) is a market segment you cannot expect to take by storm. Unlike most sectors, starting a healthcare business requires you to traverse a rocky road of licensing and adherence to rigorous regulations while dealing with government institutions, pharma, and the medical professional community. 

🏥 Studying all the underlying rules, pitfalls, and requirements is a difficult yet crucial piece of homework for any entrepreneur who wants to start a healthcare company or launch a healthcare startup successfully. 

For example, HIPAA compliance is the minimum requirement for security and functionality in health-tech solutions and products in the United States.  

The good news is that a myriad of highly profitable market gaps are just waiting to be explored by ambitious healthcare technology startups. 🚀

Are you planning to start your own healthcare business or expand an existing one with additional health-tech projects or product development? In this article, we will guide you through the entire process of organizing and launching a medical technology startup while addressing all major success factors and risks.

Before we delve into how to start a healthcare company, take a moment to discover more about TATEEDA: 👇

Table of Contents

Why Do Many Healthcare Startups Fail?

Before we delve into starting a healthcare business, we should address another crucial question: How can a young medical technology project break into this conservative, strictly regulated industry? 

The demand for innovative healthcare startups is enormous. For example, the COVID-19 pandemic has led to a significant increase in the adoption and popularity of telemedicine solutions and telehealth options among patients, healthcare professionals, and healthcare insurers. Seventy percent of American adults are now willing to use telemedicine, and 76% of employers are ready to include telemedicine coverage in their insurance plans. In this regard, more and more healthcare startups offer telehealth services like medical second-opinion telemedicine platforms that work as a kind of healthcare expertise marketplaces where patients can find alternative or additional arguments for their health conditions.

Let’s identify the major reasons why healthcare startups usually fail…

⛔ Non-compliance with Industry Standards 

It takes serious preparation and legal consulting before you even start! Most healthcare startups fail early because their founders cannot manage to pass all rounds of industry bureaucracy, accreditation, licensing, testing, and regulatory compliance. However, startup managers who do their homework have greater odds of success.

Before you’re ready to start a healthcare startup, it’s important to remember that…

• Not all startups require the same set of permissions and legal precautions. 
• Some startup types can be introduced to the market faster than others, such as software-only projects (thanks to a shorter preparation cycle).
• Some projects require tedious legal procedures: for example, projects covered by FDA policies, including professional-grade clinical products. 

If you want to start a healthcare startup including innovative medical devices, you’ll need to comply with FDA regulations and ISO certification (which can be a costly and lengthy path).

Learn more: ➡️ Medical Device Software Design and Development . 

🙅‍♀️ Poor Connection with Potential Users and Medical Professionals

Many healthcare startups fail because they do not build solid relationships with potential users, sponsors, and stakeholders. Because of this, they cannot capture attention or obtain sufficient feedback to finalize and refine their products until usable status is attained.  

At least three major aspects that should be considered when creating a health tech business plan…

❓ Is it a professional-grade healthcare startup that requires clinical trials? If so, it’s necessary to contact and pitch your ideas to healthcare institutions and medical professionals to find qualified sponsorship according to the regulations of your legal jurisdiction. 

❓ Is it a consumer-grade healthcare startup? You will still need specific feedback from potential users (like patients or medical practitioners) to make sure you’re on the right track to creating your healthcare product as an efficient solution for real-life problems.

❓ Are you a representative of a healthcare company or institution? A direct relationship with (and specific feedback from) your staff and patients is a huge advantage that will help you launch your healthcare startup and support its continued success with fewer barriers and problems.

⚠️ Other Potential Medical Startup Problems Include…

• Technological complexity and tech skill barriers.
• Low usability: intricate interfaces, unbalanced functionality, and more. 
• Availability of better or/and cheaper alternatives. 
• Poor marketing, PR, and lack of communication. 
• Unreliable or disorganized technological partners. 

Slava Khristich

Healthtech cto.

Based in San Diego, Slava knows how to design an efficient software solution for healthcare, including IoT, Cloud, and embedded systems.

How Entrepreneurs Validate Healthcare Startup Ideas

With the exception of medical and fitness wearables (like IoT devices coupled with custom healthcare applications ), few high-tech products have gone viral with the ordinary public. A great number of healthcare startups have never even been released to their audience because their ideas were not understood or accepted by potential sponsors.    

Here, we offer several tips on how to estimate the potential viability and future success of your healthcare startup idea before you even start…  

✅ Does your healthcare startup belong to one of the most successful sectors? 

In 2023 and beyond, the most viable healthcare startup categories/ideas include…

• MRI and medical data analytics
• Telemedicine
• On-demand healthcare staffing platforms  
• Nutrition science
• Healthcare data visualization development
• Remote patient supervision
• Data mining in healthcare
• Mental health management
• Medical insurance applications
• Robotics in surgery
• Predictive life sciences.

If your healthcare startup belongs to one of these categories , you have higher odds of success thanks to increased interest on the part of investors in these sectors as well as upcoming medical technology trends. Learn more here: ➡️ Major Healthcare Technology Trends . 

✅ Do you set realistic financial expectations to back your ideas?

In the healthcare industry, with its strict regulations, bureaucracy, and long sales cycles, it’s imperative to maintain sufficient funding to survive the pre-release stage. 

🏗️ No matter how brilliant your startup idea may be, it’s necessary to maintain a solid, long-term strategy that includes a financial buffer to help you sustain your project team for at least 3-5 years before releasing your product or MVP to the market, investors, or clinical practice.

Learn more: ➡️ Healthcare Product Development: How to Build an MVP .

If you represent a mature company that has decided to launch a healthcare startup to expand its project portfolio, you are definitely in a better starting position than those who decided to start a healthcare business from scratch. Your financial conditions and background will allow you to grow and test your ideas with less risk.  

✅ Is your startup idea the fruit of your own deep industry experience?

If you have generated and shaped your startup ideas after years of experience in a specific healthcare market niche, you have higher odds of success in this venture. You definitely know how to make changes in the industry for the better, and you’re ready to convert your knowledge into an efficient solution ready to hit the market.  

✅ Have you discussed your healthcare startup ideas with medical professionals? 

Any healthcare startup idea should be examined and verified by active medical professionals and/or patients. Their feedback and suggestions will drive further startup development. If you have early access to user opinions, you will obtain one of the most valuable assets a healthcare startup can dream about. Make sure healthcare professionals are involved as early as possible.

So, if your healthcare startup idea is ⇒

• relevant to one of the most promising fields in healthcare
• accompanied by a sound health tech business plan
• based on your own deep expertise
• endorsed and verified by potential users…

…you can be reasonably certain you’re on the right track to success!  

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See how we can engineer healthcare software, validate your ideas, and manage project costs for you.

Important Things to Consider Before Launching a Healthcare Startup

Before you start your new project, it’s essential to identify all fundamentals and pay attention to thoughtful creation of a business plan for your healthcare startup. Let’s look at the major areas you should consider…

👓 Respect the Conservative Market & Regulatory Compliance

It’s no secret that the American healthcare market is one of the fastest-growing yet deeply conservative and rigidly regulated in existence. You should have an experienced legal advisor or powerful team of law consultants to help your healthcare startup pave a path through legal barriers and pitfalls.

One of the most crucial compliance frameworks for healthcare projects in the United States is HIPAA. At TATEEDA GLOBAL, we understand HIPAA compliance, and would be happy to help you develop a medical startup according to HIPAA requirements and rules. Learn more: How Custom Healthcare Software Is Developed for Secure HIPAA Compliance .    

🔄 Develop Interoperability of Health Data

When you start a healthcare business with a custom technological component such as a software system, it’s necessary to design it for compatibility with other medical systems, devices, data formats, and technologies. If you want to start a medical practice, you’ll definitely need to adopt a healthcare practice-management system with administrative (back-office) and front-office functionalities, like patient profiling, appointment scheduling, bookkeeping, and revenue analytics.

⚡ Our experienced health-tech engineers can define a specific interoperability configuration for your individualized project ⇒

There exist different standards of interoperability for healthcare systems, including…

• Fast Healthcare Interoperability Resources (FHIR)
• Electronic Data Interchange (EDI)
• Health Level Seven (HL7). 

