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How to Write a Business Plan for Medical Practice

Last updated: 04 / 08 / 22

You learn a lot in medical school, but business planning isn’t a focus. However, many health care practitioners go on to run their own businesses where developing a business plan becomes essential.

If you’re planning to start your own practice, or you’re taking over someone else’s medical business and want to run it effectively, it’s a good idea to spend some time working out the details and putting together a formalised plan first. You may also want to get professional advice on your business planning, and any other aspects of running your medical practice you’re not sure about. In the meantime here are a few business planning basics to get you started.

Why have a business plan for your medical practice?

While it can be tempting to just dive right in and start setting up your new medical practice, a business plan can help you get prepared and make sure you stay on the right track as your practice grows.

A solid business plan is the foundation of any successful medical practice. With a business plan you can identify potential issues upfront and devise a strategy to avoid them. You can also set realistic goals for your business to help you keep moving in the right direction. If you’re looking for funding at any stage, you’ll also need to have a business plan. Most medical practices will struggle to get a business loan without a solid business plan in place.

What to include in your medical practice business plan

Your business plan should include the following:

• A summary of your business, including the medical services you provide, your location, and the history of the business.
• Financial information including projected cash flow, outgoings like medical equipment, marketing and practice management software costs and projected turnover.
• Operational factors like trading hours, fees, staffing and potential suppliers
• Risk identification and management – details of how you will manage the biggest potential risks, e.g. malpractice insurance, other insurances, data security and your credentialing process.
• Marketing – how you will get new patients and retain the existing ones.

As well as all the information about your medical practice and strategy, it’s also important to set goals and targets for your new venture. These should be in your business plan so you can keep track of them and make sure you’re working towards them consistently.

Making sure you have a solid business plan

So how do you make sure your medical practice business plan is solid? It’s very easy to have your plan in your head, but if you don’t get it out, it’s going to be hard for anyone else, especially the other providers and support staff in your practice to implement it. So the first step is to put it down on paper, or in a word document.

Once you’ve got a detailed plan on paper, don’t just put it in a drawer and leave it. Business planning should be a regular task for you and your business partners. Once you have your business plan in place, make sure you review it at least once a year, preferably more and update it as your business priorities change.

Writing a business plan for your medical practice might seem like a time consuming task, but it’s well worth the effort. With a strong business plan, you can grow your practice, achieve your goals and avoid many of the pitfalls that can trip up practice owners who haven’t taken the time to plan ahead.

• RACGP – Your Business Plan
• gov.au business plan template

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July 26, 2023

10 min read

Practice Growth

Starting a Practice

Free template: How to create a business plan for your new practice

Your medical practice business plan is a living document that evolves as your practice grows. Here’s how to build it from scratch.

Most Popular

At a glance.

• A medical practice business plan is crucial for establishing direction, estimating finances, and evaluating competition.
• Creating an effective business plan involves gathering relevant data, making conservative financial projections, seeking expert input, and planning for risks.
• The 8 essential sections of a thorough medical practice business plan include the executive summary, business model details, market research, staffing model, 12-month budget, and more.

Medical schools and residencies prepare doctors to provide quality patient care but not to create a medical practice business plan. Yet a business plan is a key part of reaching new patients and supporting existing ones.

An effective medical practice business plan will:

• Establish a roadmap for your practice
• Estimate your revenue and expenses
• Evaluate the competition

Creating a thorough business plan may feel like an onerous roadblock to moving forward. However, plotting your direction in advance will keep you on track later on, and will set you up to effectively serve your patients.

Why you need a business plan for your medical practice

Whether you plan to start your own practice or take over someone else’s, a robust business plan is necessary. When you develop a comprehensive business plan full of intention, clear thought processes, and fine details, you demonstrate your commitment to your practice, community, and discipline.

A solid business plan effectively positions you to prevent surprises that could completely derail your practice and reputation.

“ A solid business plan effectively positions you to prevent surprises that could completely derail your practice and reputation.  ”

If you plan to seek investors or business partners for your practice, a thorough business plan demonstrates that you have both a vision and the empirical data and financial goals required to back it up. It also establishes and communicates the direction you intend to take your practice.

If you do not plan to seek outside investors, your medical practice business plan is still a key tool for the most important investor: you. Working through the 8 parts of a plan will help you evaluate the landscape, establish your foundation, and move forward with your practice.

That said, writing your business plan is not the same as establishing your budget. However, you will need to create a detailed budget so you can incorporate some of that information into your comprehensive business plan.

What is involved in developing a healthcare business plan?

As you develop your medical practice business plan, think of how you approach diagnosing a patient: a systematic process. While it may vary by practitioner, you typically:

• Get to know your patient
• Ask about symptoms and history
• Dig deeper into factors that are relevant to the current issue
• Collect data from tests
• Develop an initial diagnosis
• Seek additional counsel when appropriate
• Revisit the diagnosis if needed
• Discuss the findings and prognosis with your patient
• Schedule treatment and follow-up

The business plan creation process is similar.

Translating the process to your medical practice’s business plan

Getting to know your patient translates into defining your mission and vision. What do you want to accomplish? What is your role in your community?

Asking about symptoms and history will lead you to gather relevant documents, certifications, and professional memberships; research other local practitioners; and investigate why your practice’s focus is needed. Just as you need to know how the body’s systems fit together, you need to know how your practice will fit into the market.

Digging deeper into factors relevant to the current issue involves getting into the numbers. Evaluate:

• Your selected location
• Fee structure
• Insurance company partners, if any
• Target patient volume
• Staffing needs
• Services, whether legal, financial, or practice growth
• Equipment, medical, and office
• Maintenance and upkeep cost estimates
• Ongoing costs, including rent or property taxes

Collecting data requires gathering facts. Avoid using more lucrative or optimistic numbers. Build your plan based on conservative estimates to set your practice up for success. Determine what benchmarks to establish and measure success.

Develop an initial diagnosis by evaluating whether you’ve made inaccurate assumptions or missed key components. Revisit areas you need to and gather new information.

Seek additional counsel in this process. Your legal and financial advisors are an important resource as you create your plan, not just as you execute it. You may also consult your staff about parts of your plan in which they have expertise. Finally, partnering practitioners should agree with the plan’s approach and direction.

“ Your legal and financial advisors are an important resource as you create your plan, not just as you execute it.  ”

Revisit the diagnosis. Consider the input and adjust your assumptions, numbers, and benchmarks.

Discuss the diagnosis and prognosis with your investor(s). In this step, share your completed business plan with the individual(s) with whom you are working.

Set a follow-up plan to evaluate your progress after certain periods of time.

How to build your medical practice business plan document

It’s one thing to theoretically know how to approach your medical practice business plan and another to sit down and create it. This 8-section outline will give you an idea of the crucial parts of your document.

Make a copy of this sample business plan template that you can customize and use for your practice.

1. Executive summary

In the executive summary, summarize your business model. Incorporate the information you developed while getting to know your practice.

