Family Medicine Clinic Business Plan

Park Square Family Medicine

Executive Summary

Opportunity

Problem

Obvious lack of medical services in rural areas in general. This applies as well to XXXX, where Park Square will be located. 

Solution

The mission of Park Square Family Medicine is to promote the health and well-being of the local population by providing accessible, high-quality medical care for people of all ages. Park Square Family Medicine is committed to providing services that will exceed the expectations of our patients, resulting in a successful and profitable business.

Market

According to the local area "Economic and Demographic Profile Report," there is an increasing demand for cost-effective health care in the nation and in our region. Specifically, the local population (within 35 miles) is predicted to grow approximately 3.5% per year and has a population roughly around 160,000 people.

Competition

Park Square Family Medicine is part of the larger medical industry, in particular "Offices and Clinics of Medical Doctors." Private medical practices are numerous, generally small (1 – 4 physicians) and may provide either general or specialist services. They are well-suited to rural and semi-rural areas, which often do not have a large enough population to make a hospital or larger medical group a viable proposition.

There are currently five family practitioners in this town of 15,000, with 160,000 potential patients within 35 miles. These are favorable statistics that offer an excellent patient-to-doctor ratio for marketing efforts.

Why Us?

The mission of Park Square Family Medicine is to promote the health and well-being of the local population by providing accessible, high-quality medical care for people of all ages. Park Square Family Medicine is committed to providing services that will exceed the expectations of our patients, resulting in a successful and profitable business.

Expectations

Forecast

Our existing forecast shows unrealistic profits. We leave it like that for planning purposes, because we know that things will happen to create more expenses as we go. They always do. 

Financial Highlights by Year

Financing Needed

We are going to need a loan for $288,000. An estimated $225,000 will be spent accumulating long term assets. The rest will be used for startup expenses and physician expenses. 

Opportunity

Problem & Solution

Problem Worth Solving

Obvious lack of medical services in rural areas in general. This applies as well to XXXX, where Park Square will be located. 

Our Solution

Park Square Family Medicine will offer general and preventative health care for all ages in this area and the surrounding communities. The clinic will utilize a trained staff, new equipment, sound medical training, a referral system and nearby hospital facilities in order to maximize the care for each patient.

Target Market

Market Size & Segments

Market Segmentation

The largest age group in our area  is between 40-49, with 31,714 people. Residents over 60 make up a higher percentage of the population in here than the regional average. Since we will be open to patients of all ages, our market segmentation breaks potential patients out into local population (within 35 miles) and patients from the surrounding region (within 70 miles).

There are currently 4-5 family practitioners in town, with 15,000 people living within 4 miles. These are favorable statistics that offer an excellent patient-to-doctor ratio, in addition to the limited number of surrounding family medical practices.

Target Market Segment Strategy

Park Square Family Medicine will locate and focus its efforts on the entire local population (within 35 miles). Our segmentation strategy is geographic for a number of reasons:

• The rural and semi-rural patients of this area will not, and often cannot, travel more than 30 miles to see a doctor. They would rather "wait it out" on all but urgent matters.
• Our clinic is a general family practice, and will treat patients of all ages, incomes, physical abilities, races, and ethnicities. As a family clinic, there is no need to create marketing materials targeted at only one or two of these groups, but we can appeal to all with a similar message.
• The expected growth of the local population, at 3.5% a year, makes this an ideal location for a broadly geographic marketing approach.

Competition

Current Alternatives

In general, competition among fellow family practitioners our town and the surrounding area is small. The growing population base and the limited number of doctors creates a great potential for meeting our patient load goals.

When choosing a family doctor, most patients look for someone knowledgeable and skilled who will listen carefully to their health concerns. They are more likely to return to a doctor whose location and hours are convenient and accessible, who have short waiting times for getting appointments and sitting in the waiting room, whose staff is friendly and helpful, and who work effectively with their insurance provider.

The relative importance of each of these factors will vary by patients’ age range, medical needs, and level of sophistication in managing their own health.

Our Advantages

Park Square Medical Center will have a competitive edge based on position, timing, quality of care, availability to patient, after-hour care, weekend hours, quality time, pleasant staff and office environment. All of these factors will result in patient satisfaction and high referral rates.

In general, competition among fellow family practitioners in our town and the surrounding area is small. The growing population base and the limited number of doctors creates a strong opportunity.

