Financial Viability of Medical Clinics: Evaluate Before Investing
- Admin
- 7 days ago
- 3 min read
Discover how to calculate the economic viability of a multidisciplinary clinic and make informed decisions based on data and realistic projections.
Opening a multidisciplinary medical clinic can be an excellent investment, but it also represents a risk if there is no well-structured financial feasibility study. Before renting a space, hiring staff, or purchasing equipment, it is essential to understand whether the business will be financially sustainable. In this article, we will present a practical and detailed step-by-step guide for this analysis.
What is financial viability?
Financial viability is the ability of a business to generate sufficient revenue to cover its costs, maintain operations, and still provide profit. Evaluating this viability is essential to ensure that the clinic has real conditions to sustain itself in the market, grow, and generate a return on investment (ROI).
Step 1: Assessment of initial costs
The first step is to map out all the costs involved in getting the project off the ground. This includes:
- Renovation and adaptation of the physical space
- Purchase of medical and dental equipment
- Electronic medical record system and management software
- Licenses, permits, and regulations with health authorities and competent agencies
- Marketing campaign for launch
- Working capital (reserve for the first months)
Example: A clinic with 5 consultation rooms may have initial costs between $ 250,000 and $ 500,000, depending on location, standard of the structure, and specialties offered.
Practical tip: Create a detailed spreadsheet with all items and maintain a safety margin of 10% to 15% for unforeseen expenses.
Step 2: Revenue projection
After estimating the costs, it is necessary to project how much the clinic can earn per month. To do this, consider:
- Number of consultations per specialty
- Average price of services
- Professionals' scheduling capacity
- Mix between private consultations, insurance, and packages
Example: If each consultation room conducts 8 consultations on weekdays with an average ticket of $ 250, the estimated monthly revenue could exceed $ 200,000.
Practical tip: Start with a conservative forecast and adjust it according to actual demand in the first months.
Step 3: Calculation of the break-even point
The break-even point is the minimum revenue required to cover all fixed and variable costs of the clinic. To calculate it, use the formula:
Break-even Point = Fixed Costs / (1 - % of Variable Costs over Revenue)
Example: If the monthly fixed costs are R$ 80,000 and variable costs represent 30% of revenue, the break-even point will be:
$ 80,000 / (1 - 0.3) = $ 114,285
This means the clinic needs to generate at least R$ 114,285 per month to avoid operating at a loss.
Step 4: Analysis of return on investment (ROI)
Calculate the time needed to recover the invested amount. The ROI formula is:
ROI = (Net Profit / Total Investment) x 100
Example: If the investment was R$ 400,000 and the estimated annual net profit is R$ 120,000:
ROI = (120,000 / 400,000) x 100 = 30% per year
Practical tip: An ROI above 20% per year in the healthcare sector is considered attractive, provided that the operation is sustainable and has a low risk of default.
Step 5: Scenario simulations
Conduct pessimistic, realistic, and optimistic simulations, considering:
- Decrease in the number of patients
- Increase in costs with staff and supplies
- Regulatory changes
- Seasonality in consultations
These simulations help understand the resilience of the business and make more solid strategic decisions.
Step 6: Support tools
Use financial management software, medical ERPs, and automated spreadsheets to track:
- Cash flow
- Accounts payable and receivable
- Profit margins per service
- Financial indicators (such as EBITDA and operating margin)
Practical tip: Having monthly reports is essential to correct paths and ensure viability over time.
Conclusion
Evaluating the financial viability of a multidisciplinary medical clinic is not a simple task, but it is indispensable. A project that seems promising from a technical standpoint may not be economically sustainable. Therefore, invest time and, if possible, seek the support of specialized consulting to ensure that your clinic starts on the right path.
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