Dialysis Center Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Dialysis Center Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Dialysis Center business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
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- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
Dialysis centers are in a unique position to operate in a industry that is completely immune from negative changes in the economy. People are going to continue to have issues with their kidneys, and as such, they will require ongoing dialysis care on a weekly basis. Additionally, these companies are able to generate a vast majority of their revenues from private insurance, co-pays, as well as publicly funded healthcare systems such as Medicare and Medicaid. As such, given that costs are not born directly by the patient, these businesses are generally able to remain profitable at all times. Startup costs for a new dialysis the center are significant. These costs can range anywhere from $1.5 million to $5 million depending on the scope and scale of the dialysis facility to be acquired. One of the most important aspects of these businesses is that they are going to need to have a number of physicians, nurses, and physicians assistants on staff in order to render the services to the general public. As such, the barriers to entry for a new dialysis center are extremely high.
Within the dialysis center business plan, it is imperative that a detailed analysis is completed focuses on the anticipated profit and loss statements, cash for analysis, balance sheet, breakeven analysis, and business ratios that will determine whether or not this is an economically viable investment or business. Financial institutions love to place money with healthcare related businesses given that their revenues come primarily from insurance companies and publicly funded healthcare systems. This is especially true if the owner of the dialysis center is also a nephrologist or physician that will be operating the business on a day-to-day basis. Within the business plan, is important to develop a large-scale demographic analysis so that it can be determined how many people within a specific market require ongoing dialysis treatment. This analysis should also include an examination of what competitors are in the area as well.
As it relates to developing a dialysis center marketing plan, it is important to note that most of these companies seek to develop ongoing referral relationships with area hospitals as well as physicians that specialize in kidney disorders. There is generally not too much marketing that needs to be done directly to the general public in order to inform them of the opening of the facility.
A dialysis center SWOT analysis allows a physician-owner or entrepreneur to determine all of the benefits and potential drawbacks and issues that these businesses face on an ongoing basis. The Primary threat that is currently faced by dialysis centers are adjustments to Medicaid, Medicare, and reimbursements from private insurance companies. This is going to be one of the ongoing issues that these companies face on an ongoing basis. For most operators of these businesses, the most common way that they expand is through the development of new locations. These businesses benefit tremendously from economies of scale given that the administrative functions can be operated from a centralized location.
A dialysis center can be a very profitable business to operate that has substantial economic stability. However, the cost to operate these businesses are extremely high and there are number of variable factors involved to determine whether or not these businesses can survive over long haul. Most importantly, people are going to continue to need dialysis and as such despite changes in reimbursements or operating overhead costs these businesses should be able to remain profitable and cash flow positive at all times.
Dialysis Center Business Plan
1.0 Executive Summary
The purpose of this business plan is to raise $3.2 million for the development of a dialysis center while showcasing the expected financials and operations over the next three years. Dialysis Center, Inc. (“the Company”) is a New York based corporation that will provide both diagnostic and dialysis treatments to patients in its targeted market. The Company was founded by John Doe.
1.1 The Operations
The primary revenue center for the Dialysis Center will be dialysis and nephrology services rendered to patients through the Company’s state of the art facility. The business will employ two staff nephrologists that will render these services to patients in conjunction with the latest technology equipment.
The secondary stream of revenue will come from patients that require specialized medical treatments. Doctors within the target market with be given privileges in regards to usage of the Company’s facility.
The third section of the business plan will further describe the services offered by the Dialysis Center.
1.2 The Financing
At this time, Mr. Doe is seeking to raise $3.2 million from an investor or group of investors for the development of the dialysis center. Tentatively, Mr. Doe is seeking to sell a 50% equity interest in the business in exchange for the required capital. The funds will be used for the following:
- Development of the Dialysis Center location
- Acquisition of dialysis equipment.
- Working capital
- Professional fees, licensure, and the Company’s initial marketing budget.
1.3 Mission Statement
The Dialysis Center’s mission is to provide comprehensive and compassionate care to patients that require specialized kidney treatments.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the healthcare management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Revenue Forecasts
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target doctors (who will refer patients) within the target market.
2.0 The Financing
2.1 Registered Name and Corporate Structure
Dialysis Center, Inc. The Company is registered as a corporation in the State of New York.
2.2 Use of Funds
2.3 Investor Equity
At this time, Mr. Doe is seeking to sell a 50% equity interest in the business in exchange for the requisite capital sought in this business plan.