Learn more: ➡️ HL7 Integration: How to Build Interoperability Interface for Your Healthcare Systems

🤝 Build a Friendly Network of Sponsors and Supporters 

A community as conservative as American medicine can be extremely reluctant to trust and welcome your young healthcare startup. As mentioned previously, it’s necessary to find healthcare providers that can build trusted relationships with you and sponsor your project until you are ready to release a viable product after going through all circles of development, accreditation, and testing. 

Potential healthcare startup sponsors include…

• private hospitals
• medical centers
• health-tech companies
• insurance companies
• charity organizations
• private practitioners.  

A solid and reliable health-tech business plan is a good foundation that will help you coordinate with potential sponsors. The three main startup qualities to be maintained throughout your healthcare business plan are…

🔹 Validity : relevant, verified business objectives  

🔹 Compliance : technical and legal preparedness

🔹 Safety : full protection of medical records and personal data. 

👔 Prepare for Lengthy Sales Cycles

Be ready for the fact that many months can pass between pitching your project to potential clients or sponsors and their readiness to move forward. 

⌚ Keep your morale high, and remember that closing a successful deal in the healthcare software development industry requires a long-term commitment.

⌚ Make sure your team understands the situation, requirements, and perspectives, and is ready to sustain them.

⌚ Consider hiring a professional representative who specializes in pitching healthcare startup ideas to potential clients/sponsors and investors on daily basis.  

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The leading American healthcare companies benefit from working with us.

Where and How to Hire a Team For a Medical Startup

If you want to launch a healthcare startup or company, you cannot achieve success without a professional team behind it: 

• Health-tech engineers 
• Healthcare software developers 
• QA engineers
• Business analysts
• …and many more. 

Each healthcare tech startup is unique, so it requires individualized team composition and a flexible staffing model to keep it going with minimum overhead. Let’s take a look at some options…

👩‍💼 Gather a core team 

Begin teaming up with key members and co-founders. Ideally, they must bring diversity in terms of qualities, capabilities, and experiences your startup can benefit from, including…

• Shared business vision and values. 
• Tech and engineering skills. 
• Deeper expertise in medical institution processes.
• Business administration, project management, and PR for startups.  

👨‍🔧 Hire an experienced CTO

A medical tech startup will be successful only if it is supervised and managed by an experienced engineer (CTO, or chief technical officer) who takes care of…

• All tech-related processes, like software architecture and development tasks.
• Dealing with third-party contractors and partners: tech specifications, communications, consulting, meetings, reporting, and more. 
• Delegation of project tasks to outsourced developers, testers, analysts, etc., as well as task execution and control.  

🧑‍💻 Outsource your software development

You can save a great deal of time and money by hiring third-party professionals and outsourcing your high-tech project tasks to them. There exist a number of technology experts who can undertake software development processes for you. You don’t have to invest a huge amount of resources into recruiting and organizing your own team, because…

• A dedicated team of developers, engineers, and software testers provided by a specialized vendor can offer you streamlined expertise along with a better hourly rate than a locally hired or in-house team, including HR overhead and other costs. 
• Professional outsourcers must have considerable experience. They must be able to offer appropriate skills, smooth professional processes, and flawless teamwork practices, including convenient collaboration tools so you don’t have to establish these practices from scratch.  
• You can easily scale your team up or down according to your current startup needs, without bureaucracy and the associated administrative difficulties.  

TATEEDA GLOBAL can provide you with a team of senior developers, project managers, UI designers, QA testers, and more on a flexible, convenient basis. 

You can delegate various project tasks to us, including mobile, web, IoT, and desktop application development in healthcare and biotech. 

All of our specialists are our own employees, not freelancers! If you want to discuss the details, please contact us today .    

How to Start a Healthcare Startup, Step by Step

The process of starting a new healthcare business venture is basically the same in the U.S. and all other countries, except for several legal nuances. Let’s check out the steps…

Step #1: Draw up a convincing business plan and budget

💼 Writing a health-tech business plan for a startup is a keystone task that requires considerable expertise and time. This document will be your guide throughout the startup process and will cover each and every aspect, including budget, technical components, marketing, operation, product design, and much more. 

Your health-tech business plan should have standalone sections that explain the following matters and strategies…

• Accumulation and release of your startup capital.
• Organization structure of team units and project departments.
• People responsible for the technical aspects of your healthcare product build-out.
• Medical data security and compliance: methods and strategy.
• Roadmap of product planning, design, development, testing, and MVP release.

Step #2: Gather your medical advisory board

👨‍💼👩‍💼 As they say, two heads are better than one . Working with advisors who possess rich, sophisticated experience in the healthcare and health-tech sectors is a crucial advantage that will allow you to shape and follow the right business strategy. 

Gathering an efficient advisory board is fundamental to putting the rest of your crew together, as these advisors will take part in choosing other team members and contractors, and will organize all internal operations and processes. 

Learn more: ➡️ Healthcare Payroll Software Development

Step #3: Work on HIPAA compliance and respect all other regulations 

HIPAA is a set of special regulations that must be obeyed throughout the process of medical software development and project management/organization. This regulatory framework involves three major components:

📃 The HIPAA Privacy Rule (2003)

📃 The HIPAA Security Rule

📃 HITECH Act (2009)

Basically, these regulations describe the way in which medical records and patient data should be securely treated, stored, managed, and more. If you launch a healthcare startup for the American or global health-tech market, HIPAA compliance is obligatory. Other jurisdictions can have additional or local regulations for healthcare software solutions. Contact us for more information!

Step #4: Develop your online presence

📱 Build a comprehensive website and social media pages to represent your startup objectives, ideas, value, advisory board members, contacts, and more. You can also add a donation button and crowdfunding options to improve your financial performance. 

You can also implement blockchain functionalities to distribute project tokens and accept crypto coins (make sure to learn and respect your local legislation accordingly.) Additionally, you can list your healthcare startup in specialized directories and catalogs while booking your presence at industrial conferences.     

Step #5: Hire your startup staff and arrange a payroll procedure

🧾 Your business plan must include the roles and responsibilities of all employees and team members involved at every stage of your startup development. This document should elaborate on the following essentials…

• payroll processes and pay schedules as defined by your national jurisdiction 
• methods and strategies for capital attraction and distribution 
• an incentive plan to keep your team members motivated
• the collaboration formats you choose to develop for your team
• …and everything else that helps you convince your potential sponsors and investors of your solid financial base while offering ways for them to join…   

Learn more: ➡️ Medical Staff Management Software Development

Technology Ideas that Can be Included in Your Future Healthcare Startup for Market Success

There is an ocean of opportunities for your healthcare startup. Meaningful use of certain technologies can help your solution stand out from the competition and become more noticeable to industrial magazines, startup hunters, and potential users.      

Some of the best tech to become a part of your potential innovative healthcare startups include…

🔹 Protected patient portals for authorized user access according to roles and permissions: patients, physicians, clinical representatives, and more. 

🔹 VR and AR for innovative functionalities or improved accessibility for alternatively-abled persons. 

🔹 Voice recognition and application command options.

🔹 Electronic prescription management apps with optical character recognition options . 

🔹 Profile management for different types of users. 

🔹 Diagnosis database for doctors and symptom-checkers or chatbots for patients. 

🔹 Remote patient monitoring and custom telemedicine solutions .

🔹 A social platform for patients and physicians to connect with each other. 

🔹 Protected video , chat, and other functionalities. 

🔹 Smart (AI-powered) virtual nurse software .  

🔹 Access to a repository of medical data and health documents.  

🔹 Useful content: lab tests, helpful tips, articles, and more.

🔹 Custom patient payment, billing, and claim-processing solutions . 

🔹 Custom cloud technology integrations .

🔹 Health-specialist scheduling and appointment notifications.

🔹 Custom medication reminder functionality and health-supervision log books & diaries.  

🔹 Online pharmacy features and pharma product research/comparison.  

🔹 Senior care digital tools and remote senior supervision tools. 

TATEEDA GLOBAL’s Experience in Building Healthcare Startups

We have assisted a number of young health-tech and biotech projects with…

• Integration of healthcare devices with custom software components 
• Embedded programming (electronic device programming)
• API integration of third-party modules 
• Complicated client-server architecture. 

One of the startups we worked with was Ventrilink. This medical IoT device development project involved an innovative, portable ECG-monitoring biosensor for remote patients. 