Include an overview of information such as the practice location, services, target patient, local demographics overview, any relevant business history associated with the practice, and your mission and vision for your practice and its community impact. This is also where you will define any existing barriers to moving forward.

“ Your executive summary is an understanding and compelling argument for why the community needs your services.  ”

Your executive summary is an understanding and compelling argument for why the community needs your services. It will highlight how you will fill a need that is not met in the current environment.

This is the section that will get you invited to the investor’s table, as it were. It is the bait on the hook of your argument.

Pro tip: Save the executive summary for last. Once you have the information from the other areas you will research and develop, it will quickly come together.

2. Detailed business model

Define your services and how you’ll manage prospects who fall within and outside those services. Specify your hours of operation. Define and describe your physical office space.

If you intend to offer telehealth , describe how. Define the number of staff you’ll employ, their roles, and how you plan to add staff as your practice grows. Detail the equipment you’ll use and why it’s essential.

Determine which vendors you’ll use for a variety of functions, including office cleaning; non-office hours emergency call management; office, medical, and exam equipment and furniture; office and medical supplies, software; marketing; and physical and digital security .

3. Comprehensive market research and positioning

Provide hard data on the demographics of your local geographic area and how they support your practice. For example, do enough people in your area need your services? What is the median income in the area, and how has that influenced your target fee structure?

“ Define your insurance partners, how their fee structures align with yours, and how competitive your proposed fees are.  ”

Define your insurance partners , how their fee structures align with yours, and how competitive your proposed fees are.

Outline your local competition, the reasons you can be sure there is enough market availability for your new practice, and why your practice is positioned for success above your competition.

4. Detailed staffing model

Even if you plan to be the only provider in your practice, you will still need a plan to answer calls, file insurance claims, maintain files, manage billing , process payroll, and order supplies, among a host of other tasks to keep your practice running smoothly.

In this section of your medical practice business plan, list what positions you will fill and how many people you will need in each. Include compensation, along with any budgeted overtime, as well as benefits and tax considerations. Also, note when you will target hiring each throughout the year.

5. Projected 12-month income and budget

Show the math regarding how many patients you will serve for each service you will offer, your projected fee for each service, and your anticipated overhead expenses.

Your overhead will include items such as:

• Staffing expenses based on the total number of staff and projected salaries.
• All office-related expenses for equipment, supplies, maintenance, utilities, software, marketing, staff recruitment, and temporary services.
• Anticipated vendor expenses such as off-hours call service, telehealth subscriptions, lab processing fees, janitorial services, etc.
• Maintaining licensure, subscribing to professional journals, and attending conferences to stay current.

Make sure to account for one-time or short-term expenses, such as an extra administrative position to cover a known busy month, as well as for ongoing expenses.

6. Potential risks and mitigation

What risks can you anticipate as you open your practice? This is the section where you will think of worst-case scenarios and what you would do were they to become a reality.

Consider scenarios such as:

• A patient sues you. The United States is a very litigious society. What sort of malpractice insurance or bonds do you need to obtain?
• A staff member gets injured at work. In addition to the mandatory worker’s comp, how else would you support them? And what does your insurance cover?
• You get injured at work. How can you protect the longevity of your well-being and that of your practice?
• Another global pandemic hits. How will you staff and maintain patient treatment protocols, what specialized supplies will you need to purchase, what type of insurance rate hikes could you anticipate based on the last pandemic’s model, etc.
• A natural disaster hits. Depending on your geography, are you likely to experience a flood, fire, earthquake, tornado, hurricane, or blizzard? Are there emergency supplies you can keep on hand? Are there specific ways you can shore up your facility to make it more stable — and when would you make those changes? What specialized insurance do you need to purchase?

Talk to a seasoned physician who can provide some mentorship. Ask what they’ve faced during their years of practice and what you need to know to be prepared. Then take that information into meetings with your lawyer and insurance broker.

7. Implementation plan

In your project implementation plan, outline the steps you need to take to open your practice, what milestones you will hit, and an associated date for each major and sub-task. Whether you use formal project management software or create a project plan in a spreadsheet or other document, include that detailed information in this section.

8. Exit strategy

You’re just opening or growing your practice — why would you plan to leave it? Plans change, retirement becomes attractive, large conglomerates buy smaller practices, or a host of other scenarios could happen.

“ Just as you worked through the risks section, there is value in thinking ahead to determine your plan when you are ready for something different.  ”

Just as you worked through the risks section, there is value in thinking ahead to determine your plan when you are ready for something different. Will you sell your practice? How will you transition your patients? What will happen with valuable equipment and supplies?

Identifying these items and addressing what you feel will be the best way to step away from what you are currently creating will make the process more manageable later.

How detailed is an effective business plan?

You know what process to use and the broad sections to include in your business plan, but how detailed should you get?

While you don’t want your business plan development goal to be a target length, a solid business plan typically ends up being somewhere between 30 to 40 pages. This information will include graphs and charts that demonstrate your demographic research, specific equipment needs for positive community impact, budget numbers, etc.

Your business summary and exit strategy sections should not exceed 20% of your overall business plan. Both will provide a high-level overview; neither is the section where you will get into excruciating details.

However, the other 6 sections of your business plan will get into the fine details. Each section should provide narrative information as well as specific numbers that are itemized by topic and category.

Keep your business plan alive

Even though your medical practice business plan can provide information for potential investors, partners, and financiers, it is ultimately the mirror of what you want your business to become. This should be a living document you update and change as your priorities and focus evolve.

“ As you move forward and grow your practice, set yourself up for a larger vision.  ”

As you move forward and grow your practice, set yourself up for a larger vision. Adding 3- and 5-year projections to your 12-month business plan will help refine your sense of your purpose and direction.

By creating a medical practice business plan, you create confidence in not only your ability to attract patients, but also your ability to run the business that serves them long term.

Further Reading

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Karmin Gentili

Karmin Gentili has been a freelance writer and editor since 2016. She has over 25 years of experience in corporate HR and compliance consulting. She has worked to further elevate her skills by pursuing and receiving multiple certifications, including copywriting, video scriptwriting, effective content positioning, case study writing, and SEO. Her love of writing motivates her to use those skills to develop content for the medical field that ensures others can work toward achieving their goals.

Reviewed by

Lauren Wheeler, BCPA, MD

Dr. Lauren Wheeler, MD, BCPA, is a former family medicine physician who currently works as an independent healthcare advocate as well as a medical editor and writer. You can get in touch with her about anything writing or advocacy at her website www.lostcoastadvocacy.com .

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Medical Practice Business Plan Template

Written by Dave Lavinsky

Medical Practice Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their medical practices. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a medical practice business plan template step-by-step so you can create your plan today.

Download our Ultimate Medical Practice Business Plan Template here >

What is a Medical Practice Business Plan?

A business plan provides a snapshot of your medical office as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Medical Office

If you’re looking to start a medical practice, or grow your existing medical practice, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your medical practice in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Medical Practices

With regards to funding, the main sources of funding for a medical office are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for medical practices.

