Home Health Care Services Business Plan

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Wheatland Health Services

Financial Plan

Forecast

Key Assumptions

The General Assumptions table, below, shows our important (and conservative) annual assumptions concerning interest rates, tax rates, and personnel burden. In addition:

  1. We assume a strong economy, without major recession.
  2. We assume, of course, that there are no significant unforeseen changes in the federal policy that dictates Medicare and Medicaid reimbursement of Home Health Care Services.

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

Startup Expenses: 

Attorney Fees – Setting Up Limited Liability Company $875

State of Kansas Home Health Agency License $100

Medisoft Billing Program plus Support $5,000

Professional Liability Insurance $3,000 (Assuming 25% down of $12,000.00)

Workman’s Comp Insurance Deposit $500

Premises and Content Insurance Deposit $300 (Assuming 25% down of $1,200.00)

Contract Retainer with PT/OT/ST $500

Office Upgrades (Carpet and Paint) $3,000

Deposit plus First $400

Phone Set Up (Excluding Phones) $250

Utilities Deposit $150

Post Office Box $26

OFFICE EQUIPMENT

2 Computers (Fully Loaded) $3,000

4-in-1 Printer/Fax/Copier/Scanner $750

QuickBooks Pro $300

Phones $200

Pager $50

OFFICE SUPPLIES

Stationary $200

Business Cards $150

Brochures $200

Other Misc. Office Supplies $450

NURSING SUPPLIES $2,500

TOTAL START-UP EXPENSES 21,901 

Sources of Funds

$20,000 investment from Elizabeth Patzer and a 5-year $50,000 loan, total of $70,000. 

Statements

Projected Profit & Loss`

2020 2021 2022
Gross Margin $302,170 $311,550 $337,680
Operating Expenses
Salaries & Wages $185,200 $190,104 $195,066
Employee Related Expenses $37,040 $38,021 $39,013
Startup Expenses – Listed in Use of Funds $21,900
Rent $2,400 $2,400 $2,400
Heat and Lights $1,800 $1,800 $1,800
Phone $3,000 $3,000 $3,000
Cell phone $1,800 $1,800 $1,800
Water and Garbage $600 $600 $600
Internet Expense $300 $300 $300
Professional Liability Insurance $9,000 $9,000 $9,000
Workman’s Comp $600 $600 $600
Premises and Content $600 $600 $600
Advertising and Marketing $1,200 $1,200 $1,200
Meals and Entertainment $600 $600 $600
Professional Develolpment $1,200 $1,200 $1,200
Office Equipment and Supplies $4,800 $4,800 $4,800
Contracted Therapists $19,560 $19,560 $19,560
Nursing Supplies $12,000 $12,000 $12,000
Interest Incurred $3,412 $3,051 $2,295
Depreciation and Amortization
Gain or Loss from Sale of Assets
Income Taxes $0 $0 $0
Total Expenses $455,842 $444,086 $462,154
Net Profit ($4,842) $20,914 $41,846

Projected Balance Sheet

2020 2021 2022
Cash $28,181 $47,645 $77,497
Accounts Receivable $45,450 $34,875 $37,800
Inventory
Other Current Assets
Total Current Assets $73,631 $82,520 $115,297
Long-Term Assets
Accumulated Depreciation
Total Long-Term Assets
Accounts Payable $16,215 $13,307 $14,111
Income Taxes Payable $0 $0 $0
Sales Taxes Payable $0 $0 $0
Short-Term Debt $9,117 $9,874 $10,693
Prepaid Revenue
Total Current Liabilities $25,332 $23,180 $24,804
Long-Term Debt $33,141 $23,268 $12,575
Long-Term Liabilities $33,141 $23,268 $12,575
Paid-In Capital $20,000 $20,000 $20,000
Retained Earnings ($4,842) $16,072
Earnings ($4,842) $20,914 $41,846

Projected Cash Flow Statement

2020 2021 2022
Net Cash Flow from Operations
Net Profit ($4,842) $20,914 $41,846
Depreciation & Amortization
Change in Accounts Receivable ($45,450) $10,575 ($2,925)
Change in Inventory
Change in Accounts Payable $16,215 ($2,908) $804
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 $20,000
Dividends & Distributions
Change in Short-Term Debt $9,117 $757 $819
Change in Long-Term Debt $33,141 ($9,874) ($10,693)
Cash at Beginning of Period $0 $28,181 $47,645
Net Change in Cash $28,181 $19,464 $29,852
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