Group Medical Practice Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Group Medical Practice 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 Group Medical Practice 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.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready
- Complete Industry Research for the Industry
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- How to Start a Business Guide
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
In order to effectively reduce costs, many physicians have taken to forming group practices. This allows for a number of the underlying expenses including rent, administrative staff, and certain medical staff including nurses and physicians assistants to all be shared by a number of practicing physicians. The start of costs specific for group practice can vary substantially depending on the specialty and how much medical equipment is going to be needed in conjunction with the practice. For smaller primary care physician group practices the start of cost can range anywhere from $200,000 to $500,000 depending on the ongoing operating expenses of the business. For large-scale radiology practices that are operating in a group capacity – these expenses can run into several millions of dollars depending on how much equipment is going to be acquired.
As such, in this business plan we are assuming that the group practice will consist primarily of general practitioners and diagnosticians. The gross margins generated for medical services are very high in typically around 85% depending on whether or not the cost of goods sold includes medical billing expenses as well as bad debt expense. It should be noted that almost all medical group practices have a tremendous access the capital given the fact that these businesses are wholly immune from negative changes in the economy. People are always going to get sick, and people will continue to need to go to the doctor. In fact, one of the reasons why banks and lenders as well as private funding sources love medical practices so much especially group practices is that they are able to generate very high profits on an ongoing basis. Despite some changes in policies regarding Medicare, Medicaid, and other state-funded health systems – these businesses are always going to be able to remain in demand and profitable.
If the physician-owners are seeking to raise capital from a bank than a group medical practice business plan is going to be required. This business plan should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. A thorough demographic analysis should be included within the business plan that discusses population size, population density, annual household income, annual family income, and a number of people that are covered under Medicare, Medicaid, or through private insurance. A thorough competitive analysis should also be included especially if this is going to be a practice that is going to be geared more towards general medicine. In some cases, a number of physicians that are looking to establish a group practice may find that the market is somewhat saturated. Most financial institutions will want to see this type of documentation included within the business plan.
A group medical practice SWOT analysis should be developed as well. As it relates to strengths, group medical practices are able to generate higher than expected profits rather than a standalone solo practice. The demand for medical services remain strong in any economic climate, and the gross profits are always enough to cover any underlying debt obligation.
For weaknesses, almost all medical practices have very high operating expenses. This includes employing nurses, physicians assistants, and covering a large scale malpractice insurance policy. Rental expenses can also be very high depending on the metropolitan area in which the practice is located.
For opportunities, one of the nice things about a group medical practices that they can expand very quickly by hiring associate physicians that can increase the billings of the business. This is especially true of the group practice starts integrating specialties into their overall operations.
The most common threat faced by a group medical practice is the continued change in political policy regarding healthcare reimbursement. This is a risk faced by all medical and healthcare businesses, and a well-run practice should be able to withstand some downward pricing pressure as it relates to medical services rendered.
A group medical practice marketing plan should also be developed in order to ensure that the business can easily develop a patient base during its first three years to five years of operation. For most, many group medical practices will frequently develop relationships with area hospitals for referrals. Many of the physicians that are on staff will frequently have a hospital admitting person privileges at these facilities. As such, these relationships can become an invaluable source of business for a newly developed group medical practice. Additionally, a large-scale presence on the Internet should be included as well in the marketing plan. This includes having a website that showcases the biographies of all staff physicians/surgeons, hours of operation, insurance is accepted, specialties offered, and any other piece of information that is relevant to the group medical practice. This website should be featured among all major search engines. These days it is also important that the website is mobile friendly as many people now use phones and tablets to surf the Internet.
Given the rise of overall expenses with the United States and continuing issues with pricing of medical services, many physicians find that operating a group capacity provides them with the ability to earn higher than industry-standard incomes. Additionally, the ability to operate a group capacity substantially lessens the burden on a physician to me managed to practice on a day-to-day basis. Many group practices maintain an expansive administrative staff that handles all issues pertaining to medical billing, patient scheduling, and related matters. These businesses will continue to remain profitable and cash flow positive at all times, and they can be expanded easily once they reach profitability.