Finish Your Business Plan Today!

How to write a business plan for a medical business.

If you want to start a medical private practice or expand your current one, you need a business plan. Below we detail what should be included in each section of your business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of medical office you are operating and the status. For example, are you a startup, do you have a practice that you would like to grow, or are you operating practices in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the industry. Discuss the type of practice you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of medical office you are operating.

For example, you might operate one of the following types of medical practices:

• Group medical practice : this type of medical practice consists of two or more physicians providing medical care in the same facility. The physicians typically have different specialties, which allow them to collaborate and consult with each other.
• Private medical practice: this type of medical practice involves only one physician working along. A private practice usually serves a limited number of patients and operates with a small staff.
• Hospital-based medical practice: this type of medical practice is an ancillary medical office that is owned by a nearby hospital. The hospital will manage the practice and employ the doctors and nurses to work in their facilities and ancillary clinics.

In addition to explaining the type of medical practice you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What is your business model?
• What is your mission statement?
• What milestones have you achieved to date? Milestones could include the number of patients served, number of positive reviews, reaching X amount of patients served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your business structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the medical industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the medical industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the medical industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your medical office? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, seniors, and anyone needing a type of medical service.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of medical office you operate. Clearly, families would respond to different marketing promotions than seniors, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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With Growthink’s Ultimate Medical Practice Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other medical offices. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes hospitals, clinics, teledocs, and online health forums.

With regards to direct competition, you want to describe the other practices with which you compete. Most likely, your direct competitors will be other practices located very close to your business location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of medical services do they provide?
• What areas do they serve?
• What types of patients do they serve?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide services that your competitors don’t offer?
• Will you provide faster patient waiting time?
• Will you provide better patient service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a medical office, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of practice that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, in addition to medical services, will you provide nutrition and diet guidelines, insurance claim processing, family and loved one communication, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your practice. Document your location and mention how the location will impact your success. For example, is your medical office located near a school, a busy neighborhood, an office complex, or an urban setting, etc.? Discuss how your location might be the ideal location for your patients.

Promotions : The final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Commercials
• Social media marketing
• Local radio advertising
• Word-of-mouth

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. It should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your practice, including patient and family communication and scheduling, managing appointments, inventory of medical supplies, accounting, billing, payroll, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth patient, or when you hope to reach $X in revenue. It could also be when you expect to expand your medical practice to a new location.  

Management Team

To demonstrate your practice’s ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your management team members have direct experience in managing medical practices. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a medical practice or a physician or nurse in the local medical field.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new patient at a time or multiple new patients offering a variety of medical services ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your medical practice, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

: Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a medical practice:

• Cost of furniture and build-out
• Cost of medical supplies and equipment
• Payroll or salaries paid to staff
• Business and medical malpractice insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of medical services your practice will offer, types of patients you will be targeting, and the areas your practice will serve.  

Putting together a business plan for your medical practice is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful medical practice.  

Medical Practice Business Plan FAQs

What is the easiest way to complete my medical practice business plan.

Growthink's Ultimate Medical Practice Business Plan Template allows you to quickly and easily complete your Medical Practice Business Plan.

Where Can I Download a Medical Clinic Business Plan PDF?

You can download our medical clinic business plan PDF here. This is a business plan template you can use in PDF format.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of medical practice business you are operating and the status; for example, are you a startup, do you have a medical practice business that you would like to grow, or are you operating a chain of medical practice businesses?

Don’t you wish there was a faster, easier way to finish your Medical Practice business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan advisors can give you a winning business plan.

Other Helpful Business Plan Articles & Templates

Business Plan For GP Practice

Congratulations on taking the first step in creating a business plan for gp practice. This is an essential step towards entrepreneurial success and a well-crafted business plan will provide a solid foundation for your business venture!

Whether you're a budding entrepreneur with a brilliant idea or a seasoned business owner looking to expand, a thoughtfully constructed business plan will help you plan and navigate towards business prosperity.

In this comprehensive guide, we will walk you through the essential elements of creating a business plan for gp practice that captures your vision as well as attracting investors, partners, and customers alike. From defining your mission and identifying your target market to formulating financial projections and developing a robust marketing strategy, our aim is to empower you with the knowledge and tools needed to turn your aspirations into a reality.

So whether you're just starting out or you're looking to revamp your existing business plan, read on for everything you need to know.

Why is a business plan important?

A business plan will help you think about your gp practice business like you’ve never done before. This thinking will help you clarify important elements like your long-term goals and objectives. You can then work backwards from your goals to develop strategies and marketing campaigns to help make these objectives a reality.

A business plan will also help you think about your customers in great detail. You will be able to understand their wants and needs, where they hang out, and exactly how you will target them. This clarity will enable you to focus on developing the products or services they want.

Finally, if you are seeking outside capital such as investment or a bank loan, a well-thought-out business plan will show them you are serious about your business and you have developed a clear and thorough plan of action to achieve success.

A Business Plan For Gp Practice - The Key Parts

The executive summary, your company description, market analysis, products and services.

• Marketing Strategy
• Operational Plan
• Financial Projections

Risk Analysis

• Funding Request and Use of Funds (if applicable)
• Additional Information

An executive summary of your business plan for gp practice is a brief overview of your business plan.

This is the first thing that potential investors or lenders will see, so it is crucial that you make a good impression. Keep this section short and highlight the key points of your plan.

What should an executive summary include?

• Overview of the Business
• Mission Statement
• Key Objectives
• Summary of Products/Services
• Financial Highlights and Funding Requirements (if applicable)

Remember potential investors don’t always have huge amounts of time to read your document so make sure that you condense the critical information, enabling the reader to make quick and well-informed judgments. Tips for the Executive Summary

Wait until you’ve written the whole business plan and then come back and complete the executive summary. This way you will know your business plan for gp practice inside and out so you can highlight the key elements of the document. Remember the Executive Summary will shape the reader's initial perception of the business and whether they continue reading the document.

If you are looking for any tips on how to improve any section of your business plan, check out our Learning Zone , which has several in-depth guides on each section of the business plan.

The Company Description section of your gp practice business plan is crucial as it offers a comprehensive overview of your business. This section provides essential information about your company's history, mission, vision, legal structure, location, and key milestones. It allows readers to gain a clear understanding of your company's fundamental characteristics and the context in which it operates.

When crafting your company description, make sure to include the following key elements:

• Business Name and Legal Structure: Clearly state the legal name of the company and its legal structure.
• Business History: Provide a brief overview of how the business came into existence. Highlight key milestones or events that shaped the company's growth and development.
• Mission and Vision Statements: Present the company's mission statement, which outlines its purpose and primary goals. Additionally, share the vision statement, which describes the long-term vision and objectives for your business.
• Products and Services: Briefly explain the products or services your business offers, emphasising their unique selling points and how they address customer needs.
• Competitive Advantages: Clearly state the competitive advantages that differentiate your business from others in the market. This could include unique features, patents, proprietary technology, or a strong brand presence.
• Location and Facilities: Provide details about the physical location of your business and any facilities required to operate successfully.

