Family and Women’s Health Practice, Business Plan Example

Projected Expenses Narrative

In order to accomplish the tasks required to establish the family practice, a number of budgetary items must be included in the cost proposal. The following justification will include the name of each item, along with a brief description and the requested amount required in order to meet budgetary goals and objectives.

Office space and overhead: For this practice, it is essential to identify space that will be sufficient to perform all required roles and responsibilities for patients in a spacious manner. Therefore, it is expected that approximately 1,750 square feet of office space is required for the practice startup at a leasing cost of $8.00 per square foot. The total cost per month is $14,000 and $168,000/year.

Durable medical equipment: Budgeted equipment includes wheelchairs (5), infusion pumps (6), blood pressure monitors (10), and glucose monitors (20). The total cost per year is $9,625.

Disposable supplies: A variety of disposable supplies are required, including various types of wound dressings, various types of splints, insulin syringes, glucose test strips, bandages, blood collection supplies, gowns, and exam gloves. The total cost per year is $2,698.

Provider and staff compensation: In order to accomplish the desired goals and objectives within the practice setting, it is necessary to employ the appropriate number of staff members. Therefore, the following positions are required:

• A physician will lead the practice setting and will be paid $85/hour x 2080 hours/year = $176,800.
• An FNP will provide leadership and guidance to the practice and will be paid $50/hour x 2080 hours per year = $104,000.
• A WHNP will provide leadership and guidance to the practice in the area of women’s health. This individual will be paid $48.50/hour x 2080 hours per year = $100,880.
• A medical assistant will provide support to the team and will carry out basic diagnostic procedures. This individual will be paid $21.00/hour x 2080 hours per year = $43,680.
• An administrative assistant will provide administrative support to the entire team and manage the office environment. This individual will be paid $18.00/hour x 2080 hours per year = $37,440.
• Finally, a receptionist will manage incoming calls, schedule appointments, and perform other duties as assigned. This individual will be paid $16.00/hour x 2080 hours per year = $33,280.

Clinic licensure and fees: The practice must obtain and renew clinic licensure on an annual basis. The cost of this licensure and the related application fee is $2,000 annually.

Advisor compensation: During the startup phase, an advisor/consultant will be recruited on a half time basis in order to provide expert knowledge and guidance in directing the practice and developing a strategic focus. This individual will be paid $75/hour x 1040 hours per year = $78,000 for year one only.

Miscellaneous expenses: A variety of other expenses are required to maintain the practice setting on an annual basis and include the following:

• Equipment leases for the copier and other medical equipment: $500/month x 12 months = $6,000 per year.
• Paper and other miscellaneous office supplies: $300/month x 12 months = $3,600 per year.
• Copier charges: $0.03/copy x 2,000 copies/month x 12 months = $720
• Desktop computers: $1,000 each x 3 computers = $3,000
• Laptop computers: $1,300 each x 2 computers = $2,600
• Computer maintenance contracts: $200/month x 12 months = $2,400

Based upon these estimates, the total projected budget for startup at year one is $792,723.

The sample detailed budget is as follows: