primary health care business plan

Medical Clinic Business Plan Template & PDF Example

• July 22, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful medical clinic. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your medical clinic’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a medical clinic business plan but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the healthcare industry, this guide, complete with a business plan example, lays the groundwork for turning your medical clinic concept into reality. Let’s dive in!

Our medical clinic business plan is carefully designed to cover all the important parts needed for a good strategy. It explains how the clinic will run, how we’ll take care of patients, how we’ll tell people about our services, what the healthcare situation is like, who our competitors are, who’s in charge, and how much money we expect to make.

• Executive Summary : Provides an overview of the Medical Clinic’s business concept, healthcare market analysis , management structure, and financial strategy.
• Facility & Location: Describes the clinic’s physical setup, including its architectural design, medical equipment, patient amenities, and the strategic choice of its location to maximize accessibility for its target patient base.
• Treatments & Pricing: Enumerates the healthcare services the clinic will provide, from general medical consultations to specialized treatments, alongside a transparent pricing model .
• Key Stats: Shares industry size , growth trends, and relevant statistics for the healthcare market.
• Key Trends : Highlights recent trends affecting the healthcare sector, such as technological advancements, patient care innovations, and regulatory changes.
• Key Competitors : Analyzes the main competitors in the vicinity and differentiates the clinic based on services, patient care quality, and operational efficiency.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis tailored to the healthcare context.
• Marketing Plan : Strategies for attracting and retaining patients, including digital marketing, community health programs, and patient service excellence.
• Timeline : Key milestones and objectives from the clinic’s establishment through the first year of operation, including licensing, staff recruitment, and service launch.
• Management: Information on the healthcare professionals managing the medical clinic and their roles, emphasizing their medical expertise and healthcare management experience.
• Financial Plan: Projects the clinic’s 5-year financial performance, including revenue from medical services, operational costs, profits, and expected expenses, ensuring a sustainable and profitable healthcare service model.

Medical Clinic Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces our medical clinic’s business plan, offering a concise overview of the clinic and its healthcare services. It details our market positioning, the comprehensive medical services we provide, its location, size, and an outline of our day-to-day operations. 

This section will also delve into how our clinic will integrate into the local healthcare market, including an assessment of the direct competitors in the area, identifying who they are, and highlighting our clinic’s unique selling points that set us apart. 

Additionally, it includes information about our management and co-founding team, outlining their roles and contributions to the clinic’s success. A summary of our financial projections, including expected revenue and profits over the next five years, will also be presented to offer a clear view of our clinic’s financial outlook.

Medical Clinic Business Plan Executive Summary Example

Business Overview

In the  business overview , you should clearly define your gym’s characteristics. This includes its name, location, facility details, membership plans, and the variety of classes offered. This part of the summary is critical for showcasing what makes your gym stand out in a competitive fitness industry.

Example: For instance, “FitFusion Gym,” situated in the city center, offers a 15,000 sq. ft. space with an open-plan design and state-of-the-art equipment. Its unique selling points include a comprehensive range of fitness classes, from HIIT to Yoga, and premium amenities like a wellness center. These features position FitFusion as a versatile and appealing fitness destination.

Market Overview

In this section, you should analyze the gym market, including its size, growth trends, and  key competitors . This gives context to where your gym fits within the industry and highlights how it can capitalize on current fitness trends.

Example: FitFusion Gym enters a robust U.S. market valued at $30.8 billion. It sets itself apart from the five main competitors in its vicinity by offering a blend of holistic wellness and cutting-edge fitness technology, tapping into the growing demand for integrated health and fitness experiences.

Management Team

Detailing the experience and roles of your management team is vital. This section should highlight their qualifications in gym and wellness management, underscoring their ability to drive the gym’s success.

Example: The CEO of FitFusion brings extensive experience in fitness management, guiding the gym’s strategic direction and operations. The CFO & Marketing Director, with a strong background in finance and marketing, plays a crucial role in managing the gym’s finances and developing effective  marketing strategies  to enhance customer engagement and retention.

Financial Plan

A clear presentation of financial goals and projections is key in this section. It should include targets for revenue and profit margins, offering insight into the gym’s financial health and growth prospects.

Example: With a target of $2.0 million in yearly revenue and a 22% profit margin by 2027, FitFusion Gym is positioned for significant growth. Its financial strategy is supported by an ambitious marketing approach and a focus on delivering exceptional customer experiences, aligning the gym for success in the competitive fitness market.

For a medical clinic, the Business Overview section can be concisely structured into 2 main components:

Facility & Location

Briefly describe the clinic’s facilities, highlighting the state-of-the-art medical equipment, patient-centric design, and a welcoming atmosphere that ensures comfort and privacy.

Mention the clinic’s strategic location, emphasizing its accessibility and conveniences such as proximity to main transit routes and ample parking. Explain how this location was selected to serve the clinic’s target patient demographics effectively.

Treatments & Pricing

Detail the comprehensive range of medical services provided, from routine health check-ups to specialized treatments in areas like cardiology, pediatrics, or orthopedics.

Describe your pricing model, ensuring it mirrors the high standard of care offered and is competitive within the healthcare market. Highlight any health plans, membership options, or loyalty programs designed to offer added value to patients, fostering long-term relationships and patient loyalty.

Industry size & growth

Start your medical clinic business plan by looking at how big the healthcare world is, especially for the services you provide like general health, special treatments (skincare, children’s health), or quick care. Think about how this area is growing and where you might find new chances to grow.

Key market trends

Then, talk about what’s new in healthcare, like how people want care that’s just for them, using tech to help patients (like video doctor visits or digital health records), and focusing on keeping people healthy before they get sick. Point out that people are looking for services that meet their specific health needs and that there’s a growing interest in clinics that care for the whole person.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your medical clinic in the market; it’s also a fundamental component of your business plan.

This analysis helps in identifying your medical clinic’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Competitors in the Healthcare Sector

Begin by mapping out direct and indirect competitors in the healthcare industry. Direct competitors might include other medical clinics, specialized treatment centers, or hospitals offering similar services within your local area. 

Additionally, consider indirect competitors such as urgent care facilities, telemedicine services, or alternative medicine practitioners that might attract your target patients.

Utilize online tools and directories, such as Google Maps and healthcare-specific platforms like Healthgrades or Zocdoc, to gain insights into the distribution and offerings of competitors.

Patient reviews and ratings on these platforms offer valuable information about competitors’  strengths and weaknesses . For instance, glowing reviews highlighting short waiting times and personalized care at a rival clinic indicate a competitive advantage worth noting.

Medical Clinic’s Competitors’ Strategies

Analyzing competitors’ strategies involves evaluating several facets:

• Services Offered:  Assess the range of medical services and specialties offered by competitors. For instance, if a neighboring clinic specializes in integrative medicine or offers holistic approaches, it may attract a different patient demographic than a clinic focusing solely on traditional treatments.
• Treatment Approaches:  Consider the medical philosophies and approaches adopted by rival clinics. A clinic known for evidence-based treatments may appeal to a different patient base than one embracing alternative therapies or holistic healing methods.
• Pricing and Payment Models:  Compare pricing structures and payment models offered by competitors. Determine if your clinic’s pricing aligns with those of budget-friendly clinics or premium healthcare service providers in your area.
• Marketing and Patient Outreach:  Analyze competitors’  marketing strategies . Do they heavily invest in digital marketing, have a strong online presence, or engage in community health programs and events?
• Patient Experience:  Evaluate the patient experience at rival clinics. For instance, a competitor might be recognized for its friendly staff, minimal waiting times, or advanced appointment scheduling systems, contributing to an enhanced patient experience.
• Operational Efficiency and Technology Integration:  Observe if competitors leverage technology to streamline patient management and appointment scheduling or offer telemedicine services for remote consultations.

What’s Your Clinic’s Value Proposition?

Reflect on your clinic’s  unique value proposition . This could include specialized treatments, cutting-edge medical technology, a focus on personalized patient care, or convenient access to healthcare services.

Identify gaps in the market through patient feedback and healthcare trends. For example, if there’s an increasing demand for preventive care or a specific medical service in your area that competitors aren’t adequately addressing, this presents an opportunity for your clinic.

Consider your clinic’s location and community demographics. Tailor your services to meet the needs of the local population-urban clinics might emphasize convenience and efficiency, while clinics in residential areas could focus on building stronger patient relationships and community engagement.

First, conduct a SWOT analysis for the medical clinic , identifying Strengths such as a team of expert medical professionals and a comprehensive suite of healthcare services. Weaknesses might include factors like high operational costs and the complexity of insurance processes. Opportunities can arise from the growing emphasis on health and wellness and the potential for telemedicine services. Threats could stem from increased competition and the impact of economic downturns on discretionary healthcare spending.

Marketing Plan

Next, develop a marketing strategy aimed at attracting and retaining patients. This strategy should focus on targeted advertising to reach specific demographics, offering promotional incentives for referrals, maintaining an active and engaging presence on social media, and fostering community ties through health education and events.

Marketing Channels

Deploy a diverse array of marketing channels to effectively reach potential patients and cultivate lasting relationships.

Digital Marketing

• Website and SEO:  Develop a comprehensive website housing detailed information about your services, healthcare professionals, patient testimonials, and educational resources. Optimize it for local SEO to enhance visibility and attract local patient traffic.
• Social Media:  Utilize various social media platforms – LinkedIn for professional networking and educational content, Facebook for community engagement and healthcare updates, and Instagram for visual storytelling and patient education.
• Content Marketing:  Regularly publish informative blog posts, articles, and videos addressing prevalent health concerns, treatment options, preventive care measures, and breakthroughs in the medical field. This content serves to establish your clinic’s expertise and attract patients seeking credible information.

Local Advertising

• Community Engagement:  Sponsor or participate in local health fairs, wellness events, or educational seminars aimed at fostering health awareness within the community. These events offer a platform to educate the public about prevalent health issues and position your clinic as a reliable source of healthcare information.
• Collaborations:  Forge partnerships with local gyms, wellness centers, corporate offices, or community organizations to offer healthcare screenings, educational workshops, or health campaigns. Collaborative efforts broaden your reach and establish your clinic as an integral part of the community’s well-being.

Promotional Activities

Engage potential patients through compelling offers and initiatives:

• Free Consultations:  Introduce a promotional campaign offering free initial consultations for new patients. This initiative provides an opportunity for patients to experience your clinic’s services and expertise firsthand.
• Referral Programs:  Create a structured referral program incentivizing existing patients to refer others to your clinic. Offer discounts, loyalty points, or small rewards for successful referrals, fostering a sense of community and trust.
• Seasonal Health Campaigns:  Launch health-related campaigns aligned with seasonal health concerns (e.g., flu vaccination drives and summer wellness check-ups) to draw attention to your clinic’s services and encourage visits during these periods.

Sales Channels

Efficient  sales channels  are vital for patient engagement and service delivery optimization.

Appointment Optimization

• Online Booking:  Implement a user-friendly online appointment scheduling system accessible through your website and social media channels. Simplifying the booking process enhances patient convenience and accessibility to your services.
• Telemedicine Services:  Introduce telemedicine services for non-emergency cases, providing patients with remote access to healthcare consultations and follow-ups. Telehealth services cater to the evolving needs of patients seeking convenient healthcare solutions.

Patient Retention Strategies

• Patient Experience Enhancement:  Focus on providing exceptional patient care, personalized attention, and consistent follow-up communication. Creating a positive patient experience fosters patient loyalty and encourages referrals, augmenting your clinic’s reputation.
• Membership Programs:  Develop membership plans offering regular check-ups, discounts on services, or additional perks for loyal patients. Membership programs instill a sense of exclusivity and reward patient loyalty, leading to increased patient retention rates.

Strategy Timeline

Finally, create a detailed timeline that marks essential milestones for the clinic. This includes the initial setup and opening phase, followed by the launch of marketing initiatives, efforts to expand the patient base, and strategies for broader service offerings, all designed to ensure the clinic progresses with a clear and defined purpose.

The management section focuses on the medical clinic’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the medical clinic toward its financial and operational goals.

For your medical clinic business plan, list the core team members, their specific responsibilities, and how their expertise supports the medical clinic’s mission.

The Financial Plan section is a comprehensive analysis of the medical clinic’s financial strategy, including projections for revenue, expenses, and profitability. It lays out the clinic’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your medical clinic business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your main assumptions (e.g. prices, customers, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Related Posts

Optician Business Plan Template & PDF Example

• July 23, 2024

Pharmacy Business Plan Template & PDF Example

• August 28, 2024

Executive Summary of a Pharmacy: Template & Example

• March 19, 2024
• Business Plan , Executive Summary

Privacy Overview

Medical Practice Business Plan Template

Written by Dave Lavinsky

Medical Practice Business Plan

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

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

Medical Practice Business Plan Example

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

Executive Summary

Business overview.

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

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

Service Offering

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

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

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

Customer Focus

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

Management Team

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

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

Success Factors

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

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

Financial Highlights

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

The breakdown of the funding may be seen below:

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

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

Company Overview

Who is fresno medical.

Fresno Medical is a medical practice located in Fresno, California. We offer general and preventative health care for all ages. We offer immunizations, pediatrics, health screenings, and more. Our medical practitioners and supporting staff are well-trained to improve the health and well-being of our patients.

Fresno Medical is run and owned by Jessica Wells, who has been a doctor in the local medical community for 15 years. She has helped hundreds of patients and families with their general healthcare needs throughout her career. She also has gained knowledge and experience in the operations and marketing aspects of the medical business, which will prove indispensable for this private practice.

Fresno Medical’s History

After years of working with patients in hospital settings, Jessica Wells decided to establish a private practice. She wanted to develop a closer relationship with her patients, which was difficult to achieve while working in a large hospital. With this goal in mind, Jessica incorporated Fresno Medical as an S-corporation on March 15th, 2023.

Since its incorporation, the medical practice has achieved the following milestones:

• Found a clinic space and signed a Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Hired a contractor for the office build-out
• Determined equipment and fixture requirements
• Began recruiting key employees with previous healthcare experience
• Drafted marketing campaigns to promote the practice

Fresno Medical’s Services

Fresno Medical will focus on providing primary care services to every family member, from infants to adults. The costs will depend upon the materials used, the physician’s time, and the amount designated for each procedure. Some of the general and primary care services we provide include:

• Immunizations: flu shots, measles, mumps, polio, etc.

Fresno Medical will maintain privacy according to HIPAA regulations. All patients will be welcome, including those without insurance. However, we expect most patients to utilize their insurance plans to pay their costs. The medical practice will work with local and national insurance companies to ensure that every family can afford our services. After billing insurance, Fresno Medical will provide flexible payment plan options so that no patient is overwhelmed by their medical bills.

Industry Analysis

Healthcare is a human right that everyone deserves access to. The medical industry will always be a necessity as it is the industry keeping society alive and well. Therefore, the medical industry is expected to continue to grow as the population grows. This is especially true for private practices, as there is a rising demand for small, patient-focused clinics that provide top-tier medical services.

Furthermore, the demand for private physicians has been on the rise. Hospitals have been low on rooms and beds the past few years, and nurses and doctors have been overworked. This has led to an increased demand for more medical professionals and private practices that can help lessen the load of larger hospitals.

Moreover, the pandemic instilled the importance of quality healthcare and practices in the general population. We expect that people all around the world will now put in more effort towards taking care of their health and getting the care and screenings they need.

According to Facts & Factors, the global private medical market is expected to experience a compound annual growth rate (CAGR) of 12.5% over the next five years. This is enormous growth that is rarely seen in other industries. Furthermore, there is a growing demand for more primary care physicians as the general population aims to prevent developing chronic and preventable diseases. According to Grand View Research, the primary care market will experience a CAGR of 3.2% over the next 10 years, which is also moderate growth.

With such a demand for more medical practices and a greater emphasis on general health, we believe that Fresno Medical is starting at the right time and will see great success.

Customer Analysis

Demographic profile of target market.

Fresno Medical will serve the community residents of Fresno, California, and its surrounding areas. The community of Fresno, California has thousands of middle-class individuals and families seeking an affordable medical practice to take care of all their health concerns.

The demographics of Fresno, California are as follows:

Customer Segmentation

The company will primarily target the following customer segments:

• Middle-class individuals
• Hospital patients

Competitive Analysis

Direct and indirect competitors.

Fresno Medical will face competition from other companies with similar business profiles. A description of each competitor company is below.

City Metro Hospital

Founded in 1968, City Metro Hospital is one of the most popular hospitals in the area. Thousands of residents get all their primary care and emergency care needs taken care of with City Metro. It provides almost every service you can think of and enlists the help of thousands of doctors, nurses, and other expert medical professionals.

Though City Metro Hospital will continue to thrive, it does not foster an environment designed for long-lasting relationships. Since the pandemic, the hospital has been overwhelmed with patients and a staff shortage. This has led to doctors seeing thousands of patients and a tremendous increase in wait times. Fresno Medical will offer a more intimate setting where patients and doctors can create a long-lasting relationship that spans decades.

Quality Doctors

Quality Doctors is a private medical practice that provides highly personalized medical care. Quality Doctors includes a team of dedicated healthcare professionals with dual residency in emergency medicine and internal medicine. The practice offers same-day/next-day appointments, telemedicine, office visits, and home visits. Services offered by Quality Doctors include primary care, urgent care, and virtual visits.

Like City Metro Hospital, Quality Doctors is a large care system that cares for thousands of patients. This means that patients also do not get a close relationship with their doctor, which many crave. Furthermore, Quality Doctors has put much of its money and services toward emergency care in recent years and reduced its primary care services. Patients who want a lasting relationship with a primary care doctor will feel more welcome with Fresno Medical.

Johnson Community Care

Established in 1949, Johnson Community Care is a private medical practice with multiple locations. Patients all around the state can receive care at any location near them. Each site provides primary care services, emergency care, pharmacy services, and lab testing. Instead of heading to multiple locations to get all of these services, patients can get all their healthcare needs taken care of in one building.

Though Johnson is a highly successful medical practice, its major downfall is that it only provides services to those with its unique insurance plan. Therefore, anyone who has insurance through another company or plans provided by their employer cannot receive care at Johnson without paying out-of-network prices. Fresno Medical will partner with many insurance companies and provide flexible payment plans to help as many patients as possible.

Competitive Advantage

Fresno Medical enjoys several advantages over its competitors. These advantages include:

• Relationships: Jessica Wells has developed strong connections with her patients and fellow staff during her career. Many patients have expressed interest in following Jessica to her new practice, and some former colleagues have shown interest in working for the clinic. Jessica also has relationships with medical equipment suppliers and insurance companies.

Marketing Plan

Brand & value proposition.

The Fresno Medical brand will focus on the company’s unique value proposition:

• Client-focused healthcare services, where the company’s interests are aligned with the customer
• Service built on long-term relationships
• Big-hospital expertise in a small-clinic environment
• Moderate pricing for all preventative and general health services

Promotions Strategy

The promotions strategy for Fresno Medical is as follows:

Fresno Medical understands that the best promotion comes from satisfied patients. The clinic will encourage its patients to refer their friends and family by providing healthcare benefits for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

We will maintain a social media presence to attract local clients looking for a new doctor or medical practice. We will post information about our team, services, and general health tips for better wellness. To create a genuine connection with our patients, we will also use social media to engage with them and answer any questions they may have about our practice.

Fresno Medical will have an informative and attractive website featuring all its services and referrals from other satisfied patients. The website will be highly informative and be designed in a way that is friendly and eye-catching.  

Fresno Medical will invest in a high SEO presence so that the clinic is listed at the top of the Google or Bing search engine when a potential patient is researching private medical practices in Fresno, California.

Fresno Medical’s pricing will be significantly lower than big hospitals. We will partner with as many insurance companies as possible to ensure that our patients’ medical care is covered. For services not fully covered by insurance, we offer a flexible payment program so patients are not overwhelmed by their medical bills.

Operations Plan

The following will be the operations plan for Fresno Medical.

Operation Functions:

• Jessica Wells will operate as the CEO of Fresno Medical. She will run all the general operations and executive functions of the company. She will also provide basic medical care for patients until she can hire a full medical staff.
• Jessica is joined by Mindy Keller, who will serve as the Marketing Manager and run all of the marketing and advertising efforts.
• Jessica is also joined by Rhonda Smith, who will work as the Receptionist of the clinic and the Administrative Assistant for the company.
• Jessica is also joined by Cindy Nguyen who will be the company’s Head Nurse. She will manage and train incoming nurses and provide medical treatment to patients.
• Jessica will continue to hire a team of medical staff to treat the medical practice’s growing patient list. The team will consist of doctors, nurses, physicians, and other necessary medical staff.

Milestones:

Fresno Medical expects to achieve the following milestones in the following six months:

• 4/202X Finalize lease agreement
• 5/202X Design and build out Fresno Medical
• 6/202X Hire and train initial staff
• 7/202X Kickoff of promotional campaign
• 8/202X Launch Fresno Medical
• 9/202X Reach break-even

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

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

Financial Plan

Key revenue & costs.

The revenues for the medical practice will come from the fees it will charge the patients and their insurance for the health care services it provides.

The cost drivers for the company will include the payroll of the staff, lease on the office building, medical supplies and equipment, and marketing costs.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Year 4: 100
• Year 5: 125
• Annual lease costs: $40,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Medical Practice Business Plan FAQs

What is a medical practice business plan.

A medical practice business plan is a plan to start and/or grow your medical practice business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Medical Practice business plan using our Medical Practice Business Plan Template here .

What are the Main Types of Medical Practices?

There are a number of different kinds of medical practices , some examples include: Group medical practice, Private medical practice, and Hospital-based medical practice.

How Do You Get Funding for Your Medical Practice Business Plan?

Medical Practice businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

A well-crafted medical practice business plan is key to securing any type of funding.

What are the Steps To Start a Medical Practice Business?

Starting a medical practice business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Medical Practice Business Plan - The first step in starting a business is to create a detailed medical practice business plan that outlines all aspects of the venture. This should include market research on the medical industry and potential target market size, information the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your medical practice business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your medical practice business is in compliance with local laws.

3. Register Your Medical Practice Business - Once you have chosen a legal structure, the next step is to register your medical practice business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your medical practice business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Medical Practice Equipment & Supplies - In order to start your medical practice business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your medical practice business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful medical practice business:

• How to Open a Medical Practice

Crafting a Business Plan for Your Primary Care Clinic: A Step-by-Step Guide

By alex ryzhkov, get full bundle.

Launching a successful primary care clinic requires meticulous planning and preparation. Before diving into the business plan, entrepreneurs must tackle a critical checklist of 9 essential steps . From conducting thorough market research to securing necessary funding, this comprehensive guide outlines the key considerations to establish a thriving healthcare practice. By taking the time to thoughtfully address these preliminary tasks, aspiring clinic owners can position their venture for long-term success in the competitive primary care landscape.

Related Blogs

• 7 Mistakes to Avoid When Starting a Primary Care Clinic in the US?
• What Are The Top 9 Business Benefits Of Starting A Primary Care Clinic Business?
• Primary Care Clinic Business Idea Description in 5 W’s and 1 H Format
• Ultimate Checklist: Acquire Primary Care Clinic Business
• Primary Care Clinic Owner Earnings: A Deep Dive
• How to Open a Primary Care Clinic: Comprehensive Checklist for Success
• 7 Top KPIs for Effective Primary Care Clinic Management
• What Are the Essential Operating Expenses for Clinics?
• Boost Your Primary Care Biz! Get a Winning Pitch Deck Now!
• How to Improve Profitability in Your Primary Care Practice
• The Complete Guide To Primary Care Clinic Business Financing And Raising Capital
• Strategies To Increase Your Primary Care Clinic Sales & Profitability
• How To Sell Primary Care Clinic Business in 9 Steps: Checklist
• How Much Does It Cost To Establish A Primary Care Clinic?
• Valuing a Primary Care Clinic Business - A Guide.

Steps Prior To Business Plan Writing

Before delving into the process of writing a comprehensive business plan for a primary care clinic, it is crucial to lay the groundwork and address several key considerations. This checklist outlines the essential steps to be taken prior to embarking on the business plan creation journey.

Conduct Thorough Market Research and Analysis

Launching a successful Primary Care Clinic begins with a comprehensive understanding of the local market and the healthcare needs of the target demographic. By conducting in-depth market research, you can identify the specific challenges and pain points that your clinic can address, ensuring that your services align with the community's requirements.

Start by analyzing the demographics of your target area, including factors such as population size, age distribution, income levels, and prevalent health conditions. This information will help you tailor your clinic's services and pricing to meet the unique needs of your patient base. Utilize a combination of secondary research, such as government data and industry reports, as well as primary research, such as surveys and focus groups, to gain a holistic understanding of the market.

Next, assess the competitive landscape by evaluating the existing healthcare providers in your area. Identify the services they offer, their pricing structures, and their strengths and weaknesses. This analysis will enable you to pinpoint the gaps in the market and develop a unique value proposition that sets your Primary Care Clinic apart from the competition.

• Leverage online tools and databases to gather comprehensive market data, such as U.S. Census Bureau and Centers for Disease Control and Prevention (CDC) statistics.
• Conduct surveys and interviews with potential patients to understand their healthcare preferences, pain points, and willingness to utilize your services.
• Analyze the patient volume and revenue of existing primary care clinics in your target area to estimate the market opportunity.

By conducting thorough market research and analysis, you can develop a deep understanding of your target market, identify unmet healthcare needs, and create a Primary Care Clinic that is tailored to the unique requirements of the community. This foundational step will serve as the cornerstone for your business plan and ensure that your clinic is well-positioned for success.

Identify Target Demographic and Their Healthcare Needs

Identifying the target demographic and understanding their specific healthcare needs is a critical step in developing a successful business plan for a Primary Care Clinic. By focusing on the unique requirements of the local community, the clinic can tailor its services and offerings to effectively address their healthcare concerns and provide a compelling value proposition.

According to recent industry data, the primary target demographic for Community Health Partners' Primary Care Clinic will be low-income and underserved populations within the surrounding neighborhoods. These communities often face significant barriers to accessing quality healthcare, including lack of health insurance, transportation challenges, and limited availability of primary care providers.

To better understand the healthcare needs of this target demographic, the clinic will conduct in-depth market research, including surveys, focus groups, and analysis of local health data. This will help identify the most prevalent medical conditions, preventive care requirements, and chronic disease management needs within the community. For example, the research may reveal a higher prevalence of diabetes, hypertension, and respiratory illnesses among the target population, requiring the clinic to prioritize these areas in its service offerings.

• Engage with local community organizations and leaders to gain valuable insights into the specific healthcare challenges faced by the target demographic.
• Analyze demographic data, such as age, income levels, and insurance coverage, to tailor the clinic's services and pricing structures accordingly.
• Collaborate with public health agencies and research institutions to access comprehensive data on the community's healthcare needs and utilization patterns.

By thoroughly understanding the target demographic and their healthcare requirements, the Primary Care Clinic can develop a comprehensive service offering that addresses the most pressing needs of the community. This, in turn, will enhance the clinic's ability to attract and retain patients, ultimately driving improved health outcomes and long-term sustainability.

Determine Unique Value Proposition and Competitive Advantages

Establishing a unique value proposition and identifying competitive advantages are crucial steps in developing a comprehensive business plan for your Primary Care Clinic. By clearly defining what sets your clinic apart and how it addresses the specific healthcare needs of your target demographic, you can create a strong foundation for your business strategy and effectively position yourself in the market.

To determine your unique value proposition, start by conducting thorough market research to understand the existing healthcare landscape in your community. Analyze the services offered by competing clinics, their pricing structures, and the pain points experienced by patients. This will help you identify gaps in the market that your clinic can fill and tailor your offerings to address the specific needs of your target demographic.

One key aspect of your unique value proposition should be the convenience and accessibility of your Primary Care Clinic. Consider factors such as extended operating hours , same-day appointments , and the use of telemedicine to provide patients with flexible and convenient access to healthcare services. Additionally, focus on delivering personalized, patient-centric care that emphasizes preventive measures and holistic approaches to health and wellness.

• Leverage technology to streamline patient experiences, such as online appointment booking, electronic medical records, and mobile-friendly patient portals.
• Offer a broad range of primary care services, including routine check-ups, chronic disease management, and preventive screenings, to create a one-stop-shop for your patients.
• Collaborate with local healthcare providers and organizations to offer integrated care, ensuring seamless referrals and continuity of care for your patients.

In addition to your unique value proposition, it is essential to identify your competitive advantages. These can include factors such as specialized expertise of your healthcare team, advanced medical equipment and technologies, or established partnerships with reputable healthcare organizations. Highlighting these advantages in your business plan will demonstrate your clinic's ability to deliver superior patient outcomes and set you apart from the competition.

By meticulously defining your unique value proposition and competitive advantages, you can create a compelling and differentiated offering that resonates with your target demographic. This, in turn, will help you attract and retain patients, build a strong brand reputation, and position your Primary Care Clinic for long-term success.

Secure Necessary Licenses, Permits, and Regulatory Approvals

Establishing a primary care clinic requires navigating a complex web of legal and regulatory requirements. Before embarking on the business plan, it is crucial to thoroughly research and secure all necessary licenses, permits, and approvals to ensure compliance and mitigate potential roadblocks down the line.

The specific requirements will vary depending on the location and jurisdiction of the primary care clinic, but typically include:

• Business License: Obtaining the appropriate business license to operate a healthcare facility in the designated city or county.
• Medical Practice License: Ensuring all healthcare professionals, including physicians, nurse practitioners, and physician assistants, have the necessary medical licenses and certifications to practice in the state.
• Facility Permits: Securing permits for the physical clinic space, such as building permits, occupancy permits, and zoning approvals.
• Healthcare Facility Accreditation: Achieving accreditation from organizations like the Joint Commission or the Accreditation Association for Ambulatory Health Care (AAAHC) to demonstrate adherence to quality and safety standards.
• Medicare/Medicaid Enrollment: Enrolling the clinic in the Medicare and Medicaid programs to be able to bill and receive reimbursements for services provided to eligible patients.
• HIPAA Compliance: Ensuring the clinic's policies, procedures, and technology systems comply with the Health Insurance Portability and Accountability Act (HIPAA) to protect patient privacy and data security.
• Start the license and permit application process as early as possible, as the review and approval timelines can vary significantly.
• Consult with legal and regulatory experts to ensure all requirements are met and properly documented.
• Develop a comprehensive compliance plan to maintain ongoing adherence to regulations and avoid potential fines or penalties.

By securing the necessary licenses, permits, and regulatory approvals, the primary care clinic can operate with confidence, knowing that it is fully compliant with all applicable laws and industry standards. This step lays the foundation for a successful and sustainable healthcare business.

Develop a Robust Financial Plan and Projections

Crafting a comprehensive financial plan is a critical step in the process of establishing a successful Primary Care Clinic. This plan should encompass a detailed analysis of start-up costs, operational expenses, revenue streams, and long-term financial projections. By meticulously mapping out the financial landscape, you can ensure the viability and sustainability of your Primary Care Clinic business.

Begin by accurately estimating the start-up costs associated with launching your clinic. These may include the acquisition of a suitable property, the necessary medical equipment and supplies, the cost of hiring and training staff, and the expenses related to obtaining the required licenses and permits. Carefully research and document each of these expenses to create a realistic budget.

Next, develop a thorough understanding of the ongoing operational expenses that will be incurred. These may include rent or mortgage payments, utilities, insurance premiums, maintenance and repair costs, and the salaries of healthcare professionals and administrative staff. Analyze these expenses in detail to ensure that your clinic's revenue can adequately cover them.

Identifying potential revenue streams is a crucial component of your financial plan. Carefully analyze the healthcare needs of your target demographic and determine the services that will be in high demand. Estimate the expected patient volumes, average reimbursement rates, and potential revenue from various payer sources, such as private insurance, government programs, and out-of-pocket payments.

• Consider implementing a flexible pricing structure that takes into account the unique financial circumstances of your patients, ensuring that your services remain accessible to the underserved communities you aim to serve.

Based on your start-up costs, operational expenses, and revenue projections, develop long-term financial projections that account for factors such as inflation, market trends, and potential growth opportunities. These projections should include cash flow statements, income statements, and balance sheets, providing a comprehensive view of your clinic's financial health and viability.

Securing adequate funding sources is crucial to the success of your Primary Care Clinic . Explore a variety of options, including small business loans, venture capital, angel investors, and government grants, to ensure that you have the necessary financial resources to bring your vision to life.

• Engage with experienced financial advisors and healthcare industry experts to validate your financial assumptions and projections, ensuring that your plan is well-grounded and realistic.

By developing a robust financial plan and projections, you can demonstrate the financial viability of your Primary Care Clinic to potential investors, lenders, and regulatory authorities. This comprehensive approach will not only secure the necessary funding but also provide a roadmap for the long-term sustainability and growth of your healthcare business.

Assemble a Skilled and Experienced Healthcare Team

Building a strong and competent healthcare team is crucial for the success of your Primary Care Clinic. Your team will be the backbone of your operation, responsible for delivering high-quality care and ensuring patient satisfaction. When assembling your healthcare team, it's important to consider the following key factors:

• Physician Expertise : Recruit experienced and board-certified primary care physicians who have a proven track record of providing excellent patient care. Look for physicians with specialties that align with the healthcare needs of your target demographic, such as family medicine, internal medicine, or pediatrics.
• Nursing Professionals : Hire a team of skilled and compassionate nurses, including registered nurses (RNs), licensed practical nurses (LPNs), and medical assistants. These healthcare professionals will play a crucial role in patient care, patient education, and overall clinic operations.
• Ancillary Healthcare Providers : Depending on the scope of services offered at your Primary Care Clinic, consider adding other healthcare providers such as physical therapists, behavioral health specialists, dietitians, or pharmacists to your team. These professionals can enhance the breadth and depth of services available to your patients.
• Administrative Support : Ensure that your clinic has a strong administrative team, including a practice manager, front desk staff, billing and coding specialists, and patient coordinators. These individuals will be responsible for handling the day-to-day operations, ensuring efficient patient flow, and maintaining financial and regulatory compliance.
• Prioritize hiring healthcare professionals with experience in the primary care setting, as they will be better equipped to navigate the unique challenges and workflows of a Primary Care Clinic.
• Consider offering competitive compensation packages, opportunities for professional development, and a positive work environment to attract and retain top talent.
• Implement ongoing training and continuous education programs to ensure your healthcare team stays up-to-date with the latest advancements in primary care and industry best practices.

By assembling a skilled and experienced healthcare team, you will be well-positioned to provide exceptional patient care, build a strong reputation within the community, and achieve the long-term success of your Primary Care Clinic. Remember, your team is the heart of your clinic, and investing in their development will pay dividends for your business and the patients you serve.

Establish strategic partnerships with local organizations

Establishing strategic partnerships with local organizations is a crucial step in building a successful Primary Care Clinic. These partnerships can provide valuable resources, expertise, and access to a wider patient base, ultimately enhancing the clinic's ability to serve the community effectively.

One key consideration is to identify local healthcare providers, such as hospitals, specialty clinics, and community health centers, that can serve as referral sources or collaborate on patient care. By forging strong relationships with these organizations, the Primary Care Clinic can ensure seamless coordination of patient treatment and improve overall health outcomes.

In addition to healthcare providers, the clinic should also seek partnerships with local businesses, community organizations, and social service agencies. These collaborations can help the clinic better understand the unique needs of the target demographic and tailor its services accordingly. Furthermore, these partnerships can provide valuable marketing and outreach opportunities, allowing the clinic to reach a wider audience and establish its presence within the community.

• Prioritize partnerships that align with the clinic's mission and target demographic.
• Explore opportunities for joint initiatives, such as health screenings, educational workshops, or community wellness events.
• Ensure that partnership agreements clearly outline the roles, responsibilities, and expectations of all parties involved.

When establishing strategic partnerships, it is essential to consider the potential impact on the clinic's financial and operational plans. The clinic should carefully evaluate the costs and benefits of each partnership, ensuring that the collaboration enhances the overall sustainability and growth of the business.

By fostering strategic partnerships with local organizations, the Primary Care Clinic can leverage the expertise, resources, and connections of its partners to better serve the community and achieve its healthcare objectives. This collaborative approach can lead to improved patient outcomes, increased patient satisfaction, and a stronger overall position in the local healthcare landscape.

Secure Funding Sources and Investment Opportunities

Securing adequate funding is a critical step in establishing a successful Primary Care Clinic. Obtaining the necessary financial resources will enable you to cover the initial startup costs, operational expenses, and support the clinic's growth and expansion plans. Exploring various funding sources and investment opportunities is essential to ensure the long-term sustainability and success of your Primary Care Clinic.

One of the primary funding sources to consider is venture capital or angel investors . These investors are often interested in innovative healthcare solutions that address unmet needs in the community. Preparing a compelling business plan and financial projections that demonstrate the clinic's potential for growth and profitability can increase your chances of securing this type of funding.

• Ensure your business plan includes a detailed financial section that outlines your startup costs, projected revenue, and operating expenses.
• Research and identify local or regional venture capital firms or angel investor networks that have a track record of investing in healthcare startups.

Another option to explore is small business loans or grants from government agencies or non-profit organizations. These funding sources can provide the necessary capital to cover initial setup costs, such as leasing a clinic space, purchasing medical equipment, and hiring staff. It's essential to research and apply for any relevant grants or loan programs that cater to the healthcare or small business sectors.

• Carefully review the eligibility criteria and application requirements for any small business loan or grant programs you plan to apply for.
• Seek assistance from local Small Business Development Centers or economic development organizations to identify potential funding opportunities.

In addition to external funding sources, you may also consider crowdfunding platforms or community investment opportunities. These can be effective ways to engage with your local community, build awareness, and raise funds from individual investors or supporters who believe in your clinic's mission and vision.

• Develop a compelling crowdfunding campaign that highlights the clinic's unique value proposition and the impact it will have on the local community.
• Explore community investment opportunities, such as local investment clubs or community development financial institutions, that may be interested in supporting your Primary Care Clinic.

Securing the necessary funding is a crucial step in the process of establishing a successful Primary Care Clinic. By exploring a diverse range of funding sources and investment opportunities, you can increase your chances of obtaining the financial resources needed to bring your vision to life and positively impact the healthcare landscape in your community.

Create a Comprehensive Operational and Implementation Plan

Crafting a robust operational and implementation plan is a critical step in establishing a successful Primary Care Clinic. This plan serves as a roadmap to ensure the smooth and efficient execution of your business strategy, from the initial setup to ongoing operations.

Begin by outlining the key operational processes and workflows that will govern the day-to-day activities of your clinic. This includes patient intake procedures, appointment scheduling, electronic medical record management, inventory control, and staff training protocols. Approximately 80% of successful primary care clinics have a well-documented and streamlined operational plan in place.

• Leverage technology to automate and optimize your clinic's operational processes, such as online appointment booking and automated reminders.
• Develop clear policies and procedures to ensure consistency and efficiency across all aspects of your clinic's operations.
• Prioritize the patient experience by designing efficient workflows that minimize wait times and maximize patient satisfaction.

Next, create a detailed implementation plan that outlines the necessary steps and timelines for bringing your Primary Care Clinic to life. This plan should include milestones for securing necessary licenses and permits, hiring and training staff, procuring medical equipment and supplies, and establishing key partnerships with local healthcare providers and organizations.

According to industry data, clinics with a well-structured implementation plan are 45% more likely to successfully launch and reach their initial operational goals within the first 12 months.

Ensure that your implementation plan incorporates contingency measures to address potential roadblocks or delays, such as unexpected regulatory requirements or supply chain disruptions. By anticipating and planning for these challenges, you can minimize the impact on your clinic's opening timeline and maintain momentum throughout the launch process.

• Develop a detailed project management timeline with clear milestones and deadlines to keep your implementation on track.
• Allocate sufficient resources, both financial and human, to support the successful execution of your implementation plan.
• Regularly review and update your implementation plan to adapt to changing market conditions or unforeseen circumstances.

By creating a comprehensive operational and implementation plan, you will position your Primary Care Clinic for long-term success. This plan will serve as a valuable tool to guide your decision-making, optimize your clinic's workflows, and ensure a seamless launch and ongoing operations.

Leave a comment

Your email address will not be published. Required fields are marked *

Please note, comments must be approved before they are published

Healthcare Business Plan Template

Written by Dave Lavinsky

There are several types of Healthcare businesses, from family medicine practices to urgent care centers to home health care agencies. Regardless of the type of healthcare business you have, a business plan will keep you on track and help you grow your healthcare business in an organized way. 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:

• Assisted Living Business Plan
• Counseling Private Practice Business Plan Template
• Dental Business Plan
• Home Health Care Business Plan
• Medical Practice Business Plan Template
• Medical Spa Business Plan Template
• Non Medical Home Care Business Plan Template
• Nursing Home Business Plan Template
• Pharmacy Business Plan
• Urgent Care Business Plan

Finish Your Business Plan Today!

Healthcare business plan example outline, executive summary.

Although it serves as the introduction to your business plan, your executive summary should be written last. The first page helps financiers decide whether to read the full plan, so provide the most important information. Give a clear and concise description of your healthcare company. Provide a summary of your market analysis that proves the need for another healthcare business, and explain your company’s unique qualifications to meet that need.  

Company Analysis

Your company analysis explains your healthcare business as it exists right now. Describe the company’s founding, current stage of business, and legal structure. Highlight any past milestones, such as lining up clients or hiring healthcare providers with a proven track record. Elaborate on your unique qualifications, such as expertise in a currently underserved niche market.

Industry Analysis

The healthcare industry is incredibly large and diverse, but your analysis should focus on your specific segment of the market. Do you specialize in pediatric healthcare? senior healthcare? emergency medicine? family medicine? Figure out where your healthcare company fits in, and then research the current trends and market projections that affect your niche. Create a detailed strategy for overcoming any obstacles that you uncover.  

Customer Analysis

Who will your healthcare company serve? Are they families? The elderly? What is important to them in a healthcare business? How do they select a healthcare provider? Narrow down their demographics as closely as you can, and then figure out what their unique needs are and how you can fulfill them.

Finish Your Healthcare Business Plan in 1 Day!

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

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

Competitive Analysis

Your direct competitors are those healthcare companies that fulfill the same needs for the same target market as yours. Your indirect competitors are healthcare businesses that target a different market, or other companies that fulfill a different need for your target market. Describe each of your direct competitors individually, and talk about the things that set your healthcare company apart. Categorize your indirect competitors as a group and talk about them as a whole.  

Marketing Plan

A solid marketing plan is based on the four P’s: Product, Price, Promotion, and Place. The Product section describes the healthcare you sell along with any other services you provide. Price will change according to the specifics of the property, but you can delineate your fees here. Promotion is your means of getting new business. Place is your physical office location, along with your web presence and the areas where you sell. Another category, Customer retention, refers to the ways you will build loyalty.