Keys to Succes

Keys to Success

Keys to Success

Patients

• Focus on patient care
• Educate patients on the importance of preventative care
• Educate patients as to the importance of yearly check-ups
• Implement an aggressive and accurate recall system in which to remind patients to have regular check ups

Staff and Office Organization

• Recognize that the office staff is as crucial, if not more crucial, than the physician(s) in the success of the business
• Create incentives by allowing the office staff to benefit from increased profits generated by the office
• Create a streamlined office system to minimize patients’ waiting time

Finances

• Keep a low overhead
• Optimize the number of patients we can see in a hour while providing quality medical care
• Use the latest in electronic billing and/or utilize an outside billing company
• Use this medical clinic business plan to review and guide management decisions

Marketing and Sales

• Aggressively market and create a presence in the community by giving high school talks, ER calls, hospital talks and doing volunteer work, business society meetings, and much more
• Network to obtain referrals from other professionals, such ER doctors, Specialists, Hospital Admissions
• Have an office front on a busy street with accessible parking
• Locate in an area with a high patient-to-doctor ratio
• Locate in close proximity to the Medical Surgery Center with easy access to specialty care

Execution

Marketing & Sales

Marketing Plan

Upon opening up a new General Practice such as Park Square Family Medicine, it is important to create momentum before the actual day of opening. In conjunction with a Marketing and Advertising Group this momentum will be created 1 month prior to the opening date. We will first try to get our name recognized in conjunction with promoting the location and the services we can offer.

We feel that the most important way to become established is create a presence among the community. The best way to create this is through a combination of the strategies outlined below, in order to accomplish greater visibility to prospective patients and institutions.

Marketing Materials

All written materials used to promote the medical office will share a professional and polished look and feel. Our office will carry our own leaflets, to be made available to all patients, containing factual information about the services provided. This leaflet will also contain some biographical information, location, photos and other promotional material. This leaflet will be used to help promote Park Square Family Medicine both as handouts for patients within the clinic, as well as potential patients outside the clinic.

The clinic will provide multiple education brochures from the AAFP. We will have an area where health information will be displayed and dispersed in the form of packets and brochures. In addition, patient information handouts will also be available via the EMR system and the website.

There will be a number of patient-friendly brochures, videos, mailings, and other materials used to promote the medical office. We will have multiple ads in magazines and newspapers, as well as a commercial to announce the opening of Park Square Family Practice.

Park Square Family Medicine will employ commercials, mail-outs that may include new patient discounts, yellow pages, magazines, newspapers, and other forms of advertising.

Promotional Events

We will set up an open house for surrounding businesses and potential patients to let them see our new clinic. During these open houses, we will provide HTN readings, glucose testing, and much more. We will consider having a blood drive in coordination with the local hospitals and Red Cross.

Park Square Family Medicine will hold health information workshops with the help of community organizations for the general public at Park Square Family Medicine, as well as in local and public areas of interest. Our goal will be to bring new patients into the clinic but to also create word of mouth. New patients will have time to ask questions about medicine and new patients will be introduced to the new clinic. Our goal is to meet and promote the clinic to as many people before the opening of the clinic, as well as after the clinic is open.

Networking

Park Square Family Medicine will become a member of the business community. We will join and attend key business events that will help promote our new business. We will also promote ourselves in local business directories. We will also network through various organizations, such as local churches, the Lyons club, the Rotary club, as well as the country club in order to promote and generate further interest in our services.

Park Square Family Medicine will incorporate reciprocal advertising with other nearby healthcare facilities, such as opticians, chiropractors, and hospitals. Park Square Family Medicine will obtain additional patients via ER referrals.

Accessibility

Park Square Family Medicine will adopt several strategies to ensure patient satisfaction and word of mouth advertising. First our hours will include after after-hours care and allow patients to come into clinic after they get off work. We will also be open on Saturdays. This means there will be several days that we will be open till 7:00 P.M. and that we will also be open on Saturdays.

 

Sales Plan

The sales process begins when a patient calls us, comes in for an appointment, or accompanies a family member to an appointment. In every interaction, we must be accessible, courteous, knowledgeable, and helpful.

Location:
The clinic will be located in the heart of town. Patients will easily be able to find the clinic. Signs will be posted in strategic places to help assure patients comfort in finding our location. We feel that our location is a great asset and will strengthen our future success.

Flexible Hours:
Park Square Medical Clinic will adopt several strategies to ensure patient satisfaction and word of mouth advertising. First, our hours will include after after-hours care and allow patients to come into clinic after they get off work. We will also be open on Saturdays. This means there will be several weekdays that we will be open till 7:00 P.M. and that we will be open on Saturdays. We will also take walk-ins in order to provide the best possible convenience for the patient.