We assisted them in the establishment of a stable/optimized connection and interaction between the device and software components, such as the server portion and fast tablet-installed client application with real-time scalable ECG visualizations and many other interesting functions. ➡️ Learn more here .   

We helped the Ventrilink startup team build a healthcare technology platform, complete with a range of IoT and mobile technologies. We’re well-equipped to create a medical startup environment for you!

FAQ : Instructions on How to Start a Healthcare Business

What are the pros and cons of starting a healthcare startup.

The stakes are high in starting a health-tech business. If your healthcare solution is successful, you can earn a fortune, but it’s still a long way to go with a lot of potential pitfalls and a high risk of bankruptcy, too. TATEEDA GLOBAL cannot guarantee your marketing, legal, or strategic success, but we can guarantee the best possible quality of the technological products we produce along with full industrial compliance in terms of medical data security.  

How much money do you need for a healthcare startup?

It’s necessary to have a considerable financial base to start your health-tech business or projects. As we mentioned earlier, there are a variety of ways to attract initial startup capital as well as prolonged financial funding for longer periods of time. 

We can tell you that the average cost of healthcare startup product development (for a technical solution used in healthcare or biotech) is about $70,000-100,000+ depending on a wide range of factors. Contact us for more information!

What are some useful metrics for healthcare startups?

We do not provide marketing analytics or services, but we do know a thing or two about starting new businesses and projects. There can be….

• Annual Revenue per Account. This depends on what your healthcare startup is all about. Is it expected to deal with one (or a few) enterprise clients (e.g. medical organizations, clinics, hospitals, and others), or is it targeting an army of smaller contributors?
• Cost of Customer Acquisition . Once again, it depends on the size of the typical client you want to get (and the revenue they’re estimated to bring in, on average). For example, attracting one large customer can cost you $10,000 or more. 
• Customer Lifetime Value . How long do you want them to stay with you? If it’s a long-term sponsorship that includes continuous software maintenance, potential value can achieve tens or even several hundred thousand dollars in a time.   
• Customer Interest . How many potential customers contact you in a period of time, and how often? How can this number be improved?

How to start a healthcare company in the United States?

• Develop a detailed business plan with your future company’s mission, goals, target market, marketing strategy, financial projections, and timeframe for launching.
• Decide on a legal structure for your healthcare company: for example, a limited liability company (LLC), or corporation. The most popular legal structure among healthcare companies in the U.S. is the Limited Liability Company (LLC.) Boutique medical practitioners can opt for a sole proprietorship license. Consult with a lawyer or accountant to determine which structure is best for your business.
• Obtain any necessary licenses and certifications to operate a healthcare company in your state. You may need to register with state health agencies or obtain permits from regulatory bodies. A specific process of starting a healthcare business in your location must be discussed with a professional lawyer.
• Determine the size of the funds you will need to start and maintain your company. Develop a plan for secure funding . To start a healthcare business you may need to find investors, apply for bank loans, or consider crowdfunding options.
• Hire qualified staff, including healthcare professionals, administrative staff, and support personnel. If you want to know how to start a digital health company, consult with IT service staff providers to augment your team with health-tech developers and IT system engineers.
• Develop policies and procedures to ensure that your company is operating in compliance with all healthcare-related regulations and best practices. In the United States, starting a medical business is tightly associated with HIPAA compliance for startups.
• Develop a marketing strategy to promote your healthcare services to potential customers. Consider advertising, social media, and networking events to build your customer base.

What are the best future business ideas for healthcare?

Here are the top ten potential healthcare business ideas:

• Telehealth services : There exists a growing demand for digital health companies and startups that provide virtual medical consultations, remote patient monitoring, and other telemedicine services.
• Personalized medicine : Healthcare startups that specialize in individualized medical approaches can offer customized treatment plans and therapies matching an individual’s unique genetics and other very specific health details.
• Digital therapeutics : These include digital tools and apps that provide behavioral or cognitive interventions or assistance for patients to improve health outcomes or treat specific conditions.
• AI-powered diagnostics : Artificial Intelligence (AI) and machine learning (ML) capabilities can be integrated into diagnostic tools and device operating systems to help healthcare professionals make more accurate diagnoses and decisions.
• Wearable health technology : Companies that create wearable or adhesive devices or technologies help patients track and monitor vital signs and/or other health metrics to enable users better manage their health.
• Healthcare analytics : Companies that offer high-end solutions for healthcare data analytics help healthcare organizations improve operational efficiency, reduce costs, and enhance patient outcomes.
• Patient engagement platforms : These are health-tech platforms that encourage patients to take an active role in managing their health, such as via wellness tracking, education, and support practices.
• Health and wellness coaching : Companies that offer personalized coaching and advice to help their clients achieve their optimal health and wellness goals.
• Home healthcare services : This type of medical startup offers in-home healthcare services, including nursing, physical therapy, and other healthcare services, and helps patients receive individualized care in a more comfortable and convenient setting.
• Mental health services : This category of innovative healthcare startup companies provide virtual mental health counseling and other psychological care services to patients who may not have access to traditional in-person therapy.

If you want to jump at any of these healthcare business opportunities, please contact our IT engineers and health technology consultants for a (free) deeper consultation.

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Vlad Nazarov

Content Manager

TATEEDA builds custom software projects and provides IT staff augmentation.

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How To Write A Basic Business Plan

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Creating a successful business starts with a strong plan. Regardless of your experience level, learning how to write a basic business plan is essential to mapping out your company's path to success. With a clearly defined plan, you can identify potential challenges, set goals, and create a roadmap for growth.

Business plans can be incredibly beneficial for entrepreneurs in any stage of their business venture. Whether you're just starting out or seeking funding to expand, a well-crafted business plan can serve as a roadmap for success. Not only does it provide direction for your business, but it can also help you identify potential roadblocks, set realistic goals, and track your progress over time.

A well-written business plan can help potential investors or lenders understand your business model , mission, and strategies, making it easier for them to provide the resources you need to grow your business. So, if you're looking for a tool to help ensure your business's success, consider crafting a comprehensive and engaging business plan.

Your business plan doesn't become obsolete once your business is up and running. In fact, your business plan can continue to guide your decision-making even after your doors are open. Your plan serves as a blueprint for success and can remind you of your original goals and objectives.

By referring back to your business plan, you can ensure that your decisions align with your overall mission and vision for your company. With a solid business plan in place, you can keep your business on track and ensure that you continue to achieve your goals as your business grows and evolves.

Best High-Yield Savings Accounts Of 2024

Best 5% interest savings accounts of 2024, business plan basics.

At its core, a business plan is a written description of your company's future. It outlines what you plan to do and how you plan to do it.

Here is what you typically find in a basic business plan:

1. Executive Summary

A snapshot of your business plan as a whole, touching on your company’s profile, mission, and the main points of your plan. Think of it as an elevator pitch that presents your company's profile and core mission in a concise yet engaging manner.

2. Company Description

A more detailed look at your business goals, and what sets it apart in the marketplace. It is imperative to stand out from the competition to succeed, so list your differentiators and how you add value.

3. Market Analysis

It involves delving into your industry, identifying potential customers, and analyzing your competition to develop a strong understanding of the market. By garnering this knowledge, you can tailor your marketing and sales strategies to better meet the needs of your target audience.

4. Organization and Management

Your business's legal structure, organizational structure, and product or service life cycle. By keeping a close eye on your organization and management, you can ensure that your business is positioned for success in the long term.

5. Marketing and Sales Strategy

How you plan to attract and retain customers. It's not enough to simply offer a great product or service, you need to be able to effectively communicate your value proposition to your target audience.

6. Funding Request

If you are seeking funding, how much you need and what it will be used for. Securing funding can be a crucial component to kickstarting your business ventures.

7. Financial Projections

Projecting your profits, losses, and cash flow helps you plan in advance and make informed decisions. By crunching the numbers and analyzing past data, you can estimate future earnings and get a better understanding of your company's financial health.

8. Appendix

This is where you can include any additional information, such as resumes, permits, leases, and other legal documentation.

