The healthiest cookies you’ll choose today

Our website uses cookies to collect useful information that lets us and our partners support basic functionality, analyze visitor traffic, deliver a better user experience, and provide ads tailored to your interests. Agreeing to the use of cookies is your choice. Learn more

Decline cookies Accept cookies
Skip to content
Fullscript leaf logo Sign in
Fullscript logo
Fullscript leaf logo
  • Our platform
    • Practitioner software
    • Pricing
    • Integrations
    • Patients on Fullscript
    • Book a demo
  • Learn
    • Spotlight
    • Protocols
    • Wellness blog
    • Practice resources
    • Webinars
    • Ingredient library
    • Practicing virtually
  • Support
    • Practitioner support
    • Patient help
    • Contact us
    • Or chat with us
Sign in Create account
Practice Management
—

Creating a Healthcare Business Plan

February 13, 2023
Fact checked
Written by Kim Erickson
Medically reviewed by
Dr. Natacha Montpellier, ND, B.Sc.
  1. Wellness blog
  2. Creating a Healthcare Business Plan

If you’re planning to launch a healthcare practice, there are a million details you need to address. But one of the most important steps you can take is to develop a comprehensive healthcare business plan. It’s so critical that studies show that many businesses without an effective plan don’t survive. (12) Creating a detailed plan not only boosts the odds of a successful initial opening, it can also help to ensure future growth and serve as a guide for all those involved in the practice. (13) Continue reading to learn more about building effective healthcare business plans.

Did you know? Despite its critical importance, few physicians receive training in the business aspects of setting up a practice during medical school or their residency. (5)

What is a healthcare business plan?

Even though caring for patients is the primary goal of any healthcare practice, at its core, it’s a business. And like any business, a strategic plan can help to crystalize goals and define the specific strategies needed to reach those goals. It’s the one document that can make or break your odds of success. In fact, one study that appeared in the journal Small Business Economics noted that those completing a business plan were 2.6 times more likely to build a successful business. (15) But what is a healthcare business plan and what should it contain?

In a nutshell, a detailed healthcare business plan acts as a blueprint to help a practice define its goals including securing capital, developing a strategic budget, marketing its services, building a patient base, recruiting employees, and planning for future growth. (17) It can also reduce risks during the start-up phase and serve as an effective tool for solving future problems. (2)

Grow your practice with your own online supplement storefront

Try Fullscript for free

According to the U.S. Small Business Administration, a successful business plan contains the following elements: 

  • Executive summary
  • Description of the practice or business
  • Market analysis
  • Competitive analysis
  •  Marketing and sales plan
  • Management and organizational structure
  • Services provided
  •  Operating plan
  • Financial projection and needs
  • Exhibits and appendix (20)

Documenting these aspects of a new or existing practice can help to clarify its strengths, weaknesses, opportunities, and threats before the first patient is seen. It can also serve as a benchmark to measure a practice’s future growth and success. (9) What’s more, according to one meta-analysis conducted at the University of Oregon, a well-written business plan can improve the odds of obtaining financing. (7)

Why do I need a healthcare business plan? 

As mentioned, a healthcare business plan can tip the odds of succeeding in your favor. More specifically, a comprehensive plan helps you to define clear objectives for the practice, understand your target market and competition, and provide concrete rationale for funding requests. A healthcare business plan also provides a clear roadmap for all those—whether partners or investors—who may have a vested interest in the success of the practice. (5)

Did you know? If a practice plans to accept insurance from patients, providers must go through insurance credentialing, a process that may take several months. Because of this, providers may want to consider including credentialing in the process of creating a healthcare business plan. (3)(8)(16)

5 types of effective communication tools 

Medical professionals are increasingly finding that employing technology to consistently communicate with their patients improves care, reduces costs, and streamlines operations. Adopting the following communication tools can help boost patient satisfaction while optimizing your practice. 

healthcare business plan
All key members of the practice should be involved in crafting the healthcare business plan. (1)

The 10 elements of a healthcare business plan  

The following elements are crucial to a well-written healthcare business plan. Each component plays an important role in the planning process and can guide healthcare providers during the initial start-up phase or when expanding the practice.