Tips for writing the company description section:

• Interweave storytelling into the company's history, tell the reader about your passion for the business and the journey you’ve been on to get to this point.
• Include strong visuals and infographics.
• Avoid jargon and keep the writing style clear and concise.
• Focus on your company's unique selling point (USP) and how that makes you stand out in the marketplace.
• Back up this information with customer testimonials if possible.

The market analysis section of your gp practice business plan is essential for understanding the competitive landscape and the overall business environment. It is crucial to execute this section effectively as it demonstrates your in-depth knowledge of the market dynamics. This process will enable you, as an entrepreneur, to identify opportunities, mitigate risks, and develop strategies for success.

To conduct a good market analysis, it is important to have a deep understanding of the industry you are operating in. This information will help you make informed decisions about your product or service offerings, marketing strategies, and pricing.

Key elements to include in your market analysis section:

• Industry Overview: Provide a general overview of your industry. Describe the industry's size, growth rate, major players, and key trends. Include relevant statistics and data to support your claims.
• Target Market and Customer Segmentation: Clearly define your target market and outline the specific customer segments you aim to serve. Identify the needs, preferences, and behaviours of each segment.
• Competitor Analysis: Identify direct and indirect competitors in the market. Analyse their strengths, weaknesses, market share, and strategies. Highlight areas where your business differentiates itself from competitors.
• Market Trends and Opportunities: Explore current and future trends in the industry and market. Assess how these trends can impact your business positively and identify potential opportunities for growth.
• SWOT Analysis (optional): Consider including a SWOT analysis specific to your market. This can help you understand your business's strengths, weaknesses, opportunities, and threats in the context of the market.

How to nail the market analysis section?

• Differentiation: Focus on highlighting how your business differentiates itself from competitors, really try to drum home this point.
• Market Surveys or Interviews: Adding surveys or interviews and adding the key findings and quotes in the Market Analysis to support your claims will help reinforce the plans in your document.
• Competitive Matrix: a competitive matrix visually comparing your business against key competitors based on factors such as price, features, and customer service. This matrix is a great visual method highlighting your competitive advantages.
• Emerging Technologies or Trends: Identifying potential disruptions and how your company is prepared for them shows a great understanding of market dynamics and trends.

Looking for more inspiration on how to make your market analysis section even better, then check out our in-depth business market analysis guide.

In this section, we will highlight the core products and services that make your gp practice business unique and valuable. It is essential to showcase what sets you apart from the competition and why your offerings are exceptional. This information is especially important for potential investors, partners, and customers who are keen to understand what sets your business apart in the market.

When describing your products and services ensure you include the following information:

• Description of Products/Services: Provide a clear and concise description of each product or service your business offers. Explain their primary function and how they address customer needs.
• Unique Selling Proposition (USP): Highlight the unique features or benefits that make your products or services stand out from competitors. Clearly state why customers should choose your offerings over alternatives.
• Product/Service Life Cycle: Describe where each product or service stands in its life cycle (e.g., introduction, growth, maturity, decline) and outline plans for updates or new offerings in the future.
• Intellectual Property (if applicable): If your business has any intellectual property (e.g., patents, trademarks, copyrights) related to your products or services, mention them in this section.

Extra elements to make this section stand out:

• Customer Use Cases: Present real-life customer use cases or success stories that illustrate how your products or services have solved specific problems for customers. Use compelling narratives to engage readers.
• Product Roadmap: If applicable, include a product roadmap that outlines future updates, enhancements, or new offerings. This showcases your business's commitment to innovation and continuous improvement.
• Quality and Testing Standards: Discuss the quality standards your business adheres to and any testing processes you conduct to ensure the reliability and performance of your offerings.
• Pricing Strategy: Integrate your pricing strategy into this section. Explain how you've determined the pricing of your products or services, considering factors like production costs, competition, and value to customers.
• Environmental and Social Impact: If your products or services have positive environmental or social implications, highlight them in this section. Increasingly, customers appreciate businesses that contribute positively to society.

The Marketing Strategy Section

Key Information to Include Within the Marketing Strategy Section:

• Marketing Goals and Objectives: Clearly state the marketing goals you aim to achieve. Focus on how you will increase brand awareness and drive customer conversions or leads.
• Target Market Strategy: Describe the specific strategies you will use to reach and engage with your target customers. This could involve digital marketing, traditional advertising, or other channels.
• Pricing Strategy: Explain how your pricing will attract the target market and how it compares to competitors' pricing.
• Promotion and Advertising Plan: Outline the promotional activities and advertising campaigns you plan to execute. Include details about social media marketing, content marketing, email campaigns, and other promotional tactics.
• Sales Strategy: Describe your sales process and how you plan to convert leads into paying customers. Mention any sales team structure and their responsibilities if applicable.
• Customer Relationship Management (CRM) Approach: Discuss how you intend to build and maintain strong relationships with your customers to encourage repeat business and loyalty.

Getting Creative with the Market Strategy Section

• Create a visual marketing timeline.
• Outline influencer or brand ambassador partnerships if applicable.
• Detail key metrics and KPIs.

By infusing creativity and innovative marketing ideas with sound fundamental marketing, you can really make this section stand out and impress potential investors and partners.

The Operation Plan Section

While marketing activities may seem more exciting, operational planning is essential for the success of your gp practice business. This section focuses on the day-to-day operations and internal processes that drive your business forward. By providing a comprehensive roadmap of your resources, workflows, and procedures, you can instill confidence in potential investors that your business is well-equipped for growth.

Here are some key items to include in your operational plan:

• Organisational Structure: Describe the organisational structure of the company, including key roles and responsibilities.
• Key Personnel and Team: Introduce key team members and their qualifications. Highlight how their expertise contributes to the success of the business.
• Operational Workflow and Processes: Provide a high-level step-by-step overview of delivering your product or service, from production to delivery or distribution.
• Resource Requirements: Outline the key resources required to run the business, such as equipment, technology, facilities, and human resources.
• Quality Control and Assurance: Explain how the company ensures the quality and consistency of its products or services, and how it addresses any potential issues.
• Supply Chain Management (if applicable): If the business involves sourcing materials or products from suppliers, describe the supply chain management process.
• Legal and Regulatory Compliance: Discuss any legal or regulatory requirements specific to the industry and how the company ensures compliance.

How to add value to the Operation Plan section:

• Use visuals to outline organisation structures and workflows.
• Outline contingency plans, for example how the company is prepared for supply chain shortages or price shocks.
• Efficiency, efficiency, efficiency. Describe how you have driven efficiency gains for the business.
• Have you considered your business's environmental impact? If so, mention within this section.

The operational section of a business plan does have the potential to be dryer than more exciting elements such as marketing, however, by incorporating creative elements and forward-thinking workflows you can help keep reader engagement high.

