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Hospital Business Plan

hospital startup business plan

Starting a hospital is a huge responsibility because taking care of millions of people in a year is difficult. If you are considering starting a hospital, then staffing, financial and business planning are necessary, for which a business plan is vital.

Need help writing a business plan for your hospital business? You’re at the right place. Our hospital business plan template will help you get started.

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  • Fill in the blanks – Outline
  • Financial Tables

How to Write A Hospital Business Plan?

Writing a hospital business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the hospital services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your business. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information. Describe what kind of hospital you run and the name of it. You may specialize in one of the following hospital businesses:

  • General hospitals
  • Specialty hospitals
  • Teaching hospitals
  • Children’s hospitals
  • Outpatient clinics
  • Rehabilitation hospitals
  • Maternity hospitals
  • Describe the legal structure of your hospital, whether it is a sole proprietorship, LLC, partnership, or others.
  • Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established hospital, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your target market and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as changes in patient behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your hospital business plan:

  • Conduct market research, industry reports, and surveys to gather data.
  • Provide specific and detailed information whenever possible.
  • Illustrate your points with charts and graphs.
  • Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to patients. To write this section should include the following:

Describe your facilities:

Mention the hospital facilities your business will offer. This list may include,

  • Intensive care
  • Neonatal care
  • You can also mention the number of beds & specialized units

Medical specialties:

Quality measures:.

This section should explain how you maintain quality standards and consistently provide the highest quality facility.

Additional Services:

In short, this section of your hospital plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Marketing Strategies:

Sales strategies:, testimonial and success stories:.

Overall, this section of your hospital business plan should focus on patient acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your hospital business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for the hospital, such as operating rooms, tables, surgical lasers, surgical drills & saws, vital signs monitors, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your hospital business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your hospital, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

  • Add a table of contents for the appendix section to help readers easily find specific information or sections.
  • In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
  • Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
  • Include any legal documents such as permits, licenses, and contracts.
  • Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your healthcare business plan should only include relevant and important information supporting your plan’s main content.

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This sample hospital business plan will provide an idea for writing a successful hospital plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our hospital business plan pdf .

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Frequently asked questions, why do you need a hospital business plan.

A business plan is an essential tool for anyone looking to start or run a successful hospital. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your hospital.

How to get funding for your hospital business?

There are several ways to get funding for your hospital, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your hospital?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your hospital business plan and outline your vision as you have in your mind.

What is the easiest way to write your hospital business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any hospital business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

hospital startup business plan

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Hospital Business Plan Sample

Mar.14, 2017

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Table of Content

Do you want to start a Hospital business plan?

Starting a business can be very hard and a big responsibility. And starting one that benefits humanity can be an even greater responsibility. However, if you follow the correct steps and stay persistent, it can be very rewarding. Establishing a business like a hospital needs to be very thoroughly planned. 

The best way to plan a business is to write a business plan for the hospital. Adding all the right details of your business will attract investors to the business plan and this will help you in setting up your business. If you want to learn how to write a hospital business plan, you should go through as many samples as possible. 

Plans like nursing home business plan can be a great resource in understanding crucial things about the hospital business. In this business plan, we will be providing all the details for starting a hospital called Mercy Ltd. You can follow this sample to develop a plan for your business.

Executive Summary

2.1 business summary.

Mercy Ltd will be a private healthcare setup, owned and started by Gillian Hail. It will provide state-of-the-art services to all its patients. Additionally, it will also run a free clinic and fund services for those who don’t have enough money to get treatment. 

2.2 About the Management

As a hospital business requires the utmost attention to detail to run well, a business plan is needed ahead of time. It is similar to a business plan for a wellness center in that regard. To make the management of Mercy Ltd smooth, a hospital business development plan was needed. Therefore, we prepared this sample. 

If you want to develop an executive summary hospital business plan for your business, you can consult a healthcare business plan template. Otherwise, to write the business plan, you can also hire experts and guide them along. 

2.3 Customers of Mercy Ltd

Considering that Mercy Ltd is a healthcare center, its customers will primarily be patients seeking treatment or help with funding for treatment. They will belong to all domains and lifestyles. The primary customers will include:

  • OPD Patients
  • Emergency Care Patients
  • Chronic Patients
  • Treatment Fund Patients

2.4 Business Target

The target of Mercy Ltd is to become a trustworthy healthcare center where people can come to get immediate treatment whenever they need it. It will also be a long-term target to expand the business. The financial targets we want to meet within the first three years are mentioned below in this hospital business plan pdf.

Company Summary

3.1 hospital ownership.

The hospital will be owned and managed primarily by Gillian Hail. She completed her MD five years ago after which she served as a head neurosurgeon in a renowned hospital in Baltimore. She then assumed the position of a consultant to start her healthcare setup. 

3.2 Why the Hospital Business is Established

Gillian always wanted to make a difference and help people due to which she became a doctor. However, after working in a hospital for so many years, she realized that there was a greater need for a healthcare setup that could deal with patients faster. Therefore, she decided that she would open Mercy Ltd to provide quick care to patients and to gain funding for people whose insurance couldn’t cover them.  

3.3 How will Mercy be Established

Step1: Plan Everything

The first step before establishing any business, no matter what the domain or scope, is thorough planning. You will need to map everything required to start the business in a business plan for starting a hospital. Additionally, you will also need to develop a business plan for hospital expansion if you have any plans to extend the business in the future. The process won’t stop here because at some point, you will also be developing a business continuity plan hospital.

Step2: Get Funding

One of the main reasons to develop a startup hospital business plan is to get funds. As Mercy Ltd had the aim to help treat those who couldn’t afford usual hospital charges, Gillian paid special attention to this hospital business plan sample pdf to attract investors. 

Step3: Find a Location

To house the healthcare setup, Gillian chose a building in Baltimore. The lower two floors will be for the hospital whereas the top floor will be for management and for housing on-call doctors. 

Step4: Developing a Brand

It is essential to make your business as humane as possible so that your customers can relate to it. Therefore, Gillian not only focused on her business model to help people but also described it in a way that is understandable to its customers. 

Step5: Promote and Market

To get the word out about her unique business model, Gillian established a partnership with as many local and big hospitals as she could so they refer patients to Mercy Ltd for treatments.

To write a business plan for a hospital, one needs to be clear about the type of business they want to establish. And this is true for every business plan, be it a reiki practice business plan or a private hospital business plan pdf. 

To develop a hospital business plan sample, you will need to know the services you want to provide to your customers as your services will form the basis of your setup. Here, we have provided a hospital business plan template that you can follow when writing about the services of your business. You can also look at any other hospital business plan example for reference. 

We will provide all the basic outpatient facilities including diagnosis, testing, and providing immediate treatment to patients. This will apply to patients with simple ailments like infection, common cold, fever or pain, etc. 

  • Emergency Services

Mercy Ltd will also provide emergency services to patients who have been involved in an accident and need immediate care for stabilization. We shall also provide ambulances to transport these patients to bigger hospitals for complete and thorough treatment and recovery. 

  • Regular Treatment and Therapy

For the patients who have chronic ailments or pain and who need regular care and treatment, we will offer therapy sessions and a complete care package that they can use utilize regularly.

One of our core services will be to provide treatment funding to deserving patients. The cases and situations of the patients will be thoroughly analyzed to ensure that there is no problem.

Marketing Analysis of Hospital Company

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

It can be very tricky to gain success as a new business. You need solid hospital strategic goals to ensure a clear direction in all the business operations. A good business owner needs to do a lot of research into hospital business development strategies before starting a business in this domain. 

A good business plan covers all details regarding the business such as hospital planning team and business model of the hospital. This information helps in showing the objectives of hospital planning to the investors. And all of this can only be achieved if you have a strong understanding of your target market. This includes your customers as well as your competitors. 

In this hospital marketing plan template, we have outlined all the marketing strategies that would be employed by Gillian to ensure the success of her business. You can follow this hospital business plan sample or a relevant plan like a massage therapy center business plan for more guidance. 

5.1 Market Trends

According to PolicyAdvice, the healthcare industry is one of the fastest-growing industries in the U.S. and the trend is expected to continue as the U.S. spends almost twice on healthcare when compared with other countries. Right now, the market share of the healthcare industry in the U.S. is at almost $10 billion and it is expected to rise. Therefore, healthcare is one of the best sectors to start a business.

5.2 Marketing Segmentation

The target customer groups of Mercy Ltd will be:

Business plan for investors

5.2.1 opd patients.

Our primary services are centered around situations where patients only need immediate care and have straightforward illnesses. Therefore, these patients with simple ailments will be the key customers of Mercy Ltd as they will utilize our services more often. 

5.2.2 Emergency Care Patients

Our second target customers will be the people who need immediate care after an accident such as a fall or a crash. Our main responsibility will be to stabilize these patients so that they can be safely transferred to hospitals for full care. 

5.2.3 Chronic Patients

We will also get business from people with chronic ailments who only need to go to hospitals for regular check-ups but find it hard to. We will provide them with in-house regular check-ups and treatment facilities so that they don’t have to spend too much time or energy on commute. 

5.2.4 Treatment Fund Patients

Lastly, one of our primary services is funding, we will also take up cases of patients who need money for treatment but due to some reasons are not able to. The funding for these patients will come from our investors as well as from 8% of our profits.

5.3 Business Target

  • To become the best immediate care hospital in Baltimore.
  • To expand our services across the US in the form of multiple small centers.
  • To earn a net profit margin of $15k/month by the end of our second year.
  • To be the first healthcare service that helps patients with funding.

5.4 Product Pricing

Our prices will be similar to that of our competitors. However, we will aim at boosting our efficiency through efficient load management.

Marketing Strategy

To become successful in a market as tough as healthcare, you will need to work on your hospital business strategy. This strategy will be reflected in your business plan for the hospital . You can also look at strategic plan example for hospital startup for reference. 

Understanding all aspects of planning in hospital will help you gain a better view of the market and get your business to succeed. So, whether it is a business plan for healthcare setup or a business plan for occupational therapy , you should look into the market for a stronger plan.

6.1 Competitive Analysis

  • We have excellent and unique services
  • Our customers can get basic healthcare in half the time as required by regular hospitals.
  • We provide treatment funding to people who cannot afford it.
  • Our customers can avail of our ambulance and emergency services through a quick phone call as well.

6.2 Sales Strategy

  • We will get the word out through partnerships with hospitals.
  • We will organize health awareness seminars to get us known.
  • We will use social media for a wider reach.
  • We will offer discounts to deserving people.

6.3 Sales Monthly

6.4 sales yearly, 6.5 sales forecast, personnel plan.

A good business plan for hospitals will reflect all the aspects of the setup thoroughly for better management. This even includes the workforce and employees that make it possible to run a setup. In this hospital business plan template, we will be looking at the employee and hiring structure of Mercy Ltd. 

7.1 Company Staff

  • 1 Co-Manager to help in overall operations
  • 8 Certified Doctors
  • 3 General Cleaners
  • 1 Technician to upkeep the machinery
  • 1 HR Executive
  • 2 Ambulance Drivers
  • 2 Receptionists

Financial Plan

The success of a business and its smooth running depends on your research and asset management techniques.  Before stepping into the business world, you need to explore various hospital business plans. You need to ensure that you have enough finances to support your operations and range of services. This is where hospital financial planning comes in. 

To ensure that everything is running with balance and you’re not going into a loss, you will need to keep proper track of your finances. One way to deal with the overwhelming load of financial management is to make a financial plan. This can act as a guide for you to follow as the business progresses. 

Here, we are detailing the financial plan for Mercy Inc. You can also look at similar plans such as a non-medical home care business plan to get a hint. 

8.1 Important Assumptions

8.2 break-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow.

a. How do you start a hospital business?

You can start a healthcare setup by reviewing the strategic management in hospitals. This will inform you if you can manage the plethora of responsibilities that come with every healthcare business. After that, you need to plan everything and execute the business operations in steps. For the planning stage, you can take help from the sample business plan provided above.

b. What is a hospital business plan?

A business plan for hospitals is a document that is developed before starting a venture. It is done to ensure that you take the right steps to make your business a success. It helps with planning, management, and problem resolution among other things. 

c. What are the 4 types of hospitals?

The basic 4 types of hospitals in the US according to JamaNetwork are:

  • Community Hospitals
  • Federal Govt Hospitals
  • Non-Federal Psychiatric care
  • Non-Federal Long-term care

The business plan hospital provided here was written for a private community hospital. 

d. How do I write a hospital proposal?

You can write a hospital proposal by going through the private hospital business plan provided above and following all the tips mentioned.

Download Hospital 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 Hospital in 9 Steps: Checklist

By alex ryzhkov, resources on hospital.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan
  • SWOT Analysis
  • Business Model
  • Marketing Plan

Welcome to our blog post on how to write a business plan for a hospital! In today's rapidly growing healthcare industry, starting a hospital that focuses on providing quality, personalized medical services is a promising venture. According to recent statistics, the global healthcare market is projected to reach a value of $12.3 trillion by 2026, with a compound annual growth rate of 6.7%. This presents a great opportunity for entrepreneurs looking to make a difference in the lives of patients and contribute to the advancement of healthcare technology.

Before diving into the details of writing a business plan for your hospital, it's crucial to identify the market need and demand for this type of healthcare facility. Conducting a thorough market research will help you understand the current trends and assess the potential demand for specialized medical services. By analyzing competition and industry trends, you can gain insights into successful strategies and differentiate your hospital from others.

Developing a solid financial plan is essential for securing funding and partnerships. It involves outlining the hospital's projected revenue, expenses, and investment requirements. By preparing a comprehensive financial plan, you can demonstrate the viability and profitability of your venture to potential investors or lenders.

Defining the hospital's vision, mission, and values sets the foundation for its overall purpose. This helps in establishing a clear direction and guiding the decision-making process. Creating an organizational structure and identifying key roles ensures smooth operations and effective management of resources.

Formulating a comprehensive marketing strategy is crucial for attracting patients and building strong referral networks. It involves defining your target audience, identifying the best channels to reach them, and creating compelling messaging that highlights the unique benefits of your hospital.

Lastly, assessing the legal and regulatory requirements is vital to ensure compliance with healthcare laws and regulations. This includes obtaining the necessary licenses, permits, and certifications to operate your hospital.