1. Executive summary

This section serves as an overview of the entire plan. The one-page summary should include the practice’s mission statement, how and by whom the practice was founded, a brief description of the services provided, a review of the practice so far, and a discussion of how the principal(s) want the practice to grow. (20)

2. Company description

The company description is a comprehensive description of the practice and should include a detailed discussion of its founding, location, and current stage of business. You should also include information on the qualifications of the principal(s), the practice’s specific strengths, and the specific population you intend to serve (i.e., pediatrics or the elderly). (20)

3. Market analysis

Whether you are an integrative medicine practitioner, functional medicine doctor, naturopath, chiropractor, or other type of provider, it’s vital to understand the healthcare industry and how your practice fits into the market. It’s also important to investigate current trends and market projections that may impact your practice and create a detailed strategy for dealing with any obstacles or market changes that may affect your business. This section is also where you discuss your target demographics, as well as the needs of your ideal patient base, and how your practice can meet those needs. (20)

4. Competitive analysis

A competitive analysis takes a critical look at other medical practices in the area and what makes them successful. This section also looks at the competition’s weaknesses and discusses potential ways your practice can fill any gaps or provide better care and more up-to-date services. (20)

5. Sales and marketing plan

This section describes the marketing strategies you will use to attract and retain patients. (20) It may include creating awareness in the community through direct mail, advertising, an online presence, or other promotional activities. This is also the section where you would detail how the practice will measure its return on investment (ROI) for these strategies. (19) In addition, you should include how you intend to obtain referrals from professional organizations like The Institute for Functional Medicine or the American Association of Naturopathic Physicians, as well as local community resources. (10)(11)

6. Management and organizational structure

The legal structure of the practice, office organization and management, and finance and accounting practices should appear here. State whether the practice will be incorporated, form a general or limited partnership, or as a limited liability company or sole proprietorship.

7. Services provided

Describe the services the practice will provide to patients and how it will benefit them. Specialized services such as telehealth, in-office lab tests, or cutting-edge technology should be covered in this section along with a detailed explanation of how these services create added value to both the practitioner and the patient, the cost of providing the service, pricing, any applicable licenses and permissions needed, and potential ROI. (18)

8. Operating plan

This is where you will describe the details of the practice’s day-to-day operations. Who will be in charge of which duties at the practice? How will each person’s unique experience contribute to the success of the practice? The U.S. Small Business Administration recommends using an organizational chart to provide a visual of the organizational structure. You may also want to consider including resumes or CVs of the key members of the practice. (20)

Another element—and one that can be referenced when discussing financial projections and needs—is how the practice will address its finances and accounting. This should encompass payments and receivables, capital budgeting, insurance reimbursement, and a plan to maintain balance sheets, income statements, and cash-flow statements. (4)

9. Financial projection and needs

The financial plan section should detail how you anticipate bringing in revenue and the funding you’ll need to get your practice started. Explain how the practice will be financed, including future financial protections. Provide a prospective outlook for the next five years that includes forecasted income statements, balance sheets, cash flow statements, as well as capital expenditure budgets. If your practice is already established, include actual income statements, balance sheets, and cash-flow statements for the past three to five years. (20)

10. Appendix

Use the appendix to provide supporting documents such as credit histories, letters of reference, resumes not included elsewhere, certifications and licenses, legal documents, and any other documentation that may be requested by financial institutions or investors. (20)

Healthcare business plan template

Numerous fee-based companies offer help writing your healthcare business plan. However, the U.S. Small Business Administration provides a variety of resources to guide you as you write your plan. (6) In addition, Microsoft provides a healthcare business plan template at no cost. This free healthcare business template provides step-by-step instructions to help you complete your plan. (14)

practitioner taking a patients blood pressure
A healthcare business plan not only helps during the start-up phase; it can also help measure success as your practice grows.

How will you know if your healthcare business plan is a success?

Including measurable goals and projections in the plan can help you track its success. These metrics can also help identify weaknesses that can be addressed in a timely manner before they become a lasting detriment to the practice. 

The bottom line

When you are ready to embark on a new healthcare venture—or when you’re ready to grow an existing practice—a business plan can help to ensure your success. A comprehensive healthcare business plan can define your goals, strategies, and needs. It can also improve the odds of funding and serves as a roadmap for future growth and success. 

