Opening a healthcare clinic can cost between $100,000 to $500,000. A 100-bed hospital needs 60,000 square feet build-up area, 30,000 square feet land with FAR of 2. The average cost is 3.54 lacs (11,800 US$) per bed.
Due to demand, office lease prices increased 4.6% in 2019 to $27.7 per square foot. With startup costs from $500,000 to $5 million for a hospital clinic, planning and research are important. Expenses include rent, equipment, and insurance. Malpractice insurance in Minnesota can cost up to $15,000 per year, while in Florida it can be $70,000.
For a physical therapy clinic, costs range from $12,000 to $30,000 for renting and outfitting the space. Profit margins can be 50%. In the first years with 25 sessions per week at $100 per session, revenues could be $130,000 with $65,000 profit.
The US retail medical clinic market is expected to grow from $3.49 billion to $4.4 billion by 2028. To forecast profits, analyze potential revenues and expenses like equipment, rent, admin costs, and insurance.
The same initial startup steps apply to starting any medical clinic.
The US retail medical clinic market is poised for growth, indicating a potentially profitable venture for those looking to start a clinic.
Cost-Benefit Analysis for Clinics
To effectively manage finances, consider the varying costs depending on the type of clinic and location, and project the potential revenue.
Malpractice insurance cost varies significantly by location, creating a notable impact on expected expenses. Renting and outfitting spaces for specific clinics such as physical therapy can be much lower in cost, with significant profit margins achievable in the initial years.