family medicine clinic business plan pdf

AAFP Direct Primary Care Toolkit: Business Planning

Member: $99.95 Nonmember: $145

A well-written business plan for your direct primary care (DPC) practice is one of the most important steps to position your new business for success. This course will help you determine the initial steps to establish and launch a new DPC practice.

At the end of this course, participants will be able to:

• Determine the initial steps to establish and launch a new direct primary care (DPC) practice
• Identify the key aspects of a business plan
• Evaluate financial planning concepts to manage business finances.
• Estimate practice startup costs
• Calculate ongoing costs, patient fees, and revenue for structure your membership fees  
• Business Planning
• Financial Planning
• Start Up Costs Worksheet
• Financial Pro Forma Calculator
• Net Revenue and Physician Salary Calculator
• Services Worksheet
• Sample Checklist
• Service and Technology Vendor Listing
• Easy access to additional resources and references  

NOTE: Access to this topic will be available through  December 4, 2023 . All components of this product are provided as digital copies only.

Copyright © 2023 American Academy of Family Physicians. All Rights Reserved.

Medical Practice Business Plan Template

Written by Dave Lavinsky

Medical Practice Business Plan

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

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

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

Why You Need a Business Plan

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

Sources of Funding for Medical Practices

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

How To Write a Business Plan For a Medical Business

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

Executive Summary

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

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

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

Company Analysis

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

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

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

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

Include answers to question such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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Competitive Analysis

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

Direct competitors are other medical offices. 

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

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

Income Statement

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

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

Balance Sheets

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

Cash Flow Statement

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

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

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

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

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

Medical Practice Business Plan FAQs

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

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

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

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

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business plan advisors can give you a winning business plan.  

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Family Medicine Clinic Business Plan

Start your own family medicine clinic business plan

Park Square Family Medicine

Financial plan investor-ready personnel plan .">, key assumptions.

Important notation/limitations in viewing the financial plan:

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

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

we will purchase the building and have the following startup expenses

Legal & Accounting $500

Insurance $1,000

Marketing $2,000

Computer $3,000

Business License $32

Communications $150

Medical Equipment $7,000

Office Supplies $4,000

Office Furniture $2,000

Marketing Plan $3,000

Regulatory Duties/CLIA $50

TOTAL START-UP EXPENSES $22,732

Sources of Funds

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

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

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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Medical Clinic Business Plan Sample

OCT.12, 2016

Introduction

The demand for health care is constant in spite of changes in the economy across the globe. Starting a professional clinic will help promote the health and wellness of the community that you live. You also get the opportunity to make money doing what you love, providing quality health care services

To ensure that your plan succeeds, you need to hire a professional to write your business plan for a medical clinic . OGS Capital is a reputed company that specializes in providing medical clinic business plan writing services. Our professionals have vast hands-on experience and are members of professional bodies, so you can be sure that you will get value for the money and time that you invest in this project.

Plan Summary

The plan summary is also referred to as an abstract. It should be placed at the start of the medical clinic business plan to give readers an idea of the clinic that you intend to establish even before they start perusing through the other pages.

It Is imperative to make sure that all facts that you include in this section are factual to paint a positive image to the target audience. Some of the details of your clinic that you should include in this section are clinic’s name, mission statement, and objectives.

Our team will help you create this section to give your business plan for a medical clinic an upper hand when you present it to potential investors . We will also give you additional facts to enable you set up the clinic successfully.

This includes;

• How to market your health care services
• How to hire employees
• How to build and retain your credibility and reputation

In certain businesses, the location is critical and to some extent this applies to a medical clinic. Easy access to the clinic is important, so being close to main highways is a consideration.

Car parking facilities for your clients and visitors will also need to be considered. This could be part of the business or a nearby private car park.

Another important consideration is visibility. Your medical center can act as a superb billboard in the right location.

Your business plan for a medical clinic should cover all these points and more.

Competitive Analysis

Health is a growing business and there are plenty of competitors. Your medical clinic business plan should describe your closet competitors and why they are successful.

The plan will also explain what your business will do differently to stand out from the competition. One easy way of doing this is by using a competitor matrix. Make a list of competitors and then columns for attributes. This is an easy way to compare your business to the competitors.

Business Structure

The business plan for a medical clinic needs to describe how your business is structured from the top down. If it’s an existing business, include a brief history of the company.

You should also describe the legal structure and ownership of your company, whether sole-trader, partnership or limited company.

You may also need to include information on the mission statement, intellectual property and the business location.