By following these nine steps, you will be well-equipped to write a comprehensive business plan for your hospital. Stay tuned for our upcoming blog posts, where we will dive deeper into each step to provide you with practical insights and actionable tips.

Identify The Market Need And Demand

One of the first and most crucial steps in writing a business plan for a hospital is to identify the market need and demand for the services you intend to provide. Understanding the needs and preferences of potential patients is essential for developing a successful hospital that can effectively meet their healthcare requirements.

To gather this important information, conducting a thorough market research is key. This research should focus on the local healthcare landscape, demographics, and the specific services and medical treatments currently available in the area. By analyzing this data, you can identify any gaps or unmet needs in the market that your hospital can fulfill.

During the market research process, it is also important to evaluate the demographic trends and population dynamics in the area. Understanding factors such as age distribution, income levels, and prevalent medical conditions can help you tailor your services to the specific needs of the target population.

By thoroughly understanding the market need and demand for your hospital's services, you can develop a business plan that is aligned with the needs of the community you aim to serve. This will help ensure the success and sustainability of your hospital in the long run.

Conducting a Thorough Market Research

Conducting thorough market research is an essential step in developing a business plan for a hospital. This research will help you gain a clear understanding of the market need and demand, enabling you to make informed decisions about your hospital's offerings and target audience.

When conducting market research for a hospital, consider the following:

  • Identify your target market: Determine the specific demographic and geographic characteristics of the population you intend to serve. This will help you tailor your services and marketing efforts accordingly.
  • Analyze market trends: Stay updated with the latest trends in the healthcare industry. Identify emerging technologies, treatments, and practices that can distinguish your hospital from the competition.
  • Assess competition: Study your competitors' offerings, pricing strategies, and marketing tactics. This will allow you to identify gaps in the market and position your hospital uniquely.
  • Explore patient preferences: Understand what patients value when it comes to healthcare services. Conduct surveys or interviews to gather insights on their preferences, expectations, and experiences with existing healthcare providers.
  • Evaluate regulatory factors: Familiarize yourself with the legal and regulatory requirements applicable to hospitals in your region. This includes licensing, documentation, and compliance with healthcare regulations.

Tips for Conducting Market Research for a Hospital

  • Utilize online resources: Make use of online databases, industry reports, and market research tools to gather data on healthcare trends, market size, and consumer behavior.
  • Engage with industry experts: Seek guidance from healthcare professionals, consultants, and experts who have in-depth knowledge of the industry. Their insights can provide valuable guidance during the research process.
  • Consider qualitative and quantitative research: Combine qualitative methods like interviews and focus groups with quantitative techniques such as surveys and data analysis. This will provide a comprehensive understanding of your target market.
  • Continuously update your research: Regularly review and update your market research to stay on top of industry developments and changing market dynamics. This will help you adapt your business plan accordingly.

By conducting thorough market research, you will be equipped with the necessary information to develop a business plan that aligns with the needs and expectations of your target market. This research will serve as a foundation for making informed decisions and ultimately contributing to the success of your hospital.

Analyze Competition And Industry Trends

One crucial step in developing a successful business plan for a hospital is to thoroughly analyze the competition and industry trends. This analysis provides valuable insights into the current market and helps identify opportunities and potential challenges that the hospital may face. Below are some important points to consider during this analysis:

Identify competitors: Begin by identifying existing hospitals and medical facilities that may be direct competitors. Research their offerings, facility size, capacity, and reputation within the community. Understanding their strengths and weaknesses will help you position your hospital effectively.

Study industry trends: Stay up-to-date with the latest trends in the healthcare industry. Identify key innovations, advancements in medical technology, and emerging treatments or services that could impact the hospital's success. This will help you adapt and stand out in a rapidly evolving industry.

Analyze market demand: Evaluate the current and projected demand for healthcare services in the target area. Consider factors such as population growth, demographic trends, and the prevalence of specific medical conditions. Understanding market demand will help in planning the hospital's service offerings and staffing requirements.

Evaluate competitive advantages: Identify what sets your hospital apart from the competition. This could include specialized services, unique treatment approaches, advanced technology, or a focus on personalized patient care. Highlighting these competitive advantages in your business plan will attract potential patients and investors.

  • Use online resources, industry publications, and professional networks to gather information on competitors and industry trends.
  • Engage with healthcare professionals, potential patients, and community members to gain insights into their expectations and preferences.
  • Consider conducting surveys or focus groups to gather more specific feedback and opinions on the market and competition.
  • Regularly revisit and update the analysis of competition and industry trends to stay ahead of the curve and maintain a competitive edge.

Develop A Solid Financial Plan

A solid financial plan is crucial for the success of any business, including a hospital. It provides a roadmap for achieving financial stability and sustainability. Here are some important steps to take when developing a solid financial plan for a hospital:

  • Estimate costs and revenue: Start by estimating the costs involved in setting up and running the hospital. This includes expenses such as equipment, facility construction or lease, staff salaries, operational costs, and marketing expenses. Additionally, analyze the expected revenue sources, such as patient fees, insurance reimbursements, and potential partnerships or collaborations.
  • Financial projections: Utilize the market research and competition analysis to make informed financial projections. This will include forecasting the number of patients, expected reimbursement rates, and expected revenue growth over a specific period of time. Be sure to consider factors such as seasonality, demand fluctuations, and potential economic changes.
  • Budget allocation: Once you have estimated costs and revenue and made financial projections, prioritize how you will allocate your budget. Consider allocating resources for essential needs such as medical equipment, technology, employee training, marketing, and community outreach programs. Create a detailed budget plan that includes both recurrent and capital expenses.

Tips for developing a solid financial plan:

  • Consult with financial advisors or experts in the healthcare industry to ensure accuracy and validity of financial projections.
  • Consider different funding sources, such as private investors, loans, grants, or public funding programs specifically targeting healthcare projects.
  • Account for contingency funds to handle unexpected expenses or emergencies.
  • Regularly revisit and update your financial plan to reflect changing market conditions, trends, and regulatory requirements.

Developing a solid financial plan requires a thorough understanding of the healthcare industry, market dynamics, and financial management principles. It's essential to invest time and effort into this step to lay a strong foundation for the hospital's financial success.

Secure Funding and Partnerships

Once you have developed a solid financial plan, the next crucial step in starting a hospital is securing funding and building partnerships. This stage is vitally important as it determines the financial stability and sustainability of your hospital.

1. Identify potential funding sources: Start by exploring various funding options available to you. This may include approaching investors, applying for grants and loans, or seeking partnerships with other organizations. Assess the pros and cons of each option to determine the best fit for your hospital.

  • Prepare a comprehensive business plan and financial projections to convince potential investors or lenders of your hospital's viability.
  • Consider partnering with organizations that share a similar mission and vision to leverage their expertise, resources, and infrastructure.

2. Craft a compelling funding proposal: Develop a persuasive funding proposal that clearly outlines your hospital's mission, goals, financial needs, and potential benefits for investors or partners. Emphasize the unique value proposition and the impact your hospital can make in the healthcare industry.

3. Build strategic partnerships: Collaborate with other healthcare organizations, research institutions, or technology companies to access resources, expertise, and specialized services. Look for complementary strengths that align with your hospital's vision and objectives.

  • Network within the healthcare industry to build connections and explore potential partnership opportunities.
  • Consider joining professional associations or attending industry conferences to connect with potential partners.

4. Establish trust and credibility: Demonstrate your hospital's potential by showcasing the qualifications and expertise of your team, highlighting successful case studies, or sharing testimonials from satisfied patients or partners. Establishing credibility is crucial to attract investments and create fruitful partnerships.

5. Think beyond financial support: While securing funding is a primary concern, also consider the value that partners can bring beyond monetary contributions. Look for partners who can offer strategic guidance, business acumen, or access to a broader network of healthcare professionals and resources.

6. Seek legal and financial advice: Consult legal and financial experts to ensure that your funding and partnership agreements are robust and legally sound. They can assist in negotiating favorable terms and protecting your hospital's interests.

By carefully navigating the funding and partnership landscape, you can secure the necessary resources and allies to propel your hospital towards success. Remember, building strong partnerships is not just about financial support but also finding collaborative opportunities that align with your hospital's vision and values.

Define The Hospital's Vision, Mission, And Values

Defining the vision, mission, and values of your hospital is crucial for establishing its identity and guiding its direction. These elements serve as the foundation for your organization and shape its culture, goals, and strategies.

When crafting the vision statement , consider the long-term aspirations and purpose of your hospital. It should succinctly describe the desired future state and the impact you aim to make in the community. This statement should inspire and motivate both your staff and patients.

The mission statement clarifies the fundamental purpose and reason for the existence of your hospital. It outlines the primary services you will provide and the target population you aim to serve. This statement should be concise and clearly communicate the value you intend to deliver.

The values of your hospital outline the guiding principles and beliefs that underpin your organization's culture and conduct. These principles should align with the overall mission and vision. They provide a framework for decision-making, as well as help ensure consistency in providing patient care.

Tips for Defining Your Hospital's Vision, Mission, and Values:

  • Involve key stakeholders, including staff, patients, and community members, in the process to gain diverse perspectives and foster a sense of ownership.
  • Keep your statements concise and easily understandable to ensure clarity and coherence.
  • Ensure that your vision, mission, and values are in line with the market need identified and the unique value proposition of your hospital.
  • Regularly revisit and refine your vision, mission, and values to adapt to changes in the healthcare landscape and the evolving needs of your patients.

By clearly defining your hospital's vision, mission, and values, you establish a strong foundation that guides decision-making, fosters a sense of purpose among your staff, and communicates the unique value your hospital brings to the community.

Outline The Organizational Structure And Key Roles

In order to effectively run a hospital, it is crucial to clearly outline the organizational structure and identify the key roles within the healthcare facility. This will help ensure smooth operations, effective communication, and proper allocation of responsibilities. Here are some important steps to consider when outlining the organizational structure and key roles:

  • Identify the leadership positions: Start by identifying the key leadership positions that will oversee the hospital's operations. This typically includes roles such as Chief Executive Officer (CEO), Chief Medical Officer (CMO), and Chief Nursing Officer (CNO).
  • Define the departments: Next, outline the various departments within the hospital, such as administration, nursing, finance, human resources, and medical services. Each department should have a designated leader responsible for managing day-to-day operations and ensuring departmental goals are met.
  • Establish reporting lines: Clearly define the reporting lines within the organizational structure to ensure efficient communication and decision-making processes. Indicate who reports to whom, and establish a hierarchical structure that promotes accountability and clarity.
  • Identify key roles: Determine the key roles within each department and specify the responsibilities and qualifications for each position. This may include physicians, nurses, therapists, administrative staff, and other healthcare professionals required to deliver quality care.
  • Promote teamwork and collaboration: Emphasize the importance of teamwork and collaboration among different departments and roles within the hospital. Encourage regular meetings, cross-functional projects, and open communication channels to foster a culture of cooperation and interdisciplinary care.
  • Delegate authority: Delegate authority and empower individuals within their respective roles to make decisions and take ownership of their responsibilities. This encourages autonomy and accountability, and enables efficient problem-solving and decision-making processes.
  • Consider developing an organizational chart to visually represent the hierarchical structure and reporting lines within the hospital.
  • Regularly review and update the organizational structure to ensure it aligns with the evolving needs of the hospital and changing healthcare landscape.
  • Communicate the organizational structure and key roles to all employees to ensure clarity and understanding of their responsibilities and reporting lines.

By carefully outlining the organizational structure and key roles, a hospital can establish a strong foundation for effective management, collaboration, and seamless delivery of quality healthcare services.

Formulate A Comprehensive Marketing Strategy

A comprehensive marketing strategy is essential for successfully promoting and positioning your hospital in the healthcare industry. It involves identifying your target audience, creating effective messaging, choosing the right marketing channels, and continuously evaluating and adapting your strategies to ensure maximum reach and impact.

When formulating your marketing strategy, keep the following key aspects in mind:

Tips for Formulating A Comprehensive Marketing Strategy:

  • Identify your target audience: Determine the demographics and characteristics of the patients you want to attract. This enables you to tailor your marketing efforts towards their specific needs and preferences.
  • Create compelling messaging: Develop a clear and persuasive message that highlights the unique value proposition of your hospital. Emphasize the personalized care, cutting-edge technology, and evidence-based treatment you offer.
  • Choose the right marketing channels: Utilize a mix of traditional and digital marketing channels to reach your target audience effectively. Consider strategies such as search engine optimization (SEO), social media marketing, email campaigns, and referral programs.
  • Build strong relationships: Cultivate relationships with referring physicians, healthcare professionals, and community organizations. Establish partnerships to increase referrals and enhance your reputation within the healthcare community.
  • Monitor and evaluate: Regularly measure the effectiveness of your marketing efforts by tracking key performance indicators (KPIs). Analyze data, gather feedback, and adapt your strategies accordingly to ensure maximum impact and return on investment.

A comprehensive marketing strategy plays a vital role in attracting patients, establishing your hospital's brand, and maintaining a competitive edge in the healthcare industry. By understanding your target audience, crafting compelling messaging, choosing the right channels, and continuously evaluating your strategies, you can position your hospital as a trusted provider of high-quality and personalized medical services.

Assess Legal And Regulatory Requirements

Ensuring compliance with legal and regulatory requirements is crucial when setting up a hospital. This step involves researching, understanding, and meeting the various laws and regulations that govern the healthcare industry.

  • Obtain necessary licenses and permits: Familiarize yourself with the licensing requirements specific to hospitals in your jurisdiction. Determine the necessary permits and certifications required to operate legally.
  • Comply with healthcare regulations: Understand and comply with regulations related to patient privacy, data protection, health and safety standards, and medical waste management. Implement appropriate policies and protocols to ensure compliance.
  • Stay updated with healthcare laws: Keep abreast of any changes or updates in healthcare laws and regulations that may have an impact on your hospital. This includes staying informed about reimbursement policies, billing regulations, and insurance requirements.
  • Secure professional licenses and certifications: Ensure all healthcare professionals working at the hospital possess valid licenses and certifications. Perform necessary background checks and verification procedures to maintain quality and patient safety standards.
  • Implement proper documentation and record-keeping practices: Establish systems for accurate and organized documentation to comply with medical record-keeping requirements. Adhere to guidelines for the storage, retention, and disposal of medical records.
  • Seek legal counsel: Consult with healthcare attorneys or legal experts with experience in the healthcare industry to navigate the complex legal landscape.
  • Stay updated with changes: Regularly review and update your knowledge on relevant laws and regulations to ensure ongoing compliance.
  • Establish a compliance team: Assign responsibilities to a dedicated compliance team or officer to monitor and enforce adherence to legal and regulatory requirements.

