Family Medicine Clinic Business Plan

Start your plan
Start my business plan

Start your own family medicine clinic business plan

Park Square Family Medicine

Financial Plan

Forecast

Key Assumptions

Important notation/limitations in viewing the financial plan:

  1. The physician salary is considered a constant in the first year and therefore has not been included in this overall financial plan.
  2. The $32,732 in start-up subsidies, and the $288,000 in first-year subsidies is forgiven and not subject to reimbursement unless Park Square family medicine fails…which will not happen. "Failure" is defined in the grant agreement as inability to achieve patient load goals for five months in a row during the first year.

Revenue by Month

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for Net Profit (or Loss) by Year

Financing

Use of Funds

we will purchase the building and have the following startup expenses

Legal & Accounting $500

Insurance $1,000

Marketing $2,000

Computer $3,000

Business License $32

Communications $150

Medical Equipment $7,000

Office Supplies $4,000

Office Furniture $2,000

Marketing Plan $3,000

Regulatory Duties/CLIA $50

TOTAL START-UP EXPENSES $22,732

Sources of Funds

The start-up requirements, with the exception of the building loan, are to be financed by General Medical Center. This is in addition to the $288,000 they will be providing will help with expenses in the first year. As well as $24000 for the physician’s expenses for the first year 

The purchase of the building will be financed by the owner, Dr. Detroit, with a 15-year mortgage (listed under Long-term Liabilities). This loan will be repaid from the clinic’s cash flows and guaranteed with his personal assets.

Statements

Projected Profit & Loss

2020 2021 2022
Gross Margin $257,250 $326,340 $398,860
Operating Expenses
Salaries & Wages $81,600 $153,232 $194,896
Employee Related Expenses $16,320 $30,646 $38,980
Health Insurance $2,004 $2,004 $2,004
Dental Insurance $2,004 $2,004 $2,004
Vision Insurance $2,004 $2,004 $2,004
Workman’s Comp $1,800 $1,800 $1,800
Promotion $8,640 $8,640 $8,640
Marketing $6,000 $6,000 $6,000
Printing $2,004 $2,004 $2,004
Professional Services $996 $996 $996
Answering Services $2,400 $2,400 $2,400
Telephone $1,560 $1,560 $1,560
Medical Waste $2,004 $2,004 $2,004
Repairs and Maintenance $1,500 $1,500 $1,500
Janitorial Service $1,560 $1,560 $1,560
Dues and Subscriptions $1,008 $1,008 $1,008
Medical Billing $19,200 $19,200 $19,200
Interest Incurred $12,626 $10,645 $8,542
Depreciation and Amortization $15,000 $15,000 $15,000
Gain or Loss from Sale of Assets
Income Taxes $0 $0 $0
Total Expenses $185,480 $270,868 $320,240
Net Profit $77,020 $62,132 $86,760

Projected Balance Sheet

Starting Balances 2020 2021 2022
Cash $16,000 $75,898 $118,928 $184,480
Accounts Receivable $0 $0 $0
Inventory
Other Current Assets
Total Current Assets $16,000 $75,898 $118,928 $184,480
Long-Term Assets $225,000 $225,000 $225,000 $225,000
Accumulated Depreciation ($15,000) ($30,000) ($45,000)
Total Long-Term Assets $225,000 $210,000 $195,000 $180,000
Accounts Payable $0 $0 $0
Income Taxes Payable $0 $0 $0
Sales Taxes Payable $0 $0 $0
Short-Term Debt $32,122 $34,103 $36,206 $38,440
Prepaid Revenue
Total Current Liabilities $32,122 $34,103 $36,206 $38,440
Long-Term Debt $192,878 $158,775 $122,569 $84,129
Long-Term Liabilities $192,878 $158,775 $122,569 $84,129
Paid-In Capital $38,732 $38,732 $38,732 $38,732
Retained Earnings ($22,732) ($22,732) $54,288 $116,420
Earnings $77,020 $62,133 $86,759

Projected Cash Flow Statement

2020 2021 2022
Net Cash Flow from Operations
Net Profit $77,020 $62,132 $86,760
Depreciation & Amortization $15,000 $15,000 $15,000
Change in Accounts Receivable $0 $0 $0
Change in Inventory
Change in Accounts Payable $0 $0 $0
Change in Income Tax Payable $0 $0 $0
Change in Sales Tax Payable $0 $0 $0
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold
Investments Received
Dividends & Distributions
Change in Short-Term Debt $1,981 $2,103 $2,233
Change in Long-Term Debt ($34,103) ($36,206) ($38,440)
Cash at Beginning of Period $16,000 $75,898 $118,928
Net Change in Cash $59,898 $43,030 $65,553
Download link edge graphic Download this plan

Start your own family medicine clinic business plan

Start your own business plan

LivePlan logo Start planning

Your business plan can look as polished and professional as this sample plan. It's fast and easy, with LivePlan.

Get the Bplans newsletter:

Expert business tips and advice delivered weekly.