Urgent Care Business Plan
If you want to start an urgent care business or expand your current urgent care center, you need a comprehensive business plan.
The following urgent care business plan template gives you the key elements to include in a successful urgent care business plan.
Sample Business Plan for an Urgent Care Clinic
I. Executive Summary
Business Overview
[Company Name] is an urgent care center located in [Location]. It started with the goal of providing treatment for those requiring immediate care, especially for those members of the community with low to moderate income. We offer treatment for illnesses and injuries requiring immediate care, that are not serious enough to warrant emergency room care.
Our medical practitioners and supporting staff are well-trained and experienced in providing urgent care services. We serve our patients not just with our knowledge and skills but also with our hearts.
Products Served
[Company Name] will focus on providing urgent care services to every member of the family from infants to adults. Our services range from treatment of minor traumas such as broken bones and lacerations, and x-ray services, to lab testing, and diagnosis of general symptoms.
Customer Focus
[Company Name] will primarily serve the community within a 20-mile radius of our location. The demographics of these customers are as follows:
- Families and residents of the area
- Working individuals, including low-income workers
- Business establishments near our location that offer health benefits to their employees
The [Company Name] focuses on giving the local community access to high quality urgent care services. In order to achieve this goal, [Company Name] will build relationships within the residential and business communities.
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [full name]. [First name] has held an emergency medicine certification for 20 years now. He spent the most recent portion of his career working in [Hospital Name]’s ER. [Founder’s name] will be responsible for efficient and effective care and treatment of sick and injured patients and creating a viable and profitable business medical practice.
[Company name] will also employ nurses, expert medical staff, and administrative assistants that also have a passion for healthcare.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
People-Focused-It is a company that is focused on effectively treating patients, with minimal wait times. [Company Name] will provide all services in-house for diagnosing and treating injuries and illnesses, and it will implement an aggressive and accurate follow-up system to remind patients about any necessary follow-up treatment. This will help the company build a strong relationship with the community, earning their trust and loyalty.
Staff and Office Organization-[Company Name] recognizes that the office staff is as crucial, if not more so, as the physician(s) in the success of the business. It aims to employ detail-oriented staff and create a streamlined office system to minimize patients’ waiting time and maximize the clinic’s potential.
Financial Highlights
[Company Name] is seeking a total funding of $300,000 of debt capital to open its clinic. The capital will be used for funding capital expenditures and location build-out, acquiring basic medical supplies and equipment, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Clinic design/build: $60,000
- Medical Supplies and Equipment: $130,000
- Working capital: $110,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next years are as follows:
| Financial Summary | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Revenue | $965,742 | $1,878,611 | $2,718,300 | $3,477,900 | $4,285,228 |
| Total Expenses | $390,241 | $630,018 | $931,935 | $1,171,906 | $1,429,992 |
| EBITDA | $575,501 | $1,248,593 | $1,786,365 | $2,305,994 | $2,855,237 |
| Depreciation | $8,720 | $8,720 | $8,720 | $8,720 | $8,720 |
| EBIT | $566,781 | $1,239,873 | $1,777,645 | $2,297,274 | $2,846,517 |
| Interest | $5,077 | $4,442 | $3,807 | $3,173 | $2,538 |
| Pre-Tax Income | $561,705 | $1,235,431 | $1,773,838 | $2,294,101 | $2,843,978 |
| Income Tax Expense | $196,597 | $432,401 | $620,843 | $802,935 | $995,392 |
| Net Income | $365,108 | $803,030 | $1,152,995 | $1,491,166 | $1,848,586 |
| Net Profit Margin | 38% | 43% | 42% | 43% | 43% |
II. Company Overview
Who is [Company Name]?
[Company Name] is an urgent care clinic located in [Location]. We offer treatment for illnesses and injuries requiring immediate but not emergent care, for all ages in this area and the surrounding communities.
Our medical practitioners and supporting staff are well-trained in treating a variety of illnesses and injuries.
[Company Name]’s History
[Founder] started the clinic with the goal of providing easy access to urgent medical care, especially to those members of the community with low to moderate income. After years of planning, he finally started to build [Company Name] in [year]. He gathered a group of professionals to fund his project and was able to incorporate and register [Company Name] with their funding support.