Operations Plan

Your operations plan explains your methods for meeting the goals you set forth. Everyday short-term processes include all of the daily tasks involved in servicing clients. Long-term processes are the ways you will meet your defined business goals, such as expanding into new markets or new types of service.  

Management Team

The management team section highlights the backgrounds of the key members of your team. Focus on those aspects that prove your team’s ability to build and run a successful company. A business mentor or advisor can help fill in any gaps, provided you can identify the specific ways that your advisor will influence your company’s growth.  

Financial Plan

Investors and lenders heavily scrutinize the financial plan, but it is often the most challenging part of the business plan to write. Healthcare is a strong market, it usually not subject to economic turns. The financial plan requires you to detail your individual revenue streams by implementation timeline and relative importance, and disclose any sources of outside funding. You also need to summarize your past and future Income Statements, Cash Flow Statements, and Balance Sheets, based on key assumptions that must be both reasonable and verifiable based on an analysis of similar companies. You should also provide a solid exit strategy that shows your understanding of the market and your desire to capitalize on profitability.  

Your full financial projections should be attached in the appendix along with any other documents that support your claims, such as letters from key partners.

Don’t you wish there was a faster, easier way to finish your Healthcare 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 our professional business plan writers can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Drawing up a direct primary care business plan

Every business needs a plan for how it will bring in revenue, control expenses, market its services, and conduct its operations. A direct primary care ( DPC ) independent practice is no different. Drawing up a direct primary care business plan is an important step toward your success.

When starting a DPC practice, there are a number of important considerations that should also be included in the business plan. Your business plan will include short-term and long-term strategies and goals and should be referred to (and revised appropriately) throughout the life of the practice.

Specific elements of the direct primary care business plan include:

• Membership fees
• Competition
• Structure (pure or hybrid)
• Arrangements with other healthcare providers
• Projected expenses
• Projected income

Drawing up a direct primary care business plan requires you and your team to be realistic, in your assessment of how many patients you can treat as well as your projected income and expenses. When the plan is completed, it should be treated as a living, usable document. Review it on a regular basis and make adjustments as necessary, reflecting your current situation and the healthcare environment in general, to ensure your continued success.

Elation Health has the solution you need for your direct primary care practice. Learn more about the All-in-one EHR and Membership Management Solution.

As you plan your DPC practice, do some research to understand how others in your area operate. While the number of DPC physicians is growing, there may still be very few available to your potential patients. You can plan to differentiate yourself from those that do exist and learn from them in terms of how they market.

When you plan your marketing strategies, include tactics for emphasizing the benefits of the DPC model for healthcare delivery. In today’s healthcare environment, especially, your potential new patients will want to know how your practice can save them money, provide personalized service, and help them develop a quality patient-physician relationship. In your marketing plan, include plans to create a website and post on social media, and determine whether you will need to contract with a professional to help you with outreach and promotional efforts.

Your financial projections will be critical to your success as you are drawing up a direct primary care business plan. Given the structure of the DPC practice, it will be important to determine membership fees, both in terms of what will sustain the practice and of what your potential patients will be willing and able to pay. A realistic projection of your ideal patient panel – and how long it will take to get to that point – will also be important to include in your plan.Technology will be an integral part of your operations and plans for an appropriate electronic health record ( EHR ) solution should be detailed in your business plan. An EHR system will help you manage patient membership, recurring fees, and patient medical data.

© 2024 Elation. All Rights Reserved

• Call Us At (888) 300 3090

A primary care business plan is typically planned on a 5-year basis with both regards to the business plan and financial plan. A primary care business plan should also include a detailed market analysis of the specific target market and, if available, the specific cities that the Company will target. A growth strategy is included in the Company overview to indicate how the Company plans to grow over the next 5 years. The overview will also include information regarding the business location, management, and marketing plan.

Current health trends and an aging population have contributed to the increase in primary care doctor use over the past 5 years. These trends should continue in the same direction for the near future.

In general, business plansshould include many core sections including the following:

• Company Description
• Growth Strategy
• Competitive Analysis
• Financial Model
• Market Data
• Marketing Plan

If you need help developing a business plan, Capital West Advisors can develop a high quality business plan and financial plan for you. Call us at (888) 300-3090 for more information.

Get a Price Quote

How to Write a Business Plan for an Outpatient Medical Practice

Noah Parsons

16 min. read

Updated July 3, 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?

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

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. 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.

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.

Table of Contents

• Position your practice’s business opportunity

Related Articles

8 Min. Read

How to Write a Franchise Business Plan + Template

How to Write an Auto Repair Shop Business Plan + Free PDF

6 Min. Read

Free Agriculture Sample Business Plan PDF + How to Write

How to Write an Ice Cream Shop Business Plan + Free Sample Plan PDF

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. Privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

PCDC’s Five Year Business Plan (2024-2028)

Over the next five years, PCDC will continue its strategic financing of and consulting with FQHCs and other health care organizations in communities that disproportionately face chronic and complex health conditions compounded by inadequate health care access.

PCDC’s mission is to strengthen communities and build health equity through strategic primary care investment, expertise, and advocacy. As the preeminent non-profit provider of financing to Federally Qualified Health Centers (FQHCs) and other health care organizations serving low-income communities, PCDC helps to expand access to high-quality, affordable primary care, increase local employment opportunities, and bolster local economies. Over the next five years, PCDC will continue its strategic financing of and consulting with FQHCs and other health care organizations in communities that disproportionately face chronic and complex health conditions compounded by inadequate health care access.

Related Resources

Integration in practice samhsa webinar series, integration at work samhsa webinar series, operationalizing integration samhsa webinar series.

• Coming soon

Drawing up a primary care business plan

Starting a new business of any kind requires a solid, realistic plan. For your  new independent practice , there are many considerations that need to be researched, addressed, and put in writing so that you can use your plan as a guide to your success. You may also need a business plan if you are going to seek outside funding for your startup operations. Here are some tips for drawing up a primary care business plan for your new practice.

Even though your main goal as a provider is the quality care of your patients, as an entrepreneur, you will need to think like a  business owner  as you prepare the details of your primary care business plan. Your plan should include basic sections such as:

Executive summary . The summary will provide an overview of the entire plan, emphasizing the most important points of each section. If you are seeking funding for your new independent practice, this will serve as the funder’s introduction to your business operations.

Practice description . Here you will include your background and qualifications as well as a detailed description of the practice itself. Where will it be located? What sets you aside from other primary care practices in the area? Will you participate in the CMS  value-based  care programs? What type(s) of insurance will you accept? Do you have a specific area of expertise that you will emphasize in your practice? What is the “personality” of your practice? For example, are you laid back and casual or efficient and professional?

Target market, including patient profile . Describe your ideal patient. That does not mean that you will only serve that patient profile exclusively, but it will help in your marketing efforts and in your staffing strategies. Some considerations in this section, for example, will be whether you want to emphasize your ability to provide care to families or to elderly patients.

Projected income . A realistic projection of expected income over the short-term and the long-term are essential to ensuring your practice remains financially viable. This section will also be important when seeking outside funding for your new practice.

Projected expenses . Likewise, realistic details about expected expenses will be critical to your success when developing your primary care business plan. For this section, include furniture, equipment, staffing, marketing efforts, insurance, office rent and utilities, and any other expenses integral to your ability to provide quality care in your new practice.

Marketing  plan.  One of the most important sections in your primary care business plan is a description of how you will let your potential patients know about your practice. You will need a website, a social media presence, a plan for networking in the community, and a list of strategies with a timeline that will ensure that your new patients learn about what you have to offer.

Staffing plan . Your staffing needs may change as you establish your practice and grow your operations. Include a start-up staffing plan as well as projected needs for additional team members in the longer term. Technology.  Your new practice will need a computer system, telephone system, and other pieces of technology that will enable you to communicate with patients, maintain accurate patient data, and track your patient’s progress. The choice of a  full-service solution , such as that developed by Elation Health, is ideal for getting your new practice up and running and should be included as an integral element of your primary care business plan.

Homepage 2022

• Visibility : public

Comment on Article Cancel reply

Your email address will not be published. Required fields are marked *

Comment as Anonymous

• Pricing plan
• Privacy Policy
• Terms Of Service
• Our Netiquette

• NewsHub Home

Starting a Practice

• Clinical Practice
• Practice Management
• Healthcare in the Cloud
• Medicines Information
• Data and Security

Your saved articles ( 0 )

How to Write a Business Plan for Medical Practice

Last updated: 04 / 08 / 22

You learn a lot in medical school, but business planning isn’t a focus. However, many health care practitioners go on to run their own businesses where developing a business plan becomes essential.

If you’re planning to start your own practice, or you’re taking over someone else’s medical business and want to run it effectively, it’s a good idea to spend some time working out the details and putting together a formalised plan first. You may also want to get professional advice on your business planning, and any other aspects of running your medical practice you’re not sure about. In the meantime here are a few business planning basics to get you started.

Why have a business plan for your medical practice?

While it can be tempting to just dive right in and start setting up your new medical practice, a business plan can help you get prepared and make sure you stay on the right track as your practice grows.

A solid business plan is the foundation of any successful medical practice. With a business plan you can identify potential issues upfront and devise a strategy to avoid them. You can also set realistic goals for your business to help you keep moving in the right direction. If you’re looking for funding at any stage, you’ll also need to have a business plan. Most medical practices will struggle to get a business loan without a solid business plan in place.

What to include in your medical practice business plan

Your business plan should include the following:

• A summary of your business, including the medical services you provide, your location, and the history of the business.
• Financial information including projected cash flow, outgoings like medical equipment, marketing and practice management software costs and projected turnover.
• Operational factors like trading hours, fees, staffing and potential suppliers
• Risk identification and management – details of how you will manage the biggest potential risks, e.g. malpractice insurance, other insurances, data security and your credentialing process.
• Marketing – how you will get new patients and retain the existing ones.

As well as all the information about your medical practice and strategy, it’s also important to set goals and targets for your new venture. These should be in your business plan so you can keep track of them and make sure you’re working towards them consistently.

Making sure you have a solid business plan

So how do you make sure your medical practice business plan is solid? It’s very easy to have your plan in your head, but if you don’t get it out, it’s going to be hard for anyone else, especially the other providers and support staff in your practice to implement it. So the first step is to put it down on paper, or in a word document.

Once you’ve got a detailed plan on paper, don’t just put it in a drawer and leave it. Business planning should be a regular task for you and your business partners. Once you have your business plan in place, make sure you review it at least once a year, preferably more and update it as your business priorities change.

Writing a business plan for your medical practice might seem like a time consuming task, but it’s well worth the effort. With a strong business plan, you can grow your practice, achieve your goals and avoid many of the pitfalls that can trip up practice owners who haven’t taken the time to plan ahead.

• RACGP – Your Business Plan
• gov.au business plan template

The smart guide to starting your medical practice

Related articles

27 / 03 / 24

The rise of the virtual GP: How cloud-based health software is lowering the barriers to starting a practice

12 / 07 / 21

Buying an established practice vs. starting your own

07 / 10 / 20

How to set up a GP practice: Start with the right technology to empower your team

15 / 07 / 19

Starting your own medical practice: 5 fee and billing issues to consider

08 / 07 / 19

How cloud based medical records can cut costs when starting a practice

24 / 06 / 19

Calculating the cost of starting a medical practice – our complete guide

Direct Primary Care Business Plan [Sample Template]

By: Author Solomon O'Chucks

Home » Business Plans » Medical and Healthcare

Direct primary care is a healthcare model that involves a direct financial relationship between patients and healthcare providers, typically in the form of a subscription or membership fee.

In a direct primary care business, healthcare providers, often primary care physicians, offer comprehensive primary healthcare services directly to their patients without involving insurance companies or third-party payers. Direct primary care businesses have gained popularity in recent years, as they offer an alternative approach to traditional fee-for-service healthcare models.

By prioritizing patient-provider relationships and providing accessible, comprehensive care at a predictable cost, direct primary care aims to improve the quality and affordability of primary healthcare services.

Suggested for You

• Addiction Treatment Center Business Plan [Sample Template]
• Drug and Alcohol Testing Business Plan [Sample Template]
• Drug Rehab Center Business Plan [Sample Template]
• Private Duty Nursing Business Plan [Sample Template]
• Float Tank Business Plan [Sample Template]

Steps to Write a Direct Primary Care Business Plan

Executive summary.

United Trust® Direct Primary Care Services, Inc. is a cutting-edge healthcare company located in San Francisco, California, dedicated to revolutionizing the primary care experience. Our mission is to provide high-quality, personalized healthcare services to individuals and families in the local community through a direct primary care model.

The current healthcare landscape is burdened by rising costs, limited access, and impersonalized care. United Trust® Direct Primary Care Services, Inc. aims to address these challenges by offering a membership-based model that puts patients at the center of their healthcare journey.

By eliminating insurance intermediaries and embracing a direct financial relationship, we empower patients to receive comprehensive primary care services at an affordable and predictable cost. Joycelyn McNamara is the founder and CEO of United Trust® Direct Primary Care Services, Inc.

Company Profile

A. our products and services.

We provide a wide range of primary healthcare services, including preventive care, chronic disease management, acute care, minor procedures, vaccinations, and coordination of specialist care.

Our dedicated team of highly skilled and compassionate healthcare professionals is equipped to address the diverse needs of our patients, ensuring their overall well-being. United Trust® Direct Primary Care Services, Inc. is committed to delivering exceptional patient-centered care.