The bottom line is that a well-crafted business plan not only provides direction and structure but also helps you articulate your vision and goals. With a clear understanding of your target audience, competition, and financial projections, you're better equipped to make informed decisions and navigate the complexities of running a business. Ultimately, a business plan is an investment in your success, and it's essential for building a viable business.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business . She is the founder of She Means Profit, which is a podcast and blog . As a Finance Strategist for small business owners, Melissa helps successful business owners increase their profit margins so that they keep more money in their pocket and increase their net worth.

The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.

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HHS Statement Regarding the Cyberattack on Change Healthcare

The U.S. Department of Health and Human Services (HHS) is aware that Change Healthcare – a unit of UnitedHealth Group (UHG) – was impacted by a cybersecurity incident in late February. HHS recognizes the impact this attack has had on health care operations across the country. HHS’ first priority is to help coordinate efforts to avoid disruptions to care throughout the health care system.

HHS is in regular contact with UHG leadership, state partners, and with numerous external stakeholders to better understand the nature of the impacts and to ensure the effectiveness of UHG’s response. HHS has made clear its expectation that UHG does everything in its power to ensure continuity of operations for all health care providers impacted and HHS appreciates UHG’s continuous efforts to do so. HHS is also leading interagency coordination of the Federal government’s related activities, including working closely with the Federal Bureau of Investigations (FBI), the Cybersecurity and Infrastructure Security Agency (CISA), the White House, and other agencies to provide credible, actionable threat intelligence to industry wherever possible.

HHS refers directly to UHG for updates on their incident response progress and recovery planning. However, numerous hospitals, doctors, pharmacies and other stakeholders have highlighted potential cash flow concerns to HHS stemming from an inability to submit claims and receive payments. HHS has heard these concerns and is taking direct action and working to support the important needs of the health care community.

Today, HHS is announcing immediate steps that the Centers for Medicare & Medicaid Services (CMS) is taking to assist providers to continue to serve patients. CMS will continue to communicate with the health care community and assist, as appropriate. Providers should continue to work with all their payers for the latest updates on how to receive timely payments.

Affected parties should be aware of the following flexibilities in place:

• Medicare providers needing to change clearinghouses that they use for claims processing during these outages should contact their Medicare Administrative Contractor (MAC) to request a new electronic data interchange (EDI) enrollment for the switch. The MAC will provide instructions based on the specific request to expedite the new EDI enrollment. CMS has instructed the MACs to expedite this process and move all provider and facility requests into production and ready to bill claims quickly. CMS is strongly encouraging other payers, including state Medicaid and Children’s Health Insurance Program (CHIP) agencies and Medicaid and CHIP managed care plans, to waive or expedite solutions for this requirement.
• CMS will issue guidance to Medicare Advantage (MA) organizations and Part D sponsors encouraging them to remove or relax prior authorization, other utilization management, and timely filing requirements during these system outages. CMS is also encouraging MA plans to offer advance funding to providers most affected by this cyberattack.
• CMS strongly encourages Medicaid and CHIP managed care plans to adopt the same strategies of removing or relaxing prior authorization and utilization management requirements, and consider offering advance funding to providers, on behalf of Medicaid and CHIP managed care enrollees to the extent permitted by the State. 
• If Medicare providers are having trouble filing claims or other necessary notices or other submissions, they should contact their MAC for details on exceptions, waivers, or extensions, or contact CMS regarding quality reporting programs.
• CMS has contacted all of the MACs to make sure they are prepared to accept paper claims from providers who need to file them. While we recognize that electronic billing is preferable for everyone, the MACs must accept paper submissions if a provider needs to file claims in that method.

CMS has also heard from providers about the availability of accelerated payments, like those issued during the COVID-19 pandemic. We understand that many payers are making funds available while billing systems are offline, and providers should take advantage of those opportunities. However, CMS recognizes that hospitals may face significant cash flow problems from the unusual circumstances impacting hospitals’ operations, and – during outages arising from this event – facilities may submit accelerated payment requests to their respective servicing MACs for individual consideration. We are working to provide additional information to the MACs about the specific items and information a provider’s request should contain. Specific information will be available from the MACs later this week.

This incident is a reminder of the interconnectedness of the domestic health care ecosystem and of the urgency of strengthening cybersecurity resiliency across the ecosystem. That’s why, in December 2023, HHS released a concept paper that outlines the Department’s cybersecurity strategy for the sector. The concept paper builds on the National Cybersecurity Strategy that President Biden released last year, focusing specifically on strengthening resilience for hospitals, patients, and communities threatened by cyber-attacks. The paper details four pillars for action, including publishing new voluntary health care-specific cybersecurity performance goals, working with Congress to develop supports and incentives for domestic hospitals to improve cybersecurity, increasing accountability within the health care sector, and enhancing coordination through a one-stop shop.

HHS will continue to communicate with the health care sector and encourage continued dialogue among affected parties. We will continue to communicate with UHG, closely monitor their ongoing response to this cyberattack, and promote transparent, robust response while working with the industry to close any gaps that remain.

HHS also takes this opportunity to encourage all providers, technology vendors, and members of the health care ecosystem to double down on cybersecurity, with urgency. The system and the American people can ill afford further disruptions in care. Please visit the  HPH Cyber Performance Goals website for more details on steps to stay protected.

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Readout of biden-harris administration’s follow up meeting with insurers concerning cyberattack on change healthcare, hhs expands tefca by adding two additional qhins, health resources and services administration takes historic new steps to transform the organ transplant system to better serve patients, related blog posts.

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Medical Apron Manufacturing Plant Report 2024: Business Plan, Capital Investments and Expenses

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Medical Billing Business Plan

Start your own medical billing business plan

Physicians 1st Billing and Claims

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Billing services currently exist to manage medical practices. These services relieve medical professionals of tedious detail work, but rarely do they offer a means to substantially maximize the practice’s bottom line. Physicians 1st Billing and Claims will not only free office staff for more crucial tasks, but will also maximize return from insurance carriers.

National statistics show only about 70 percent of insurance claims, initially submitted on paper, are ever paid by insurance carriers. With electronic submission Physicians 1st Billing and Claims can increase the percentage of claims paid to around 98 percent.

Additional statistics indicate that it currently costs a medical practice between $8.00-$10.00 per claim to process insurance for their patients. Physicians 1st Billing and Claims can reduce these costs by 50 percent or more.

Statistics show turnaround on paper insurance claims to be 30, 60, even 90 days or longer, creating serious outstanding receivables for the practice. By submitting claims electronically, Physicians 1st Billing and Claims can generally have money in the physician’s hand within 14-18 days. Of course, this reduces outstanding receivables proportionately and tremendously improves cash flow.

Statistics also show a 30 percent suspension/rejection rate for paper insurance claims. This doesn’t mean that the claims are never paid. What it does mean is medical staff must hassle with insurance carriers over payment. With the extensive editing performed on electronic claims prior to their transmission to carriers, this percentage is reduced to 2-3 percent. Claims are submitted with a 98 percent accuracy rate.

For many years physicians graduated from medical school under the premise that they were going to run a “practice.” “Businesses” were for other professionals. Many simple administrative procedures were neglected, such as:

• Keeping current with insurance specifications and regulations, so that claims were paid on a timely basis,
• Concentrating on collecting receivables and co-payments,
• Ensuring that fees were kept at the maximum allowable insurance carriers were paying, or
• Procedure codes were current so that claims weren’t suspended or rejected.

For many offices, outstanding receivables grew tremendously and annual bad-debt write-offs became routine. But adequate profit margins allowed medical practices to ignore sound business procedures. Medical practice complacency toward industry change is in the past. Physicians’ heads raised and they began taking note of public opinions toward health care reform issues four years ago. With the onslaught of managed care organizations into the industry, physicians are finding profit margins shrinking. They are now alert to the fact that in order to remain in business into the 21st century, they will have to adopt more efficient business practices. Physicians 1st Billing and Claims is prepared to assist local health care providers move through the last of the 20th century and into the 21st century with sound practices that will guarantee business success and, in turn, guarantee quality health care for our families and our country.

Physicians 1st Billing and Claims is contributing over $9,000 to this business. We are requesting to borrow another $5,000. Please give this detailed business plan your attention. The use of these funds is explained in the Start up Summary section.