Marketing Strategy

Your marketing plan needs to consider several topics, including where your business is positioned in the market, your pricing structure and how you plan to promote the business.

Is the business focussed on offering value for money or is it aimed at the high-end of the market. There are many pricing strategies, and your medical clinic business plan pdf should identify which strategy you intend to implement and why.

Using our medical clinic business plan template , describe the products and services your business will offer.

How do your planned products and services meet the needs of your target market. Do your competitors offer similar products, and if so, why will your business stand out?

In the medical business there is constant change, so include how your medical clinic business plan will plan to find and offer new products and services.

The key members of the management team should be identified and their role described. This should also include details of why they are suitable for that particular role. Don’t forget to identify other important members of your team.

You can include brief bios with details of their experience and education.

Using our free sample business plan for a medical clinic to guide you.

Financial plan

The financial plan provides precise details on how you will get the capital to start the clinic. The financial plan also goes the extra mile to highlight how the money will be spent.

It is important to make sure that the plan is accurate as simple mistakes could cost your potential business investors. Our financial experts will work on this section to ensure that the medical clinic business plan  is foolproof and capable of starting and safeguarding it from financial challenges down the road.

Registration Process

There are regulations that govern establishing of health care clinics. You need to adhere and follow the stipulated processes to get all the necessary accreditation documents.

The investors need to know that you have what it takes to start a health clinic, and so it is imperative to provide details of how you intend to complete the registration process.

We have professional business plan writers in the health care sector that can help you understand the registration process to overcome the challenges along the way. Our medical practice business plan template will ensure you produce the perfect medical clinic business plan .

How to order writing business plan medical clinic

Get in touch with us today for more details on how we can write a medical clinic business plan example for you by filling the contact us form. We look forward to working on your medical clinic business plan .

Download Clinic Business Plan Sample in pdf

Professional OGS capital writers specialized also in themes such as dental practice business plan , wellness business plan , senior center business plan , reiki practice business plan , pharmacy business plans , occupational therapy business plan and many others.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Family Medicine Clinic the marketing plan will allow you an...

Family Medicine Clinic

the marketing plan will allow you an opportunity to construct the critical components contained within a marketing plan. Refer to your textbook for key questions to include in the marketing plan. Be sure to provide details for each question noted within each section. By doing so, you will be able to make robust marketing plan.

Each plan will include an executive summary, company profile, industry overview, service overview (only if you are marketing a new service,) target market, competitive analysis, the marketing mix - promotional strategy, place, pricing, and service delivery plan. 

Answer & Explanation

Creating a marketing plan for a Family Medicine Clinic involves a structured approach to outline the key aspects necessary for the successful promotion of your healthcare services. Here is a breakdown of each section:

1. Executive Summary:

• Provide a brief overview of the entire marketing plan.
• Highlight the clinic's mission, vision, and key goals.
• Mention key performance indicators (KPIs) to measure the plan's success.

2. Company Profile:

• Introduce the Family Medicine Clinic, including its history, location, and ownership.
• Describe the clinic's values, culture, and core values.
• Highlight any certifications, accreditations, or awards.

3. Industry Overview:

• Provide an overview of the healthcare industry, specifically family medicine.
• Explain current trends, challenges, and opportunities.
• Discuss how regulatory factors impact your clinic.

4. Service Overview (if introducing a new service):

• Detail the new service, its benefits, and how it fills a gap in the market.
• Explain the service's relevance to your target market.
• Include information about any required certifications or qualifications for offering the service.

5. Target Market:

• Define your ideal patient demographic (age, gender, location, income, etc.).
• Describe their healthcare needs and preferences.
• Explain how your clinic addresses these needs.

6. Competitive Analysis:

• Identify key competitors (other clinics, hospitals, urgent care centers).
• Evaluate their strengths and weaknesses.
• Highlight what sets your clinic apart (unique services, exceptional care, convenient location).

7. Marketing Mix - Promotional Strategy:

• Describe your clinic's branding and positioning.
• Outline the marketing channels you'll use (website, social media, print media, etc.).
• Detail your content strategy (blog posts, videos, infographics).
• Explain your approach to patient testimonials and reviews.

8. Marketing Mix - Place:

• Discuss the clinic's physical location and its accessibility.
• Explain any plans for expanding to additional locations.
• Mention partnerships with other healthcare providers or organizations.

9. Marketing Mix - Pricing:

• Describe your pricing strategy (e.g., fee-for-service, insurance, sliding scale).
• Explain any special offers, discounts, or loyalty programs.
• Discuss how pricing compares to competitors and justifies your value proposition.