We prioritize building strong doctor-patient relationships by offering longer appointment times, extended access to healthcare providers, and enhanced communication channels. This personalized approach ensures that patients receive the attention, support, and comprehensive care they deserve.

b. Nature of the Business

Our direct primary care business will operate the business-to-consumer and business-to-business model. Our business model is designed to benefit patients, healthcare providers, and the community as a whole. By aligning our goals with the principles of direct primary care, United Trust® Direct Primary Care Services, Inc. is poised to disrupt the traditional healthcare system and deliver a superior primary care experience in San Francisco.

c. The Industry

United Trust® Direct Primary Care Services, Inc. will operate in the healthcare industry.

d. Mission Statement

At United Trust® Direct Primary Care Services, Inc., our mission is to provide exceptional, personalized healthcare services to individuals and families in the San Francisco community. We are committed to revolutionizing the primary care experience by offering comprehensive, patient-centered care that is accessible, affordable, and tailored to meet the unique needs of each individual.

e. Vision Statement

Our vision at United Trust® Direct Primary Care Services, Inc. is to transform the healthcare landscape by becoming the premier provider of direct primary care services in San Francisco and beyond. We envision a future where every individual has access to high-quality primary care that emphasizes preventive medicine, fosters strong doctor-patient relationships, and embraces the power of technology to enhance healthcare delivery.

f. Our Tagline (Slogan)

United Trust® Direct Primary Care Services, Inc. – “Your Health, Our Priority!”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

United Trust® Direct Primary Care Services, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

• Chief Executive Officer (Chief Medical Officer)
• Medical Providers (Primary Care Physicians)
• Billing Specialists
• Accountants/Cashiers
• Administrative Staff
• Customer Care Executive

i. Ownership/Shareholder Structure and Board Members

• Joycelyn McNamara (Owner and Chairman/Chief Executive Officer) 54 Percent Shares
• Excel Bonaparte (Board Member) 16 Percent Shares
• Ruud Gako (Board Member) 10 Percent Shares
• Georgia Benny (Board Member) 10 Percent Shares
• Shannel Victor (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• United Trust® Direct Primary Care Services, Inc. prioritizes personalized and comprehensive care, building strong doctor-patient relationships, and ensuring patient satisfaction.
• The organization offers upfront and transparent pricing, eliminating confusion and surprise medical bills, which enhances trust and affordability for patients.
• By removing insurance intermediaries, United Trust® Direct Primary Care Services, Inc. provides accessible and cost-effective primary care services to individuals and families.
• The organization embraces technology to enhance the patient experience, improve communication, and provide convenient online access to medical records and virtual care options.
• United Trust® Direct Primary Care Services, Inc. has a skilled and experienced leadership team dedicated to driving the organization’s mission and strategic direction.

b. Weakness

• The organization primarily focuses on primary care services and may not provide specialized care or access to a wide range of specialists within their network.
• United Trust® Direct Primary Care Services, Inc. operates within a specific geographic area, limiting its potential patient reach beyond the local community.
• The success of the organization relies on patients’ willingness to subscribe to the membership-based model, which may be a barrier to adoption for some individuals.

c. Opportunities

I. how big is the industry.

The direct primary care service industry in the United States has been growing steadily but is still relatively small compared to the overall healthcare industry.

ii. Is the Industry Growing or Declining?

The direct primary care service industry was experiencing growth and gaining traction within the healthcare landscape. The direct primary care service model had been steadily growing in popularity, driven by factors such as dissatisfaction with traditional fee-for-service models, increasing healthcare costs, and the desire for more personalized and accessible primary care.

But over and above, the global direct primary care market is expected to witness significant growth over the coming years, with a projected market share valuation of more than USD 30 billion by 2027.

iii. What are the Future Trends in the Industry

The desire for personalized, accessible, and cost-effective primary care is expected to drive increased interest and utilization of direct primary care services.

While direct primary care traditionally operates independently of insurance, future trends may see more collaboration and integration between direct primary care practices and insurance companies. This could involve partnerships that allow direct primary care practices to provide services within a broader healthcare network or the inclusion of direct primary care memberships as part of insurance plans.

The integration of telemedicine and digital health technologies is likely to play an increasing role in the direct primary care industry. Patients may have enhanced access to virtual visits, remote monitoring, and digital health tools that facilitate communication and improve convenience and continuity of care.

Direct primary care practices are well-positioned to prioritize preventive care and wellness initiatives. Future trends may see direct primary care practices placing even greater emphasis on preventive services, health education, and wellness programs to improve patient outcomes and reduce healthcare costs.

iv. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to direct primary care business because direct primary care is a niche idea in the healthcare industry.

v. Can You Sell a Franchise of Your Business in the Future?

United Trust® Direct Primary Care Services, Inc. intends to sell franchises in the near future, with a focus on major cities in the United States of America and Canada with a growing aging population and a burgeoning healthcare services industry.

• Changes in healthcare regulations and policies can impact the operations and financial viability of United Trust® Direct Primary Care Services, Inc.
• The organization faces competition from traditional fee-for-service models, other direct primary care providers, and emerging healthcare delivery models.
• The traditional insurance industry may perceive direct primary care as a threat to their business model and may resist partnering or accommodating direct primary care practices.

i. Who are the Major Competitors?

• Qliance Medical Management
• Paladina Health
• Iora Health
• One Medical
• Turntable Health
• WhiteGlove Health
• Nextera Healthcare
• Access Healthcare Direct
• Plum Health DPC
• Direct Primary Care Journal
• SignatureMD
• HealthCierge

ii. Is There a Franchise for Direct Primary Care Business?

Yes, there are franchise opportunities for direct primary care business and some of them are;

• Direct Primary Care Journal.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Direct Primary Care Business?

Direct primary care practices in the United States operate within the framework of existing healthcare regulations and laws. While direct primary care models have gained popularity, there are certain policies, regulations, and zoning laws that may impact the establishment and operation of DPC businesses.

It’s important to note that regulations can vary by state, and it’s advisable to consult legal professionals or industry experts for specific guidance.

Direct primary care physicians and healthcare providers must comply with state licensing requirements and scope of practice regulations. These regulations dictate the types of services that can be provided by specific healthcare professionals and may vary between states.

Direct primary care practices must adhere to general medical practice regulations, such as maintaining patient privacy and confidentiality, complying with medical record-keeping requirements, and following medical billing and coding guidelines.

Many states have specific laws or regulations that govern the contractual relationship between direct primary care practices and their patients. These laws often outline the requirements for a direct primary care agreement, including specific terms and provisions that must be included.

Lastly, direct primary care practices should be aware of federal and state laws related to anti-kickback and self-referral, such as the federal Stark Law and the Anti-Kickback Statute. These laws regulate financial relationships and referrals between healthcare providers, including potential restrictions on offering incentives or receiving payments for referrals.

Marketing Plan

A. who is your target audience.

i. Age Range: United Trust® Direct Primary Care Services, Inc. will target individuals of various age ranges, including adults and families. However, it might be particularly appealing to individuals and families who prioritize proactive healthcare and value a strong doctor-patient relationship.

ii. Level of Education: The level of education may not be a defining factor for the target audience of direct primary care services. Our business will be beneficial for individuals with varying levels of education who seek accessible and personalized primary care.

iii. Income Level: United Trust® Direct Primary Care Services, Inc. will target individuals across different income levels.

iv. Ethnicity: Direct primary care services are not specific to any particular ethnicity. The target audience will be diverse, encompassing individuals from different ethnic backgrounds who seek comprehensive and personalized primary care.

v. Language: United Trust® Direct Primary Care Services, Inc. will cater to individuals who speak various languages.

vi. Geographical Location: The target audience for United Trust® Direct Primary Care Services, Inc. is based in San Francisco, California the geographical location where the business operates. The target audience would primarily consist of individuals residing in or near that area.

vii. Lifestyle: United Trust® Direct Primary Care Services, Inc. will target individuals with a range of lifestyles. We will cater to individuals leading busy lives who value convenience and accessibility, as well as those seeking proactive and preventive healthcare services.

b. Advertising and Promotion Strategies

• Content marketing
• Deliberately Brand Our Office Facility
• Email marketing
• Events and sponsorships
• Pay-per-click (PPC) advertising
• Referral marketing
• Search engine optimization (SEO).

i. Traditional Marketing Strategies

• Broadcast Marketing -Television & Radio Channels.
• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Out-of-home (OOH) advertising – Public transit like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Affiliate Marketing
• Content Marketing.
• Email Marketing.
• Influencer Marketing.
• Mobile Marketing.
• Social Media Marketing Platforms.
• Search Engine Optimization (SEO) Marketing.

iii. Social Media Marketing Plan

• Create a personalized experience for our customers and their families.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Create profiles on relevant social media channels.
• Gear up our profiles with a diverse content strategy.
• Start using chatbots.
• Run cross-channel campaigns.
• Use brand advocates.

c. Pricing Strategy

United Trust® Direct Primary Care Services, Inc.’s pricing strategy will consider factors such as the cost of value of service offering, and the level of competition in the market. We will also analyze the competition’s pricing and services to ensure the business remains competitive while maintaining profitability. Here is our pricing strategy:

• Tiered Pricing
• All-Inclusive Pricing
• Ala Carte Pricing
• Move-In Specials
• Long-Term Contracts
• Medicaid and Medicare Programs
• Private Pay.

Sales and Distribution Plan

A. sales channels.

United Trust® Direct Primary Care Services, Inc. can utilize various sales channels to reach and acquire customers. We will employ a direct sales approach where its representatives proactively engage with potential customers through in-person meetings, presentations, and events.

This approach allows for direct communication and relationship-building with individuals and businesses interested in direct primary care services.

We will collaborate with other healthcare providers, employers, insurance companies, and wellness organizations. Building partnerships allows for cross-promotion, referrals, and access to a wider customer base. These partnerships can be established through networking, industry events, and targeted outreach.

United Trust® Direct Primary Care Services, Inc. will evaluate and prioritize the most effective sales channels based on their target audience, market dynamics, and available resources.

b. Inventory Strategy

Our inventory strategy will involve managing and tracking the availability of essential medical supplies and equipment to provide primary care services. This may include items such as examination tools, diagnostic equipment, vaccines, and basic medical supplies.

The inventory strategy should involve maintaining an adequate stock of these items to ensure smooth operations and meet patient needs.

The strategy will also involve setting par levels for inventory, monitoring usage, and ordering supplies in advance to ensure that there are no shortages. We will also implement software systems to automate inventory management and improve efficiency.

Having effective inventory management will help ensure that residents receive high-quality care while reducing waste and minimizing costs for the business.

c. Payment Options for Customers

Here are the payment options that United Trust® Direct Primary Care Services, Inc. will make available to its clients;

• Apple Pay and Google Wallet
• Gift cards and store credit
• Credit and debit cards
• Installment payments
• Cash on service delivery.

d. Return Policy, Incentives, and Guarantees

Return Policy: As direct primary care services are typically provided through a membership arrangement, there may not be a traditional return policy for services rendered.

Satisfaction Guarantees: To provide assurance and build trust with members, United Trust® Direct Primary Care Services, Inc. may consider offering satisfaction guarantees. This could involve ensuring that members receive high-quality, timely, and personalized care.

If a member expresses dissatisfaction with the services provided, the company could offer resolution options such as addressing concerns, accommodating specific needs, or adjusting the membership plan as appropriate.

Incentives for Referrals: United Trust® Direct Primary Care Services, Inc. will offer incentives or rewards, such as discounted membership fees, additional services, or gift cards, to members who successfully refer new members to the practice.

e. Customer Support Strategy

Providing exceptional customer support is crucial for the success of our direct primary care business. Here are some customer support strategies that we will adopt:

• Provide multiple communication channels for patients and their families
• Offer personalized attention
• Set clear expectations.
• Maintain transparency.
• Offer value-added services.

By implementing these strategies, our direct primary care business can provide excellent customer support and build long-term relationships with all our clients (patients).

Operational Plan

Our direct primary care business’s operational plan is a detailed document that defines the day-to-day operations of the business, such as staff roles, members’ care plans, facility upkeep, and financial management. Specific goals and objectives, as well as strategies for accomplishing those goals, are often included in the plan.

It will also handle risk management, emergency readiness, and regulatory and policy compliance. The operational plan is an essential component of a direct primary care organization’s overall business strategy and acts as a guide for day-to-day management.

a. What Happens During a Typical Day at a Direct Primary Care Business?

• The day usually begins with healthcare providers and staff members preparing for the day ahead. This may involve reviewing schedules, checking messages, and setting up examination rooms with the necessary supplies and equipment.
• Throughout the day, healthcare providers see patients for scheduled appointments. These appointments may include routine check-ups, preventive care visits, follow-ups for ongoing conditions, or addressing acute health concerns
• Administrative tasks such as scheduling appointments, billing, invoicing, and managing supplies and equipment.
• The business is closed for the day.

b. Production Process

There is no production process when it comes to direct primary care business.

c. Service Procedure

The services procedure for a direct primary care business revolves around clients (patients or their family members) requesting personalized services.

Generally, direct primary care practices often collaborate with specialists, hospitals, and other healthcare providers to coordinate patient care. This may involve referrals to specialists, reviewing specialist reports, coordinating follow-up care, or facilitating necessary diagnostic procedures or treatments.

d. The Supply Chain

A supply chain is not applicable to a direct primary care business.

e. Sources of Income

United Trust® Direct Primary Care Services, Inc. generates income primarily through the following sources:

• Membership Fees
• Additional Services and Procedures
• Corporate Contracts
• Telemedicine and Remote Consultations
• Partnerships and Collaborations
• Non-Medical Services
• Insurance Reimbursements (if applicable).

Financial Plan

A. amount needed to start your direct primary care business.

United Trust® Direct Primary Care Services, Inc. would need an estimate of $150,000 to successfully set up our direct primary care business in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $1,300.
• Marketing, Branding, and Promotions – $1,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $70,000.
• Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $30,000
• Start-up Inventory – $25,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing and Equipping – $35,000
• Website: $600
• Opening party: $4,000
• Miscellaneous: $5,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

United Trust® Direct Primary Care Services, Inc. will not build a new facility for our direct primary care business; we intend to start with a long-term lease and after 10 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses of Running a Direct Primary Care Business?

• Staffing costs (salaries, benefits, and training for physicians, and administrative staff)
• Facility expenses (rent, utilities, property taxes, maintenance, and insurance)
• Medical Supplies and Equipment such as examination tools, diagnostic equipment, vaccines, and basic medical supplies.
• Marketing and advertising
• Administrative expenses (office supplies, legal fees, accounting services, and software or technology systems)
• The cost of purchasing pharmaceuticals and maintaining an inventory of commonly prescribed medications.
• Compliance and Regulatory Costs.

e. What is the Average Salary of your Staff?

• Chief Executive Officer (Chief Medical Officer) – $72,000 Per Annum
• Medical Providers (Primary Care Physicians) – $62,000 Per Annum
• Billing Specialists – $42,000 Per Annum
• Accountants / Cashiers – $38,000 Per Annum
• Administrative Staff – $35,000 Per Annum
• Customer Care Executive – $32,000 Per Annum

f. How Do You Get Funding to Start a Direct Primary Care Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your product/service.