2.4 Management Equity
Once the requisite capital is raised, Mr. Doe will retain a 50% ownership interest in the business.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. As healthcare businesses are immune from deleterious economic conditions, Dialysis Center, Inc. could easily receive a sales premium of 7 to 9 times the previous year’s earnings.
3.0 Operations
The primary revenue stream for the business will come from dialysis treatments provided to patients that have been referred to the dialysis center by their primary care or specialized physician. For dialysis, Management anticipates that the business will generate $500 to $1,000 of revenue. It is expected that 85% of the patients that use the Company’s services will be enrolled in private insurance, Medicare, Medicaid, or other medical expense reimbursement program. At the onset of operations, the Company will employ two staff nephrologists that will provide diagnostic care services to the Dialysis Center’s patients. Approximately 70% of the Company’s aggregate billings will come from this segment of the Dialysis Center’s operations.
4.0 Market and Strategic Analysis
4.1 Economic Analysis
This section of the analysis will detail the economic climate, the nephrology and dialysis industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic condition as a result of the COVID-19 pandemic is rapidly improving. Interest rates have remained low, which has led to substantial improvement in the economy. Although there are issues with inflation, the US Federal Reserve has indicated that they are willing to adjust monetary policy to combat this issue. The economy is moving back towards normal at this time.
However, like most healthcare oriented businesses, dialysis centers tend to operate with a great deal of economic stability as people will continue to require specialized diagnostic care, and people with kidney issues will certainly continue to require radiation treatment to treat their illnesses. Additionally, a majority of the costs associated with providing this care is paid for by private and publicly funded insurance and healthcare systems, which ensures that the business will receive payment on its services rendered invoices.
4.2 Industry Analysis
Within the Untied States, there are approximately 12,000 companies that operate one or more facilities that provide dialysis services to patients. Each year, these businesses aggregate generate more than $26 billion of revenue while providing jobs to more than 150,000 healthcare workers (including doctors).
This is a mature industry, but the future expected growth rate of the industry is expected to exceed that of the general economy over the next ten to twenty years as more people from the “baby-boomer” generation require specialized diagnostic and dialysis treatments.
4.3 Customer Profile
As any person that requires a specialized diagnosis or dialysis treatment is a potential patient for the Dialysis Center, it is difficult to determine the exact demographics of people that will use the facility. However, Management anticipates that 85% to 90% of patients will have some form of health insurance or medical cost reimbursement program in place.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your
own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Dialysis Center intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
- Develop ongoing relationships with referring physicians within the target market.
- Develop relationships with hospitals that lack dialysis treatment capabilities.
- Maintain a modest marketing presence among the general public.
5.2 Marketing Strategies
The marketing campaigns required by the Dialysis Center will be somewhat limited as most people will be referred to the facility by their primary care physician for treatment. As such, a majority of the Company’s marketing campaigns will focus on developing ongoing relationships with doctors in the target market.
To that end, the Company will directly contact physicians while concurrently providing them with extensive sales literature that showcases the state of the art equipment and trained nephrologists at the Dialysis Center. These sales literature packets will also contain information regarding the Company’s location, hours of operation, and accepted insurances. Additional print advertisements will be placed in regional and local medical journals.
The Dialysis Center will also maintain an expansive presence on the internet via a proprietary website as well as pages among all major social media platforms. The Company’s website will be mobile friendly and search engine optimized. Additionally, the platform will feature state-of-the-art login functionality that will allow patients to manage their treatment and insurance reimbursement matters.
On social media, the Company’s pages on Facebook and related platforms will allow patients to provide reviews. This will strengthen the brand name of the business moving forward.
6.0 Organizational Overview
6.1 Organizational Chart
6.2 Personnel Budget
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
- Dialysis Center will have an annual revenue growth rate of 8% per year.
- Mr. Doe will solicit $3.2 million of capital to launch the operations of the business.
- The Company will sell a 50% equity ownership interest in exchange for the requisite capital sought.
7.2 Sensitivity Analysis
Healthcare businesses are generally immune from negative changes in the economy due to the simple fact that people will continue to get sick and require specialized dialysis treatments. Additionally, these treatments are often paid for by private insurance companies and publicly funded health systems. As such, the Dialysis Center should have no issues generating top line income or receiving payments from its patient base.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
