Quality Care Clinic business plan and startup feasibility analysis

¶ … Quality Care Clinic (QCC) will aid in meeting current health needs, improving access to care, and providing high quality patient-centered care for citizens in Carson City. QCC will offer efficient, safe, effective, timely, and unbiased primary care to patients from birth to end of life. The NPs of QCC have experience in primary care and emergency room settings and will offer increased patient satisfaction due to open communication, skills in interviewing, therapeutic listening, and counseling. QCC will lease an estimated 1300 square feet of commercial real estate. Direct competitors for similar services are 10 primary care clinics and 40 physician offices. Indirect competitor is one emergency department at the local hospital. The fundamental key to success for QCC is cultivating knowledge for the public on services offered and effectively managing reimbursement for staff and NPs.

Statement of Funding Summary

To begin, the first year's costs is projected to be $125,000. The clinic owner will invest 20% of the initial startup expenses ($25,000) and requires a loan for $100,000 at 8% interest to be repaid over ten years. The sum of $125,000 will cover lease hold improvements, startup inventory, aggressive marketing plan, and operational costs. The projected spending monthly is $10.416.

The $125,000 will cover rent as well as potential lag in reimbursement of services that may take up to two months. Yearly gross may reach upwards of $200,000, $300,000, and $350,000 with annual net profits of $12,000, $60,000, and $75,000 for years 1, 2, and 3 respectively. Estimation of cash flows remaining negative will be until year 3 with breakeven achieve in year 1 with some profits ($12,000).

Description of Business

Employee structure and expenses

It costs an estimate $1 or less for an NP to perform a service. Since this primary care clinic will be headed by nurse practitioners, $60/hour is the expected rate for NPs.

Nursing Assistants will be paid $12/hour up to $20/hour depending on additional education.

Supplies include:

1. Autoclave

2. AED (automated external defibrillator)

3. Audiometer/Tympanometer

4. Basic diagnostic (blood pressure monitor, thermometer, pulse oximeter, etc.)

5. Blood Draw, Exam Room, Office and Waiting Room furniture

6. Body weight scales

7. Break room appliances (microwave, toaster, coffee maker, refrigerator/freezer, etc.)

8. Cabinetry and storage shelving

9. Centrifuge

10. Clocks

11. Colposcope

12. Computers, printers and accessories

13. Emergency equipment and supplies (airways, aspirators, oxygen, mask, resuscitation bag/mask, etc.)

14. ECG unit and accessories

15. Exam tables (bariatric, pediatric, power)

16. Eye charts

17. Janitorial equipment

18. Laboratory diagnostic equipment (centrifuge, urine/chemistry/glucose analyzers, microscope, specimen refrigerator/freezer, etc.)

19. Procedure tables

20. Protective equipment (gloves, aprons, eyewear, facemasks)

21. Refrigerator/freezer

22. Sharps containers

23. Specialized equipment (spirometer, fetal monitoring...)

24. Specialized lighting

25. Stainless steel equipment

26. Step stools

27. Stethoscopes

28. Telephones

29. Televisions

30. Water filtration system (CME, 2015).

Utilities and Overhead Expenses

Estimated to go upwards of $800 a month for internet access, electricity, water, and office supplies.

Malpractice Insurance

Estimated costs annually are $8,000 or $667 monthly.

Continuing Education Expenses

Potential annual expenses for continuing education can go upwards of $5,000 to $20,000 a year depending on institution.

Accounting fees

Annual accounting fees can rise upwards of $10,000.

*Projected monthly income to sustain and create profit each year is at minimum $16,600.