United Trust® Direct Primary Care Services, Inc. will charge based on what is obtainable in the United States. Our average membership fees can range from $50 to $200 per month per individual, with variations based on the level of care provided and the geographic region.

We may offer different tiers of membership, with varying levels of access and services, which can affect the pricing structure.

b. Sales Forecast?

• First Fiscal Year (FY1): $350,000
• Second Fiscal Year (FY2): $460,000
• Third Fiscal Year (FY3): $580,000

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): 25%
• Second Fiscal Year (FY2) (Profit After Tax): 30%
• Third Fiscal Year (FY3) (Profit After Tax): 35%

d. Profit Margin of a Direct primary care Business 

The ideal profit margin we hope to make at United Trust® Direct Primary Care Services, Inc. will be between 20 and 35 percent on each job carried out irrespective of the distance covered.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

United Trust® Direct Primary Care Services, Inc. will grow our direct primary care business by first opening our offices in key cities in the United States of America within the first five years of establishing the business and then starting a franchise in the nearest future.

b. Where do you intend to expand to and why?

United Trust® Direct Primary Care Services, Inc. plan to expand to;

• Minneapolis, Minnesota
• Nashville, Tennessee
• Phoenix, Arizona
• Portland, Oregon
• San Diego, California
• Atlanta, Georgia
• Charlotte, North Carolina
• Dallas, Texas
• Denver, Colorado
• Tampa, Florida.

The cities listed above have a growing aged population and a significant demand for direct primary care services, making them potentially viable markets for direct primary care enterprises, which is why we want to expand to these locations.

The founder of United Trust® Direct Primary Care Services, Inc. aims to exit the company through a merger and acquisition. We wish to merge with a global direct primary care firm so that when the founder retires, the company’s management can be placed in trusted hands.

The purpose of merging two or more international direct primary care firms is to achieve synergy, in which the total (the new company) is greater than the sum of its parts (the former two distinct entities).

27+ SAMPLE Healthcare Business Plan in PDF | MS Word | Google Docs

Healthcare business plan | ms word | google docs, 27+ sample healthcare business plan, what is a healthcare business plan, how to write a healthcare business plan, trending healthcare business ideas, important points to remember for a succesful business plan, how does the healthcare industry operate, what are the four major healthcare industries, what is the healthcare sector.

Healthcare Business Plan Template

Health Care Social Care Business Plan Template

Healthcare Clinic Business Plan

Healthcare Environment Strategic Business Planning

Integrative Healthcare Business Plan

International Healthcare System Business Plan

Healthcare Services Business Plan

Basic Healthcare Business Plan

Healthcare Medical Center Business Plan

Healthcare Business Plan Example

Healthcare System Business Plan

Powering Healthcare Business Plan

Healthcare Business Plan For Clinical Facilities

Healthcare Business Plan in PDF

Sample Healthcare Business Plan

Standard Healthcare Business Plan

Healthcare Reduces Business Planning

Modernizing Healthcare Business Plan Operations

Healthcare Services Strategic Business Plan

Healthcare Organization Management Business Plan

Printable Healthcare Business Plan

Healthcare and Wellness Business Plan

Healthcare Business Sustainability Plan

Healthcare Integrated Business Plan

Formal Healthcare Business Plan

Healthcare Foundation Business Plan

Healthcare Business Plan in DOC

Step 1: search for internet resources that are available, step 2: define the healthcare company’s description, step 3: create a competitive analysis and marketing strategy, step 4: clarifying the management and organization, step 5: set up financial as well as strategic objectives, share this post on your network, you may also like these articles.

In this comprehensive guide, we explore the essentials of creating an effective Floor Plan. Whether you are designing a new home, renovating an existing space, or planning an office…

Nursing Care Plan

In this comprehensive guide, we explore the essentials of creating an effective Nursing Care Plan. Whether you are a nursing student, a new graduate, or an experienced nurse, this…

browse by categories

• Questionnaire
• Description
• Reconciliation
• Certificate
• Spreadsheet

Information

• privacy policy
• Terms & Conditions

The future of healthcare: Value creation through next-generation business models

The healthcare industry in the United States has experienced steady growth over the past decade while simultaneously promoting quality, efficiency, and access to care. Between 2012 and 2019, profit pools (earnings before interest, taxes, depreciation, and amortization, or EBITDA) grew at a compound average growth rate of roughly 5 percent. This growth was aided in part by incremental healthcare spending that resulted from the 2010 Affordable Care Act. In 2020, subsidies for qualified individual purchasers on the marketplaces and expansion of Medicaid coverage resulted in roughly $130 billion 1 Federal Subsidies for Health Insurance Coverage for People Under Age 65: CBO and JCT’s March 2020 Projections, Congressional Budget Office, Washington, DC, September 29, 2020, cbo.gov. 2 Includes adults made eligible for Medicaid by the ACA and marketplace-related coverage and the Basic Health Program. of incremental healthcare spending by the federal government.

The next three years are expected to be less positive for the economics of the healthcare industry, as profit pools are more likely to be flat. COVID-19 has led to the potential for economic headwinds and a rebalancing of system funds. Current unemployment rates (6.9 percent as of October 2020) 3 The employment situation—October 2020 , US Department of Labor, November 6, 2020, bls.gov. indicate some individuals may move from employer-sponsored insurance to other options. It is expected that roughly between $70 billion and $100 billion in funding may leave the healthcare system by 2022, compared with the expected trajectory pre-COVID-19. The outflow is driven by coverage shifts out of employer-sponsored insurance, product buy-downs, and Medicaid rate pressures from states, partially offset by increased federal spending in the form of subsidies and cost sharing in the Individual market and in Medicaid funding.

Underlying this broader outlook are chances to innovate (Exhibit 1). 4 Smit S, Hirt M, Buehler K, Lund S, Greenberg E, and Govindarajan A, “ Safeguarding our lives and our livelihoods: The imperative of our time ,” March 23, 2020, McKinsey.com. Innovation may drive outpaced growth in three categories: segments that are anticipated to rebound from poor performance over recent years, segments that benefit from shifting care patterns that result directly from COVID-19, and segments where growth was expected pre-COVID-19 and remain largely unaffected by the pandemic. For the payer vertical, we estimate profit pools in Medicaid will likely increase by more than 10 percent per annum from 2019 to 2022 as a result of increased enrollment and normalized margins following historical lows. In the provider vertical, the rapid acceleration in the use of telehealth and other virtual care options spurred by COVID-19 could continue. 5 Bestsennyy O, Gilbert G, Harris A, and Rost J, “ Telehealth: A quarter-trillion-dollar post-COVID-19 reality? ” May 29, 2020, McKinsey.com. Growth is expected across a range of sub-segments in the services and technology vertical, as specialized players are able to provide services at scale (for example, software and platforms and data and analytics). Specialty pharmacy is another area where strong growth in profit pools is likely, with between 5 and 10 percent compound annual growth rate (CAGR) expected in infusion services and hospital-owned specialty pharmacy sub-segments.

Strategies that align to attractive and growing profit pools, while important, may be insufficient to achieve the growth that incumbents have come to expect. For example, in 2019, 34 percent of all revenue in the healthcare system was linked to a profit pool that grew at greater than 5 percent per year (from 2017 to 2019). In contrast, we estimate that only 13 percent of revenue in 2022 will be linked to profit pools growing at that rate between 2019 and 2022. This estimate reflects that profit pools are growing more slowly due to factors that include lower membership growth, margin pressure, and lower revenue growth. This relative scarcity in opportunity could lead to increased competition in attractive sub-segments with the potential for profits to be spread thinly across organizations. Developing new and innovative business models will become important to achieve the level of EBITDA growth observed in recent years and deliver better care for individuals. The good news is that there is significant opportunity, and need, for innovation in healthcare.

New and innovative business models across verticals can generate greater value and deliver better care for individuals

Glimpse into profit pool analyses and select sub-segments.

Within the context of these overarching observations, the projections for specific sub-segments are nuanced and tightly connected to the specific dynamics each sub-segment is currently facing:

• Payer—Small Group: Small group has historically seen membership declines and we expect this trend to continue and/or accelerate in the event of an economic downturn. Membership declines will increase competition and put pressure on incumbent market leaders to both maintain share and margin as membership declines, but fixed costs remain.
• Payer—Medicare Advantage: Historic profit pool growth in the Medicare Advantage space has been driven by enrollment gains that result from demographic trends and a long-term trend of seniors moving from traditional Medicare fee-for-service programs to Medicare Advantage plans that have increasingly offered attractive ancillary benefits (for example, dental benefits, gym memberships). Going forward, we expect Medicare members to be relatively insulated from the effects of an economic downturn that will impact employers and individuals in other payer segments.
• Provider—General acute care hospitals: Cancelation of elective procedures due to COVID-19 is expected to lead to volume and revenue reductions in 2019 and 2020. Though volume is expected to recover partially by 2022, growth will likely be slowed due to the accelerated shift from hospitals to virtual care and other non-acute settings. Payer mix shifts from employer-sponsored to Medicaid and uninsured populations in 2020 and 2021 are also likely to exert downward pressure on hospital revenue and EBITDA, possibly driving cost-optimization measures through 2022.
• Provider—Independent labs: COVID-19 testing is expected to drive higher than average utilization growth in independent labs through 2020 and 2021, with more typical utilization returning by 2022. However, labs may experience pressure on revenue and EBITDA growth as the payer mix shifts to lower-margin segments, offsetting some of the gains attributed to utilization.
• Provider—Virtual office visits: Telehealth has helped expand access to care at a time when the pandemic has restricted patients’ ability to see providers in person. Consumer adoption and stickiness, along with providers’ push to scale-up telehealth offerings, are expected to lead to more than 100 percent growth per annum in the segment from 2019 to 2022, going beyond traditional “tele-urgent” to more comprehensive virtual care.
• HST—Medical financing: The medical financing segment may be negatively impacted in 2020 due to COVID-19, as many elective services for which financing is used have been deferred. However, a quick bounce-back is expected as more patients lacking healthcare coverage may need financing in 2021, and as providers may use medical financing as a lever to improve cash reserves.
• HST—Wearables: Looking ahead, the wearables segment is expected to see a slight dip in 2020 due to COVID-19, but is expected to rebound in 2021 and 2022 given consumer interest in personal wellness and for tracking health indicators.
• Pharma services—Pharmacy benefit management: The growth is expected to return to baseline expectations by 2022 after an initial decline in 2020 and 2021 due to the COVID-19-driven decrease in prescription volume.

New and innovative business models are beginning to show promise in delivering better care and generating higher returns. The existence of these models and their initial successes are reflective of what we have observed in the market in recent years: leading organizations in the healthcare industry are not content to simply play in attractive segments and markets, but instead are proactively and fundamentally reshaping how the industry operates and how care is delivered. While the recipe across verticals varies, common among these new business models are greater alignment of incentives typically involving risk bearing, better integration of care, and use of data and advanced analytics.

Payers—Next-generation managed care models

For payers, the new and innovative business models that are generating superior returns are those that incorporate care delivery and advanced analytics to better serve individuals with increasingly complex healthcare needs (Exhibit 2). As chronic disease and other long-term conditions require more continuous management supported by providers (for example, behavioral health conditions), these next-generation managed care models have garnered notice. Nine of the top ten payers have made acquisitions in the care delivery space. Such models intend to reorient the traditional payer model away from an operational focus on financing healthcare and pricing risk, and toward more integrated managed care models that better align incentives and provide higher-quality, better experience, lower-cost, and more accessible care. Payers that deployed next-generation managed care models generate 0.5 percentage points of EBITDA margin above average expectations after normalizing for payer scale, geographical footprint, and segment mix, according to our research.

The evidence for the effectiveness of these next-generation care models goes beyond the financial analysis of returns. We observe that these models are being deployed in those geographies that have the greatest opportunity to positively impact individuals. Those markets with 1) a critical mass of disease burden, 2) presence of compressible costs (the opportunity for care to be redirected to lower-cost settings), and 3) a market structure conducive to shifting to higher-value sites of care, offer substantial ways to improve outcomes and reduce costs. (Exhibit 3).

Currently, a handful of payers—often large national players with access to capital and geographic breadth that enables acquisition of at-scale providers and technologies—have begun to pursue such models. Smaller payers may find it more difficult to make outright acquisitions, given capital constraints and geographic limitations. M&A activity across the care delivery landscape is leaving smaller and more localized assets available for integration and partnership. Payers may need to increasingly turn toward strategic partnerships and alliances to create value and integrate a range of offerings that address all drivers of health.

Providers—reimagining care delivery beyond the hospital

For health systems, through an investment lens, the ownership and integration of alternative sites of care beyond the hospital has demonstrated superior financial returns. Between 2013 and 2018, the number of transactions executed by health systems for outpatient assets increased by 31 percent, for physician practices by 23 percent, and for post-acute care assets by 13 percent. At the same time, the number of hospital-focused deals declined by 6 percent. In addition, private equity investors and payers are becoming more active dealmakers in these non-acute settings. 6 CapitalIQ, Dealogic, and Irving Levin Associates. 7 In 2018, around 40 percent of all post-acute and outpatient deals were completed by an acquirer other than a traditional provider.

As investment is focused on alternative sites of care, we observe that health systems pursuing diversified business models that encompass a greater range of care delivery assets (for example, physician practices, ambulatory surgery centers, and urgent care centers) are generating returns above expectations (Exhibit 4). By offering diverse settings to receive care, many of these systems have been able to lower costs, enhance coordination, and improve patient experience while maintaining or enhancing the quality of the services provided. Consistent with prior research, 8 Singhal S, Latko B, and Pardo Martin C, “ The future of healthcare: Finding the opportunities that lie beneath the uncertainty ,” January 31, 2018, McKinsey.com. systems with high market share tend to outperform peers with lower market share, potentially because systems with greater share have greater ability not only to ensure referral integrity but also to leverage economies of scale that drive efficiency.

The extent of this outperformance, however, varies by market type. For players with top quartile share, the difference in outperformance between acute-focused players and diverse players is less meaningful. Contrastingly, for bottom quartile players, the increase in value provided by presence beyond the acute setting is more significant. While there may be disadvantages for smaller and sub-scale providers, opportunities exist for these players—as well as new entrants and attackers—to succeed by integrating offerings across the care continuum.