Since incorporation, the Company has achieved the following milestones:
- Found clinic space and signed Letter of Intent to lease it
- Developed the company’s name, logo and website
- Hired a contractor for the office build-out
- Determined equipment and fixture requirements
- Began recruiting key employees with previous healthcare experience
- Drafted marketing campaigns to promote the clinic
[Company Name]’s Products/Services
[Company Name] will provide urgent care for patients of all ages. In addition to treating minor trauma and diagnosing general symptoms, we will also provide x-ray services, lab testing services, and pharmacy services. The costs will depend upon the materials used, the physician’s time and the amount designated for each procedure.
Our healthcare philosophy is that all individuals have a right to urgent care, without needing to spend time in an emergency room. Our goal is to provide an alternative to the ER whenever possible.
[Company Name] will maintain privacy according to HIPAA regulations. All patients will be welcome, including the ones with no insurance. Our clinic will hold no prejudice to race, creed, color, or socioeconomic status.
We will also provide the following services, among others:
- Patient care services: Treatment of patients for moderate injuries or illnesses not considered to be life-threatening. Typical conditions include illnesses of the digestive system, allergic reactions, respiratory illnesses and musculoskeletal injuries, among others.
- Retail sales of healthcare products and equipment: Sales of pre-packaged pharmaceuticals and low-grade medical equipment or supplies.
- Diagnostic Procedures: Tests and x-rays necessary for diagnosing and treating presenting conditions
III. Industry Analysis
The Urgent Care Centers industry is expected to continue to grow at a steady pace over the next five years.
A major driver of the industry is the aging population, coupled with a rising number of insured individuals due to healthcare expansion. Furthermore, as urgent care centers offer a less-expensive and time-saving alternative to emergency room visits, insurers are expected to increasingly implement incentives for patients to visit industry operators. As a result, industry revenue is forecast to grow at an annualized rate of 5.9%.
The shortage of primary care physicians in the United States is expected to drive patients toward urgent over the coming five years. Other factors, such as appointment wait times and the ability of primary care physicians to accept new patients, will influence demand for urgent care centers.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].
The area we serve is populated mostly by the working middle class and low income families; as a result, they are in need of the services that we offer, and are looking for accessible medical care.
The precise demographics of the town in which our company will cater is as follows:
| Riverdale | Santa Cruz | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 54-60 | 3.68% | 3.52% |
| Age 60-69 | 5.22% | 4.50% |
| Age 70-80 | 13.80% | 13.91% |
| Age 81 and older | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
Our clinic is an urgent care facility, and will treat patients of all ages, incomes, physical abilities, races, and ethnicities. As such, there is no need to create marketing materials targeted at only one or two of these groups, as injuries and illnesses similarly affect all demographics.
V. Competitive Analysis
Direct & Indirect Competitors
The following businesses are located within a 5-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Northern Healthcare Medical Group
Northern Healthcare Medical Group provides a multidisciplinary primary care approach involving physicians, physician assistants, and nurse practitioners. They provide personalized care in a number of areas including general wellness and preventive care, as well as sports physicals, immunizations, and acute injury evaluation and treatment. It offers convenient appointment times and extended hours.
One Care
One Care is a walk-in service where providers can treat all the same conditions treated at an urgent care, but at a lower cost. Patients pay the same co-pay for a One Care visit as they pay to see their primary care provider.
Patients are seen by providers in order of greatest need. Same-day appointments will be on a walk-in basis only and not scheduled.
The facility also offers imaging and laboratory services on-site allowing One Care providers access to these services to effectively and efficiently treat patients.
Swift Care
Established in 1949, Swift Care offers convenient walk-in medical clinics with licensed medical providers who are available during extended hours 365 days a year to treat any non-life-threatening illness or injury that needs immediate attention. The clinic prides itself on providing the highest level of care from all of the providers every step of the visit, from reception to recovery.
Swift Care provides medical treatments illnesses, immunizations, x-rays, physicals, injuries, occupational medicine, pediatrics, and STI & lab testing.
