Physicians 1st Billing and Claims

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Medical Billing Business Plan

Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit Sales
Service 1 0% 400 800 1,200 1,800 2,200 2,600 3,000 3,400 3,800 4,200 4,600 5,000
Service 2 0% 0 0 0 0 2,200 2,600 3,000 3,400 3,800 4,200 4,600 5,000
Total Unit Sales 400 800 1,200 1,800 4,400 5,200 6,000 6,800 7,600 8,400 9,200 10,000
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Service 1 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50
Service 2 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50
Sales
Service 1 $1,400 $2,800 $4,200 $6,300 $7,700 $9,100 $10,500 $11,900 $13,300 $14,700 $16,100 $17,500
Service 2 $0 $0 $0 $0 $3,300 $3,900 $4,500 $5,100 $5,700 $6,300 $6,900 $7,500
Total Sales $1,400 $2,800 $4,200 $6,300 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 $23,000 $25,000
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Service 1 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Service 2 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Direct Cost of Sales
Service 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Service 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Mary 0% $1,000 $1,000 $1,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
John 0% $1,000 $1,000 $1,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Matthew and Erika 0% $400 $400 $400 $400 $400 $400 $600 $600 $600 $600 $600 $600
Total People 4 4 4 4 4 4 4 4 4 4 4 4
Total Payroll $2,400 $2,400 $2,400 $4,400 $4,400 $4,400 $4,600 $4,600 $4,600 $4,600 $4,600 $4,600
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $1,400 $2,800 $4,200 $6,300 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 $23,000 $25,000
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Margin $1,400 $2,800 $4,200 $6,300 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 $23,000 $25,000
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Expenses
Payroll $2,400 $2,400 $2,400 $4,400 $4,400 $4,400 $4,600 $4,600 $4,600 $4,600 $4,600 $4,600
Marketing/Promotion $280 $410 $630 $770 $950 $1,130 $1,310 $1,490 $1,670 $1,850 $2,030 $2,210
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Franchise Fee $133 $133 $133 $133 $133 $133 $133 $133 $133 $133 $133 $133
Rent $134 $134 $134 $134 $134 $134 $134 $134 $134 $134 $134 $134
Utilities $73 $73 $73 $73 $73 $73 $73 $73 $73 $73 $73 $73
Insurance $17 $17 $17 $17 $17 $17 $17 $17 $17 $17 $17 $17
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $3,037 $3,167 $3,387 $5,527 $5,707 $5,887 $6,267 $6,447 $6,627 $6,807 $6,987 $7,167
Profit Before Interest and Taxes ($1,637) ($367) $813 $773 $5,293 $7,113 $8,733 $10,553 $12,373 $14,193 $16,013 $17,833
EBITDA ($1,637) ($367) $813 $773 $5,293 $7,113 $8,733 $10,553 $12,373 $14,193 $16,013 $17,833
Interest Expense $131 $128 $126 $123 $121 $118 $116 $113 $111 $108 $106 $103
Taxes Incurred ($530) ($99) $137 $130 $1,034 $1,399 $1,723 $2,088 $2,452 $2,817 $3,181 $3,546
Net Profit ($1,237) ($396) $550 $520 $4,138 $5,596 $6,894 $8,352 $9,810 $11,268 $12,726 $14,184
Net Profit/Sales -88.39% -14.15% 13.09% 8.25% 37.62% 43.04% 45.96% 49.13% 51.63% 53.66% 55.33% 56.73%
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cash from Receivables $0 $47 $1,447 $2,847 $4,270 $6,457 $11,067 $13,067 $15,067 $17,067 $19,067 $21,067
Subtotal Cash from Operations $0 $47 $1,447 $2,847 $4,270 $6,457 $11,067 $13,067 $15,067 $17,067 $19,067 $21,067
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $0 $47 $1,447 $2,847 $4,270 $6,457 $11,067 $13,067 $15,067 $17,067 $19,067 $21,067
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $2,400 $2,400 $2,400 $4,400 $4,400 $4,400 $4,600 $4,600 $4,600 $4,600 $4,600 $4,600
Bill Payments $8 $256 $811 $1,255 $1,416 $2,480 $3,021 $3,524 $4,066 $4,608 $5,150 $5,692
Subtotal Spent on Operations $2,408 $2,656 $3,211 $5,655 $5,816 $6,880 $7,621 $8,124 $8,666 $9,208 $9,750 $10,292
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $2,708 $2,956 $3,511 $5,955 $6,116 $7,180 $7,921 $8,424 $8,966 $9,508 $10,050 $10,592
Net Cash Flow ($2,708) ($2,909) ($2,065) ($3,108) ($1,846) ($724) $3,146 $4,642 $6,100 $7,558 $9,016 $10,474
Cash Balance $13,292 $10,383 $8,318 $5,210 $3,364 $2,640 $5,786 $10,428 $16,528 $24,087 $33,103 $43,577
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $16,000 $13,292 $10,383 $8,318 $5,210 $3,364 $2,640 $5,786 $10,428 $16,528 $24,087 $33,103 $43,577
Accounts Receivable $0 $1,400 $4,153 $6,907 $10,360 $17,090 $23,633 $27,567 $31,500 $35,433 $39,367 $43,300 $47,233
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $16,000 $14,692 $14,536 $15,225 $15,570 $20,454 $26,273 $33,352 $41,928 $51,962 $63,453 $76,403 $90,811
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $16,000 $14,692 $14,536 $15,225 $15,570 $20,454 $26,273 $33,352 $41,928 $51,962 $63,453 $76,403 $90,811
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $230 $770 $1,209 $1,334 $2,380 $2,904 $3,389 $3,913 $4,437 $4,961 $5,485 $6,009
Current Borrowing $16,000 $15,700 $15,400 $15,100 $14,800 $14,500 $14,200 $13,900 $13,600 $13,300 $13,000 $12,700 $12,400
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $16,000 $15,930 $16,170 $16,309 $16,134 $16,880 $17,104 $17,289 $17,513 $17,737 $17,961 $18,185 $18,409
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $16,000 $15,930 $16,170 $16,309 $16,134 $16,880 $17,104 $17,289 $17,513 $17,737 $17,961 $18,185 $18,409
Paid-in Capital $9,604 $9,604 $9,604 $9,604 $9,604 $9,604 $9,604 $9,604 $9,604 $9,604 $9,604 $9,604 $9,604
Retained Earnings ($9,604) ($9,604) ($9,604) ($9,604) ($9,604) ($9,604) ($9,604) ($9,604) ($9,604) ($9,604) ($9,604) ($9,604) ($9,604)
Earnings $0 ($1,237) ($1,634) ($1,084) ($564) $3,573 $9,169 $16,063 $24,415 $34,224 $45,492 $58,218 $72,402
Total Capital $0 ($1,237) ($1,634) ($1,084) ($564) $3,573 $9,169 $16,063 $24,415 $34,224 $45,492 $58,218 $72,402
Total Liabilities and Capital $16,000 $14,692 $14,536 $15,225 $15,570 $20,454 $26,273 $33,352 $41,928 $51,962 $63,453 $76,403 $90,811
Net Worth $0 ($1,237) ($1,634) ($1,084) ($564) $3,573 $9,169 $16,063 $24,415 $34,224 $45,492 $58,218 $72,402