The Financial Projections

The Financial Projections section can make or break a business plan. Always include well-researched and accurate projections to avoid undermining your business plan and losing out on potential investment. What to include in the financial projections section:

• Sales Forecast: Provide a detailed projection of the company's sales revenues for each product or service category over the forecast period.
• Expense Projections: Outline the expected operating expenses, including costs related to production, marketing, salaries, rent, utilities, and any other significant expenses.
• Profit and Loss (P&L) Statement: Present a comprehensive Profit and Loss statement that summarizes the business's revenue, cost of goods sold (COGS), gross profit, operating expenses, and net profit or loss for each year of the forecast.
• Cash Flow Projection: Include a cash flow statement that outlines the inflows and outflows of cash over the forecast period. This will help identify potential cash flow gaps.
• Break-Even Analysis: Perform a break-even analysis to determine the point at which the business's total revenue equals total costs, indicating when it becomes profitable.

How to add value to your financial projections section:

• Be prepared to defend your assumptions with data. If you are planning for a high-growth % make sure you can justify this assumption. If in doubt the more conservative the better.
• Include visuals that help readers quickly grasp the trends and patterns in revenue, expenses, and profits.
• Offer different scenarios based on varying assumptions. For example, present a conservative, moderate, and aggressive growth scenario.
• Include key financial ratios like gross margin, net profit margin, and return on investment (ROI).

The Funding Request and Use of Funds Section

This section outlines the financial requirements of the company and how the requested funds will be utilised to support its growth and operations.  Providing potential investors or lenders with a clear picture of how their money will be used will improve the business case for the funds and provide further confidence to investors. What to include in this section?

• Funding Request Amount: State the specific amount of funding you are seeking to obtain from investors, lenders, or other sources.
• Use of Funds: Provide a detailed breakdown of how the requested funds will be allocated across different aspects of the business. Common categories include product development, marketing, operational expenses, hiring, equipment, and working capital.
• Timeline of Funds Utilisation: Outline the timeline for utilising the funds. Specify when and how the funds will be disbursed and the expected milestones or deliverables associated with each funding phase.
• Expected Return on Investment (ROI): If applicable, include information on the expected ROI for investors. Highlight the potential for financial gains or equity appreciation over time.
• Repayment Plan (if applicable): If seeking a loan, provide a clear repayment plan that outlines the repayment period, interest rate, and the proposed schedule for repayment.

How to maximise this section?

• Create a visual timeline for key milestones such as the initial investment and key payback periods.
• Outline risk mitigation plans to instil confidence.
• Reiterate the company's long-term vision and how the funds can help achieve these goals.

As you near the end of your gp practice business plan, it is crucial to dedicate a section to outlining potential risks. This section holds immense significance as it can greatly influence the confidence of potential investors. By demonstrating your market awareness and addressing challenges head-on, you can instill trust and credibility.

When conducting a risk analysis for your gp practice car rental business plan, consider including the following:

• Identification of Business Risks: Enumerate the key risks and uncertainties that could affect the business. These risks can be internal (e.g., operational, financial) or external (e.g. market changes, regulatory changes, economic downturns).
• Impact Assessment: Analyse the potential impact of each identified risk on the business's operations, finances, and reputation. Rank the risks based on their severity and likelihood of occurrence.
• Risk Mitigation Strategies: Present specific strategies and action plans to mitigate each identified risk. Explain how you will proactively address challenges and reduce the negative impact of potential risks.
• Contingency Plans: Describe contingency plans for worst-case scenarios, outlining how the business will respond and recover from significant risks if they materialise.

How to make your risk analysis stand out?

• Add context with real-life examples. Are there similar businesses that have dealt with risks successfully in a similar manner to your strategy? This will add credibility to this section.
• Create adaptive strategies that demonstrate your business’s flexibility and adaptability.
• Outlining the responsible person for each risk and how they own it, giving further confidence in your risk management strategies.

Some additional information you may want to include in your business plan for gp practice:

• Customer Surveys and Feedback
• Letters of Support or Intent
• Legal Documents (e.g., licenses, permits)
• Resumes of Key Team Members

A Business Plan For Gp Practice Wrapping It All Up

A business plan is one of the most important documents that you will create about your business. It can literally be the difference between securing additional finance or missing out. Developing your business is not an easy task, however, the opportunity to think about your business in such detail will no doubt help you develop new and important insights along with new ideas and strategies. With all sections of your business plan and especially the financial plan, be prepared to defend your position to potential investors or lenders. This means that you should never publish anything that you can’t back up with additional data or rationale. Business Plans are not created overnight so take the time to research and think about each section properly, always try to support your claims and strategies with market insight and data. We hope you’ve enjoyed reading this guide, if you are looking for more tips on creating a business plan check out our learning centre .Good luck with your next business endeavour! Action Planr

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Learning ZoNe

How to Write a Business Plan for an Outpatient Medical Practice

Noah Parsons

16 min. read

Updated February 7, 2024

Free Download:  Sample Medical Practice Business Plan Template

So you’re thinking about starting your own outpatient medical practice.

You probably have many good reasons to open a private practice. Private practices can be lucrative, although it requires you to spend time building relationships with patients while also attending to all business processes that are part of running your practice .

Maybe you want more autonomy over your practice and your workflow. Or maybe you hope to expand your services to underserved areas or specific populations based on your expertise.

If you’re thinking about starting an outpatient medical practice, one of the first things you should do is write a business plan. Even if you’re able to self-fund your practice and don’t need outside investment, your business plan is a great tool for thinking through all the different aspects of building a profitable and sustainable practice.

You should go into this thinking about your business plan as a living document, not something you do once and then file away forever. Use it as a tool, especially around your financials. Revisit and update it regularly by comparing your forecasts to your actuals and adjusting as necessary.

To help you get started, you can download our free business plan template . If you’ve never written a business plan before, Bplans also offers a library of sample medical business plans that you can review or even download to use as a model.

• Executive summary

The first section that will appear in your business plan is the executive summary . But before you dive right in, it’s the section of your plan that you should actually write last. It’s a summary and an overview of your outpatient medical practice and your plans, so it will be easy to put together after you’ve written the rest of your plan.  

Executive summaries are short—keep it to one to two pages. Keep in mind that if you’re using your plan to get funding, investors and banks tend to read your executive summary to get a sense of whether to read on and consider your request. Do not neglect it; just write it last.

Your executive summary will include the following sections:

• Who you are: Your business name, location, and contact information.  
• What you offer and the problem your business solves: What does your practice offer and why is it needed? This is your value proposition .
• Target market: Who is your ideal patient? Do they self-pay or use insurance? Be specific.
• Competition: Who else is offering similar services?
• Team: Who is on your management team?
• Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Mention your funding needs.
• Milestones and traction: How have you validated that there’s a need for your practice in your location?

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Now that you’re familiar with what’s included in your executive summary, tuck that information away, and get to work on the rest of your plan.