In conclusion, developing a business plan for a hospital requires careful consideration and thorough research. By following the nine steps outlined in this checklist, you can ensure that your hospital is well-prepared to meet the market demand, provide high-quality care, and comply with legal and regulatory requirements. By focusing on personalized medical services, leveraging cutting-edge technology, and adopting a multidisciplinary approach to treatment, your hospital can strive towards providing the best possible outcomes for patients.

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Business Plan Template for Hospital

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Creating a business plan for a hospital is a critical step in ensuring its success. Whether you're a healthcare entrepreneur or a hospital administrator, having a well-structured and comprehensive plan is essential for securing funding, attracting investors, and effectively managing your facility.

ClickUp's Business Plan Template for Hospitals is designed to simplify this process and help you outline and organize all the key elements of your plan. From strategic goals and financial forecasts to operational structure and marketing plans, this template has got you covered. Plus, it includes strategies for providing top-notch patient care and ensuring the long-term success of your healthcare facility.

Don't let the complexities of starting and managing a hospital hold you back. Use ClickUp's Business Plan Template to stay organized, focused, and on track for success!

Business Plan Template for Hospital Benefits

When using the Business Plan Template for Hospital, you can enjoy a range of benefits that will set your healthcare facility up for success:

  • Streamline your strategic goals, financial forecasts, operational structure, and marketing plans into a comprehensive plan
  • Secure funding and attract investors with a professional and well-organized business plan
  • Ensure the successful establishment and management of your healthcare facility with a clear roadmap
  • Optimize patient care strategies and enhance the overall quality of healthcare services provided
  • Stay organized and focused on your goals throughout the entire process

Main Elements of Hospital Business Plan Template

ClickUp’s Business Plan Template for Hospitals is designed to help hospital administrators and healthcare entrepreneurs create a comprehensive and organized business plan to secure funding and effectively manage their healthcare facilities. This template includes:

  • Custom Statuses: Track the progress of different sections of your business plan with statuses such as Complete, In Progress, Needs Revision, and To Do.
  • Custom Fields: Add important details to your business plan with custom fields like Reference, Approved, and Section to ensure all necessary information is included and easily accessible.
  • Custom Views: Utilize 5 different views, including Topics, Status, Timeline, Business Plan, and Getting Started Guide, to structure and visualize your business plan according to your needs. Whether you prefer a topic-based view, a status-based view, or a timeline-based view, ClickUp has you covered.

With ClickUp's Business Plan Template for Hospitals, you can streamline the planning process and create a compelling business plan for your healthcare facility.

How To Use Business Plan Template for Hospital

If you're in the healthcare industry and looking to create a business plan for your hospital, ClickUp's Business Plan Template can help guide you through the process. Follow these six steps to effectively use the template:

1. Define your vision and mission

Begin by clearly defining the vision and mission of your hospital. What do you aim to achieve and how do you plan to do it? Outline your goals, values, and the unique aspects that set your hospital apart from others.

Use the Docs feature in ClickUp to draft and refine your hospital's vision and mission statements.

2. Conduct market research

Next, gather relevant data and conduct thorough market research. This step will help you understand the healthcare landscape in your area, identify your target market, and analyze your competitors. Look for gaps in service, potential growth opportunities, and challenges you may face.

Utilize the Table view in ClickUp to organize and analyze your market research data.

3. Develop a comprehensive financial plan

Creating a solid financial plan is crucial for the success of any business, including hospitals. Determine your operating costs, revenue streams, and projected financial statements. Consider factors such as staffing, equipment, insurance, and regulatory compliance.

Use custom fields in ClickUp to track and calculate financial data, ensuring accuracy and organization.

4. Outline your services and specialties

Detail the services your hospital will offer and any specialties or niche areas you plan to focus on. Consider the needs of your target market and how your hospital can meet those needs. Highlight any unique services or innovative approaches your hospital will provide.

Create tasks in ClickUp to outline and categorize your hospital's services and specialties.

5. Develop a marketing and outreach strategy

To attract patients and build relationships with healthcare providers, you'll need a comprehensive marketing and outreach strategy. Identify the most effective channels to reach your target audience, such as social media, community events, or partnerships with other healthcare organizations.

Use the Calendar view in ClickUp to plan and schedule marketing campaigns and outreach activities.

6. Implement a performance monitoring system

To ensure your hospital is meeting its goals and constantly improving, implement a performance monitoring system. Establish key performance indicators (KPIs) and regularly track and analyze data to measure the success of your hospital's operations and initiatives.

Utilize the Dashboards feature in ClickUp to create visual representations of your hospital's performance metrics and track progress over time.

By following these six steps and using ClickUp's Business Plan Template, you can create a comprehensive and strategic business plan for your hospital.

Get Started with ClickUp’s Business Plan Template for Hospital

Hospital administrators and healthcare entrepreneurs can use the Business Plan Template for Hospitals in ClickUp to effectively plan and execute their healthcare facility's goals and strategies.

To get started, hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you'd like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan for your hospital:

  • Use the Topics View to outline and organize different sections of your business plan, such as strategic goals, financial forecasts, operational structure, marketing plans, and patient care strategies
  • The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
  • The Timeline View will allow you to set deadlines and milestones for each section of your business plan
  • The Business Plan View provides a holistic overview of your entire plan, allowing you to easily navigate and review all sections
  • The Getting Started Guide View offers a step-by-step guide to help you understand and utilize the template effectively
  • Utilize the custom fields Reference, Approved, and Section to add additional information and categorize different aspects of your business plan
  • Collaborate with your team to gather input, ideas, and feedback on each section
  • Regularly review and update your business plan as needed to ensure it remains relevant and aligned with your hospital's goals and objectives.
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Business Plan For Hospital

Congratulations on taking the first step in creating a business plan for hospital. This is an essential step towards entrepreneurial success and a well-crafted business plan will provide a solid foundation for your business venture!

Whether you're a budding entrepreneur with a brilliant idea or a seasoned business owner looking to expand, a thoughtfully constructed business plan will help you plan and navigate towards business prosperity.

In this comprehensive guide, we will walk you through the essential elements of creating a business plan for hospital that captures your vision as well as attracting investors, partners, and customers alike. From defining your mission and identifying your target market to formulating financial projections and developing a robust marketing strategy, our aim is to empower you with the knowledge and tools needed to turn your aspirations into a reality.

So whether you're just starting out or you're looking to revamp your existing business plan, read on for everything you need to know.

Why is a business plan important?

A business plan will help you think about your hospital business like you’ve never done before. This thinking will help you clarify important elements like your long-term goals and objectives. You can then work backwards from your goals to develop strategies and marketing campaigns to help make these objectives a reality.

A business plan will also help you think about your customers in great detail. You will be able to understand their wants and needs, where they hang out, and exactly how you will target them. This clarity will enable you to focus on developing the products or services they want.

Finally, if you are seeking outside capital such as investment or a bank loan, a well-thought-out business plan will show them you are serious about your business and you have developed a clear and thorough plan of action to achieve success.

A Business Plan For Hospital - The Key Parts

The executive summary, your company description, market analysis, products and services.

  • Marketing Strategy
  • Operational Plan
  • Financial Projections

Risk Analysis

  • Funding Request and Use of Funds (if applicable)
  • Additional Information

An executive summary of your business plan for hospital is a brief overview of your business plan.

This is the first thing that potential investors or lenders will see, so it is crucial that you make a good impression. Keep this section short and highlight the key points of your plan.

What should an executive summary include?

  • Overview of the Business
  • Mission Statement
  • Key Objectives
  • Summary of Products/Services
  • Financial Highlights and Funding Requirements (if applicable)

Remember potential investors don’t always have huge amounts of time to read your document so make sure that you condense the critical information, enabling the reader to make quick and well-informed judgments. Tips for the Executive Summary

Wait until you’ve written the whole business plan and then come back and complete the executive summary. This way you will know your business plan for hospital inside and out so you can highlight the key elements of the document. Remember the Executive Summary will shape the reader's initial perception of the business and whether they continue reading the document.

If you are looking for any tips on how to improve any section of your business plan, check out our Learning Zone , which has several in-depth guides on each section of the business plan.

The Company Description section of your hospital business plan is crucial as it offers a comprehensive overview of your business. This section provides essential information about your company's history, mission, vision, legal structure, location, and key milestones. It allows readers to gain a clear understanding of your company's fundamental characteristics and the context in which it operates.

When crafting your company description, make sure to include the following key elements:

  • Business Name and Legal Structure: Clearly state the legal name of the company and its legal structure.
  • Business History: Provide a brief overview of how the business came into existence. Highlight key milestones or events that shaped the company's growth and development.
  • Mission and Vision Statements: Present the company's mission statement, which outlines its purpose and primary goals. Additionally, share the vision statement, which describes the long-term vision and objectives for your business.
  • Products and Services: Briefly explain the products or services your business offers, emphasising their unique selling points and how they address customer needs.
  • Competitive Advantages: Clearly state the competitive advantages that differentiate your business from others in the market. This could include unique features, patents, proprietary technology, or a strong brand presence.
  • Location and Facilities: Provide details about the physical location of your business and any facilities required to operate successfully.

business-plan-for-hospital-include-strong-visuals

Tips for writing the company description section:

  • Interweave storytelling into the company's history, tell the reader about your passion for the business and the journey you’ve been on to get to this point.
  • Include strong visuals and infographics.
  • Avoid jargon and keep the writing style clear and concise.
  • Focus on your company's unique selling point (USP) and how that makes you stand out in the marketplace.
  • Back up this information with customer testimonials if possible.

The market analysis section of your hospital business plan is essential for understanding the competitive landscape and the overall business environment. It is crucial to execute this section effectively as it demonstrates your in-depth knowledge of the market dynamics. This process will enable you, as an entrepreneur, to identify opportunities, mitigate risks, and develop strategies for success.

To conduct a good market analysis, it is important to have a deep understanding of the industry you are operating in. This information will help you make informed decisions about your product or service offerings, marketing strategies, and pricing.

Key elements to include in your market analysis section:

  • Industry Overview: Provide a general overview of your industry. Describe the industry's size, growth rate, major players, and key trends. Include relevant statistics and data to support your claims.
  • Target Market and Customer Segmentation: Clearly define your target market and outline the specific customer segments you aim to serve. Identify the needs, preferences, and behaviours of each segment.
  • Competitor Analysis: Identify direct and indirect competitors in the market. Analyse their strengths, weaknesses, market share, and strategies. Highlight areas where your business differentiates itself from competitors.
  • Market Trends and Opportunities: Explore current and future trends in the industry and market. Assess how these trends can impact your business positively and identify potential opportunities for growth.
  • SWOT Analysis (optional): Consider including a SWOT analysis specific to your market. This can help you understand your business's strengths, weaknesses, opportunities, and threats in the context of the market.

How to nail the market analysis section?

  • Differentiation: Focus on highlighting how your business differentiates itself from competitors, really try to drum home this point.
  • Market Surveys or Interviews: Adding surveys or interviews and adding the key findings and quotes in the Market Analysis to support your claims will help reinforce the plans in your document.
  • Competitive Matrix: a competitive matrix visually comparing your business against key competitors based on factors such as price, features, and customer service. This matrix is a great visual method highlighting your competitive advantages.
  • Emerging Technologies or Trends: Identifying potential disruptions and how your company is prepared for them shows a great understanding of market dynamics and trends.

Looking for more inspiration on how to make your market analysis section even better, then check out our in-depth business market analysis guide.

In this section, we will highlight the core products and services that make your hospital business unique and valuable. It is essential to showcase what sets you apart from the competition and why your offerings are exceptional. This information is especially important for potential investors, partners, and customers who are keen to understand what sets your business apart in the market.

When describing your products and services ensure you include the following information:

  • Description of Products/Services: Provide a clear and concise description of each product or service your business offers. Explain their primary function and how they address customer needs.
  • Unique Selling Proposition (USP): Highlight the unique features or benefits that make your products or services stand out from competitors. Clearly state why customers should choose your offerings over alternatives.
  • Product/Service Life Cycle: Describe where each product or service stands in its life cycle (e.g., introduction, growth, maturity, decline) and outline plans for updates or new offerings in the future.
  • Intellectual Property (if applicable): If your business has any intellectual property (e.g., patents, trademarks, copyrights) related to your products or services, mention them in this section.

Extra elements to make this section stand out:

  • Customer Use Cases: Present real-life customer use cases or success stories that illustrate how your products or services have solved specific problems for customers. Use compelling narratives to engage readers.
  • Product Roadmap: If applicable, include a product roadmap that outlines future updates, enhancements, or new offerings. This showcases your business's commitment to innovation and continuous improvement.
  • Quality and Testing Standards: Discuss the quality standards your business adheres to and any testing processes you conduct to ensure the reliability and performance of your offerings.
  • Pricing Strategy: Integrate your pricing strategy into this section. Explain how you've determined the pricing of your products or services, considering factors like production costs, competition, and value to customers.
  • Environmental and Social Impact: If your products or services have positive environmental or social implications, highlight them in this section. Increasingly, customers appreciate businesses that contribute positively to society.

The Marketing Strategy Section

business-plan-for-hospital-make-data-driven-decisions

Key Information to Include Within the Marketing Strategy Section:

  • Marketing Goals and Objectives: Clearly state the marketing goals you aim to achieve. Focus on how you will increase brand awareness and drive customer conversions or leads.
  • Target Market Strategy: Describe the specific strategies you will use to reach and engage with your target customers. This could involve digital marketing, traditional advertising, or other channels.
  • Pricing Strategy: Explain how your pricing will attract the target market and how it compares to competitors' pricing.
  • Promotion and Advertising Plan: Outline the promotional activities and advertising campaigns you plan to execute. Include details about social media marketing, content marketing, email campaigns, and other promotional tactics.
  • Sales Strategy: Describe your sales process and how you plan to convert leads into paying customers. Mention any sales team structure and their responsibilities if applicable.
  • Customer Relationship Management (CRM) Approach: Discuss how you intend to build and maintain strong relationships with your customers to encourage repeat business and loyalty.