1.1 Objectives

• To acquire one account by the end of month two.
• To process 1,500 claims a month by month 15.
• To become recognized as a local industry expert in the field of medical reimbursement.
• Code optimization.
• Managed care contract analysis.
• Full practice management.
• Customized reporting.
• Medical transcription.
• Fee analysis.
• Medicare financial impact analysis.

1.2 Mission

Physicians 1st Billing and Claims is a medical reimbursement consulting firm dedicated to helping medical practices become more efficient and save money by allowing them to out-source their insurance processing and medical billing to an expert reimbursement service. We intend to have complete one-stop-shopping for all medical practice administrative functions by the end of 1998. We intend to make enough profit to repay our business-start-up loan and finance continued growth and development with our quality service.

1.3 Keys to Success

Since 1985, the Federal Government has been urging the health care industry to submit insurance claims electronically. Statistics prove that electronic submission can save millions of dollars annually for the industry. Presently, 95 percent of all pharmaceutical claims and 70 percent of hospital claims are submitted electronically. Physicians and dentists trail far behind, with only 25-30 percent.

The Federal Government is not happy with this situation so in 1990, Congress mandated that physicians are required to file claims on behalf of all their Medicare patients. Many doctors were not prepared for this deluge of paperwork. Eight years later doctors are still climbing out from under the paperwork. In 1996 the motions calling for electronic submission of all Medicare claims were being echoed throughout the halls of congress. No mandate was passed but the paperwork continues to mount up and as baby boomers near retirement age the paper problem will only get worse and those echoes will turn into screams. This year in the U.S. over 1 trillion dollars worth of medical charges will be issued. This amounts to 9 billion medical claims. Medical practices will be forced to meet the mandates, and growing mountains of paper and most are not currently equipped to handle the transition. The sensible solution is to out-source the process to experts that are prepared to save the practices money, produce a much faster return from insurance carriers, and handle the claims with a high degree of accuracy. There aren’t many businesses that can say the Federal Government is behind them all the way.

A second key to our success will be flexibility. Physicians 1st Billing and Claims understands that each medical practice is unique. Even practices of the same specialty will have different staff and offer different services. Physicians 1st Billing and Claims will evaluate the needs of each practice and offer solutions to help the practice become more efficient. Some may want all the services we offer and some may select only a few. Our billing will be customized to each office’s needs.

A third key is our diversified services. Physicians 1st Billing and Claims offers a one-stop-shopping experience for medical administrative services.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

We are currently organized as a partnership, being formed in October, 1998.

Physicians 1st Billing and Claims and the logo shown on the cover of this plan are trade marked through the U.S. Department of Commerce Patent and Trade Mark Office. The trademark covers Medical Practice Management and Reimbursement Consulting.

2.1 Company Ownership

The two individuals forming this partnership are John and Mary Biller, a husband and wife team.

John’s experience consists of three years of teaching experience, 13 years managerial experience in the Building Materials industry, and 12 years as a father. As a manager, John gained experience in marketing, back-office operations, sales, and managing people. John will use this experience in managing the Marketing and Sales departments.

Mary’s experience consists of 12 years as a mother and four years teaching experience. As a mother, wife, and a patient, Mary has extensive experience filling out and filing medical insurance claims. This experience has given her valuable insight into the workings of the Health Insurance industry. Mary’s experience as a teacher has taught her the skills of attention to detail, organization, and the importance of timeliness. Mary will use this experience to manage the Training and Clerical Administration departments. John and Mary will jointly assume responsibility of the Accounting and Data Entry departments.

2.2 Start-up Summary

Physicians 1st Billing and Claims start up will focus on John and Mary working full-time in the business.

John’s main duties will center on marketing/sales, purchasing, and data entry. Mary’s main duties will center on data entry, clerical administration, and training. John and Mary will jointly assume the accounting responsibilities. The children, Erika and Matthew, will work when needed in data entry and housekeeping. The entire Biller family is dedicated to ensuring the success of Physicians 1st Billing and Claims.

John and Mary have decided to purchase a business opportunity package offered by Claim Systems Inc. The price of this package includes: state of the art medical billing and accounting software, unlimited training for the first six months, two years of 24-hour technical support, emergency support service, and a full-featured marketing package. The price of the package is $5,000.00 plus $45.00 for shipping and handling. Optional dental billing software can be purchased for $900.00 plus shipping. This software will be added at a later date. An additional deposit of $400.00 will be included at time of purchase of the package to secure the rights to become a franchise once Claim Systems receives licensing from the State of Indiana. At such time as Claim Systems receives this approval, Physicians 1st Billing and Claims will pay an additional $1,595.00 for ownership of franchise rights from Claim Systems. The benefits of this will allow us to advertise nationally and establish name recognition.

John owns a Pentium II Gateway computer with ink-jet printer and a scanner that will be utilized for the business. The following additional office equipment will be purchased: a Pentium computer, an ink-jet printer, a fax machine, assorted phone and communications equipment, a chair, a copy machine, accounting software and misc. office supplies.

John and Mary are investing $9,640 of their own capital in the business, and are looking for a four-year loan for an additional $16,000 which they feel will be necessary to successfully start Physicians 1st Billing and Claims.

2.3 Company Locations and Facilities

John and Mary will be utilizing 518 sq. ft. (an extra large bedroom in the upstairs) of their home. John’s office area will be utilized for marketing and accounting operations. Mary’s office area will be utilized for data entry and clerical operations, etc.

Our position in the market will be a full-service medical reimbursement business with individual pricing. As stated previously, our goal is one-stop shopping for medical practices when it comes to administrative functions. Physicians 1st Billing and Claims Electronic Claims Service’s policy is to customize our charges based on the work we do, and the needs of each office. We find that each practice is unique and, therefore, we do not quote a “standard charge” for services.

Initially, Physicians 1st Billing and Claims will offer electronic billing of medical insurance claims. This is a badly needed service for most medical practices, and is even more critical since the Federal Government will mandate electronic submission of Medicare claims in the near future.

A detailed description of the electronic submission process follows. The data necessary to submit claims will be downloaded from the medical office and input into specialized computer software. The software performs certain generic edits on the data and stores the information. When a batch of claims is complete for an office, it is time to transmit to the national clearinghouse. The data travels via modems and telephone lines to the clearinghouse where the data is edited a second time. This second series of edits incorporates “insurance company specific edits.” Cooperating insurance carriers notify the clearinghouse of certain edits they feel are necessary to allow payment of their claims. These edits are performed on each claim before they are transmitted on to the carrier, thus guaranteeing accuracy and payment in most cases. Upon receiving the insurance claim from the clearinghouse, the carriers process the claim and send payment directly to the medical practice. With electronic transmission to the clearinghouse and on to the carrier, computerized data verification, and elimination of most of the human element, the process of claims payment is greatly simplified and accelerated. Physicians will no longer wait 30, 60 or 90 days for payment, but will have money in their hands usually within 14-18 days.

As practices begin experiencing the benefits of electronic submission, many will see the advantage of out-sourcing other administrative functions. Physicians 1st Billing and Claims’ full-featured practice management software will allow us to meet those needs. Patients can be billed for co-payments or amounts which their insurance company did not cover. Secondary and supplementary insurance can be tracked and payments and balances applied accurately. The software utilizes state-of-the-art, open-item accounting, where most other systems use balance-forward systems. Outstanding receivables can be tracked with insurance aging reports, in several different sequences for ease of use. A complete practice analysis will increase office efficiency by showing where money is coming from. For each procedure, the charges and percentage of total charges they represent are calculated and printed for immediate reference. Transaction Journals and Detail Ledgers provide an accurate overall picture of the practice.

With managed care sweeping the country, it is imperative for medical practices to evaluate the benefits they receive from affiliation with different organizations. Our managed care contract service tracks payments and analyzes the information to produce customized reports showing profitability, or lack of profitability, with each managed care facility. These reports are critical when decisions need to be made on renewing and negotiating contracts.

Claim Systems’ state-of-the-art software will allow the physician to do complete dictation transcription. This allows the physician to meet the needs of the new strict HCFA mandate on clarity of all Medicare claims.

3.1 Service Description

Physicians 1st Billing and Claims’ number one goal is to provide outstanding service.