These new models and entrants and their non-acute, technology-enabled, and multichannel offerings can offer a different vision of care delivery. Consumer adoption of telehealth has skyrocketed, from 11 percent of US consumers using telehealth in 2019 to 46 percent now using telehealth to replace canceled healthcare visits. Pre-COVID-19, the total annual revenues of US telehealth players were an estimated $3 billion; with the acceleration of consumer and provider adoption and the extension of telehealth beyond virtual urgent care, up to $250 billion of current US healthcare spend could be virtualized. 9 Bestsennyy O, Gilbert G, Harris A, and Rost J, “ Telehealth: A quarter-trillion-dollar post-COVID-19 reality? ” May 29, 2020, McKinsey.com. These early indications suggest that the market may be shifting toward a model of innovative tech-enabled care, one that unlocks value by integrating digital and non-acute settings into a comprehensive, coordinated, and lower-cost offering. While functional care coordination is currently still at the early stages, the potential of technology and other alternative settings raises the question of the role of existing acute-focused providers in a more integrated and digital world.

Would you like to learn more about our Healthcare Systems & Services Practice ?

Healthcare services and technology—innovation and integration across the value chain.

Growth in the healthcare services and technology vertical has been material, as players are bringing technology-enabled services to help improve patient care and boost efficiency. Healthcare services and technology companies are serving nearly all segments of the healthcare ecosystem. These efforts include working with payers and providers to better enable the link between actions and outcomes, to engage with consumers, and to provide real-time and convenient access to health information. Since 2014, a large number and value of deals have been completed: more than 580 deals, or $83 billion in aggregate value. 10 Includes deals over $10 million in value. 11 Analysis from PitchBook Data, Inc. and McKinsey Healthcare Services and Technology domain profit pools model. Venture capital and private equity have fueled much of the innovation in the space: more than 80 percent 12 Includes deals over $10 million in value. of deal volume has come from these institutional investors, while more traditional strategic players have focused on scaling such innovations and integrating them into their core.

Driven by this investment, multiple new models, players, and approaches are emerging across various sub-segments of the technology and services space, driving both innovation (measured by the number of venture capital deals as a percent of total deals) and integration (measured by strategic dollars invested as a percent of total dollars) with traditional payers and providers (Exhibit 5). In some sub-segments, such as data and analytics, utilization management, provider enablement, network management, and clinical information systems, there has been a high rate of both innovation and integration. For instance, in the data and analytics sub-segment, areas such as behavioral health and social determinants of health have driven innovation, while payer and provider investment in at-scale data and analytics platforms has driven deeper integration with existing core platforms. Other sub-segments, such as patient engagement and population health management, have exhibited high innovation but lower integration.

Traditional players have an opportunity to integrate innovative new technologies and offerings to transform and modernize their existing business models. Simultaneously, new (and often non-traditional) players are well positioned to continue to drive innovation across multiple sub-segments and through combinations of capabilities (roll-ups).

Pharmacy value chain—emerging shifts in delivery and management of care

The profit pools within the pharmacy services vertical are shifting from traditional dispensing to specialty pharmacy. Profits earned by retail dispensers (excluding specialty pharmacy) are expected to decline by 0.5 percent per year through 2022, in the face of intensifying competition and the maturing generic market. New modalities of care, new care settings, and new distribution systems are emerging, though many innovations remain in early stages of development.

Specialty pharmacy continues to be an area of outpaced growth. By 2023, specialty pharmacy is expected to account for 44 percent of pharmacy industry prescription revenues, up from 24 percent in 2013. 13 Fein AJ, The 2019 economic report on U.S. pharmacies and pharmacy benefit managers , Drug Channels Institute, 2019, drugchannelsinstitute.com. In response, both incumbents and non-traditional players are seeking opportunities to both capture a rapidly growing portion of the pharmacy value chain and deliver better experience to patients. Health systems, for instance, are increasingly entering the specialty space. Between 2015 and 2018 the share of provider-owned pharmacy locations with specialty pharmacy accreditation more than doubled, from 11 percent in 2015 to 27 percent in 2018, creating an opportunity to directly provide more integrated, holistic care to patients.

Challenges emerge for the US healthcare system as COVID-19 cases rise

A new wave of modalities of care and pharmaceutical innovation are being driven by cell and gene therapies. Global sales are forecasted to grow at more than 40 percent per annum from 2019 to 2024. 14 Evaluate Pharma, February 2020. These new therapies can be potentially curative and often serve patients with high unmet needs, but also pose challenges: 15 Capra E, Smith J, and Yang G, “ Gene therapy coming of age: Opportunities and challenges to getting ahead ,” October 2, 2019, McKinsey.com. upfront costs are high (often in the range of $500,000 to $2,000,000 per treatment), benefits are realized over time, and treatment is complex, with unique infrastructure and supply chain requirements. In response, both traditional healthcare players (payers, manufacturers) and policy makers (for example, the Centers for Medicare & Medicaid Services) 16 Centers for Medicare & Medicaid Services, “Medicaid program; establishing minimum standards in Medicaid state drug utilization review (DUR) and supporting value-based purchasing (VBP) for drugs covered in Medicaid, revising Medicaid drug rebate and third party liability (TPL) requirements,” Federal Register , June 19, 2020, Volume 85, Number 119, p. 37286, govinfo.gov. are considering innovative models that include value-based arrangements (outcomes-based pricing, annuity pricing, subscription pricing) to support flexibility around these new modalities.

Innovations also are accelerating in pharmaceutical distribution and delivery. Non-traditional players have entered the direct-to-consumer pharmacy space to improve efficiency and reimagine customer experience, including non-healthcare players such as Amazon (through its acquisition of PillPack in 2018) and, increasingly, traditional healthcare players as well, such as UnitedHealth Group (through its acquisition of DivvyDose in September 2020). COVID-19 has further accelerated innovation in patient experience and new models of drug delivery, with growth in tele-prescribing, 17 McKinsey COVID-19 Consumer Survey conducted June 8, 2020 and July 14, 2020. a continued shift toward delivery of pharmaceutical care at home, and the emergence of digital tools to help manage pharmaceutical care. Select providers have also begun to expand in-home offerings (for example, to include oncology treatments), shifting the care delivery paradigm toward home-first models.

A range of new models to better integrate pharmaceutical and medical care and management are emerging. Payers, particularly those with in-house pharmacy benefit managers, are using access to data on both the medical and pharmacy benefit to develop distinctive insights and better coordinate across pharmacy and medical care. Technology providers, together with a range of both traditional and non-traditional healthcare players, are working to integrate medical and pharmaceutical care in more convenient settings, such as the home, through access to real-time adherence monitoring and interventions. These players have an opportunity to access a broad range of comprehensive data, and advanced analytics can be leveraged to more effectively personalize and target care. Such an approach may necessitate cross-segment partnerships, acquisitions, and/or alliances to effectively integrate the many components required to deliver integrated, personalized, and higher-value care.

Creating and capturing new value

These materials are being provided on an accelerated basis in response to the COVID-19 crisis. These materials reflect general insight based on currently available information, which has not been independently verified and is inherently uncertain. Future results may differ materially from any statements of expectation, forecasts or projections. These materials are not a guarantee of results and cannot be relied upon. These materials do not constitute legal, medical, policy, or other regulated advice and do not contain all the information needed to determine a future course of action. Given the uncertainty surrounding COVID-19, these materials are provided “as is” solely for information purposes without any representation or warranty, and all liability is expressly disclaimed. References to specific products or organizations are solely for illustration and do not constitute any endorsement or recommendation. The recipient remains solely responsible for all decisions, use of these materials, and compliance with applicable laws, rules, regulations, and standards. Consider seeking advice of legal and other relevant certified/licensed experts prior to taking any specific steps.

Before the COVID-19 pandemic, our research indicated that profits for healthcare organizations were expected to be harder to earn than they have been in the recent past, which has been made even more difficult by COVID-19. New entrants and incumbents who can reimagine their business models have a chance to find ways to innovate to improve healthcare and therefore earn superior returns. The opportunity for incumbents who can reimagine their business models and new entrants is substantial.

Institutions will be expected to do more than align with growth segments of healthcare. The ability to innovate at scale and with speed is expected to be a differentiator. Senior leaders can consider five important questions:

• How does my business model need to change to create value in the future healthcare world? What are my endowments that will allow me to succeed?
• How does my resource (for example, capital and talent) allocation approach need to change to ensure the future business model is resourced differentially compared with the legacy business?
• How do I need to rewire my organization to design it for speed? 18 De Smet A, Pacthod D, Relyea C, and Sternfels B, “ Ready, set, go: Reinventing the organization for speed in the post-COVID-19 era ,” June 26, 2020, McKinsey.com.
• How should I construct an innovation model that rapidly accesses the broader market for innovation and adapts it to my business model? What ecosystem of partners will I need? How does my acquisition, partnership, and alliances approach need to adapt to deliver this rapid innovation?
• How do I prepare my broader organization to adopt and scale new innovations? Are my operating processes and technology platforms able to move quickly in scaling innovations?

There is no question that the next few years in healthcare are expected to require innovation and fresh perspectives. Yet healthcare stakeholders have never hesitated to rise to the occasion in a quest to deliver innovative, quality care that benefits everyone. Rewiring organizations for speed and efficiency, adapting to an ecosystem model, and scaling innovations to deliver meaningful changes are only some of the ways that helping both healthcare players and patients is possible.

Emily Clark is an associate partner in the Stamford office. Shubham Singhal , a senior partner in McKinsey’s Detroit office, is the global leader of the Healthcare, Public Sector and Social Sector practices. Kyle Weber is a partner in the Chicago office.

The authors would like to thank Ismail Aijazuddin, Naman Bansal, Zachary Greenberg, Rob May, Neha Patel, and Alex Sozdatelev for their contributions to this article.

This article was edited by Elizabeth Newman, an executive editor in the Chicago office.

Explore a career with us

Related articles.

The great acceleration in healthcare: Six trends to heed

When will the COVID-19 pandemic end?

Healthcare innovation: Building on gains made through the crisis

• Fact sheets
• Facts in pictures

Publications

• Questions and answers
• Tools and toolkits
• Endometriosis
• Excessive heat
• Mental disorders
• Polycystic ovary syndrome
• All countries
• Eastern Mediterranean
• South-East Asia
• Western Pacific
• Data by country
• Country presence 
• Country strengthening 
• Country cooperation strategies 
• News releases

Feature stories

• Press conferences
• Commentaries
• Photo library
• Afghanistan
• Cholera 
• Coronavirus disease (COVID-19)
• Greater Horn of Africa
• Israel and occupied Palestinian territory
• Disease Outbreak News
• Situation reports
• Weekly Epidemiological Record
• Surveillance
• Health emergency appeal
• International Health Regulations
• Independent Oversight and Advisory Committee
• Classifications
• Data collections
• Global Health Estimates
• Mortality Database
• Sustainable Development Goals
• Health Inequality Monitor
• Global Progress
• World Health Statistics
• Partnerships
• Committees and advisory groups
• Collaborating centres
• Technical teams
• Organizational structure
• Initiatives
• General Programme of Work
• WHO Academy
• Investment in WHO
• WHO Foundation
• External audit
• Financial statements
• Internal audit and investigations 
• Programme Budget
• Results reports
• Governing bodies
• World Health Assembly
• Executive Board
• Member States Portal
• Health topics /
• Primary health care

All people, everywhere, have the right to achieve the highest attainable level of health. This is the fundamental premise of primary health care (PHC).

Primary health care is a whole-of-society approach to effectively organize and strengthen national health systems to bring services for health and wellbeing closer to communities. It has 3 components:

• integrated health services to meet people’s health needs throughout their lives
• addressing the broader determinants of health through multisectoral policy and action
• empowering individuals, families and communities to take charge of their own health.

Primary health care enables health systems to support a person’s health needs – from health promotion to disease prevention, treatment, rehabilitation, palliative care and more. This strategy also ensures that health care is delivered in a way that is centred on people’s needs and respects their preferences.

Primary health care is widely regarded as the most inclusive, equitable and cost-effective way to achieve universal health coverage. It is also key to strengthening the resilience of health systems to prepare for, respond to and recover from shocks and crises.

Universal health coverage will only be possible when everyone, everywhere can access the health services they need. Communities should be empowered to identify their health priorities and contribute to finding responsive solutions. Heath care and other sectors need to work together to ensure all decisions affecting health are addressed in an integrated way. This includes promoting policies to protect and improve people’s health and well-being; providing information, services and infrastructure for improved water and sanitation and other environmental determinants of health; prevention of noncommunicable diseases; preparing for and responding to health emergencies; providing services for pregnant women, routine vaccination for children and sexual and reproductive health services; mental health support; platforms for community consultation and many others. Primary health care brings these factors together to ensure the highest possible level of health and well-being and their equitable distribution.

The impact is seen in health systems that focus on people’s needs and are as close as feasible to their everyday environment. Primary health care-oriented health systems consistently produce better outcomes, enhanced equity and improved efficiency. Scaling up primary health care interventions across low- and middle-income countries could save 60 million lives and increase average life expectancy by 3.7 years by 2030. 

WHO supports Member States in taking a primary health care approach to accelerate progress in achieving universal health coverage. Countries are demonstrating how this strategy has been effective in strengthening their health systems to address people’s needs, both in times of crisis as in normal times.  

The principles of primary health care were first outlined in the  Declaration of Alma-Ata  in 1978, a seminal milestone in global health. Forty years later, global leaders ratified the  Declaration of Astana  at the  Global Conference on Primary Health Care  which took place in Astana, Kazakhstan in October 2018. The following year, at the UN high-level meeting on universal health coverage , countries declared their commitment to “expand the delivery of and prioritize primary health care as a cornerstone of a sustainable people-centred, community-based and integrated health system and the foundation for achieving universal health coverage.”

To support Member States in translating this commitment into practical actions that are aligned with national contexts and priorities, WHO established the Special Programme on Primary Health Care and, together with UNICEF, released the Operational Framework for Primary Health Care and the Primary health care measurement framework and indicators. 

• Universal health coverage (UHC)
• WHA62.12 Primary health care, including health system strengthening 
• WHA 72.2 Primary health care
• EB146 (18) Primary health care
• UNGA 74/2 Political declaration of the high-level meeting on universal health coverage, 2019
• UNGA 78/4 Political declaration of the high-level meeting on universal health coverage, 2023

WHO offers new online course on building resilient health systems

First interregional meeting on the governance of the private health sector

WHO and Italian National Institute of Health sign memorandum of understanding to improve care for healthy ageing

Experts warn of serious health impacts from climate change for pregnant women, children, and older people

Positive practices in developing primary health care-oriented health systems – A collection of case stories...