Getting Creative with the Market Strategy Section

  • Create a visual marketing timeline.
  • Outline influencer or brand ambassador partnerships if applicable.
  • Detail key metrics and KPIs.

By infusing creativity and innovative marketing ideas with sound fundamental marketing, you can really make this section stand out and impress potential investors and partners.

The Operation Plan Section

While marketing activities may seem more exciting, operational planning is essential for the success of your hospital business. This section focuses on the day-to-day operations and internal processes that drive your business forward. By providing a comprehensive roadmap of your resources, workflows, and procedures, you can instill confidence in potential investors that your business is well-equipped for growth.

Here are some key items to include in your operational plan:

  • Organisational Structure: Describe the organisational structure of the company, including key roles and responsibilities.
  • Key Personnel and Team: Introduce key team members and their qualifications. Highlight how their expertise contributes to the success of the business.
  • Operational Workflow and Processes: Provide a high-level step-by-step overview of delivering your product or service, from production to delivery or distribution.
  • Resource Requirements: Outline the key resources required to run the business, such as equipment, technology, facilities, and human resources.
  • Quality Control and Assurance: Explain how the company ensures the quality and consistency of its products or services, and how it addresses any potential issues.
  • Supply Chain Management (if applicable): If the business involves sourcing materials or products from suppliers, describe the supply chain management process.
  • Legal and Regulatory Compliance: Discuss any legal or regulatory requirements specific to the industry and how the company ensures compliance.

business-plan-for-hospital-dont-forget-your-operational-plans

How to add value to the Operation Plan section:

  • Use visuals to outline organisation structures and workflows.
  • Outline contingency plans, for example how the company is prepared for supply chain shortages or price shocks.
  • Efficiency, efficiency, efficiency. Describe how you have driven efficiency gains for the business.
  • Have you considered your business's environmental impact? If so, mention within this section.

The operational section of a business plan does have the potential to be dryer than more exciting elements such as marketing, however, by incorporating creative elements and forward-thinking workflows you can help keep reader engagement high.

The Financial Projections

The Financial Projections section can make or break a business plan. Always include well-researched and accurate projections to avoid undermining your business plan and losing out on potential investment. What to include in the financial projections section:

  • Sales Forecast: Provide a detailed projection of the company's sales revenues for each product or service category over the forecast period.
  • Expense Projections: Outline the expected operating expenses, including costs related to production, marketing, salaries, rent, utilities, and any other significant expenses.
  • Profit and Loss (P&L) Statement: Present a comprehensive Profit and Loss statement that summarizes the business's revenue, cost of goods sold (COGS), gross profit, operating expenses, and net profit or loss for each year of the forecast.
  • Cash Flow Projection: Include a cash flow statement that outlines the inflows and outflows of cash over the forecast period. This will help identify potential cash flow gaps.
  • Break-Even Analysis: Perform a break-even analysis to determine the point at which the business's total revenue equals total costs, indicating when it becomes profitable.

business-plan-for-hospital-dont-make-claims-you-cant-backup

How to add value to your financial projections section:

  • Be prepared to defend your assumptions with data. If you are planning for a high-growth % make sure you can justify this assumption. If in doubt the more conservative the better.
  • Include visuals that help readers quickly grasp the trends and patterns in revenue, expenses, and profits.
  • Offer different scenarios based on varying assumptions. For example, present a conservative, moderate, and aggressive growth scenario.
  • Include key financial ratios like gross margin, net profit margin, and return on investment (ROI).

The Funding Request and Use of Funds Section

This section outlines the financial requirements of the company and how the requested funds will be utilised to support its growth and operations.  Providing potential investors or lenders with a clear picture of how their money will be used will improve the business case for the funds and provide further confidence to investors. What to include in this section?

  • Funding Request Amount: State the specific amount of funding you are seeking to obtain from investors, lenders, or other sources.
  • Use of Funds: Provide a detailed breakdown of how the requested funds will be allocated across different aspects of the business. Common categories include product development, marketing, operational expenses, hiring, equipment, and working capital.
  • Timeline of Funds Utilisation: Outline the timeline for utilising the funds. Specify when and how the funds will be disbursed and the expected milestones or deliverables associated with each funding phase.
  • Expected Return on Investment (ROI): If applicable, include information on the expected ROI for investors. Highlight the potential for financial gains or equity appreciation over time.
  • Repayment Plan (if applicable): If seeking a loan, provide a clear repayment plan that outlines the repayment period, interest rate, and the proposed schedule for repayment.

How to maximise this section?

  • Create a visual timeline for key milestones such as the initial investment and key payback periods.
  • Outline risk mitigation plans to instil confidence.
  • Reiterate the company's long-term vision and how the funds can help achieve these goals.

As you near the end of your hospital business plan, it is crucial to dedicate a section to outlining potential risks. This section holds immense significance as it can greatly influence the confidence of potential investors. By demonstrating your market awareness and addressing challenges head-on, you can instill trust and credibility.

When conducting a risk analysis for your hospital car rental business plan, consider including the following:

  • Identification of Business Risks: Enumerate the key risks and uncertainties that could affect the business. These risks can be internal (e.g., operational, financial) or external (e.g. market changes, regulatory changes, economic downturns).
  • Impact Assessment: Analyse the potential impact of each identified risk on the business's operations, finances, and reputation. Rank the risks based on their severity and likelihood of occurrence.
  • Risk Mitigation Strategies: Present specific strategies and action plans to mitigate each identified risk. Explain how you will proactively address challenges and reduce the negative impact of potential risks.
  • Contingency Plans: Describe contingency plans for worst-case scenarios, outlining how the business will respond and recover from significant risks if they materialise.

How to make your risk analysis stand out?

  • Add context with real-life examples. Are there similar businesses that have dealt with risks successfully in a similar manner to your strategy? This will add credibility to this section.
  • Create adaptive strategies that demonstrate your business’s flexibility and adaptability.
  • Outlining the responsible person for each risk and how they own it, giving further confidence in your risk management strategies.

Some additional information you may want to include in your business plan for hospital:

  • Customer Surveys and Feedback
  • Letters of Support or Intent
  • Legal Documents (e.g., licenses, permits)
  • Resumes of Key Team Members

A Business Plan For Hospital Wrapping It All Up

A business plan is one of the most important documents that you will create about your business. It can literally be the difference between securing additional finance or missing out. Developing your business is not an easy task, however, the opportunity to think about your business in such detail will no doubt help you develop new and important insights along with new ideas and strategies. With all sections of your business plan and especially the financial plan, be prepared to defend your position to potential investors or lenders. This means that you should never publish anything that you can’t back up with additional data or rationale. Business Plans are not created overnight so take the time to research and think about each section properly, always try to support your claims and strategies with market insight and data. We hope you’ve enjoyed reading this guide, if you are looking for more tips on creating a business plan check out our learning centre .Good luck with your next business endeavour! Action Planr

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7 steps to writing a business plan for your healthcare business

Creating a strong business plan is the key to a successful private healthcare business.

When it comes to building your private healthcare business, writing a strong business plan and implementing it properly is perhaps the most effective strategy to propel your business to success. Whether you are just starting out, or are already an established healthcare practice, it is never too late to write your business plan and put it in place.

We’ve put together seven steps to help you write a healthcare business plan and then implement it. You can also find a sample private practice business plan PDF here to get you started!

Download our free Business Plan template here!

1. Identify your end goal

Perhaps the most important step of writing a business plan is identifying what it is you are trying to achieve. Identifying clear business goals will enable you to build a step-by-step plan to ultimately achieve these aims. 

Dr Gero Baiarda, Clinical Director at GPDQ, states the importance of knowing your practice’s aims in our ‘Launching a Private Practice’ ebook. He states that identifying your purpose, vision, and mission, will help keep you consistent and accountable to your goals. Knowing exactly what you are seeking to achieve in your business will mean that your business plan is tailored to achieving that goal at every step.

2. Get to know your business in numbers

To write a business plan that will enable you to reach your goals, you need to understand how your business is currently performing . Obtaining a complete and in-depth overview of the health of your business will help you to make concrete and achievable goals based on accurate data. 

Tracking data is also essential as you progress further with your business. You can’t make a successful business plan without knowing your business inside and out, and you won’t be able to understand how you are performing against your business plan without measuring data as you go.

Make sure you have access to business management tools that allow you to track the key data, such as revenue, patient numbers, cash flow, and other financial and patient demographics which will be useful for your growth goals.

Find out more about Semble’s business management tools here.

3. Break it into smaller steps

With a business goal in mind, the best way to create a business plan is to break it down into smaller, achievable steps. By doing this you will be able to map out a clear trajectory for your business over the next months or years and it will be easier to track your progress against your aims and expectations. 

Work backwards from the end goal to create smaller steps, each with a clear, quantifiable goal, such as reaching a revenue goal in a certain month or number of patients reached. If you work well with visuals, experiment with creating a visual diagram or board that you can keep close at hand to check and measure up against as you grow your healthcare business.

4. Identify key successes and failures

A business plan is about improving and growing your business, and to do this it is important to understand your strengths and weaknesses. Consider what has worked well for your business and what has not. 

For example, how is your staff management? Does your team work well together, understand their individual roles, and achieve tasks efficiently ? 

By identifying main strengths, you can work them into your plan to help you improve business performance. Identifying any weaknesses will enable you to know areas that need some attention and a greater input of time and resources to help you build an all-around stronger business. 

5. Get to know your target market

An understanding of your patient’s needs is essential to performing well in the market. Your patient population will depend to an extent on the healthcare services you are offering, but conducting key market research into the specific needs of your patients will help you to create a unique and tailored service that will perform better in the market.

Oliver Capel, Managing Director at Medico Digital, explains that market research and patient demographics such as age, gender, religion, income level, and more, can help you to cultivate a more targeted and effective marketing strategy because it provides insight into what sort of marketing materials will be best received by patients. For example, a young mother will respond differently to marketing than a 60-year old male retiree.

Explore how to use patient market research to improve your business performance in Chapter 2 of the ‘Launching a Private Practice’ ebook . 

6. Schedule regular time for business management

You can’t expect to see results in business growth if you don’t invest the time and energy into nurturing it. Whether that be investing in your own development with business management learning time, or setting aside a weekly hour for growth strategy and progress reviewing, it is essential that you carve out time to work on your business.

There are many online courses, books, and guides for basic business management which could help you learn invaluable skills for managing and growing your healthcare business.  Start by identifying areas where you have less knowledge and schedule in an hour a week for learning, planning, and strategy. 

Even as little as one hour a week will have a profound effect on your business skills and management, and the results will soon be evident!

7. Get your team on board

There is little point in setting goals if your team is unaware of what they are. Sharing business goals with your team and employees means that everyone can do their part to reach certain milestones and improve the business. It also helps to create a stronger network that you can rely on to carry out delegated tasks and ease the burden of both business management and the day-to-day running of your private healthcare practice.

Whether it be improving customer service with better bedside manner, or making changes to workflows to improve efficiency, making your team aware of the end goal will help them understand why change is needed and thus more likely to get on board.

Get started writing your business plan with this free private healthcare practice business plan PDF!

Katie Tincello

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How to Start a Healthcare Startup: Tips, Steps, and Challenges

Published on February 11, 2022

Beginner entrepreneurs may believe that launching a startup in the medical sector is a relatively easy endeavor with high chances for success. And it’s no wonder. Healthtech is among the most funded and rapidly growing industries. 

One report shows that the digital health market is expected to be worth $551.09 billion by 2027, up from its current value of $220.16 billion. Health technology funding in Q3 2021 surpassed the figures for 2020, with 72% of this money flowing into seed and early-stage startups. 

That said, in practice, the medical industry is one of the toughest areas for launching a startup. Factors like strict legal rules, high security standards, and the complexity of healthcare relationships make market entry difficult for most businesses eager to offer new products. To succeed, you need to understand how to start a healthcare startup in its current landscape.

That's what our article is about. At Demigos, we have helped many startups with custom software development, third-party integrations, and consulting services. We can show you the realities of the industry and the challenges you can face as you’re starting. This includes legal regulations, industry gatekeepers, and some tips on how to launch a medical startup.

Things to know before launching a startup in the medical sector

Realities of the healthcare industry

Building healthcare solutions requires thoughtful research. So, let’s start by examining the industry you’re about to enter and its relationship with digital technology. 

Conservative market

Large medical institutions don't always want to adjust to the latest technology. According to InstaMed's 11th Annual Report , 84% of healthcare providers still prefer paper-based manual processes for payment and patient data collection despite the strain they add.

Also, doctors, nurses, and patients want software products to be easy to use. So healthcare providers, fearing that new solutions would make their already intricate workflows even more complicated, hesitate to adopt innovation. Also, over 64% of physicians believe technological complexity is the main barrier to adopting remote solutions among patients.

Lastly, medical professionals need proof that digital technologies improve the quality of medical care. So, the industry expects startups to back up their concepts with evidence-based research.

Regulatory compliance

Medical companies must navigate through hundreds of federal and municipal laws . The main US regulations for healthcare include:

HIPAA . The Health Insurance Portability and Accountability Act regulates the protection of personal health information (medical data you can use to identify a person). The document outlines requirements for electronic medical data exchange, security, and privacy. Violations of HIPAA can result in penalties of up to $50,000 per incident with a ceiling of $1.5 million per year. 

FFDCA. The Federal Food, Drug, and Cosmetic Act regulates the use of medical devices in the US. You basically need to apply for certification if your hardware or software product can be used to manage health, wellness, or remote diagnoses.

PCI DSS. The Payment Card Industry Data Security Standard protects financial data. You must adhere to its policies to store, process, or exchange your patient's bank and credit card data.

In general, the legal requirements that apply to your startup depend on your company’s location and target markets. So, for example, a California-based telehealth provider that serves patients in Europe would need to follow GDPR and UK-GRPR in addition to its local regulations.