We show our dedication to service by providing the physician one-stop shopping for all his or her billing and claims needs. The services we provide are as follows:

• Complete patient record setup.
• Electronic and manual medical claims filing.
• Patient billing.
• Claims posting and patient record updating.
• Collection services.
• Complete practice analysis.
• Assistance in negotiating health care contracts.
• Automated transcription service.
• Volume discounting.

Initially we will focus on just claims filing. In the near future we will diligently pursue our goal of providing one-stop shopping for physicians’ medical office management.

3.2 Competitive Comparison

An evaluation is performed on each medical practice during the marketing phase. This will allow us to determine the needs of the practice and how to charge for services rendered.

During the evaluation certain facts are gathered, such as:

• The time it will take to key patient and claims information into the software.
• The approximate number of claims a practice will submit monthly.
• The approximate “total dollars” a practice submits monthly to insurance carriers.
• How accurate is the information obtained from the office (is it complete and easy to enter or does it require extensive editing and follow-up?).
• How often will the information need to be gathered (based on claims volume).
• What method is best to collect the information (personally, mail, FAX, Federal Express, downloading via modems).
• What other services may interest the practice.

From this information Physicians 1st Billing and Claims will be able to customize charges for each practice. This ensures that the client is not being overcharged or undercharged for the services they desire. See the section on Pricing Strategies for additional information on customized pricing of services. Currently our competitors are not offering full analysis service. Our competitors also are not able to offer two-way computer communications and record posting and file updates.

3.3 Sales Literature

Included in the appendix to this plan are copies of Physicians 1st Billing and Claims’ sales brochure and tips brochure. These brochures were developed with the expertise of a national marketing company specializing in medical reimbursement issues. The sales brochure will be used in conjunction with sales calls. Physicians 1st Billing and Claims’ Tips brochure will be utilized as a direct mail piece. Also included are copies of business cards and stationery.

3.4 Technology

The computer software that is the crux of Physicians 1st Billing and Claims’ medical reimbursement business is state of the art. Physicians 1st Billing and Claims is running in Windows 95. The software was specifically developed as a tool for medical reimbursement consultants. This is important because some software being sold is written to manage a doctor’s office and does not necessarily incorporate all functions that are needed for consultants. The software also includes the latest features needed for managed care organization management, including tables for the numerous fee schedules which may be required, and customized reports to evaluate contacts.

The ET&T clearinghouse, which verifies the claims data, is highly respected in the industry. They are members of and have been certified by AFECHT, a national policing organization. They utilize the American National Standards formats recognized by Medicare and most commercial insurance carriers. They guarantee claims are 98 percent accurate before being sent on to carriers.

3.5 Future Services

As stated earlier in 3.1, Mary and John plan to initially process claims manually and electronically. As they gain experience, they will offer full medical office consulting services as follows:

Market Analysis Summary how to do a market analysis for your business plan.">

Physicians 1st Billing and Claims’ target market consists of any medical practice or health care delivery unit that utilizes the HCFA-1500 format (a national standard utilized by Medicare) for submission of claims. This includes family practice, internal medicine, surgeons, psychologists, chiropractors, physical therapists, podiatrists, specialists, ambulance services, medical laboratories, etc. Physicians 1st Billing and Claims can also process claims for dentists with the use of special ADA software.

New practices are particularly appealing as Physicians 1st Billing and Claims can assist the new physician and his or her staff in billing and claims training. By equipping the physicians with a a well trained staff in claims handling and putting an efficient billing program into place, Physicians 1st Billing and Claims can reduce the stress of start up and ensure greater likelihood of a practice’s success due in part to increased cash flow.

4.1 Market Segmentation

The following is a chart showing the number of physicians in (omitted) for each speciality mentioned.

Number and Specialty

5 Allergy-Immunology 47 Anesthesiologist 3 Cardiovascular 12 Cardiovascular Surgery 84 Chiropractors 1 Clinical Genetics 2 Child Psychiatry 1 Clinical Immunology 5 Colon Rectal Surgery 10 Critical Care Medicine 179 Dental 11 Dermatology 1 Diabetes 35 Diagnostic Radiology 1 Education 21 Emergency Medicine 16 Ear, Nose and Throat 114 Family Practice 30 Family Practice Residents 1 Family Practice Sports Med. 12 Gastroenterology 10 Geriatrics 22 General Surgery 1 General Surgery Burns 7 Gynecology 7 Hematology 4 Infectious Diseases 40 Internal Medicine 10 Neurology 12 Nephrology 4 Neonatal-Prenatal Medicine 3 Nuclear Radiology 9 Neurological Surgery 26 Obstetrics 1 Obstetrics & Gynecology Resident 1 Occupational Medicine 3 Oncology 22 Ophthalmology 35 Orthopedic Surgery 7 Orthopedic Surgery Resident 14 Optometry 24 Pediatrics 14 Psychiatry 49 Psychologists 1 Pediatrics Pulmonary 6 Physical Med. & Rehab. 15 Physical therapy 1 Pediatric Nephrology 9 Plastic Surgery 21 Pathology 11 Pulmonary 3 Rheumatology 6 Therapeutic Radiology 13 Thoracic Surgery 14 Urology 12 Vascular Surgery

Physicians 1st Billing and Claims’ initial plan is to sign a single doctor practice. An ideal target would be a family practice physician.

4.2 Service Business Analysis

The Federal Government’s influence is quite positive. In May, 1992, the Health Care Financing Administration, the governing body for Medicare, established what they call “payment floors” for Medicare claims. Carriers contracted to pay Medicare claims were told to hold paper claims’ payments until “at least the 27th day after receipt.” Electronic claims were to be held until the 14th day, but had to be paid by the 19th day. If “clean claims” (claims that are error free) were not paid by the 19th day after receipt, the Federal Government would have to pay interest on the claim amount. No payment penalties were placed on paper claims. Program Memorandum AB-92-5 described above, was beneficial for the electronic medical claims industry.

Several states have passed mandates of their own since 1992, but until now there has been no real action by the Federal Government on this issue. As stated earlier, it is expected that Congress will mandate electronic submission of Medicare claims in the near future and the cut-off date for paper claims will follow soon after. After the cut-off date, paper Medicare claims will not be accepted.

If history is any indication and current trends continue, commercial insurance carriers will follow suit within a short period of time. It is in their best interest as well. Statistics show that it currently costs a commercial carrier between $2.60 to $20.00 to process a claim. The same claim can be processed electronically for approximately $1.10. The conversion costs of moving from paper to electronic processing can be extensive, but in the long run these savings will be substantial.

4.2.1 Main Competitors

Our main competition is Bi-State Medical Consulting. They provide full service medical claims management.

Their strengths are:

• Experience.
• Large client base.

Their weaknesses are:

• One-way claims communication and software.
• Limited advertising ability.

The strengths and weaknesses, however, seem of little consequence as the local market by all accounts is untouched, and no other company in this area can offer the software features or the dedicated service that Physicians 1st Billing and Claims is able to offer.

The bottom line of our ability to compete lies in our ability to provide any and every physician with free practice management software, two-way computer communications which allow for next day patient records updating, and substantially improved cash flow for the physician.

4.2.2 Business Participants

If Congress does mandate electronic submission of insurance claims during 1998, 600 physicians will be scrambling to meet the mandates. Since October, 1990, physicians treating Medicare and Medicaid patients have been required by law to file the necessary claims for these individuals. If practices are unable to meet the mandates, they will lose a good portion of their patient base.

During the past few years, medical practice’s interest in Total Quality Control (TQC) has intensified. Part of this is attributed to the Federal Government and the American public’s interest in health care reform. Physicians fear that if they do not voluntarily comply, more Federal regulations will be imposed.

The managed care movement across America is also influencing medical practices. In the past, doctors personally decided what they would charge for services rendered. For many physicians this fee-for-service payment method is a thing of the past. With managed care, physicians sign contracts and affiliate with different health maintenance organizations (HMOs) or preferred provider organizations (PPOs). Most decide to affiliate for one of two reasons:

• Their peers are doing it and they do not want to be left out, or
• They feel it will increase their patient base.

Unfortunately for many physicians, their patient bases do increase while their incomes decline. With the “capitation” payment schedules that accompany managed care affiliation, most physicians are making less than they were under the fee-for-service system. Association with managed care organizations also creates tremendous new paperwork requirements. Many offices complain of five times more paperwork than before affiliation. All of this is making medical practices look for innovative ways to create better office efficiency.