Environment, Appearance, Etiquette and Overall Patient Experience:
The building will have a bright and cheerful appearance with flowers and plants to decorate the outside and inside of the office. There will be colorful and informative signs that will help them find the clinic. Upon arriving and entering the clinic the patient will be greeted with a smile.

Patients’ needs and concerns will be addressed and they will be asked politely to have a seat in the waiting room. Upon arrival to the waiting room they will experience comfortable seating, good lighting, soft music or T.V, reading material and the general comforts appreciated by any patient. The walls will have beautiful art and there may even be a fish tank. The clinic rooms will be professional, clean and organized and the walls will be decorated with medical posters that will help explain the most common conditions. During the consultation the doctor will have a white coat and tie and will conduct himself in a professional and courteous manner. After the consultation, the doctor or the nurse will escort the patient to the front where all further arrangements will be made. A courtesy reminder card will be filled our for patients’ convenience.

Pricing Strategy:
The pricing for consultations and visits, as well as any procedures will be billed according to industry standards. We will be consistent with our competitors and the national averages. Most pricing will be dependent upon agreements with the five largest insurers in the area.

Operations

Locations & Facilities

The start-up requirements include purchase of a building for use by the clinic. The building was built in 1931 and has undergone a complete remodeling.  The total office space will be approximately 1,158 sq. feet and the lot size is 115.5′ x 66′.  There is also a storage shed which is 10 x 12 ft.  The office is located just off the main street and the office has blacktop parking for eight cars plus a generous carport, as well as a wide driveway entrance for patient convenience.

Milestones & Metrics

Milestones Table

Key Metrics

Key Metrics: 

• # of patients using our private patient system for help and information. 
• # of emails that are sent and returned between patients and doctor’s nurses. We want to be available. 
• # of patients who make appts online vs calling. This allows us to cut our staff salaries if necessary without cutting services. 
• Our doctors will have a blog, Facebook, and Twitter which address our patients general medical concerns. This is tricky because we do not want to encourage self diagnosis on the website, but do think that good general medical information. We can provide it. 
• Understand the costs of running our office. 
• Keep track of what services our doctors bill insurance for and how much the insurance reimburses for 
• Our fees from insurance for being a participating provider. We need to keep track of how much that costs us vs who would still come if we were out of network 

 

 

Company

Overview

Ownership & Structure

Park Square Family Medicine will be created as a sole proprietorship owned and operated by Dr. Nathan Detroit, MD.

Team

Management Team

Park Square Family Medicine will initially have two employees: a receptionist and a medical assistant. They will both be paid hourly wages and have health and dental benefits. As the practice grows, we will add additional personnel to help with referrals and additional responsibilities that will be needed at that time.

During the first year, Park Square Family Medicine’s physician (the clinic owner) will work full-time at the clinic, but will be paid directly by General Medicine, and all of his benefits and payroll taxes will be paid by them. Starting in the second year, the physician/owner will draw his salary directly from Park Square Family Medicine.

We will create a policy and procedures manual that will act as a guide and reference to sick pay, leave, vacation, hourly wages, payment, etc. The philosophies and guidelines in this manual will help maintain proper organizational structure.

There will be a mandatory staff meeting on Wednesdays at 12:00 noon. There will be a pre-written list of items that will address ways to improve the practice. Everyone is expected to attend. All employees, including the doctor, will be expected to continue to better themselves in regards to both skills and knowledge. The staff of the clinic will have specific duties that they will perform on a daily basis. They will be responsible for their individual duties and must complete them in a systematic time-efficient manner.

Once a month, Dr. Detroit will meet with each employee individually, and review their goals and performance for the month. Employees will have access to administrative consultants at General Medical for the first year, and will be expected to follow the suggestions that come out of joint meetings with Dr. Detroit and the consultants. Employees who consistently do a poor job will be written up and after two write-ups will be put on suspension. If the employee again fails to correct the problem that employee will be dismissed. All write-ups will occur in the presence of a witness and will be recorded.

 

 

Personnel Table

Financial Plan

Forecast

Key Assumptions

Important notation/limitations in viewing the financial plan:

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

Revenue by Month

Expenses by Month

Net Profit (or Loss) by Year

Financing

Use of Funds

we will purchase the building and have the following startup expenses

Legal & Accounting $500

Insurance $1,000

Marketing $2,000

Computer $3,000

Business License $32

Communications $150

Medical Equipment $7,000

Office Supplies $4,000

Office Furniture $2,000

Marketing Plan $3,000

Regulatory Duties/CLIA $50

TOTAL START-UP EXPENSES $22,732

Sources of Funds

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

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

Statements

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement