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1.0 Executive Summary
The purpose of this business plan is to showcase the development of a stand alone urgent care center based in Detroit, Michigan. Urgent Care Center, LLC (“the Company”) was founded by Dr. Timothy Jones. The business will provide a full range of urgent care services including diagnostic services, clinical services, and medical imaging. At this time, Dr. Jones is seeking $1.35 million via a professional practice loan in order to establish the operations of the center.
1.1 The Services
The Urgent Care Center will operate seven days per week for fourteen hours per day. In addition to Dr. Jones as the primary physician, the Company will have two staff physicians and two physicians’ assistants that can render services onsite. The average site visit will cost $175. The business will accept all forms of private insurance as well as Medicare and Medicaid.
An important aspect of the Company’s operations will include basic medical imaging. This will primarily consist of x-rays and ultrasounds that will be conducted by Dr. Jones and his staff. These services will eliminate the need for a patient to go to a hospital for these tests. It should be noted that the business will always provide referrals to major medical centers when a patient requires a greater degree of services that can be rendered onsite.
The third section of the business plan will further describe the services offered by the Urgent Care Center.
1.2 Financing
Management, via a professional practice loan, is seeking$1.35 million to establish the Company’s operations in Detroit. The terms of this financing are to be determined but this document assumes that the Company will receive a 20-year normally amortizing loan that carries a 7% interest rate. The funds will be allocated among the following:
• Stand alone site acquisition
• Working capital
• Medical equipment
• General furniture, fixtures, and equipment
Given the economic stability of healthcare related businesses, the Urgent Care Center could easily acquire additional capital as needed to expand its operations. In the event that Dr. Jones wishes to establish additional locations, he will use additional professional practice loans or commercial mortgages for these purposes. Additional rounds of capital could be acquired in the event that the Urgent Care Center decides to carry out an acquisition. These events are not expected to occur within the next three years.
1.3 Mission Statement
Urgent Care Center’s mission is to provide comprehensive, immediate care to patients throughout the Detroit metropolitan area.
1.4 Management Team
Timothy Jones has been a practice emergency room physician for the past twelve years. He will be able to use his experience in all urgent medical matters while ensuring that the Company achieves its financial goals.
1.5 Sales Forecasts
1.6 Expansion Plan
Moving forward, Urgent Care Center will make sustained investments into expanding its market visibility so that it becomes a preeminent medical clinic in the Detroit market. The business, as discussed above, may also develop additional urgent care clinics within this market using either additional sourced capital or the retained earnings of the business. The Company will also continually hire qualified physicians, physicians’ assistants, nurse practitioners, and nurses that will render services onsite in order to boost billings.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Urgent Care Center, LLC.
2.2 Required Funds
Dr. Jones will source $1.35 million of capital to develop the stand-alone urgent care center location. He will contribute $150,000 as the down payment for the building acquisition.
2.3 Investor Equity
Dr. Jones does not require any outside equity funding for this portion of the capital structure. In the future, equity partners may be sourced if the Founder decides to establish multiple locations in the greater Detroit metropolitan area.
2.4 Management Equity
Timothy Jones, MD currently and is expected to retain a 100% ownership interest in the business. Equity participation may be provided to staff physicians that are instrumental in growing the business.
2.5 Exit Strategy
As with most healthcare companies, these businesses are highly valued given their predictable streams of income. Should it be financially prudent to do so, Dr. Jones would either work with his existing staff to transfer the ownership of the Urgent Care Center or he would work with a business brokerage to sell the business to a third party. Dr. Jones intends to operate the business for at least ten years prior to engaging a divestiture strategy.
3.0 Urgent Care Center Services
Urgent Care Center will be actively involved with providing a broad range of services for patients that come to the Company’s facilities in Detroit. Common treatments that will be provided onsite include:
• Allergies
• Bacterial infections
• COVID diagnosis and treatment
• Fevers and colds
• Flu treatments
• General pediatric care
• Lacerations
• Minor burns
• Skin rashes and irritation
• Sore throats and respiratory matters
The medical imaging operations of the business will be one of the centerpieces of the Company’s operations. The business will use a state-of-the-art digital x-ray and ultrasound suite within the facilities. This will allow the Company’s staff to more readily diagnose broken bones and other matters that can be treated onsite. The business will generate $150 to $300 for these services.
Dr. Jones and the Company’s staff will maintain strong relationships with area trauma hospitals so that proper transfers can be made during the course of serious medical emergencies. The business will have access to ambulatory companies that will transfer patients as necessary.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
Any issues with the economy will not impact the revenues of the Urgent Care Center. The demand for immediate access to a medical facility that is reasonably priced remains strong in any economic climate. The demand for medical care actually tends to increase during economic recessions.
The only matter that could impact the revenues of the business are changes to reimbursement schedules among private insurers as well as among publicly funded healthcare systems. However, in the coming years, it is unlikely that there will be major cuts to these programs. Additionally, the business’ fees are reasonable ($150 to $300 per visit), and they will remain affordable to the Detroit general public at all times.
4.2 Industry Analysis
There are approximately 8,900 businesses that provide urgent care services within the United States. Each year, these businesses aggregately produce $40 billion of revenue. Approximately 200,000 people are employed at urgent care facilities.
The growth of this industry is expected to remain very strong in the coming years. It is no secret that going to an emergency room is a difficult process not only as a result of the amount of time that it takes to be seen by a physician but also as a result of the expense. Insurance companies have been instrumental in the growth of this industry since minor medical issues that need immediate attention can be treated more quickly and cost effectively.
It is expected that further legislation will encourage the development of these centers, especially in rural areas where there is a lack of access to major hospitals.
4.3 Customer Profile
As any person can have a minor to moderate medical issue that needs immediate attention, the demographics of people that will come to the Urgent Care Center are broad. Dr. Jones specifically chose the Detroit market given its immense size. The Company has sourced a stand alone facility in a population dense market of this city so that the business will be able to have an immense patient flow from the onset of operations. Detroit has undergone an immense period of revitalization, and Management sees a substantial opportunity for this business to flourish in the market.
In this section, you can further elaborate on the specific demographic profiles of patients and your target market area. You can also include language that indicates trends within your market including population growth, income growth, and housing prices (which are a strong indicator of the economic health of any given market).
4.4 Competition
As has been one of the themes throughout this document, urgent care centers are continuing to become popular locations when minor to moderate medical attention is required. In any city, there are usually a number of medical clinics that operate in this capacity. When developing your competitive analysis, you should determine the number of clinics that operate within a five-to-ten-mile radius (depending your market size). You can also source statistics regarding the average number of patients that these clinics see on a daily basis. This will help you derive their annual revenues.
5.0 Marketing Plan
The demand for access to convenient and affordable healthcare solutions within Detroit is immense. As such, the ongoing marketing that will be required is relatively low. The business has sourced a highly visible standalone location in this market, which will be seen by thousands of people on a daily basis.
5.1 Marketing Objectives
• Affix proper exterior signage to the Urgent Care Center facility in order to have high visibility among passers-by.
• Maintain a state-of-the-art website that allows patients to check-in for visits while also providing substantial information about the clinic.
• Maintain ongoing relationships with major hospitals in the area for referrals (especially when major emergencies are occurring).
5.2 Marketing Strategies
The Company has sourced an outstanding location at a busy intersection within Detroit. Each day, the facilities will be seen by thousands of people. As discussed in the previous section of the business plan, the demand for comprehensive, immediate healthcare is substantial in this market. Management anticipates that will only need to allocate less than 1% of its aggregate revenues towards marketing efforts.
For the Company’s website, this platform will showcase the urgent care operations while also providing online functionality to book a same day appointment with a physician, physician assistant, or nurse practitioner. This website will undergo extensive search engine optimization (SEO) for the Detroit market. Over a period of three to six months, the Company’s website will appear when searches for urgent care centers are conducted. The platform will be mobile device friendly so that when mobile searches are conducted – the Company’s address will appear. This is important as it will allow people that are in vehicles to quickly find the location. For social media, the Company will maintain a modest presence on Facebook. This will contribute to the Urgent Care Center’s SEO campaign while also allowing individuals to leave reviews regarding their experience at the clinic.
The business will maintain strong relationships with area hospitals so that patients can be dispatched to these locations when major medical issues such as cardiovascular events occur. The business will coordinate these efforts with both public and privately operated ambulance systems so that patients can be immediately transported to a hospital.
The Company, to a very limited extent, will distribute mailed advertisements. These packages will contain magnetic ads that showcase the address, hours of operation, website, and contact information for the business.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
6.3 Management Biographies
As it relates to your specific skillset, you should discuss why you have the capability of owning and operating an urgent care center. If you are a physician or nurse practitioner, you should provide all relevant information as it relates to your CV and all professional licenses that you maintain.
7.0 Financial Plan
7.1 Underlying Assumptions
• Dr. Timothy Jones will contribute $150,000 as the down payment.
• A $1.35 million loan will be acquired to launch the operations of the Urgent Care Center.
7.2 Sensitivity Analysis
The Company’s revenues are not subject to any negative changes in the economy. The demand for immediate medical attention for minor medical matters remains strong at all times, and Urgent Care Center, LLC will generate substantial high-margin revenue streams when rendering its services. This will allow the Company to meet its monthly financial obligations while producing significant yearly profits.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
Urgent Care SWOT Analysis
Strengths: As with almost all healthcare businesses, urgent care centers are fully immune from negative changes in the economy. These businesses are able to produce highly predictable income from ongoing care of patients that have minor to moderate medical issues that can be treated in a non-hospital facility. These businesses are able to receive their payments from both private insurance as well as patient co-pays. As will be discussed below, these are highly scalable enterprises that can hire physicians, nurse practitioners, and physician assistants that can increase the billings of the business. These businesses are also able to achieve profitability relatively quickly.
Weaknesses: These businesses typically have substantial operating costs not only as it relates to facility expenditures but also as a function of payroll. There are also substantial costs as it relates to insurance expenditures for these facilities. As it relates to competition, this is usually less of an issue for urgent care facilities given that most of these entities are highly trafficked on a daily basis.
Opportunities: As discussed above, the primary way in which single location urgent care centers grow is through the continued hiring of medical professionals that can work at the facility. Once maximum capacity is achieved, the primary way in which urgent care center entrepreneurs expand is through the continued development of new locations. One of the newer trends within this industry is to incorporate onsite medical imaging, which allows for the continued growth of revenue. As an alternative to organic growth methods, the acquisition of existing urgent care centers can also be an outstanding way to engage in rapid expansion. Urgent care centers are always able to remain profitable, and they are able to easily acquire capital for acquisition and expansion purposes.
As it relates to potential acquisitions, this is a complicated process that requires multiple legal and accounting professionals to conduct. A formal valuation from the current owner should be provided, and it should be completed by a qualified business valuation expert.
Threats: The primary threat faced by urgent care centers is changing in reimbursement policies among private insurance entities as well as publicly funded healthcare systems. At this time, this risk is relatively low. However, many insurance firms are major proponents of urgent care centers given that they are able to quickly treat minor medical issues cost effectively. It is expected that major health insurance carriers will continue to promote the development of urgent care centers throughout the country.