Competitive Pricing
Competitor pricing is highly variable depending on the service provided and healthcare coverage.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location is near the center of town. It’s visible from the street with many people walking to and from work on a daily basis; giving them a direct look at our clinic, most of which are part of our target market.
- Patient oriented service: [Company Name] will have a staff that prioritizes the needs of the patients and provides rapid service.
- Management: [Founder’s Name] has a genuine passion to want to help the community and because of his previous experience, he is fully equipped and over-qualified to open this practice. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his ties to the community in order to build up a heavy asset base in a short amount of time.
VI. Marketing Plan
The [Company Name] Brand
The [Company name] brand will focus on the Company’s unique value proposition:
- Client-focused healthcare services, where the Company’s interests are aligned with the customer
- Service built on long-term relationships
- Big-hospital expertise in a small-clinic environment
Promotions Strategy
Referrals
[Company name] understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer their friends and family. This strategy will increase in effectiveness as the practice ages.
Internet
[Company name] will invest resources in two forms of internet promotion—organic search engine optimization and pay-per-click advertising. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company name] as the trustworthy, well-qualified healthcare provider that it is.
Publications
[Company name] will place print advertisements in key local publications, including newspapers, area magazines, and local sport programs. Additionally, the Company will print brochures and place them in specific locations frequented by target individuals, such as stores and professional service providers.
Direct Mail
The Company will use a direct mail campaign to promote its brand and draw clients, as well. The campaign will blanket specific neighborhoods with simple, effective mail advertisements that highlight the credentials and credibility of [Company Name].
Pricing Strategy
[Company Name]’s pricing will be significantly lower than big hospitals. Over time, client testimonials will help to maintain our client base and attract new patients. Furthermore, we will be able to provide discounts and incentives for lower income families by connecting with foundations and charities from people who are interested in helping.
VII. Operations Plan
Functional Roles
[Company name] will carry out its day-to-day operations primarily on a walk-in basis. Patients will visit the clinic when illness or injury makes it necessary. These visits will primarily occur in-clinic. For emergency purposes, appointments can be conducted over the telephone.
[Founder’s name] will work on an as-needed basis, but can be expected to be present in the office during normal business hours. The company will also employ an administrative assistant who will also support marketing and client relationship development efforts.
Milestones
[Company name]’s long term goal is to become the number-one local urgent care clinic in the [city] area. We seek to be a household name and the standard by which other clinics are judged. We seek to do this by ensuring effective treatment and positive patient outcomes.
The following are a series of path steps that will lead to the vision of long term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] location |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Reach break-even |
| [Date 6] | Add second location |
VIII. Management Team
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [full name]. [First name] has been a certified Emergency Medicine physician for 20 years now. He spent the most recent portion of his career in the ER of [Hospital Name], where he learned that many people visit the ER for urgent medical issues because quality urgent care is lacking in [city name]. [Founder’s name] will be responsible for treating patients with urgent medical conditions and creating a viable and profitable business medical practice.
[Company name] will also employ nurses, expert medical staff, and admin assistants that also have the heart to help the community.
Hiring Plan
[Founder’s Name] will serve as the company CEO and president. In order to launch the business we need the following additional personnel:
- Full-time Administrative Assistant
- Maintenance Personnel
- Medical Practitioners (Nurses, Doctors, etc.)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from medical services rendered. Labor expenses are also key cost drivers. [Founder’s Name] and all of the company’s employees will earn a competitive base salary. The lease on the office location will be the next largest cost.
Ongoing marketing expenditures are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $300,000 of debt capital to open its clinic. The capital will be used for funding capital expenditures and location build-out, acquiring basic medical supplies and equipment, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Clinic design/build: $60,000
- Medical Supplies and Equipment: $130,000
- Working capital: $110,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model.
| Number of patients per month | Per location |
|---|---|
| Year 1 | 1200 |
| Year 2 | 1300 |
| Year 3 | 1450 |
| Year 4 | 1550 |
| Year 5 | 1750 |
| Annual Lease (per location) | $50,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