Strategy and Implementation Summary

Studies show that the No. 1 issue with consumers today is “personal service.” They are tired of robotic salespeople, hollow sales promises, and mediocre support from unresponsive technical staff. They want to know that someone really cares about their concerns and wants to resolve their problems. They want thoroughly thought out solutions that reap benefits. And they want it when they want it. Physicians 1st Billing and Claims understands this because we have been in their position.

Physicians 1st Billing and Claims also understands that they want a reasonable price for services. That is why Physicians 1st Billing and Claims takes the time to evaluate the needs of each medical office and then we customize our service and our charges, based on needs. We need to make sure we are not overcharging or undercharging. If we’re overcharging, then the client will not be happy. If we’re undercharging, then we won’t be happy and we probably won’t do a good job. What we’re looking for is win-win, long-term relationships with our clients. Zig Ziglar, noted sales trainer, asks the question, “Would you buy from you? Are you the type of business that you would like to do business with?” Physicians 1st Billing and Claims feels we are the type of company that anyone would be happy to do business with.

5.1 Competitive Edge

Physicians 1st Billing and Claims can provide the following benefits:

• Free State-Of-The-Art Practice Software.
• Two-way Computer Communications.
• Next Day Patient Record Updating.
• Complete Practice Analysis.
• Full Service Medical Claims Management.
• Superior Service.

No one else in the local market can offer this service package.

5.2 Marketing Strategy

There is a marked increase in results when multiple items are used in concert to attain your goal, a contract for services between you and a health care practice.

The basic plan is divided into five segments:

• Contacting the medical practice for the first time.
• Identifying the gatekeeper and making contact with them.
• Mailing or dropping off information
• Three-panel brochure.
• Self mailer.
• Promotional letter.
• Scheduling an appointment for a presentation.
• The presentation.

Contacts to implement this marketing strategy will be from a prior developed database of physicians who currently do not file medical claims electronically. This information is obtained from public records.

5.2.1 Promotion Strategy

We believe it is much smarter for a medical practice to out-source the detail work of insurance processing to an expert medical reimbursement service instead of trying to make the transition to in-house processing themselves. For years medical practices have been relying on the expert advice of accounting services for tax issues and financial planning. These areas have become very complicated and expertise is needed to ensure judicious decisions. Insurance processing has become very complicated as well, and physicians need to begin relying on expert services to maximize their reimbursement from insurance carriers.

Most medical offices are computerized to the degree that they own a computer and software with capabilities to set appointments, bill patients, and print paper insurance claims. Most do not have capabilities to transmit claims electronically or scientifically evaluate managed care contracts, and the transition is expensive.

Their current software and system have been very stable, and for years may not have even required a software update. Electronic claims submission is a very volatile and different industry requiring frequent software modifications to stay abreast of industry changes. Expertise and time is required over and above what the normal medical office can afford.

For most offices the transition would begin with buying new hardware (or updating the old), claims software, modems, communications software, etc. Very likely the current medical staff will not have the expertise to handle upgrades, install programs, test modems, understand baud rates, conduct initial testing, and other essential skills. This means the office has to hire someone with these skills or retain an expensive support service. With the high turnover of personnel that most medical offices currently experience, retaining another type of employee adds a completely new dimension.

The logical solution to meeting Federal mandates and to process all claims electronically, is to contract with an expert electronic medical billing and reimbursement service. This allows current office staff to resume the tasks they were trained to do, such as assist patients and doctors.

5.2.2 Marketing Programs

With a service-oriented business such as this, clients must be brought on one at a time. The full practice analysis will be conducted with each need being identified. Charges will be negotiated based on these needs. When we have successfully met the needs of each practice, the practice will be more inclined to promote our business to other medical practices that would benefit from our service. Studies have shown that the most common way to expand a medical reimbursement business is through referrals from current clients.

In addition to the on-going program discussed above, Physicians 1st Billing and Claims will incorporate numerous other strategies simultaneously.

In general they are:

• A listing in the local Yellow Pages. We realize the importance of stability and professionalism; anyone who has been in business any length of time can be located in the Yellow Pages. We will only be utilizing a one-line listing for we feel this will not be the main source of clients contacting us, but will provide the professional appearance we need.
• Networking as members of the Chamber of Commerce, local civic organizations, county medical associations.
• Attending and volunteering services for medical fundraisers and health fairs, maintaining an information booth at local medical trade shows.
• Attending Medicare, Medicaid, Blue Shield and Worker’s Compensation activities.
• Networking with other professionals, such as medical and professional consultants, attorneys, and accountants whose clientele is predominately medical, pharmaceutical representatives, and medical equipment salespeople.
• Affiliation with local and national peer organizations, including those available on the Internet.
• Advertising in local/hospital newsletters.
• Membership in the Better Business Bureau.
• Accepting an invitation to appear on a local radio talk show.
• Submitting several press releases annually to local newspapers.
• Writing articles for several health publications in the area.

5.2.3 Pricing Strategy

Physicians 1st Billing and Claims’s pricing strategy is a two part program:

Part 1: The first question that must be asked in the negotiation process is, “Does this practice want complete claims management?” If the answer is yes, Physicians 1st Billing and Claims will negotiate services based on a percentage. Usually the percentage will be from 6 to 10 percent based on the size of the practice.

Part 2: If the practice simply wants claims filing, the pay-for-services rendered will be based on a sliding scale with ranges between $3.50 and $5.00. This scale is divided as follows:

A one time setup charge between $150.00 and $500.00 based on patient load will be assessed and will be due at contract signing.

5.3 Sales Strategy

The following graph and chart reflect the realistic goals we have set.

5.4 Strategic Alliances

Physicians 1st Billing and Claims is a franchise affiliated with the nationally known Medical billing franchise. This affiliation allows us to take advantage of the prestige and experience associated with the national company. Included with affiliation is:

• Full-accounting, state-of-the-art medical billing software (Windows based) that includes patient billing, specialized reports, superbill generation, electronic claims, open-item accounting, patient recall, mailing labels, patient scheduling, and graphics capabilities.
• One year, toll-free telephone support for software, claims processing and marketing strategies.
• One year software updates, rewrites, and new manuals.
• A library of current medical insurance carriers.
• A library of current CPT (procedure) codes.
• A library of current ICD-9-CM (diagnosis) codes.
• Flash Code for Windows (software that handles extensive validity checking on procedure and diagnosis codes).
• Clearinghouse registration for claims processing centers and first medical practices.
• Dental electronic claims software.
• Marketing manuals, audio tapes, and supplemental marketing materials.
• Computer software to help in designing innovative marketing brochures.
• Personalized help in designing marketing materials.
• Updates to keep us informed concerning changes in the health care industry.
• Computer software to calculate what it currently costs a medical practice to provide insurance processing for patients and to help calculate customized charges for medical practices.
• Invoicing software.
• Contact management software.

5.5 Milestones

See Milestone table.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

As stated earlier in the section on Company Ownership, the primary management of the company will be handled by John Biller. As President of Physicians 1st Billing and Claims, John brings 16 years of management experience to his position. John holds a Bachelor of Science degree from Ball State University in Education. John’s education and experience in the medical field come from his extensive training in Physiology and Anatomy as a major part of a Health Science degree. John managed Big Timber Building Materials from 1982 to 1995. Having been responsible for sales in excess of $12 million, John is more than capable of leading Physicians 1st Billing and Claims to the Number 1 billing and claims processing firm in the local area. John will handle all marketing and sales functions. John will oversee the data processing, training, accounting, and computer departments.

Mary will serve as the Chief Operating Officer of administration and clerical. Mary brings 18 years of valuable experience to her administrative post. Mary holds a Bachelor of Science degree from Ball State University in Education. Mary has successfully organized and headed many community endeavors that without her foresight would never have achieved their intended goals. Mary will mainly be responsible for initial tele-marketing, data entry, customer service, and disseminating of company information. Mary has 13 years in medical claims filing and three years in secretarial training; both lend themselves well to the departments she will head up. Physicians 1st Billing and Claims and its customers are in good hands with Mary’s leadership.

6.1 Personnel Plan

John and Mary will assume full-time management of and employment at Physicians 1st Billing and Claims.