10. Service Delivery Plan:

• Detail how appointments are scheduled and managed.
• Explain patient onboarding procedures.
• Describe the patient experience and how you ensure quality care.
• Discuss follow-up and aftercare services.

11. Budget and Timeline:

• Provide a budget allocation for marketing activities.
• Create a timeline for implementing the marketing plan, including milestones.

12. Monitoring and Measurement:

• Explain how you will track the success of the marketing plan.
• Define KPIs (e.g., patient acquisition, retention rate, ROI).
• Describe regular reporting and adjustments based on data analysis.

13. Risk Analysis and Contingency Plan:

• Identify potential risks (e.g., legal issues, negative patient reviews).
• Outline strategies to mitigate these risks.
• Prepare a contingency plan for unexpected challenges.

Adapt and customize your marketing plan based on your clinic's unique characteristics and market conditions. Regularly review and update the plan to stay aligned with your clinic's goals and changing industry dynamics.

Here's a sample marketing plan for a Family Medicine Clinic:

Executive Summary: Our Family Medicine Clinic, ABC HealthCare, is committed to providing comprehensive and compassionate healthcare services to individuals and families in the [City] area. This marketing plan outlines our strategy to expand our patient base and improve patient engagement through targeted marketing efforts.

Company Profile: ABC HealthCare has been serving the community for over 10 years. We are located at [Address] and have a dedicated team of experienced physicians, nurses, and support staff. Our mission is to deliver accessible and high-quality healthcare to our patients while fostering a patient-centered culture.

Industry Overview: The healthcare industry is experiencing a growing demand for family medicine services due to an aging population and increased awareness of preventive care. However, it also faces challenges such as rising healthcare costs and changing regulatory requirements. This presents an opportunity for us to differentiate ourselves through excellent care and patient-focused services.

Service Overview (if introducing a new service): We are introducing a new telemedicine service to meet the evolving needs of our patients. This service will provide convenient remote consultations with our physicians, making healthcare accessible to a wider range of patients, especially those with mobility challenges or busy schedules.

Target Market: Our target market includes individuals and families in the [City] area seeking comprehensive primary care services. We aim to serve all age groups and socio-economic backgrounds, focusing on patients who value personalized, long-term relationships with their healthcare providers.

Competitive Analysis: Our main competitors in the area are [Competitor 1] and [Competitor 2]. While they offer quality healthcare, our clinic distinguishes itself through our commitment to patient-centric care, shorter wait times, and the introduction of telemedicine, providing greater accessibility and convenience.

Marketing Mix - Promotional Strategy:

• We will revamp our website, optimize it for search engines, and regularly update it with informative blog posts on healthcare topics.
• Active engagement on social media platforms like Facebook, Instagram, and LinkedIn to share health tips, patient success stories, and clinic updates.
• Implement an email newsletter campaign to keep patients informed about clinic news and health topics.
• Encourage satisfied patients to leave reviews on online platforms and testimonials on our website.

Marketing Mix - Place: Our clinic is conveniently located in the heart of [City], easily accessible by public transportation and with ample parking. We are considering expanding to additional locations in underserved areas in the future.

Marketing Mix - Pricing: We offer competitive pricing for our services, accept various insurance plans, and provide a sliding scale fee structure for uninsured or underinsured patients. We will periodically review our pricing to ensure affordability and competitiveness.

Service Delivery Plan: Appointments can be scheduled online or by phone, and we offer same-day appointments for urgent cases. Our staff is trained to provide a welcoming and efficient patient experience. For telemedicine appointments, we have a user-friendly platform in place, and our team is available to assist patients with setup and technical issues.

Budget and Timeline: Our marketing budget for the next year is [$______]. We plan to start implementing this marketing plan immediately, with the goal of seeing measurable results within the first six months.

Monitoring and Measurement: We will track key performance indicators (KPIs) such as website traffic, appointment bookings, patient reviews, and revenue growth. Monthly reports will be generated to assess the effectiveness of our marketing efforts, allowing us to make data-driven adjustments.

Risk Analysis and Contingency Plan: Potential risks include negative patient reviews and unforeseen regulatory changes. To mitigate these risks, we will actively monitor online reviews and promptly address any concerns. We will also stay informed about industry regulations and adjust our operations accordingly.

         This marketing plan serves as a roadmap to promote our Family Medicine Clinic, attract new patients, and ensure the continued satisfaction of existing patient base. It outlines a commitment to providing high-quality healthcare while adapting to the evolving needs of our community. I hope this helps.

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