Think of the next few sections of your plan as the overarching description of your practice’s business opportunity. You’ll cover the problem you’ve identified and the solution that your practice offers. Then you’ll think through your ideal customer , your competition , and your opportunities for growth . This section area should describe the services you provide and how they benefit your patients.

• Problem and solution

First, describe the problem that you’ve identified and how your practice solves that problem. Here’s a brief example:

The problem : There is a lack of affordable pediatric and gynecological care available in coastal areas of Lane County, Oregon. Many patients have to travel miles to the closest practice.  

The solution : Dr. Gardner plans to open Ocean Lane Outpatient Care to serve smaller Oregon coastal communities scattered outside of major towns with major hospitals. Due to her focus on pediatric and gynecological care, Dr. Gardner’s particular services are especially valuable in this location due to the lack of available service providers in the area. Dr. Gardner’s practice will accept private insurance and Medicaid, as well as a sliding scale for patients in a certain income bracket.   

The services section identifies what kind of medical practice you are opening. Restate who your practice serves and what kind of services you specialize in. Talk about how your practice approaches treatment and what goals you have in addition to providing quality care. Here’s an example from a sample business plan for a medical practice.

Include a breakdown of all services furnished by the clinic, being as granular as possible. For example:

Gynecology:

• Annual women’s wellness exam

Pediatrics:

• Immunizations
• Youth eating disorder treatment
• Target market

Next, talk about your ideal patients. If you’re in the earliest stages, you’ll want to do some research that verifies your hypotheses.

For example, Dr. Gardner would have needed to verify her assumption that people in coastal towns in Oregon are in need of pediatric and gynecological services—a need that isn’t currently satisfied by available resources.

A formal market analysis can help verify that there’s a need for your particular practice in your intended location.  

Your target market section should include:

• TAM, SAM, and SOM: Total Available Market (TAM), Segment of the Available Market (SAM), Share of the Market (SOM). Here, you are looking at the difference between targeting everyone: TAM (all people who need medical care—so all humans in your area), versus your ideal clients: SAM (maybe this is those with certain insurance or ability to self-pay), versus the number of new patients you think you can realistically reach: SOM, especially within your first few years. The idea is that not everyone will be an ideal patient. It matters because you can waste a lot of money with marketing outreach to everyone, instead of targeting a specific population that is more likely to be looking for your services.
• Buyer persona : Imagine there’s one specific patient who represents your ideal patient. Be specific. Maybe she’s 34 years old, has private insurance, is relatively healthy, but needs more regular medical care and advice.  
• Competition and competition matrix : List competitors and analyze what makes them competitive. For instance, your competitors might be large hospitals because of the wide range of services they offer. You might also be competing with local chiropractors or other alternative medicine practices that already have a foothold in local communities.
• Future products and services : Name the products/services you will offer as your practice grows and earns more money and as your patients develop new needs. Maybe you will want to open a second location when you gain enough patients. Or maybe you will want to extend your practice’s hours of operation.

Ideal patient profile

Your ideal patient profile identifies the type of patient whom you hope to attract and retain. To clarify, this does not mean you only serve your ideal patient type. Rather, focusing your outreach efforts on attracting your ideal patient will allow you to grow your practice more effectively than targeting a large number of patients who may or may not be in the market for your practice’s specialty.

When developing your ideal patient profile, consider:

• Who you enjoy working with
• Who needs the services you provide
• Who can and will pay your pricing (or have an insurance plan that you want to accept)

For instance, because Dr. Gardner specializes in preventive and curative care, a patient seeking palliative treatment for terminal cancer is not the ideal patient. This patient would not receive the best care for their needs from Dr. Gardner’s services.

Acquiring a new patient is six to seven times more expensive than retaining a current patient. In order to support and retain current patients, develop a strategy to proactively meet their needs and set benchmarks to measure the success of your strategy.

• Execution: How your practice will respond to the opportunity

First, your business plan laid out the opportunity at hand. Now, the rest of your plan will focus on how to take advantage of that opportunity. Now is the time to lay out what you’ll do to attract patients and set up a viable business model with healthy financials.

Components of this section include:

• Your marketing and sales plan
• Strategic partnerships or alliances
• Your operations plan
• Your team and company information
• Financial plan
• Milestones and metrics that you’ll need to hit to be viable
• Your key assumptions and risks
• Your funding ask and exit strategy, if applicable
• Marketing and sales plan

The marketing and sales component of your plan should include how you plan to reach the patients in your target market, how you’ll bill for your services, and what you need to do to bring in the right number and type of patients.

• Positioning : Describe how you will present your company to your customers with your positioning statement . Think about answering these questions: What are you offering your patients that they can’t get elsewhere? Why should they pick you instead of another practice? Where do you see yourself in the competitive landscape? Use this model to help:

“For [target market description] who [target market need], [how our business offering meets the need]. Unlike [key competition], it [most distinguishing feature].”

For [coastal community members] who [require gynecological care], Ocean Lane Outpatient Care [provides both pediatric and women’s health services]. Unlike [other area medical practices], Ocean Lane Outpatient Care is [conveniently located near the communities it serves and can fill the gap between pure pediatric care and full-blown adult care for young women].

• Pricing and billing : Medical pricing is complex, especially if you plan to work with insurance companies. Practice Builders says that “a 10 percent increase in pricing can result in a much better return than a 10 percent reduction in costs—or even a 10 percent increase in patient volume.”

Make sure you price your services at what they are worth and explain your pricing to your patients. Consider the demographics your practice serves when you choose your pricing. Research other practices in the area and learn more   about how you can choose the best prices for your patients and your practice.Also, consider how you will get patients to keep coming back to your practice. Sometimes you can increase sales by upselling and cross-selling , or offering complementary services.

If you accept insurance, the contracts you set up with insurance companies for reimbursement will probably dictate your pricing, so this is a good place to talk about your negotiation strategy as well.

• Update your website and social media frequently and ensure your website is mobile-friendly and share-friendly with credible links added.
• Make sure all communications with and about patients are HIPAA-compliant . Download a HIPAA Compliance Guide to ensure you are following regulations.
• Maintain a positive online reputation for your practice as a key management technique. You can do this by claiming your profile on any third-party sites that list it. Encourage your patients to review you online, too.
• Strategic alliances : List any people or organizations with whom you are working. You will most likely need to partner with a regional lab for medical testing. Opening an on-site lab can be costly for a smaller practice. You will most likely need to partner with a nearby hospital as part of a referral system or to share select services and equipment.

The operations section of your business plan covers how your business works, from the logistics to the technology.