Interoperability of health data

Anyone starting a healthcare startup shouldn’t underestimate the complexity of health data. Today, 36% of medical record administrations have trouble exchanging patient information.

That means that if you want data to have a place in the existing system, your product should be compatible with other solutions that medical organizations use, as well as various medical devices, data formats, and terminologies. How do you achieve this? The product you develop must meet interoperability standards , such as Fast Healthcare Interoperability Resources (FHIR), Electronic Data Interchange (EDI), and/or Health Level Seven (HL7). 

Building trust

An industry as conservative as healthcare is reluctant to trust young startups. So, you have to build relationships with larger hospital chains, insurance companies, and healthtech companies to get ahead.

For example, a business plan with a roadmap will show that your startup plans to scale and won’t disappear with the seed funds. It will also help if you have reputable entrepreneurs and medical professionals on your board. And, of course, you should be able to prove your product's validity, compliance, and safety.

Lengthy sales cycle

Healthcare is not an industry you can expect to take by storm. Apart from wearables, no digital products have gone viral over the last decade. The industry is also full of bureaucracy that lengthens the sales cycle.

You must have realistic financial expectations no matter how brilliant your business idea for a new health care startup may be. Be ready to support your company for at least five years before you can close a profitable deal. That’s why you need a solid business strategy and the right team.

How to build a team for a medical startup

Core team for a healthcare startup

You don't necessarily need in-depth technical knowledge, business planning skills, and healthcare expertise to succeed. Instead, you should hire people who possess these talents. For a digital healthcare startup, the most important elements of your team would be a core team, CTO, and software engineers.

Gather a core team

You need a team of co-founders and key team members. Start by outlining the core values you look for, such as business vision, management skills, and experience in healthcare. It’s important to keep an open mind, as you may change your initial values as your company grows. You can also use networking platforms like CoFoundersLab , Founders Nation , or LinkedIn to find people interested in particular niches.

That said, you’re building a digital solution. That’s why you need a person with technical skills in your core team.

Hire an experienced CTO

A Chief Technology Officer (CTO) is one of the central roles for your startup. The person with this title manages software development, mentors your teams, selects the technical stack, and maps out the production. The technology officer can disseminate your product to investors and buyers at the later stages of your startup.

It’s important to get a CTO with a relevant tech background who knows how to build a medical startup. Look for software architects or senior developers with a strong expertise in building healthcare products. Of course, you still need to check the candidate's qualifications and skills. So, an alternative would be to hire an external CTO from an outsourcing agency you trust.

Outsource the software development

Healthcare software development is in many ways more complex than other types of software creation. Your engineers should understand how to make your product secure, compliant, and interoperable. In other words, expertise is often the most important factor. 

Outsourcing gives you access to a broader talent pool at a lower cost. You also don’t spend your time recruiting and training your employees. On top of that, 40% of companies believe that outsourcing helps them to be more flexible.

Now that we've outlined your startup's core, let’s move on to the most interesting part.

How to start a healthcare business: Step-by-step guide

Guide for starting a healthcare business

Launching a startup in healthcare takes hard work, so we have tried to make our guide as specific as possible to help you out. Here's the approach you can take.

Study the market

Thorough research is crucial in such a complex and highly competitive industry as healthcare. That’s why you need to dedicate all your efforts to studying the market, target audience, and available technologies.

This process is complex, so we advise you to divide it into several areas:

Target audience. Your audience is likely to be more than just patients. They may include healthcare providers (hospitals, labs, pharmacies, private practices), medical insurance agencies, and technology companies. You need to define the exact people and/or organizations that may want to buy your product once it is released.

Desires and pain points. You need to determine the fundamental needs and problems of your target audience. More importantly, you should understand if these pain points are significant enough to warrant a solution. This requires your team to explore medical research papers and even interview doctors, insurers, and patients.

Healthcare market. Learning about the limitations that could prevent patients and facilities from adopting your solutions is another essential step. This may be anything from slow internet or paper-based processes to low digital literacy in rural areas. 

Competition. You need to look at companies that have tried to solve the same problems, especially the unsuccessful ones. It's also important to look at indirect competitors who addressed the same issues differently. 

This might sound like a lot of work, but the tenacity pays off. In the end, it'll help you generate a viable idea for a medical startup and dismiss those that don't have an audience.

Hire a medical advisory board

A good concept isn't enough for a successful startup. You'll also need to understand medical science and the peculiarities of the niche. Therefore, you will benefit from expert opinions.

A medical board gives weighted perspectives on your initiatives, roadblocks you should consider, and ideas on how to bulletproof your business model. Board members can also keep abreast of upcoming regulatory changes and technology trends that may be helpful for your startup. Last but not least, experts with a strong standing in the field lend weight in the eyes of investors, healthcare providers, and other strategic partners.

It would help to keep your medical advisory board versatile. Balance out medical subject matter experts with generalists. You also might hire scientists, health software experts, nurses, and other non-physicians to broaden your horizons.

Outline the development

Your development team should create an outline for your product. The documentation should explain your goals, expectations, functional and non-functional requirements, and dependencies with other systems. You should cover the following aspects:

Software (programming languages, frameworks, open-source tools, application programming interfaces)

Design (user interface, application logic, key features)

Architecture (type of architecture, tenant isolation strategies, dependencies layers, and components)

Security (internal and external risks, security mechanisms, mitigation strategies)

Transparent documentation will help your team members sync their efforts, which is especially helpful for startups with remote teams. Besides, it helps your managers understand how much the development can cost.

Create a business plan and calculate the budget

You should aim to support your startup for at least five years if you don't want to run out of resources before launch. This means your project needs a long-term plan with goals, milestones, time estimates, and, of course, a budget. Now, how do you estimate your expenses when starting a digital health startup? 

Calculate the essential costs of your business first. Start with one-time purchases like inventory, assets, property, and security deposits. Then, determine the recurring expenses, including fixed (office rent, insurance, internet and phone services, and bank fees) and variable (materials, cloud hosting, income taxes, and outsourcing services).

Map out the costs of development according to technical specifications. Remember that your costs may skyrocket if you decide to add features or mobile versions. That’s why it’s important to validate your idea first.

Start with an MVP 

Before committing to full-scale development, you should test your idea, core features, and revenue model with a minimum viable product (MVP) — a simplified version of your product with bare-bones functionality. 

Focus on the critical functionality, such as features that solve the main problem of your audience. Everything else can wait until subsequent releases.

Here’s an example. Imagine you’re building a telehealth platform for hospitals. In this case, the core of your MVP would be video and audio conference functionality, appointment management, and user registration. After building the core features, you can add or integrate APIs for other software.

Choose the revenue model 

Companies starting a health tech startup can go either with a one-time license fee or with a subscription-based model. 

One-time payments are suitable for remote patient monitoring tools, wearables, and direct-to-patient services. Meanwhile, cloud-based software providers usually stick to recurring payments because they can convert more people with lower initial fees.

Most subscription-based services use one of the following pricing models:

Freemium. Some features are available for free, but the key functionality is behind a paywall.

Flat rate pricing. Users get complete functionality for a fixed recurring price.

Pay-as-you-go pricing. The price scales depending on the usage metrics per customer.

Tiered pricing. Your solution has multiple fixed prices that depend on features and other usage conditions (available data, number of transactions, or other factors).

Per-user pricing. You charge based on the number of active users per account.

Try to find the balance between your costs and value for your target audience. Experimenting with your strategies wouldn't hurt as well. Research conducted in 2021 revealed that 27% of SaaS companies tailor their business models based on a tiered pricing model.

Ensure compliance with regulations

Anyone launching a medical startup in the healthcare sector must adhere to local laws and data security practices. Start by evaluating your IT infrastructure, administrative structure, and policies. Then, identify the personal health information you process, assess risks in your systems, and calculate the possible impacts of data breaches .

Implement technical safeguards to minimize external threats. This can be achieved by adding mechanisms like multi-factor authentication, automatic log-off, data encryption, and intrusion detection tools. It's also vital to implement role-based access with different authorization levels based on the employees' roles.

Ensuring compliance with HIPAA and other regulations requires thorough work, but you can make your job easier by using compliance management tools. These can help you ensure your software and activities are aligned with security standards.

However, it's more efficient to let a seasoned technical company audit your systems. A reliable vendor can help you patch up weaknesses in your cybersecurity and even train your staff on security and compliance practices.

Promote your product before release

Start showcasing your solution to your primary target audiences well before release. Your product should also resonate with the gatekeepers of the industry — insurance companies and the government.

Innovative technologies are harder to promote in the medical community. You should be ready to back up your product with scientific research. What's more, you must be willing to put your findings through peer reviews and randomized controlled trials to make them more credible.

Develop and release a full product

Analyze the feedback you got after launching an MVP and have your developers modify the technical specifications before full-scale development.

We recommend building your application with scale in mind. For this, you can use cloud-based infrastructures that allow you to adjust storage and computing resources based on your needs. 

Adopt a modular monolith or microservices architecture that divides your software modules into loosely coupled independent modules. This will ensure your system's features don't depend on other components, so you can easily upgrade modules without disrupting the whole system. Plus, it will also help you enhance your software with out-of-the-box APIs.

You definitely have a long journey ahead, but this guide can keep you on track as you're starting. But to succeed, you also need to know about the pitfalls.

Why healthcare startups fail

Reasons why healthcare startups could fail

According to the US Bureau of Labor Statistics , 20% of healthcare and social assistance companies fail after the first year, and nearly half don't make it past five years. There is not much room for missteps here, which is why you should know how to start a healthcare startup without repeating common mistakes.

Insufficient networking and marketing

Health startups should start building connections with relevant stakeholders early on. Otherwise, they risk fading into obscurity. For example, if a large company buys a particular technology, other companies may want something similar. If you stay stealthy for too long, you can easily miss out on a good deal.

Besides, the rapidly growing digital health market doesn't leave chances for companies that can't communicate their value. You should understand who needs your product, the pain points they have, and ways you can solve them better than your competitors do. Then, you need to align your value proposition to your audience.

Wrong people at the C-level

The wrong management won't do your startup any good, and we're not talking just about their skills. Many companies fail to understand that investors, healthcare providers, and the government often look at the people behind the technology. So, your CEO and CTO must possess personal qualities stakeholders can respect, such as being sympathetic, confident, and transparent.

Tunnel vision

Being too focused on your initial business strategy can hamper your ability to recognize and respond to market dynamics. This phenomenon is known as strategic inflexibility or tunnel vision, and it’s fatal for most startups. The preliminary research is critical, but you should continuously gather input from your audiences and study the market to see how it’s responding to your product.

Lack of an evidence-generation strategy

Many companies start without evidence-generation plans, which results in running out of money before they can convince stakeholders. However, this problem is easily avoidable if you start the conversation with stakeholders from the outset. Doing so will help you understand what kind of data they want and gives you time to choose the proper methods for evidence generation.

Reimbursement and payment problems

Varying reimbursement policies across the US make many healthcare providers turn away from new solutions. For instance, more than 73% of medical providers believe reimbursement to be the top challenge for telemedicine adoption . 

You should carefully review the target market for laws that regulate insurance coverage for virtual visits, medical second options, and telehealth. Also, consider implementing healthcare APIs that help doctors and patients check if they’re eligible for reimbursement from inside your app.

Lack of demand

The main reason startups fail is when they want to solve a problem that seems interesting to them instead of serving a market need. Not every pain point is important enough to require a universal solution. Similarly, you may identify a viable problem, but your technology or business model can't solve it in a scalable way.

You need to devote enough time to market and competitor research. On top of that, you should use an MVP approach to validate your business idea and strategy with minimal investment. But firstly, you have to choose your market.

Best market to launch your medical startup

US regions to launch a healthcare startup

So, we still haven't explained how to launch your medical startup in a favorable location. To find the best region, you need to research patient demand, investment in new technologies, and cost coverage. For most early companies, the US would be the most favorable location.

The US spent $4.1 trillion on healthcare in 2020 ($12,530 per person) — almost 10% more than in 2019. According to 2020 Commonwealth Fund research , the country spends 16.9% of its gross domestic product on healthcare. This makes it the world leader in healthcare expenses and patient demand.

North America dominates the digital health market with a 36.34% revenue share in 2020. The 2021 Healthcare Investment & Exits report says that capital fundraising reached $21.8 billion in the first half of 2021 compared to $16.8 billion in 2020. Investments into companies reached $47 billion during this period, which is close to 2020's annual figure. Biopharma ($20.5 billion) and healthtech ($14.56 billion) are the most popular sectors for investors, but medical devices and apps are expected to set new records.

Almost half of US policyholders access health insurance through employers. This made the employee benefits market rise by nearly $550 million in the first half of 2021 alone. So, employers seek ways to provide their workforce with more convenient access to medical care.

California and New York are the most promising states for digital healthtech companies. California’s Silicon Valley and Los Angeles comprise over 433 healthcare startups that focus on innovative digital services, remote care technologies, and wearables. The tech scene in New York City includes nearly 200 startups and massive hospital infrastructure .

Demigos’ experience in serving healthcare startups

GapNurse medical matchmaking platform

Development is the hardest part of starting a healthcare startup because it requires a skilled team, an appropriate technical stack, and industry knowledge. Thankfully, that’s something we at Demigos can help you with.

We emphasize research, as it helps us determine the best development and business planning strategies. Our team starts with the design analysis for an MVP, allowing you to see what works better for the end-users. 

Our team can ideate, design, and develop digital solutions aimed at medical facilities, behavioral health centers, or senior living facilities . Best of all, we will continue to support and improve your product even after the release.

For example, we developed GapNurse — an on-demand platform that helps medical facilities find, connect, and manage qualified care providers. Our solution launched in Colorado but now operates in different states in the US. We also ensured that the platform stores patient information according to federal regulations.

Launching a startup in the healthcare sector requires thorough research, business planning, and promotion. But, most importantly, you should create a valuable solution that addresses a real market demand. As you can see, development is also the most difficult part of starting a healthcare startup.

Luckily, building tailored solutions for startups and larger enterprises is something Demigos excels at. Feel free to contact us anytime to discuss the details.

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Back to All Business Ideas

How to Start a Hospital

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on June 17, 2022 Updated on May 7, 2024

How to Start a Hospital

Investment range

$28,082,150 - $106,153,200

Revenue potential

$12 million - $36 million p.a.