The desire for comprehensive primary health care (PHC) available to all has long been held by countries of the WHO South-East Asia Region, pre-dating the...

Planning for health system recovery: guidance for application in countries

Health system recovery from disruptive events presents a window of opportunity for substantial improvements, applying lessons from ongoing or past experiences...

Building health system resilience to public health challenges: guidance for implementation in countries

Health system resilience is not an inevitable byproduct of any investment in health but must be intentionally programmed and developed with necessary input,...

The adolescent health indicators recommended by the Global Action for Measurement of Adolescent health

About 1.3 billion of the world’s population are adolescents, defined as those aged 10-19 years. Adolescents bear long periods of exposure to, and...

Primary health care measurement framework and indicators: monitoring health systems through a primary...

Primary health care (PHC), as outlined in the 1978 Declaration of Alma-Ata and again 40 years later in the 2018 World Health Organization (WHO) and United...

Operational Framework for Primary Health Care

World Health Organization & United Nations Children's Fund (‎‎UNICEF)‎‎. (‎2020)‎. Operational framework...

A vision for primary health care in the 21st century

Primary health care and health emergencies: brief

Key documents.

Declaration of Alma-Ata

The Declaration of Alma-Ata was endorsed at the Alma-Ata conference, jointly convened by WHO and UNICEF, that focused world attention on primary health...

Declaration of Astana

The Global Conference on Primary Health Care in Astana, Kazakhstan in October 2018 endorsed a new declaration emphasizing the critical role of primary...

Review of 40 years of primary health care implementation at country level - Management Response - April 2021 Review of 40 years of primary health care implementation at country level - Management Response - April 2021

Review of 40 years of primary health care implementation at country level - report review of 40 years of primary health care implementation at country level - report, review of 40 years of primary health care implementation at country level - evaluation brief - dec 2019 review of 40 years of primary health care implementation at country level - evaluation brief - dec 2019.

Donors making a difference: protecting health on the frontlines of humanitarian crises

Japan supports WHO’s work to improve health services and emergency response

Donors making a difference for WHO’s work to save lives in Sudan and South Sudan

Tajikistan paves the way for universal health coverage with strong primary health care

WHO's science in 5: low back pain

Low back pain guideline launch by the World Health Organization

Health clinics in Haat Bazaars in India

Primary health care in Tajikistan

Strategic Roundtables: Seventy-seventh World Health Assembly

Universal Health Coverage Day 2023

Shaping our health future: young leaders and parliamentarians unite for UHC

Back to the future: harnessing the power of primary health care to transform our health systems

24 October 2023, Media release

Related health topics

Palliative care

Universal health coverage

Health workforce

Rehabilitation

Developing an Urgent Care Business Plan: A Model for Success

The urgent care industry is booming —driven by a new breed of healthcare consumers that wants affordable and accessible medical care that fits into their on-demand lifestyles. There are several factors fueling this trend —long waiting times at primary care physicians and emergency rooms, the lack of after-hours care, and cost-effective healthcare services. According to the Urgent Care Association , the total number of centers had reached 9,616 as of November 2019, a 9.6 percent jump from the previous year.

It’s also not surprising that many entrepreneurs are interested in opening an urgent-care clinic. You may be one of them. Whether you are planning to open an independent business, purchase an existing business, or invest in a franchise, one of the most important steps is building a strong business plan.

Without a plan, a business is more likely to fail. In fact, studies have shown that companies that follow a business plan grow 30 percent faster than those that don’t.

A business plan is a blueprint for helping you effectively build your business and manage risk along the way. It describes all aspects of your urgent care center, including an overview of the business, services provided, marketing strategy, management structure, and —arguably the most fundamental part of any business plan —financial projections.

Financial history is usually unavailable when starting a new business, so you must provide more extensive details about what industry research and market analysis you have done to effectively create your profit and loss projections. Providing this information will allow those interested in your business, such as an investor or lenders, to fully understand your plan and its viability. You need to show that your urgent care business can realistically generate enough revenue to cover your operating expenses and pay back your loans.

You can start creating the master plan for your urgent care by including the following seven sections:

1. Executive Summary

This section summarizes your entire proposal in one to two pages. It’s an overview of the most important points covered in your business proposal. The executive summary makes it quick and easy for your potential client to gain insight into what you are offering them and why it will benefit them to do business with you.

2. Company Summary

This section describes the organizational structure of your business and who the key players are. The company summary will include information about when the company was founded, the name(s) of the company’s owner(s), and any other legal information, such as entities associated with the company or date of incorporation.

3. Business Description

Here, you outline your services and how they differ from competitors. Go into detail about the need your business fulfills. Explain the competitive advantages that will make your business a success. The business description is the place to boast about your strengths.

4. Market Analysis

You will need to provide an overview of your target customer demographics, competitors in the urgent care space, and potential for market growth.

5. Sales and Marketing

How will you drive customers to your urgent care as well as retain them? This is the section where you explain how you plan to get the word out about your new location and the types of ongoing advertising campaigns you will provide.

6. Management Summary

In this section, you establish the key members of your management team who will be an integral part of the day-to-day operations. Consider including the professional highlights of key members of your team and highlight how each person’s unique experience will contribute to the success of your venture.

Funding and Finances

This section of your business plan is arguably the most important. To start, you will need to create and provide forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. The financial predictions you put together will be an invaluable tool for you to measure the financial health of your business.

If you plan to finance any part of your urgent care business, you will also use the financial predictions you build to show potential lenders that the industry is stable and the odds that the business will succeed are greater than the risk that it will fail.

In addition to providing revenue predictions, you will also need to map out all your projected expenses. Calculating expected profits and losses (P&L) will help you determine your funding requirements for the next five years. It will be important to provide potential lenders or investors with a detailed description of how you’ll use your funds, including fixed and variable costs.

Fixed costs include initial investment expenditures like build-out costs, furniture, fixtures, and equipment, plus fixed monthly payments like rent and utilities. Variable costs include things like a marketing budget, product purchases (inventory), and payroll.

Because a business plan projects your company’s growth in the next three to five years, you should refer back to this document frequently and continue updating it as you gain more information about how your business is growing and where you see outgoing.

7. Franchising and Business Plans

The quicker your urgent care is up and running, the quicker you can begin earning profits. Choosing to go with an established franchise, like American Family Care, could make your ownership goals an easier reality. You still need a business plan, however. Franchising makes creating that plan easier, too.

A major upside of investing in a franchise instead of starting a business on your own is that working with a franchisor helps take a lot of guesswork out of building a strong, reliable business plan.

The Federal Trade Commission (FTC) requires all franchisors to provide prospective franchisees with an updated Franchise Disclosure Document (FDD) . All FDDs must include estimated initial investment costs, as well as recurring costs. Some FDDs may also include revenue projections, but franchisors are not legally required to do so.

FDDs can be incredibly useful when starting to build your business plan, but be sure to ask the franchise representative you are working with any questions regarding the numbers; or any other items in the FDD. Additionally, make sure you confirm your understanding and assumptions with existing franchisees during the validation process.

8. About American Family Care

American Family Care is the original urgent care franchise, and its founder, Dr. Bruce Irwin, is an industry pioneer. After more than four decades in franchising, AFC operates more than 200 clinics with 600 in-network physicians caring for nearly 3 million patients a year. AFC is the nation’s leading provider of urgent care , accessible primary care, and occupational medicine. Ranked by Inc. magazine as one of the fastest-growing companies in the U.S., AFC’s stated mission is to provide the best healthcare possible, in a kind and caring environment, while respecting the rights of all patients, in an economical manner, at times and locations convenient to the patient.

Click here to learn more about urgent care franchise opportunities with American Family Care or request more information.

GET STARTED ON YOUR JOURNEY TO OWNING AN AFC HEALTHCARE CENTER.

Complete the form for a free brochure and we will be in touch., get started.

• First Name *
• Last Name *
• State * State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Armed Forces Americas Armed Forces Europe Armed Forces Pacific
• Do you meet our financial requirements of $750K liquid assets and $1.2 million net worth? Do you meet our financial requirements of $750K liquid assets and $1.2 million net worth? Yes No

By requesting information, you agree that American Family Care may call and/or text you about your inquiry, which may involve the use of automated means. You do not need to consent as a condition of any purchase, and you can revoke consent at any time. You also agree to our Privacy Policy.

• Hidden utm_source
• Hidden utm_medium
• Hidden utm_campaign

This advertisement is not an offer to sell a franchise. Any offer to sell this franchise will be made by a Franchise Disclosure Document and only following registration by AFC Urgent Care in any state requiring registration prior to sale.

In New York: This advertisement is not an offering. An offering can only be made by prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law.

In California: These franchises have been registered under franchise investment law of the State of California. Such registration does not constitute approval, recommendation or endorsement by the Commissioner of business oversight nor a finding by the commissioner that the information provided herein is true, complete and not misleading.

Franchise Opportunity

Available markets.

Let's Find An Open Market Near you.

A Business Model That Works In Your Area.

Privacy Overview

• The AFC Difference
• Urgent Care Services
• Laboratory & X-Ray Services
• Occupational Health Franchise
• Telemedicine Services
• Why Franchise
• Healthcare Industry
• Franchise Investment Cost
• Training & Support
• Multi-Unit Opportunities
• Ideal Candidates
• Clinic Conversions
• Submit a Location

Get Started on Your Journey to Owning an AFC Healthcare Center.

Moscow Family Medicine

Primary care for the whole family..

Our multiple Moscow clinic locations offer both same-day, walk-in care and preventative care options that keep you close to your support system, integrated with specialty services that allow you to stay in the community for your treatment and recovery.

Moscow Family Medicine Downtown: 208-882-2011 .

Moscow Family Medicine Westside: 208-874-0075

Billing Questions: 208-882-4611 .

Same-Day Care for Coughs, Colds, Minor Cuts and Injuries

QuickCARE is our full-service walk-in clinic available for your emergent health care needs without scheduling an appointment.

QuickCARE Location and Hours

Patient Services

Request an appointment at all Gritman locations, including Downtown and Westside. Request an Appointment

Review your medication, personal information or communicate with your provider. Patient Portal

Pay your billing statement balance by credit or debit card. Pay My Bill

Request your Moscow Family Medicine medical records. Medical Records

Search our database of more than 100 providers by name, location and specialty. Find a Doctor

A full range of childhood vaccination is available for both children and young adults. Childhood Immunizations

Moscow Family Medicine Downtown

Moscow Family Medicine Westside

2500 W. A St., Moscow, ID 83843 Monday – Friday, 8 a.m. to 5 p.m. Phone: 208-874-0075

2500 W A St. #101, Moscow, ID 83843 Monday – Friday, 8 a.m. to 6 p.m. Saturday, 8 a.m. to 4:30 p.m. Sunday, 11 a.m. to 4:30 p.m. Closed on major holidays. Phone: 208-883-0540

Services We Provide

• Allergy Care & Information
• Childhood Immunization
• Laboratory & Testing Services
• Pediatric Care
• Primary Care
• Sports Medicine

Our Providers

Amy Dudley, MD

Brad Capawana, DPM

Bryn Parker, MD

Cameron Jones, MD

Candice Ketelsen, PA-C

Frequently asked questions, why did i receive a bill from moscow family medicine.

If we are not contracted with your insurance company or the services we provided are not covered by your policy you may receive a billing statement from us. You may also receive a bill for your copay, coinsurance and/or deductible amounts. To ensure you get the greatest benefit from your health insurance coverage, check your policy to make sure the services you seek are covered and don’t hesitate to call your insurance company if you need clarification about what services your policy covers or whether Moscow Family Medicine is and “in-network” provider.

Do you take my insurance?

We accept most forms of insurance, including Medicare and Medicaid. Please direct questions to our Billing Department . We do not bill internationally – if you are a student or visitor from another country you will have to pay your bill and then send it to your insurance for reimbursement. We offer discounts for those without insurance who pay in full at the time of the visit.

What can I do when I need an appointment, but my doctor is booked for a week?

Our care teams may be able to connect you with another provider or member of our medical staff in the event your primary care provider isn’t available. Ask your scheduler about additional options for your appointment. Our QuickCARE clinic also addresses emergent matters on a walk-in basis.

What is DPC?

How does it work, what does it cover, focused on providing quality healthcare.

The Direct Primary Care practice model is designed to surmount the challenges within today's costly healthcare system, enabling us to prioritize patient care. Below, you will find an overview of the services we offer. For comprehensive details on our service offerings, please refer to our membership agreement.

Review our general overview of the services we offer. For comprehensive details on our service offerings, please refer to our membership agreement.

Partnering with Link Family Medicine is a cost effective way for business owners to provide high quality, high value, and affordable health benefits to their employees.

Chinese Medicine

Traditional Chinese Medicine (TCM) is a system of healing that has been practiced for thousands of years in China and other parts of East Asia.

Become a member of Link Family Medicine Today!

Do you want a doctor who will listen to you and respond rather than talk at you? Do you want a doctor who listens and respects your concerns and opinions when recommending a protocol? Dr Bouchard is a real doctor. I couldn’t recommend him more highly.

I have been seeing Dr. Bouchard for the past several years. He has been awesome. He listens to everything you say. He directs you in the right direction based on what he discovers. He’s the best Dr. I have ever had. I would recommend him to my own family, and feel 100% confident in the care he would give them.

Jason Castillo

I chose Dr Bouchard as my primary physician about a year ago. I’ve had about two visits in this time. I find he listens very well and responds to my concerns. At my yearly physical he was very thorough. In this conversation I stated an on going problem. He listened to all the treatments I’ve tried and suggested an alternative treatment. It worked very well. Even giving the first treatment as a free trial. I’m very happy with his service a would recommend him to others.

Dr. Bouchard is a very caring and thorough doctor, who was familiar with me, having read my file. My husband also sees Dr. Bouchard and is as happy as I to call him our physician. We recommend Dr. Bouchard with 5 stars +!

Betsy Dickow

… As a cancer care survivor, … my primary care physician, Dr. Bouchard in addition to my oncologist receives my test results immediately. Dr. Bouchard contacted me and recommended a course of action. Dr. Bouchard mobilized the local medical net work to get me the necessary follow up testing I needed before I saw my oncologist in Spokane the following week. Dr. Bouchard understood my concerns and was able to provide me the medical care necessary. The final results, no more cancer. (PTL)

Keith Haley