• Technology: Describe how your technology works, but do not go into too much detail. Investors can ask for more information if they want to. Will you rent or buy equipment ? The technology you need ranges from simple items like thermometers to more complex items like centrifuges.
• Billing and information storage: Provide a brief overview of how you will manage information technology and patient records to promote safety, efficiency, and compliance with HIPPA  regulations and industry standards. Explain your usage of Electronic Medical Record (EMR) software in this section.
• Payment types you accept: Consider payment types such as private pay, private insurance, Medicaid/Medicare, etc. What kind of referrals can you offer to the uninsured or those who cannot afford your services?
• Milestones and metrics

In this part of your plan, you set measurable, achievable milestones, such as the number of new patients added per month in the first year of operations. Milestones can be about any aspect of your medical practice as long as they emphasize growth. For metrics , decide which numbers to check regularly to track your company’s health. This area should also include information about traction (past successes) and risks:

• Traction: Look back at major milestones you have achieved. Hopefully, they demonstrate that your business model works and that you are filling a need for your market. If you’re looking to attract private funders, this section is important since it shows your initial success .
• Key assumptions and risks : Acknowledge the assumptions you are basing your business on. Set out to prove them right if you can. Also, discuss risks so that investors know you have considered what could go wrong and that you have a plan for dealing with challenges. Malpractice suits and changing healthcare regulations are risks specific to the healthcare field. Malpractice insurance is a must for addressing the former. Changing healthcare regulations can affect the volume of patients who are able to afford your services.

Your team can be more important than your product or service. Describe your team here, even if it is just you and a receptionist who answers the phone in your office building.

• Management team and qualifications: Address who works for you, what do they do, and how much you pay them. Compile the details of their relevant experience and education.
• Hiring plans : Outline who, if anyone, you need to hire to fill skills gaps in your management team and how much you plan to pay them.
• Company overview

The company overview tells about who you and your staff are and appeals to potential investors. Keep it short—it should be the shortest chapter of your business plan but is still very important.

It needs to include these elements:

• Mission statement : Your mission statement articulates your goals for what your company does for its customers, employees, and owners. It will read something like this: “Our mission is to provide X (services) for Y (customers) by Z (methods).” For instance, Ocean Lane Outpatient Care is dedicated to providing quality care for all the inhabitants of coastal Lane County by providing affordable and versatile services.”
• Intellectual property : List any patents you have or have pending, and mention any core technology you are licensing from another company.
• Legal structure and ownership : Explain your business structure and who owns how much of it. More on considerations for physicians and legal structure here.
• Business location : Describe the company’s location and any facilities it owns.
• Company history if it’s an existing company

Having a solid financial plan is critical, whether you’re seeking funding or not.  A typical financial plan includes projections by month for the first year and annual projection for the next three to five.

Include these key elements:

• Profit and loss statement : this explains how your business made a profit or incurred a loss in a given amount of time (typically three months) by listing all revenue and expenses, then documenting the total amount of net profit or loss.
• Cash flow statement: documentation of how much cash the business brought in, how much it paid out, and the amount of its ending cash balance (on a monthly basis).
• Balance sheet : snapshots how your company is performing at a given moment by including how much money you have in the bank, how much your customers owe you, and how much you owe your vendors.
• Sales forecast : projections of what you think you will sell in a given timeframe (one to three years).
• Business ratios : Comparisons of your company’s financials with numbers from the industry profile.
• Keep it brief. For example, Dr. Gardner will employ administrative aides and nurses.
• Use of funds : Needed if you’re seeking investment or a loan. This section explains how you will use investors’ money.
• Exit strategy : You only need this if you’re seeking outside investment. An exit strategy is a method by which entrepreneurs and investors, especially those that have invested large sums of money, transfer ownership of their business to a third party to recoup money invested in the business. Common exit strategies include being acquired by another company, the sale of equity, or a management or employee buyout.

When writing your financial plan, make sure to consider startup costs . For a medical practice, average startup costs can include initial fees, malpractice insurance, cost of renting or leasing office space, and the cost of any legal or tax advisors.

Consider submitting your plan to at least five to 10 banks if you need help financing your startup costs. Many banks have divisions designated to providing loans to new dental and medical practices , so submit your plan to that division if you can. Startup costs can be high in the medical field, so make sure not to underestimate them.

Finally, your appendix is the holder for any supporting information such as charts, images, graphs, and more. If you need to include large sets of data or pages of information, put it here. That way, it is available but does not distract from the plan’s most important pieces.

For instance, you can expand on your personnel plan with charts of each employee’s annual insurance costs. You can also include versions of your profit and loss statements and other financials that extend further into the future.

Don’t forget to go back to your executive summary! Remember to keep it brief and write it based on what you have written already.

When you’re ready to write your business plan, there are an array of resources available to you. Download our free business startup checklist to think about the next steps. Also, check out our free business plan template . Reviewing sample business plans in the medical field can help you get a better sense of the process and information you’ll provide. Downloading this plan for a family medicine clinic will probably be most helpful if you’re setting up a primary care practice.

Remember that this plan is a living document. Schedule a regular business plan review meeting. You should review your trajectory and compare your financial projections to your actuals frequently to keep your practice on track.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Position your practice’s business opportunity

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10 Steps to Create Your Medical Practice Business Plan

#4. Perfect Your Business Operations

Business operations is how your practice functions day-to-day. While a plan allows you to come up with strategies, business success is mostly an outcome of quality execution. The scope of business operations span across every function like finance, marketing, HR, and so on. Even though business operations can only begin post launch, you can start learning about operations.

Best organizations aim for process-driven and result-oriented operations. — For instance, you can use methods like  Objectives and Key Results  (OKRs) — a collaborative goal-setting process that helps you improve organizational performance.

While a general management experience allows you to deal with many scenarios, you can also list down and think how to go about the critical ones. For example:

• What should your staff do to deliver the best experience?
• How can you resolve patient issues quickly?
• How will you conduct monthly performance reviews?

#5. Bring a Financial Discipline

Working capital, billing, rent, mortgage, taxes, insurance, utilities,… there are too many things to account for. Unlike other areas like operations and marketing, you may not be able to make quick decisions for finances. So the earlier you get involved in financial planning, the better is your ability to control the outcomes.

If you don’t have any financial expertise, use basic calculations including investments, recurring expenses, and income. You can consider financial projection for upto three years to get an approximate idea about your finances. To bring financial discipline to your practice, you must use budgeting. Budgeting ensures that you will have enough money for the things you need and reduce overspending on unnecessary things.

#6. Don’t Ignore Marketing

Marketing is more than advertising and brand building. It includes several other things like getting feedback from customers, doing competitor analysis, and pricing correctly. So marketing is not a gimmick, but an important process for growth of any business. If you are not marketing, you could be leaving the growth of your practice to chance.

Even when you don’t want to advertise, there are a few other great ways of promoting your practice. For example, asking your patients for reviews on Google Maps will improve your visibility in local searches. Another great way is to post content like blog articles, videos, podcasts, etc that your patients find useful and get to know about you.

Since every practice has its own unique factors like demographic, location, etc, marketing requirements differ. So the marketing has to adapt to your unique situation rather than going for mainstream ideas. For example, if your patients are of an older demographic in a rural area, radio ads could be the best way to get the word out about your practice.