Quality supplement plans in less than a minute

Try Fullscript
References
  1. 7 tips for making a business partnership work. SCORE. https://www.score.org/resource/7-tips-making-business-partnership-work
  2. Avhustynovych, Y.I., Mykhalchuk, V.M., & Pashchenko, V.M. (2018). Business planning as a tool for reforming PНС. Wiad Lek, 71(8), 1582-1587. 
  3. Black, S.B. & Evans, R.W. (2012). Economic credentialing of physicians by insurance companies and headache medicine. Headache, 52(6):1037-1040.
  4. Christianson, M.S., Goodman, L.R., Booth, R., Lindheim, S.R., & Azziz, R. (2021). Financial fluency: demystifying accounting and business planning for the reproductive medicine specialist. Fertility and Sterility, 115(1):7-16. 
  5. Cohn, K.H. & Schwartz, R.W. (2002). Business plan writing for physicians. American Journal of Surgery, 184(2), 114-20. 
  6. Create your business plan. U.S. Small Business Administration. https://www.sba.gov/starting-business/write-your-business-plan%20
  7. Ding, E. & Hursey, T. (2010). Evaluation of the effectiveness of business planning using Palo Alto Business Plan Pro. Department of Economics. University of Oregon. https://cassites.uoregon.edu/econ/wp-content/uploads/sites/4/2014/07/EasonDing_TimHursey.pdf
  8. Enriquez, E. Credentialing by Medicare Advantage Organizations. Centers for Medicare and Medicaid Services. https://downloads.cms.gov/events/docs/conference_id_570/credentialingproviders.pdf
  9. Ettorchi-Tardy, A., Levif, M., & Michel, P. (2012). Benchmarking: a method for continuous quality improvement in health. Healthcare policy = Politiques de sante, 7(4), e101–e119.
  10. Find a practitioner. (2022). The Institute for Functional Medicine. https://www.ifm.org/find-a-practitioner/
  11. Find an ND. American Association of Naturopathic Physicians. https://naturopathic.org/search/custom.asp?id=5613
  12. Haag AB. (2013). Writing a successful business plan: an overview. Workplace Health & Safety, 61(1), 19-29. 
  13. Harrison, J., Thompson, D., Flanagan, H., & Tonks P. (1994). Beyond the business plan. Journal of Management in Medicine, 8(1), 38-45. 
  14. Healthcare business plan. Microsoft. https://templates.office.com/en-us/healthcare-business-plan-tm12156119
  15. Liao, J. & Gartner, W. (2006). The effects of pre-venture plan timing and perceived environmental uncertainty on the persistence of emerging firms. Small Business Economics, Springer, 27(1), 23-40.
  16. Medical Credentialing, Insurance Credentialing and Primary source verification. https://medicalcredentialing.org
  17. Reiboldt, J.M. (1999). Writing a group practice business plan. Healthcare Financial Management, 53(7), 58-61. 
  18. Velayati, F., Ayatollahi, H., Hemmat, M., & Dehghan, R. (2021). Key components and critical factors for developing a telehealth business framework: a qualitative study. BMC Medical Informatics and Decision Making, 21(1), 339. 
  19. Welch, T.D. & Smith, T.B. (2022). Anatomy of a business case. Nursing Administration Quarterly, 46(1):88-95. 
  20. Write your business plan. U.S. Small Business Administration. https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
  • Print
  • Email
  • Facebook
  • LinkedIn
  • Twitter
  • Pinterest

Disclaimer

The information in this article is designed for educational purposes only and is not intended to be a substitute for informed medical advice or care. This information should not be used to diagnose or treat any health problems or illnesses without consulting a doctor. Consult with a health care practitioner before relying on any information in this article or on this website.

Cancel reply

Your email address will not be published. Required fields are marked *

Prev Next
Back to main wellness blog page

Get more resources for your practice

Protocols
Practice resources
Ingredient library
Webinars

Share

  • Print
  • Email
  • Facebook
  • LinkedIn
  • Twitter
  • Pinterest

Fullscript content philosophy

At Fullscript, we are committed to curating accurate, and reliable educational content for practitioners and patients alike. Our educational offerings cover a broad range of topics related to integrative medicine, such as supplement ingredients, diet, lifestyle, and health conditions.

Medically reviewed by expert practitioners and our internal Integrative Medical Advisory team, all Fullscript content adheres to the following guidelines:

  1. In order to provide unbiased and transparent education, information is based on a research review and obtained from trustworthy sources, such as peer-reviewed articles and government websites. All medical statements are linked to the original reference and all sources of information are disclosed within the article.
  2. Information about supplements is always based on ingredients. No specific products are mentioned or promoted within educational content.
  3. A strict policy against plagiarism is maintained; all our content is unique, curated by our team of writers and editors at Fullscript. Attribution to individual writers and editors is clearly stated in each article.
  4. Resources for patients are intended to be educational and do not replace the relationship between health practitioners and patients. In all content, we clearly recommend that readers refer back to their healthcare practitioners for all health-related questions.
  5. All content is updated on a regular basis to account for new research and industry trends, and the last update date is listed at the top of every article.
  6. Potential conflicts of interest are clearly disclosed.
Read more
Fullscript logo

We're certified carbon-neutral. It's part of our commitment to helping people get better.

American flag - toggles to show american specific contentUnited States
Canadian flag - toggles to show canada specific contentCanada
Product
  • Practitioner software
  • Integrations
  • Pricing
  • Patients
  • Supplement quality
  • Treatment adherence
  • Catalog
  • Wholesale
Company
  • Spotlight
  • About Fullscript
  • Collective
  • Leadership
  • Culture guide
  • Careers
  • Engineering
  • News
Support
  • Practitioner support
  • Patient help
  • Testimonials
  • General FAQ
  • Patient shipping
  • Wholesale shipping

© Fullscript 2023. All rights reserved.

*These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.

  • Privacy Statement
  • Terms of Service
  • Accessibility Policy
  • Customer Support Policy
  • Acceptable Use Policy
  • California Privacy Notice
Send this to a friend