Radiology Oncology Practice Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Radiology Oncology 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 Radiology Oncology 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
One of the sad facts of life is that people do get cancer. As such, one of the common treatments that is frequently used in order to combat this disease is radiation treatment. Radiation oncology practices and centers are able to maintain their revenues and profits in any economic climate given that people will continue to cancer and require these highly specialized treatments. The barriers to entry for a new radiation oncology practice are extremely high given the substantial amount of equipment needed, a large-scale facility, and a number of highly trained physicians that can render the services. Typically, a new radiation oncology practice typically had a sort of cost of $3 million to $15 million depending on the type of equipment that is being purchased in conjunction with the practice. Frequently, devices such as proton therapy machines and gamma knife equipment is purchased in order to carry out these highly specialized and targeted treatments.
The reimbursement rates for specialized radiation oncology services have declined somewhat in the past five years, but recent advances in medical technology have allowed for these businesses to maintain their profitability despite small drawbacks in the amount of reimbursement received from private insurance, Medicare, and Medicaid. The growth of this industry is expected to expand greatly over the next 20 years as more people from the baby boomer generation enter senior citizen age. As such, instances of cancer that needs to be treated with radiation therapy will increase drastically.
Despite the increasing demand for these services, there are still only a handful of programs within the United States the train radiation oncologists. As such, the expected revenues for this market will increase significantly as demand increases over the next two decades.
Given that this is a medical business, all banks and lenders are willing to put up most of the necessary capital to launch a new business. Of course, a radiation oncology 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. Special attention should be paid within the business plan to the types of equipment that is going to either be purchased or leased with the capital sought in the business planning document. Given that this is highly specialized medical equipment – can be heavily collateralized by any underlying debt obligation.
Within the business plan, complete industry research regarding the radiation oncology market should be included as well. Generally, the radiation oncology industry generates approximately $20 billion of revenue provides jobs to about 20,000 people. About 5,000 of these people are the actual radiation oncology physicians. Annual growth rate in terms of revenues has been 3% per year over the past five years. However, the growth rate is expected to increase to approximately 10% per year starting in about 2025.
Beyond the financial information and industry research information, a full demographic analysis should be carried out as well for the specific target market in which the radiation oncology practice whopper operate. This includes over viewing operation age, percentage of people over the age of 65, median household income, median family income, and median household value. An additional analysis regarding the number of people that have private insurance, Medicare, Medicaid, and state-based health program should also be included as well in order to get an understanding of how the revenue mix will occur as it relates to reimbursement.
A radiation oncology marketing plan needs to be developed as well, but this can be done somewhat on a limited basis. Most of these practices have extensive ties with area hospitals, medical schools, teaching hospitals, and related medical entities that will refer their patients to the radiation oncologist in order to have proper treatments carried out. However, a moderate broad-based marketing plan should be implemented as well within the target market. This includes taking out television advertisements, print advertisements, and maintaining an expansive online presence so that the practice can be easily found among people that have been recently diagnosed with cancer. As it relates to the proprietary website, a radiation oncology practice should showcase the biographies of key physicians, types of services offered, types of equipment used, insurances accepted, and how to get an appointment with the business. Many of these businesses now have online functionality that allows individuals to immediately contact the business so that an appointment can be made very quickly. In many cases where a person is very ill, time is of the essence and as such the new technological advances allow individuals to more quickly see physicians.
As it relates to print and television advertisements – usually, a third-party marketing and advertising firm is hired to manage this aspect of operations. Although this contributes to a slightly higher marketing expense, it does reduce the number of personnel that need to be maintained on staff in order to properly enter this market. The return on investment is usually higher when a third-party marketing firm is used rather than hiring and developing and in-house sales and marketing team.
A radiation oncology practice SWOT analysis should be produced as well. This analysis focuses on the strengths, weaknesses, opportunities, and threats that are normally faced by these types of companies. As it relates to strengths, these companies are wholly immune from negative changes in the economy and that people will continue to get sick and require highly specialized medical treatments. The gross margins generated are extremely high and usually range anywhere from 60% to 90% depending on whether or not the underlying cost of the physician and bad debt expense is factored into the cost of goods sold. For weaknesses, these businesses have very high operating costs given the extensive amount of equipment uneasy maintained and the salaries for highly skilled medical professionals. Additionally, there may be continued advances in medical treatments that allow for cancer to be treated via non-radiation means. For opportunities, this is quite simple in that these businesses can rapidly expand by acquiring additional equipment, developing additional facilities, and hiring additional staff radiation oncologists in order to render services to the general public. For threats, as this is a medical business there are going to be ongoing issues as it relates to the receipt of reimbursements from Medicare, Medicaid, private insurance, and patient co-pays. As such, it is imperative that the entrepreneur or physician owner of this practice have a CPA that can appropriately interpret new reimbursement legislation and create appropriate budgets for when these changes occur. However, the high gross margins generated from the services usually allows these businesses to remain profitable and cash flow positive at all times.
A radiation oncology practice is one of the best businesses that anyone could possibly alone especially if the owner is a duly licensed physician. While these businesses do maintain high operating expenses, they do have nearly unlimited access to capital once revenue generation begins given the highly economically secure nature of the revenues. These businesses are expected to have a very sharp uptick in their demand over the next two decades, and as such – an owner-operator one of these firms can be nearly assured of a very strong return on their equity investment. The extremely high barriers to entry also create a very strong and stable revenue stream for these companies on a month-to-month basis.