Time to build

12 – 18 months

Profit potential

$1.2 million - $3.6 million p.a.

Industry trend

Hospitals, obviously, are vital to any community. In recent years, hospitals and clinics faced bed shortages due to the pandemic and struggled to keep up with demand. Now the industry is growing and most markets would welcome a new hospital. 

Starting a hospital is an expensive and demanding undertaking, but the investment is worth it, as it saves lives. You can also make good money in this trillion-dollar industry. 

But before you start exploring your financing options, you’ll need to understand the process of starting a business. Fortunately, this step-by-step guide details everything you need to know to launch a successful hospital. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a hospital has pros and cons to consider before deciding if it’s right for you.

  • Save lives — Hospitals give people second chances every day
  • Consistent demand — People always need medical attention
  • Good money — Medical care is expensive
  • Large investment — Constructing and equipping a hospital costs a fortune
  • Complicated to run — Hospitals require expert administration

Hospital Industry Trends

Industry size and growth.

hospital industry size and growth

  • Industry size and past growth — The US hospital industry was worth $1.4 trillion in 2023 after growing 1.2% annually over the last five years.(( https://www.ibisworld.com/industry-statistics/market-size/hospitals-united-states/ )) 
  • Growth forecast — The US hospital industry is projected to grow 2.64% every year from 2024 to 2028.(( https://www.statista.com/outlook/hmo/hospitals/united-states/ ))
  • Number of businesses — As of 2023, 2,596 hospital businesses have been operating in the US.(( h ttps://www.ibisworld.com/industry-statistics/number-of-businesses/hospitals-united-states/ )) 
  • Number of people employed — In 2023, a total of 5,751,078 people worked in the US hospitals.(( https://www.ibisworld.com/industry-statistics/employment/hospitals-united-states/ ))

Trends and Challenges

hospital industry Trends and Challenges

  • Artificial Intelligence (AI) is being used more and more in healthcare to analyze data and enable faster diagnoses 
  • Virtual health care is becoming common, allowing hospital staff to conduct follow-up care remotely
  • Many hospitals are not able to tap into the new technologies available due to their high costs
  • Cybersecurity is a huge concern for hospitals due to the need to protect patients’ healthcare data

Demand Hotspots

hospital industry demand hotspots

  • Most popular states — The most popular states for healthcare administrators are Nevada, Vermont, and Ohio. (( https://www.zippia.com/health-care-administrator-jobs/best-states/ ))
  • Least popular states — The least popular states for healthcare administrators are Kentucky, Tennessee, and Illinois.

What Kind of People Work in Hospitals?

hospital industry demographics

  • Gender —   75.7% of health care administrators are female, while 24.3% are male.
  • Average level of education — The average healthcare administrator has a bachelor’s degree. 
  • Average age — The average hospital administrator in the US is 45.5 years old.(( https://www.zippia.com/health-care-administrator-jobs/demographics/ ))

How Much Does It Cost to Start a Hospital Business?

Startup costs for a hospital range from $28 to $100 million. The bulk of the cost is for the construction of the hospital. You’ll also need a large operating budget to start with. 

If you do not have hospital administration experience, most colleges and universities offer online degrees in healthcare administration and management. 

You can access many resources by becoming a member of the American Hospital Association . 

You’ll need many items to successfully launch your hospital business, including: 

  • Computer system
  • Hospital beds, gurneys
  • Testing and diagnostic equipment
  • Surgical equipment
  • Medical and life-saving equipment
  • Kitchen equipment

How Much Can You Earn From a Hospital Business?

hospital earnings forecast

You’ll need to form relationships with insurance companies so that your medical services will be covered. The average emergency room cost is $2,500, and the average hospital stay is $15,000. Hospital operations are expensive, so your profit margin will be about 10%. 

In your first year or two, you might have 100 emergency room visits per month and 50 inpatients, bringing in $12,000,000 in annual revenue. This would mean $1,200,000 in profit, assuming a 10% margin. As your hospital becomes more well-known, those numbers could triple. With annual revenue of $36,000,000, you’d make a tidy profit of $3,600,000!

What Barriers to Entry Are There?

There are a few barriers to entry for a hospital. Your biggest challenges will be:

  • High startup costs of construction, equipment, and medical supplies
  • The experience necessary to start and run a hospital

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Step 2: hone your idea.

Now that you know what’s involved in starting a hospital, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Understand Your Competitors

Analyzing your competitors is an essential part of starting a successful hospital business. Research hospitals in your area to examine their services, price points, and customer reviews.

Here are some steps you can follow to conduct competitor research:

  • Identify your competitors — Make a list of all the hospitals in your area. This can include general hospitals or specialty hospitals that may offer services similar to yours.
  • Analyze their size and scale — Look at the size of your competitors, such as the number of beds, staff, and range of services offered. Consider the facilities they have and how they may differ from yours.
  • Analyze their services — Look at the range of services your competitors offer, such as emergency services, primary care, or specialized care. Consider their specialization and unique selling points.
  • Analyze their reputation — Look at the reputation of your competitors, such as their patient satisfaction rates, accreditation status, and awards. Consider how they differentiate themselves from others in the market.
  • Analyze their marketing strategies — Look at how your competitors market their services, such as websites, social media ads, Google My Business profile, or print ads. Consider their branding, messaging, and how they differentiate themselves from others in the market.
  • Create a competitive analysis report — Compile all the data you have gathered into a report. This report should include your competitors’ strengths, weaknesses, and opportunities. Use this report to create a plan for how you can differentiate yourself from your competitors.

Why? Identify an Opportunity

You’re looking for a market gap to fill. For instance, maybe the local market is missing a medical center that offers outpatient surgical procedures or an emergency medicine specialty hospital.

hospital startup business plan

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as surgical procedures or patients who receive Medicaid.

What? Determine Your Products or Services

You can specialize in certain types of hospital care, such as emergency medicine or surgical procedures, but your best bet is to offer a full range of hospital services.

Offering a full range of services entails a multifaceted approach:

  • Emergency services — Establish a 24/7 emergency department capable of handling acute conditions and traumas.
  • Inpatient care — Create wards for patients requiring overnight stays, with facilities for various specialties such as surgery, internal medicine, and pediatrics.
  • Outpatient services — Set up clinics for consultations, minor procedures, and follow-up visits that don’t necessitate hospital admission.
  • Diagnostic services — These include laboratories for medical tests and imaging departments for X-rays, MRI, and CT scans, which are essential for accurate diagnoses.
  • Surgical services — Equip operating rooms for a range of procedures, from minor surgeries to complex operations, with post-operative care units.
  • Intensive care units (ICU) — Prepare for critical care services with advanced monitoring and life support for patients in severe conditions.
  • Maternity and newborn services — Provide labor and delivery rooms, postnatal care, and neonatal intensive care units.
  • Specialized centers — Consider adding centers of excellence such as cardiology, oncology, or neurology that offer cutting-edge treatments.
  • Ancillary services — Ensure support services like pharmacy, physiotherapy, dietary, and counseling are in place for holistic patient care.
  • Administrative services — Develop robust back-end support with medical records, billing, housekeeping, and facility maintenance.

How much should you charge for hospital services?

Your services will be mainly dictated by standard industry prices, which are what insurance companies cover. Your profit margin after the cost of all operations should be about 10%. 

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

The primary target market for a hospital is patients who need medical care, whether for acute or chronic conditions, preventive care, or elective procedures. Patients can range from infants to elderly adults and may come from different demographic backgrounds and income levels.

Where? Choose a Hospital Location

Start by doing thorough market research to understand the local population, existing healthcare facilities, and community health needs. Make sure the location is easily accessible, has good transport connections, and enough parking. It should also be safe, visible, and close to important services like pharmacies and specialized medical facilities. Plan for future growth.

Ensure you comply with all local regulations and zoning laws to avoid legal problems. Assess the financial aspects of the site, including land cost, potential profits, and any government incentives. Build relationships with the community to get support and explore partnership possibilities. Finally, make sure the area has dependable utilities and internet service.

hospital business idea rating

Step 3: Brainstorm a Hospital Name

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • The name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “hospital” or “medical center,” boosts SEO
  • The name should allow for expansion, e.g,: “Premier Healthcare Alliance” over “Orthopedic Institute of New York”
  • A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 300 unique hospital business name ideas here . If you want your business name to include specific keywords, you can also use our hospital business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation.

Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Hospital Business Plan

Here are the key components of a business plan:

what to include in a business plan

  • Executive summary — A high-level outline showcasing the hospital’s mission, the specific healthcare services it will offer, funding requirements, and projected financial outcomes to attract investors or partners.
  • Business overview — This section describes the type of hospital (e.g., general, specialty, teaching), its intended size, location, the need it will fill in the community, and the legal structure of the business.
  • Product and services — Detailed information on the medical care provided, including emergency care, surgical services, inpatient care, outpatient clinics, and any specialized services, highlighting how they meet patients’ needs.
  • Market analysis — An assessment of the healthcare demand in the targeted area, population demographics, disease prevalence, and an overview of patient needs to justify the hospital’s establishment and potential for growth.
  • Competitive analysis — An examination of existing healthcare providers in the region, their service offerings, strengths, and weaknesses to position the new hospital strategically in the market.
  • Sales and marketing — Strategies to attract patients and referring physicians, including advertising plans, public relations efforts, partnerships, and pricing strategies tailored to the hospital’s services.
  • Management team — Profiles of key team members, their qualifications, experience in healthcare management, and roles they will play in ensuring the hospital’s operational and financial success.
  • Operations plan — A description of the hospital’s daily operational procedures, including patient intake processes, staffing, healthcare delivery workflows, and quality control measures.
  • Financial plan — Detailed financial projections, including startup costs, operating expenses, revenue streams, profit margins, and break-even analysis to ensure sustainability and profitability.
  • Appendix — Supporting documents such as resumes of the management team, legal agreements, detailed market study results, and any technical hospital design plans to provide credibility and context to the plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to hospitals. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your hospital will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

types of business structures

  • Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corporation — An S Corporation refers to the tax classification of the business but is not a business entity. An S Corp can be either a corporation or an LLC , which just needs to elect to be an S Corp for tax status. In an S Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your Articles of Organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

hospital startup business plan

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax. Visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship, you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

hospital startup business plan

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

hospital startup business plan

  • Bank loans — This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
  • Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Venture capital — Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
  • Angel investors — Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
  • Friends and Family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding — Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal — Self-fund your business via your savings or the sale of property or other assets.

Step 8: Apply for Hospital Business Licenses and Permits

Starting a hospital business requires obtaining a number of licenses and permits from local, state, and federal governments. Most states have a demanding hospital registration process that you must go through to become a licensed hospital. Check with your state for requirements. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your hospital business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

types of business insurance

  • General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business property — Provides coverage for your equipment and supplies.
  • Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation — Provides compensation to employees injured on the job.
  • Property — Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto — Protection for your company-owned vehicle.
  • Professional liability — Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as brightly , eHospital , or Glorium , to manage your operations, records, compliance, staff, and invoicing. 

  • Popular web-based accounting programs for smaller businesses include Quickbooks , FreshBooks , and Xero . 
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using different website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are various marketing strategies to consider:

  • Content marketing — Create content that establishes your hospital as a health authority.
  • Local SEO — Optimize your Yelp and Google Business profiles and encourage satisfied customers to leave positive reviews to boost local visibility.
  • Social media — Use platforms like Linkedin and Facebook for updates and community interaction.
  • Press releases — Announce new services.
  • Logo and materials — Ensure branding reflects quality of care.
  • Testimonials — Share patient success stories on your website to build trust.
  • Community partnerships — Work with local businesses for health education.
  • Loyalty programs and discounts — Reward frequent visits.
  • Telemedicine — Provide online consultations.
  • Healthcare apps — Develop apps for scheduling and health tracking.
  • Seminars and webinars — Host educational events to engage the community.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your hospital meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your hospital business could be:

  • Patient safety and care are our top priorities
  • Professional, full-service care to ensure your health
  • Trusted healthcare in a loving environment

unique selling proposition

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a hospital business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in hospitals for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in hospitals. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a hospital business include:

  • Hospital registration agents — register patients
  • Physicians — provide medical care in various specialties
  • Surgeons — perform surgical procedures
  • Nurses — assist with medical care
  • Orderlies — transport patients in the hospital
  • Housekeepers — clean all areas of the hospital
  • Kitchen workers — prepare patient meals
  • Security guards — protect patients and staff

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Hospital — Start Making Money!

Hospitals are a trillion-dollar US industry and a critical part of our society. Starting a hospital might seem daunting, but with a sizable investment and hard work, you can serve your community, save lives, and build a lucrative and rewarding healthcare operation.

Now that you know what’s involved from a business perspective, it’s time to be a local hero and start your successful hospital. 

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  • Decide if the Business Is Right for You
  • Hone Your Idea
  • Brainstorm a Hospital Name
  • Create a Hospital Business Plan
  • Register Your Business
  • Register for Taxes
  • Fund Your Business
  • Apply for Hospital Business Licenses and Permits
  • Open a Business Bank Account
  • Get Business Insurance
  • Prepare to Launch
  • Build Your Team
  • Run a Hospital — Start Making Money!

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How to Start a Hospital

A hospital represents one of the few business opportunities that give you the ability to save lives on a regular basis. In addition to treating illnesses and injuries, many establishments offer preventive health services. They also provide access to advanced equipment that helps primary care physicians accurately diagnose ailments. 

If you desire to make a huge difference in peoples' lives and find innovative ways to improve medical care, consider starting a hospital.

Learn how to start your own Hospital and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Hospital Image

Start a Hospital by following these 10 steps:

  • Plan your Hospital
  • Form your Hospital into a Legal Entity
  • Register your Hospital for Taxes
  • Open a Business Bank Account & Credit Card
  • Set up Accounting for your Hospital
  • Get the Necessary Permits & Licenses for your Hospital
  • Get Hospital Insurance
  • Define your Hospital Brand
  • Create your Hospital Website
  • Set up your Business Phone System

We have put together this simple guide to starting your Hospital. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

  • What are the startup and ongoing costs?
  • Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is very important. Read our detailed guide on how to name your business . We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

Want some help naming your Hospital?

Business name generator, what are the costs involved in opening a hospital.

You'll need to rent, buy, or construct a large building. A new hospital with 120 beds costs about $112 million to build, according to Fixr . You could reduce initial expenses by constructing a smaller " micro-hospital " for less than $55 million. These facilities often have ten beds at most. 

Either way, sophisticated medical equipment proves costly. You can finance or lease expensive devices to minimize upfront expenditures. Hospitals have to acquire furnishings, kitchen equipment, and computers as well. Specialized computer software frequently costs around $25,000 to $35,000.

What are the ongoing expenses for a Hospital?

Health facilities face high maintenance, utility, equipment replacement, medical supply, billing, and collection costs. Per-bed energy spending often exceeds $13,000. Salaries represent a large portion of the expenses due to the highly skilled and demanding nature of hospital labor. The typical facility devotes over $5 million to marketing, according to Healthcare IT Today . These establishments carry a range of insurance policies, such as liability, workers' compensation, commercial auto, property, and umbrella coverage.

Who is the target market?

Everyone could potentially need advanced medical services, but certain demographics require more hospital care. Federal data shows that Americans that are 65 to 84 years old visit these facilities most frequently and that women use hospitals in greater numbers than men.

How does a Hospital make money?

The facility bills patients after it provides services. Insurers and government benefit programs often pay at least a portion of the expense. Compensation must exceed total labor, medical supply, and overhead costs. Hospitals can also earn money by selling food to guests, and some establishments operate retail gift shops. It's possible to rent out office space to doctors as well.

Kaiser Health News reports that it costs $2,032 for an average emergency room visit. People typically spend over $15,000 on inpatient care. Major surgeries such as heart valve replacement might cost over $150,000, according to Debt.org . Hospitals may bill different amounts depending on whether the patient has insurance, uses a government program, or pays in cash. Managed-care contracts dictate the amounts that many insurers pay; you'll need to negotiate with specific insurance companies. A recently enacted law requires hospitals to list prices on their websites.

How much profit can a Hospital make?

Around three out of four hospitals operate as public or nonprofit institutions. Nevertheless, some for-profit companies have become quite successful. These facilities achieve a profit margin of 11% on average.

How can you make your business more profitable?

Outpatient treatments remain more lucrative than overnight inpatient services. While hospitals can advertise the benefits of highly profitable operations, it's difficult to control revenue. Closely monitor the number of minutes it takes to complete medical procedures. This will help you ensure that physicians don't retain operating rooms for unnecessarily long time periods.

Hospitals have many opportunities to cut expenses. They consume more energy than other buildings, so it's vital to optimize the orientation of new structures and insulate them thoroughly. Continually search for the best prices on well-made supplies; some hospitals successfully request discounts from existing suppliers. Encourage employees to think about the costs associated with their decisions and strive to find more economical solutions (without compromising the quality of care).

  • Set up the HVAC system to automatically reduce heating or cooling levels in unoccupied areas.
  • Identify patients who overuse the emergency room and help them find more suitable solutions.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Hospital is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

  • Separate personal and business expenses by putting your business' expenses all in one place.
  • Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a Hospital

You can enhance your institution's credibility by seeking positive media coverage of accomplishments and new services. Many local newspapers publish articles about nearby medical establishments. As Becker's Hospital Review points out, women often encourage men to visit health facilities. It's particularly important for your marketing messages to reach them. You need to gain the trust of surgeons and other doctors in the area as well. Invite these professionals to tour the hospital in hopes that they'll use it to perform operations. They could also refer patients to your establishment for services they don't provide.

How to keep customers coming back

Remember that a positive guest experience can turn visitors into customers. While sophisticated equipment and qualified staff hold great importance, simpler things like plants, artwork , and colorful decor also boost satisfaction. A warmer atmosphere creates more positive memories and may even promote faster recoveries.

To retain patients, collect feedback and respond to concerns quickly. Even when you provide exemplary health care, seemingly minor things like a tactless comment, billing error, or long waiting time can result in losing a customer. Don't overlook convenience and flexibility; patients want to feel "in control." They also appreciate efforts to enhance their enjoyment of life beyond the treatment of specific conditions.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

You might succeed in this field if you don't mind complicated projects that take a long time to reach completion. Hospital executives must have a willingness to hire competent individuals and let them make important decisions. This opportunity isn't ideal for someone who prefers to complete major tasks single-handedly. There are easier, simpler ways to earn money; you should only get involved in this business if you genuinely seek to help others.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a Hospital?

As patients arrive, physicians must diagnose a wide variety of conditions. Some people receive self-care instructions or referrals to specialists. Others need to undergo medical procedures in the operating rooms. Staff members also perform an assortment of mundane daily tasks, such as answering phones, serving meals, washing sheets, and cleaning surfaces.

What are some skills and experiences that will help you build a successful Hospital?

Management and medical skills will benefit you in this role. It helps if you have experience running a smaller health business, such as a clinic, pharmacy, or urgent care center. You'll need to communicate clearly and confidently. Hospital founders must have the ability to give commands as well as listen carefully. Successful health entrepreneurs may have prior experience in improving quality and efficiency within the limits of complex regulations.

What is the growth potential for a Hospital?

The federal government predicts that spending at hospitals will grow by nearly 6% annually through 2027. While some owners focus their efforts on a single facility, several companies operate large chains. For instance, Tennessee-based Hospital Corporation of America was founded in 1968 and eventually came to possess 185 locations.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a Hospital?

Before accepting patients, hold staff exercises that test out the new building and equipment by simulating medical emergencies. These drills provide beneficial training and a safe way to identify any defects. Be sure to collect detailed employee feedback. Clearer signage or enhanced lighting could make a big difference when the first ambulances arrive.

Use leasing to acquire a major piece of equipment if the machine involves rapidly changing technologies. For example, ultrasound tends to advance faster than X-rays. A lease lets you upgrade more easily. Otherwise, choose a financing option so that you'll eventually own the device.

If you rent out medical office space, you can make it more attractive with guaranteed parking spaces and permission to access the building at a wide range of hours. Don't require physicians to commit to leases for several years. They have many options, so it's crucial to offer flexibility and competitive pricing.

Some medical services need to subsidize others. Your hospital ought to charge private insurers enough money to compensate for smaller payments from other sources. Government programs often provide less reimbursement, and uninsured patients might lack sufficient income to pay bills in full. The same goes for insured customers with very high deductibles.

How and when to build a team

You'll have to immediately start hiring staff members such as managers, specialists, nurses, cooks, customer service representatives, and janitors. Hospitals don't necessarily need to hire physicians. They frequently lose money by directly employing doctors (rather than referring patients to independent doctors), according to the Harvard Business Review . Staff members should be qualified as well as caring and personable. Liability represents a serious concern; always thoroughly screen employees at every level, even when it becomes difficult to find suitable personnel. Health-oriented customer service representatives earn just over $12 per hour on average. Registered nurses get paid about $30 an hour, according to PayScale .

Have a Question? Leave a Comment!

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Medical Practice Business Plan Template

Written by Dave Lavinsky

medical practice business plan template

Medical Practice Business Plan

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

Download our Ultimate Medical Practice Business Plan Template here >

What is a Medical Practice Business Plan?

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

Why You Need a Business Plan for a Medical Office

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

Sources of Funding for Medical Practices

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

Finish Your Business Plan Today!

How to write a business plan for a medical business.

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

Executive Summary

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

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

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

Company Analysis

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

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

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

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

Include answers to question such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

Finish Your Medical Practice Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Medical Practice Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

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

Direct competitors are other medical offices. 

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

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

Income Statement

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

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

Balance Sheets

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

Cash Flow Statement

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

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

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

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

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

Medical Practice Business Plan FAQs

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

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

Where Can I Download a Medical Clinic Business Plan PDF?

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

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

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

Don’t you wish there was a faster, easier way to finish your Medical Practice business plan?

OR, Let Us Develop Your Plan For You

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

Other Helpful Business Plan Articles & Templates

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Hospital Business Planning Best Practices

Hospital Business Planning Best Practices

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hospital startup business plan

Noah Parsons

16 min. read

Updated February 7, 2024

Free Download:  Sample Medical Practice Business Plan Template

So you’re thinking about starting your own outpatient medical practice.

You probably have many good reasons to open a private practice. Private practices can be lucrative, although it requires you to spend time building relationships with patients while also attending to all business processes that are part of running your practice .

Maybe you want more autonomy over your practice and your workflow. Or maybe you hope to expand your services to underserved areas or specific populations based on your expertise.

If you’re thinking about starting an outpatient medical practice, one of the first things you should do is write a business plan. Even if you’re able to self-fund your practice and don’t need outside investment, your business plan is a great tool for thinking through all the different aspects of building a profitable and sustainable practice.

You should go into this thinking about your business plan as a living document, not something you do once and then file away forever. Use it as a tool, especially around your financials. Revisit and update it regularly by comparing your forecasts to your actuals and adjusting as necessary.

To help you get started, you can download our free business plan template . If you’ve never written a business plan before, Bplans also offers a library of sample medical business plans that you can review or even download to use as a model.

  • Executive summary

The first section that will appear in your business plan is the executive summary . But before you dive right in, it’s the section of your plan that you should actually write last. It’s a summary and an overview of your outpatient medical practice and your plans, so it will be easy to put together after you’ve written the rest of your plan.  

Executive summaries are short—keep it to one to two pages. Keep in mind that if you’re using your plan to get funding, investors and banks tend to read your executive summary to get a sense of whether to read on and consider your request. Do not neglect it; just write it last.

Your executive summary will include the following sections:

  • Who you are: Your business name, location, and contact information.  
  • What you offer and the problem your business solves: What does your practice offer and why is it needed? This is your value proposition .
  • Target market: Who is your ideal patient? Do they self-pay or use insurance? Be specific.
  • Competition: Who else is offering similar services?
  • Team: Who is on your management team?
  • Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Mention your funding needs.
  • Milestones and traction: How have you validated that there’s a need for your practice in your location?

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Now that you’re familiar with what’s included in your executive summary, tuck that information away, and get to work on the rest of your plan.

Think of the next few sections of your plan as the overarching description of your practice’s business opportunity. You’ll cover the problem you’ve identified and the solution that your practice offers. Then you’ll think through your ideal customer , your competition , and your opportunities for growth . This section area should describe the services you provide and how they benefit your patients.

  • Problem and solution

First, describe the problem that you’ve identified and how your practice solves that problem. Here’s a brief example:

The problem : There is a lack of affordable pediatric and gynecological care available in coastal areas of Lane County, Oregon. Many patients have to travel miles to the closest practice.  

The solution : Dr. Gardner plans to open Ocean Lane Outpatient Care to serve smaller Oregon coastal communities scattered outside of major towns with major hospitals. Due to her focus on pediatric and gynecological care, Dr. Gardner’s particular services are especially valuable in this location due to the lack of available service providers in the area. Dr. Gardner’s practice will accept private insurance and Medicaid, as well as a sliding scale for patients in a certain income bracket.   

The services section identifies what kind of medical practice you are opening. Restate who your practice serves and what kind of services you specialize in. Talk about how your practice approaches treatment and what goals you have in addition to providing quality care. Here’s an example from a sample business plan for a medical practice.

Include a breakdown of all services furnished by the clinic, being as granular as possible. For example:

Gynecology:

  • Annual women’s wellness exam

Pediatrics:

  • Immunizations
  • Youth eating disorder treatment
  • Target market

Next, talk about your ideal patients. If you’re in the earliest stages, you’ll want to do some research that verifies your hypotheses.

For example, Dr. Gardner would have needed to verify her assumption that people in coastal towns in Oregon are in need of pediatric and gynecological services—a need that isn’t currently satisfied by available resources.

A formal market analysis can help verify that there’s a need for your particular practice in your intended location.  

Your target market section should include:

  • TAM, SAM, and SOM: Total Available Market (TAM), Segment of the Available Market (SAM), Share of the Market (SOM). Here, you are looking at the difference between targeting everyone: TAM (all people who need medical care—so all humans in your area), versus your ideal clients: SAM (maybe this is those with certain insurance or ability to self-pay), versus the number of new patients you think you can realistically reach: SOM, especially within your first few years. The idea is that not everyone will be an ideal patient. It matters because you can waste a lot of money with marketing outreach to everyone, instead of targeting a specific population that is more likely to be looking for your services.
  • Buyer persona : Imagine there’s one specific patient who represents your ideal patient. Be specific. Maybe she’s 34 years old, has private insurance, is relatively healthy, but needs more regular medical care and advice.  
  • Competition and competition matrix : List competitors and analyze what makes them competitive. For instance, your competitors might be large hospitals because of the wide range of services they offer. You might also be competing with local chiropractors or other alternative medicine practices that already have a foothold in local communities.
  • Future products and services : Name the products/services you will offer as your practice grows and earns more money and as your patients develop new needs. Maybe you will want to open a second location when you gain enough patients. Or maybe you will want to extend your practice’s hours of operation.

Ideal patient profile

Your ideal patient profile identifies the type of patient whom you hope to attract and retain. To clarify, this does not mean you only serve your ideal patient type. Rather, focusing your outreach efforts on attracting your ideal patient will allow you to grow your practice more effectively than targeting a large number of patients who may or may not be in the market for your practice’s specialty.

When developing your ideal patient profile, consider:

  • Who you enjoy working with
  • Who needs the services you provide
  • Who can and will pay your pricing (or have an insurance plan that you want to accept)

For instance, because Dr. Gardner specializes in preventive and curative care, a patient seeking palliative treatment for terminal cancer is not the ideal patient. This patient would not receive the best care for their needs from Dr. Gardner’s services.

Acquiring a new patient is six to seven times more expensive than retaining a current patient. In order to support and retain current patients, develop a strategy to proactively meet their needs and set benchmarks to measure the success of your strategy.

  • Execution: How your practice will respond to the opportunity

First, your business plan laid out the opportunity at hand. Now, the rest of your plan will focus on how to take advantage of that opportunity. Now is the time to lay out what you’ll do to attract patients and set up a viable business model with healthy financials.

Components of this section include:

  • Your marketing and sales plan
  • Strategic partnerships or alliances
  • Your operations plan
  • Your team and company information
  • Financial plan
  • Milestones and metrics that you’ll need to hit to be viable
  • Your key assumptions and risks
  • Your funding ask and exit strategy, if applicable
  • Marketing and sales plan

The marketing and sales component of your plan should include how you plan to reach the patients in your target market, how you’ll bill for your services, and what you need to do to bring in the right number and type of patients.

  • Positioning : Describe how you will present your company to your customers with your positioning statement . Think about answering these questions: What are you offering your patients that they can’t get elsewhere? Why should they pick you instead of another practice? Where do you see yourself in the competitive landscape? Use this model to help:

“For [target market description] who [target market need], [how our business offering meets the need]. Unlike [key competition], it [most distinguishing feature].”

For [coastal community members] who [require gynecological care], Ocean Lane Outpatient Care [provides both pediatric and women’s health services]. Unlike [other area medical practices], Ocean Lane Outpatient Care is [conveniently located near the communities it serves and can fill the gap between pure pediatric care and full-blown adult care for young women].

  • Pricing and billing : Medical pricing is complex, especially if you plan to work with insurance companies. Practice Builders says that “a 10 percent increase in pricing can result in a much better return than a 10 percent reduction in costs—or even a 10 percent increase in patient volume.”

Make sure you price your services at what they are worth and explain your pricing to your patients. Consider the demographics your practice serves when you choose your pricing. Research other practices in the area and learn more   about how you can choose the best prices for your patients and your practice.Also, consider how you will get patients to keep coming back to your practice. Sometimes you can increase sales by upselling and cross-selling , or offering complementary services.

If you accept insurance, the contracts you set up with insurance companies for reimbursement will probably dictate your pricing, so this is a good place to talk about your negotiation strategy as well.

  • Update your website and social media frequently and ensure your website is mobile-friendly and share-friendly with credible links added.
  • Make sure all communications with and about patients are HIPAA-compliant . Download a HIPAA Compliance Guide to ensure you are following regulations.
  • Maintain a positive online reputation for your practice as a key management technique. You can do this by claiming your profile on any third-party sites that list it. Encourage your patients to review you online, too.
  • Strategic alliances : List any people or organizations with whom you are working. You will most likely need to partner with a regional lab for medical testing. Opening an on-site lab can be costly for a smaller practice. You will most likely need to partner with a nearby hospital as part of a referral system or to share select services and equipment.

The operations section of your business plan covers how your business works, from the logistics to the technology.

  • Technology: Describe how your technology works, but do not go into too much detail. Investors can ask for more information if they want to. Will you rent or buy equipment ? The technology you need ranges from simple items like thermometers to more complex items like centrifuges.
  • Billing and information storage: Provide a brief overview of how you will manage information technology and patient records to promote safety, efficiency, and compliance with HIPPA  regulations and industry standards. Explain your usage of Electronic Medical Record (EMR) software in this section.
  • Payment types you accept: Consider payment types such as private pay, private insurance, Medicaid/Medicare, etc. What kind of referrals can you offer to the uninsured or those who cannot afford your services?
  • Milestones and metrics

In this part of your plan, you set measurable, achievable milestones, such as the number of new patients added per month in the first year of operations. Milestones can be about any aspect of your medical practice as long as they emphasize growth. For metrics , decide which numbers to check regularly to track your company’s health. This area should also include information about traction (past successes) and risks:

  • Traction: Look back at major milestones you have achieved. Hopefully, they demonstrate that your business model works and that you are filling a need for your market. If you’re looking to attract private funders, this section is important since it shows your initial success .
  • Key assumptions and risks : Acknowledge the assumptions you are basing your business on. Set out to prove them right if you can. Also, discuss risks so that investors know you have considered what could go wrong and that you have a plan for dealing with challenges. Malpractice suits and changing healthcare regulations are risks specific to the healthcare field. Malpractice insurance is a must for addressing the former. Changing healthcare regulations can affect the volume of patients who are able to afford your services.

Your team can be more important than your product or service. Describe your team here, even if it is just you and a receptionist who answers the phone in your office building.

  • Management team and qualifications: Address who works for you, what do they do, and how much you pay them. Compile the details of their relevant experience and education.
  • Hiring plans : Outline who, if anyone, you need to hire to fill skills gaps in your management team and how much you plan to pay them.
  • Company overview

The company overview tells about who you and your staff are and appeals to potential investors. Keep it short—it should be the shortest chapter of your business plan but is still very important.

It needs to include these elements:

  • Mission statement : Your mission statement articulates your goals for what your company does for its customers, employees, and owners. It will read something like this: “Our mission is to provide X (services) for Y (customers) by Z (methods).” For instance, Ocean Lane Outpatient Care is dedicated to providing quality care for all the inhabitants of coastal Lane County by providing affordable and versatile services.”
  • Intellectual property : List any patents you have or have pending, and mention any core technology you are licensing from another company.
  • Legal structure and ownership : Explain your business structure and who owns how much of it. More on considerations for physicians and legal structure here.
  • Business location : Describe the company’s location and any facilities it owns.
  • Company history if it’s an existing company

Having a solid financial plan is critical, whether you’re seeking funding or not.  A typical financial plan includes projections by month for the first year and annual projection for the next three to five.

Include these key elements:

  • Profit and loss statement : this explains how your business made a profit or incurred a loss in a given amount of time (typically three months) by listing all revenue and expenses, then documenting the total amount of net profit or loss.
  • Cash flow statement: documentation of how much cash the business brought in, how much it paid out, and the amount of its ending cash balance (on a monthly basis).
  • Balance sheet : snapshots how your company is performing at a given moment by including how much money you have in the bank, how much your customers owe you, and how much you owe your vendors.
  • Sales forecast : projections of what you think you will sell in a given timeframe (one to three years).
  • Business ratios : Comparisons of your company’s financials with numbers from the industry profile.
  • Keep it brief. For example, Dr. Gardner will employ administrative aides and nurses.
  • Use of funds : Needed if you’re seeking investment or a loan. This section explains how you will use investors’ money.
  • Exit strategy : You only need this if you’re seeking outside investment. An exit strategy is a method by which entrepreneurs and investors, especially those that have invested large sums of money, transfer ownership of their business to a third party to recoup money invested in the business. Common exit strategies include being acquired by another company, the sale of equity, or a management or employee buyout.

When writing your financial plan, make sure to consider startup costs . For a medical practice, average startup costs can include initial fees, malpractice insurance, cost of renting or leasing office space, and the cost of any legal or tax advisors.

Consider submitting your plan to at least five to 10 banks if you need help financing your startup costs. Many banks have divisions designated to providing loans to new dental and medical practices , so submit your plan to that division if you can. Startup costs can be high in the medical field, so make sure not to underestimate them.

Finally, your appendix is the holder for any supporting information such as charts, images, graphs, and more. If you need to include large sets of data or pages of information, put it here. That way, it is available but does not distract from the plan’s most important pieces.

For instance, you can expand on your personnel plan with charts of each employee’s annual insurance costs. You can also include versions of your profit and loss statements and other financials that extend further into the future.

Don’t forget to go back to your executive summary! Remember to keep it brief and write it based on what you have written already.

When you’re ready to write your business plan, there are an array of resources available to you. Download our free business startup checklist to think about the next steps. Also, check out our free business plan template . Reviewing sample business plans in the medical field can help you get a better sense of the process and information you’ll provide. Downloading this plan for a family medicine clinic will probably be most helpful if you’re setting up a primary care practice.

Remember that this plan is a living document. Schedule a regular business plan review meeting. You should review your trajectory and compare your financial projections to your actuals frequently to keep your practice on track.

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

Content Author: Noah Parsons

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Start your business plan with the #1 plan writing software. Create your plan with Liveplan today.

Table of Contents

  • Position your practice’s business opportunity

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Medical Practice Business Plan Template

Written by Dave Lavinsky

Medical Practice Business Plan

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

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

Medical Practice Business Plan Example

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

Executive Summary

Business overview.

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

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

Service Offering

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

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

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

Customer Focus

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

Management Team

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

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

Success Factors

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

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

Financial Highlights

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

The breakdown of the funding may be seen below:

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

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

Fresno Medical Financial Projections

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

Start a Hospital

Enriching Lives and Health: Your Own Hospital Odyssey

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RELATED BUSINESS IDEAS

Discover your perfect domain, hospital mini business plan, expected percent margin:, earnings expectations:, actions to hit those numbers:, infrastructure:, human resources:, regulatory compliance:, cost control:, business operations:, not what you had in mind here are more ideas, grab your business website name, step 1: determine if starting a hospital is the right endeavor, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: name the business, step 3: obtain licensing and permits, licensing requirements, permits needed, step 4: find a location, securing the location, step 5: hire employees, types of employees needed, tips on hiring employees, step 6: purchase equipment, types of equipment needed, tips on purchasing equipment, step 7: market the business, invest in quality materials, develop a network, utilize online resources, step 8: develop a business plan, step 9: obtain financing, sources of financing, step 9: open the business, tips on maintaining the business, explore more categories, take the next steps.

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COMMENTS

  1. Hospital Business Plan [Free Template

    Writing a hospital business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and ...

  2. Hospital Business Plan Example [2024 Updated]

    Step2: Get Funding. One of the main reasons to develop a startup hospital business plan is to get funds. As Mercy Ltd had the aim to help treat those who couldn't afford usual hospital charges, Gillian paid special attention to this hospital business plan sample pdf to attract investors. Step3: Find a Location.

  3. How To Write a Business Plan for Hospital in 9 Steps: Checklist

    2. Craft a compelling funding proposal: Develop a persuasive funding proposal that clearly outlines your hospital's mission, goals, financial needs, and potential benefits for investors or partners. Emphasize the unique value proposition and the impact your hospital can make in the healthcare industry. 3.

  4. Healthcare Business Plan Template [Updated 2024]

    In addition, if you plan to seek funding, investors and lenders will use your business plan to determine the level of risk. Download our Ultimate Business Plan Template here >. Below is the business plan outline you should use to create a business plan for your healthcare company. Also, here are links to several healthcare business plan templates:

  5. Healthcare Business Plan Template (2024)

    A healthcare business plan is a plan to start and/or grow your healthcare 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 Healthcare business plan using our Healthcare Business Plan Template here.

  6. Creating a Healthcare Business Plan

    The 10 elements of a healthcare business plan. The following elements are crucial to a well-written healthcare business plan. Each component plays an important role in the planning process and can guide healthcare providers during the initial start-up phase or when expanding the practice. 1. Executive summary.

  7. How to Start a Healthcare Startup Business in 2024

    Develop a Comprehensive Business Plan: Create a detailed business plan outlining your startup's mission, vision, and strategies. Include financial projections, marketing plans, and a roadmap for development. A well-thought-out business plan not only guides your startup's growth but also serves as a valuable tool when seeking funding or ...

  8. Business Plan Template for Hospital

    Creating a business plan for a hospital is a critical step in ensuring its success. Whether you're a healthcare entrepreneur or a hospital administrator, having a well-structured and comprehensive plan is essential for securing funding, attracting investors, and effectively managing your facility.

  9. Business Plan For Hospital

    The market analysis section of your hospital business plan is essential for understanding the competitive landscape and the overall business environment. It is crucial to execute this section effectively as it demonstrates your in-depth knowledge of the market dynamics. This process will enable you, as an entrepreneur, to identify opportunities ...

  10. 7 steps to writing a business plan for your healthcare business

    1. Identify your end goal. Perhaps the most important step of writing a business plan is identifying what it is you are trying to achieve. Identifying clear business goals will enable you to build a step-by-step plan to ultimately achieve these aims. Dr Gero Baiarda, Clinical Director at GPDQ, states the importance of knowing your practice's ...

  11. How to Start a Healthcare Startup: Tips, Steps & Challenges

    An industry as conservative as healthcare is reluctant to trust young startups. So, you have to build relationships with larger hospital chains, insurance companies, and healthtech companies to get ahead. For example, a business plan with a roadmap will show that your startup plans to scale and won't disappear with the seed funds.

  12. How to Start a Hospital in 2024

    Step 8: Apply for Hospital Business Licenses and Permits. Starting a hospital business requires obtaining a number of licenses and permits from local, state, and federal governments. Most states have a demanding hospital registration process that you must go through to become a licensed hospital.

  13. Securing Your Future: The Importance of a Well-Designed Hospital

    A hospital business plan is a comprehensive document that outlines the vision, goals, strategies, and financial projections of a hospital. It serves as a roadmap for the development, growth, and sustainability of the hospital. A well-designed hospital business plan is crucial for attracting funding, securing partnerships, recruiting talent, and ...

  14. How to Start a Hospital

    Start a Hospital by following these 10 steps: Plan your Hospital. Form your Hospital into a Legal Entity. Register your Hospital for Taxes. Open a Business Bank Account & Credit Card. Set up Accounting for your Hospital. Get the Necessary Permits & Licenses for your Hospital. Get Hospital Insurance. Define your Hospital Brand.

  15. Medical & Health Business Plans

    Explore our library of Medical & Health Business Plan Templates and find inspiration for your own business. ... Start a Business Before you start; Find a business idea ; Validate your idea ... Looking for a free sample business plan for a medical billing, chiropractic, dental, hospital, or another health care businesses? You've come to the ...

  16. Medical Practice Business Plan Template & Guide [Updated 2024]

    Medical Practice Business Plan. Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their medical practices. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a medical practice ...

  17. Hospital Business Planning Best Practices

    Hospital Business Planning Best Practices. By Community Hospital Corporation April 10, 2018 Operational Improvement, Strategic Direction. Vital to an organization's future, a business plan is a framework outlining the steps for financial and operational success. For many hospitals, this process has occurred at five-year intervals tied to ...

  18. How to Write a Business Plan for a Medical Practice

    Position your practice's business opportunity. Now that you're familiar with what's included in your executive summary, tuck that information away, and get to work on the rest of your plan. Think of the next few sections of your plan as the overarching description of your practice's business opportunity.

  19. Hospital Business Plan [Sample Template]

    Legal expenses for obtaining licenses and permits - $1,500. Marketing promotion expenses for the grand opening of Joan & Phil® Hospital, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of - $3,580. Cost for hiring Business Consultant - $2,500.

  20. Medical Practice Business Plan Template (2024)

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