Two other part-time employees who are equally as valuable for the roles they will play in the operations of Physicians 1st Billing and Claims are Erika and Matthew Biller. Erika will assume some data entry duties and facility maintenance duties. Matthew will assume facility maintenance duties to start and will later participate in data entry. Erika and Matthew will both be responsible for manual clerical duties which are vital to the operations of Physicians 1st Billing and Claims.

Financial Plan investor-ready personnel plan .">

The business will be financed mainly through cash flow. With a service oriented business our main investment is for initial software and computer equipment. During subsequent years, other than normal overhead, we will be looking at:

• Advertising fees of $50.00 monthly to Claim Systems advertising pool.
• Renewal of memberships to local and national organizations.
• Updates of reference manuals and books.
• Office supplies and utilities.
• Payroll and benefits.

7.1 Important Assumptions

This financial plan depends on important assumptions, most of which are shown in the following table.

7.2 Key Financial Indicators

The following shows critical profit variables.

7.3 Projected Profit and Loss

Physicians 1st Billing and Claims will show a loss for the first few months of business operation, but profits will increase with sales volume.

7.4 Break-even Analysis

The break-even analysis shows that Physicians 1st Billing and Claims has a good balance of fixed costs and sufficient sales strength to remain healthy. As with any business, the first few months will show negative financial numbers.

7.5 Projected Cash Flow

Initially, cash flow will be supported by the personal savings accounts of the head officers of this company, and a four-year loan of $16,000, backed by the owners’ assets.

7.6 Projected Balance Sheet

The following is the Projected Balance Sheet for the next three years.

7.7 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 6411, Insurance Agents, Brokers, and Service, are shown for comparison.

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Non Emergency Medical Transportation Business Plan Template

Written by Dave Lavinsky

Non Emergency Medical Transportation Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their non-emergency medical transportation companies.

If you’re unfamiliar with creating a non-emergency medical transportation business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a non-emergency medical transportation business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your NEMT business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies 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 non-emergency medical transportation business or grow your existing non-emergency medical transportation company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your non-emergency medical transportation business to improve your chances of success. Your NEMT business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for NEMT Businesses

With regards to funding, the main sources of funding for a non-emergency medical transportation business are personal savings, credit cards, bank loans, and angel investors. When it comes 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 ensure 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 non-emergency medical transportation companies.

Finish Your Business Plan Today!

How to write a business plan for a non emergency medical transport business.

If you want to start a non emergency medical transportation business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component 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 kind of non-emergency medical transportation business you are running and the status. For example, are you a startup, do you have a non-emergency medical transportation business that you would like to grow, or are you operating a chain of non-emergency medical transportation businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the non emergency medical transportation industry.
• Discuss the type of business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of non-emergency medical transportation business you are operating.

For example, you might specialize in one of the following types of non-emergency medical transportation businesses:

• Wheelchair transport: this type of business uses wheelchair accessible vehicles to transport patients to or from doctor’s appointments.
• Basic life support: this type of business uses vehicles equipped with personnel to assist with monitoring and oxygen administration during transport.
• Advanced life support: this type of business uses vehicles equipped with specialized medical equipment and is usually staffed with a paramedic or EMT.
• Bariatric Transport: this type of business uses vehicles equipped with wide cots for patients weighing over 300 pounds or otherwise in need of a broad stretcher.

In addition to explaining the type of non emergency medical transportation business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

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

Industry Analysis

In your industry or market analysis, you need to provide an overview of the NEMT industry.

While this may seem unnecessary, it serves multiple purposes.

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

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

The third reason 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 of your business plan:

• How big is the non emergency medical transportation 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 target market for your non-emergency medical transportation business? 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 of your non-emergency medical transportation business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of non-emergency medical transportation business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

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

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize 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 non-emergency medical transportation businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of transport services, patients obtaining transport from family or friends, or patients using mobile healthcare options rather than physically going to an appointment. These types of competition should be referenced as well.

For each such competitor, provide an overview of their business 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 customers do they serve?
• What type of non-emergency medical transportation business are they?
• 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 make it easier for your customers to acquire your services?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer 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 non-emergency medical transportation business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of non-emergency medical transportation company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide wheelchair transport, bariatric transport, life support, or general transportation services for medical appointments?

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

Place : Place refers to the site of your non-emergency medical transportation company. Document where your company is situated and mention how the site will impact your success. For example, is your NEMT business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

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

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

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

Everyday short-term processes include all of the tasks involved in running your non-emergency medical transportation business, including answering calls, scheduling drivers, billing patients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth patient, or when you hope to reach $X in revenue. It could also be when you expect to expand your non-emergency medical transportation business to a new city.  

Management Team

To demonstrate your non-emergency medical transportation business’ potential 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 team members have direct experience in managing non-emergency medical transportation businesses. 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 as 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 non-emergency medical transportation business.  

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 revenue 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 transport 5 patients per day, per van? 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 non-emergency medical transportation business, 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 lender 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 ensure 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.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a non emergency medical transport business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

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 office location lease or a list of testimonials from satisfied customers.  

Writing a business plan for your NEMT business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the non-emergency medical transportation industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful non-emergency medical transportation business.  

Non Emergency Medical Transportation Business Plan Template FAQs

What is the easiest way to complete my non emergency medical transportation business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your business plan.

How Do You Start a Non Emergency Medical Transportation Business?

Starting a non emergency medical transportation business is easy with these 14 steps:

• Choose the Name for Your Business
• Create Your Non Emergency Medical Transportation Business Plan
• Choose the Legal Structure for Your Business
• Secure Startup Funding for Your Business (If Needed)
• Secure a Location for Your Business
• Register Your Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Company
• Buy or Lease the Right Business Equipment
• Develop Your Marketing Materials
• Purchase and Setup the Software Needed to Run Your Business
• Open for Business

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Other Helpful Business Plan Articles & Templates

How ESPN executives plan to survive the decline of cable TV

Disney ’s ESPN is at a crossroads.

For more than 40 years, the world’s largest all-sports network has grown annual revenue by increasing cable subscription fees. ESPN first charged pay-TV distributors less than $1 per month per subscriber in the 1980s. In 2023, ESPN’s monthly carriage fee was $9.42 per subscriber, according to data from S&P Global Market Intelligence.

That business model is eroding. Since 2013,  tens of millions  of Americans have canceled their cable TV subscriptions ,  raising questions about ESPN’s future in an increasingly fragmented media landscape.   CNBC spoke with multiple current and former Disney and ESPN executives about the network’s path ahead as part of the digital documentary “ESPN’s Fight for Dominance.”

ESPN reported domestic and international revenue grew just 1% to $4.4 billion in its most recent fiscal quarter. The network can no longer rely on price increases to make up the difference as the number of cable customers declines.

The company has a new two-part streaming plan to reinvigorate growth. First, this fall, Disney will make ESPN available outside the traditional cable TV bundle for the first time as part of  a joint venture  with  Warner Bros. Discovery  and  Fox . The service, which does not yet have a price, will target noncable customers who want to watch sports but don’t want to pay $80 or $100 a month for a full bundle of networks.

Second, in fall 2025 ESPN will  launch its flagship streaming service  that will include everything ESPN has to offer, both live and on demand. It will include unprecedented personalization and will interact with  ESPN Bet , the company’s licensed online sportsbook, and fantasy sports to cater to younger fans. The product will go well beyond ESPN+, which exists as a $10.99 streaming service that doesn’t include ESPN’s most expensive programming, such as all of “Monday Night Football.”

“The industry is in a transition phase right now,” ESPN Chairman Jimmy Pitaro said in an interview as part of CNBC’s documentary.

“We’re seeing declines in the traditional ecosystem, cable and satellite universe,” Pitaro said. “There’s a transition to digital. That is by far the biggest component of our future.”

More from CNBC

• Biden administration to forgive $5.8 billion in student debt for nearly 78,000 borrowers
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Pitaro and head of programming Roz Durant defended ESPN’s growth   plan to CNBC, while former Disney and ESPN executives Bob Chapek, John Skipper and Mark Shapiro noted the so-called Worldwide Leader in Sports faces multiple potential obstacles   while it charts its path forward.

Watch the documentary  for the full story.

Alex Sherman covers technology, media and telecommunications for CNBC.