Marketing deserves special attention in your business plan. Your plan can focus on gaining maximum exposure to your potential patients. Even if that requires additional investments. By prioritizing growth over recouping investments early, you create a long-lasting traction for your practice.

#7. Check Government Laws & Regulations

The US federal, state, and local authorities have rules to protect the public, promote access to care, and to ensure that medical providers adhere to the rules. Laws and regulations are complex. So you need to have a thorough understanding of them before starting your practice.

This is a list of a few important laws and regulations for healthcare providers in the US:

• Healthcare Quality Improvement Act (HCQIA)
• Children’s Health Insurance Program (CHIP)
• Hospital Readmissions Reduction Program (HRRP)
• Health Insurance Portability and Accountability Act (HIPAA)
• Patient Safety and Quality Improvement Act (PSQIA)
• Affordable Care Act

You can learn more about US healthcare laws and regulations  here .

#8. Hire the Best

People are the heart of any organization. Having the right staff relieves you from everything else and let’s you focus more on providing better healthcare. It’s almost like putting everything else on auto-pilot. However, recruiting is not easy. You may have to put more effort than you planned for hiring. Additionally, you must research and plan for competitive salaries, work schedules, and training.

Here are a few websites to find experienced staff for your practice:

• Healthcare eCareers
• JAMA network
• Medical Jobs

#9. List Down Equipment and Other Requirements

The most straightforward part of your business plan is to list down all the equipment and essentials. Here’s a short list you can use:

• Clinic Equipment:  Stethoscopes, exam tables, otoscopes, blood pressure monitors, and other monitors
• Office Equipment:  Computers, printers, network equipment, phones and payment machines
• Supplies:  General medicine, disinfectant, anaesthetic, gloves, scalpels, syringes, gauze, and bandages
• Network Services:  Phone networks, internet, utilities
• Clothing:  Lab coats, uniforms, and name tags
• Furniture:  Tables, chairs, and decor

#10. Perform a SWOT Analysis

SWOT is an abbreviation for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis allows you to have a clear overview of your practice. It will force you to look at your practice from new perspectives. This final step is one of the most crucial ones.

To create a SWOT analysis, you can critically analyse all areas of your practice and list down your conclusions in columns with S, W, O, and T. While strengths and weaknesses are internal factors, the opportunities and threats are external factors to your practice. The conclusions must be simple, objective, and short.

Towards Launching Your Practice

A business plan allows you to define, strategise, and gain clarity through all areas of your medical practice . Remember that a business plan is not set in stone. Planning is a continuous activity, and needs periodic reviews and updates. You are always moving through the plan-execute-review cycles. Though it may seem complicated, investing time for thoughtful planning can make your practice successful.

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How To Write a Business Plan for Opening a Medical Practice

After you have finalised (or semi-finalised) your decisions from the  first six steps , it’s time to put it all together in your business plan.

Your business plan should articulate your short and long term strategy, and have details on marketing, staffing, and patient retention plans, as well as how you will get your practice up and running and meet your financial forecasting.

This document demonstrates your organisational and planning skills to key stakeholders, and is essential to have if you intend to secure finance for your practice.

To complete everything you will most likely need to enlist some specialist input from accountants, financial planners, and legal advisors. Our suggestion is to surround yourself with subject matter experts, and reach out to other people in your network who have started and ran successful medical businesses for advice.

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There are many ways to create a business plan for your practice, and no two plans are the same. To get you started, we’ve collaborated with some of our practice owners to get their collective advice on assembling a business plan checklist for you. We have broken this checklist template down with the following segments:

Business Summary

Your business summary is something that is usually written last. It is a short overview of the information following in your business plan and should be no longer than one page. Many people write this piece last, after all the information in their business plan has been collated.

Here’s what should be included in your summary:

• Brief business overview
• Business owner/s biography
• Products and/or services offered
• Competitive advantage
• Operational performance
• Financial position

Business Profile

The Business Profile should include an overview of all the details about your clinic. It should include the why, where, and what.

• Vision, mission, values
• Trading Hours
• Services: in-house/onsite/other
• Service fees: Billing model, bulk billed/mixed pricing
• Accreditation

This segment of the business plan outlines your practice location (either something you have already secured, or your ideal location. You might want to consider including floor plan and any other location based documents in your appendices section.

Outline the following:

• Location address
• Location description
• Buy / Build / Lease (what have you done/what are your intentions)
• Sub letting opportunities – are there any opportunities for allied, pathology, pharmacy
• Fit out and design plans and costs
• Parking: Patients, staff, practitioners
• Access: Public transport, foot traffic, disabled, ambulance
• Area demographics
• Area-based future developments
• Area competition

Marketing Strategy

The Marketing Strategy outlines everything from branding to advertising. How are you going to get new patients coming through your door? What is your branding strategy? Where do you sit in the market?

• Practice name
• Practice brand
• Target market demographic (should tie in with segments of the area demographics)
• Unique value proposition
• Advertising and promotions (online, offers, affiliations)
• Launch plan
• Post-launch plan
• Marketing goals

Competitive Analysis

The competitive analysis section needs to demonstrate the depth of your understanding of the environment you will be opening a practice in. Your competitive advantage should also outline how your clinic is different and why patients will choose you instead of your competitors.

• Opportunity assessment
• Demographic review
• Supply vs demand
• Direct competition list (include services offered, location, pricing etc)
• Your competitive advantage

Business Structure

• The Business Structure demonstrates how the business is/will be legally set up and should indicate that you have ongoing legal expertise to ensure the stability of your practice.
• Growth flexibility (unit trust/partnership etc)
• Exit and succession planning
• Legal framework (Eg: Unit holder agreement)

Supplier Breakdown

In this section, outline the different suppliers you intend to form agreements with for your practice. Include an overview, details of goods, and basic pricing/contract arrangements.

• I.T. hardware and support
• Online booking system
• Medical equipment
• Medical consumables
• Stationary and amenities

The Staffing section is an overview of the strategies you will use to attract and retain staff, practitioners, and list any key staff you already have on the team.

• How will you attract practitioners
• Practitioner remuneration (wages vs contractor and billing %)
• How will sessions be rostered

Medical practices need very comprehensive insurance. In this section outline the cover you have for the piece of mind for your financiers and stakeholders.

• Public liability
• Professional indemnity
• Directors liability
• Workers compensation
• General insurance

Financial Planning

The Financial Planning section should demonstrate that your business is financially viable. Include comprehensive outlines and numbers for the following:

• Budgets: Setup and operating costs
• Funding needed/secured and sources
• Profit and loss modelling
• Tax planning

Phew! Still with us after all that? There’s a lot that goes into creating a solid business plan. Fortunately we’re the experts, and we can help you get things right from the start. Download our Business Plan Checklist  or find out more about how HealthEngine’s suite of tools can help grow your new practice.

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28 February 2017

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Creating a business plan for your practice

Anthony Brand advises on how to develop the perfect business plan

Every practice should be thought of as a business and it is vital that these businesses set a budget, especially in the current uncertain NHS economy. 

The first step is to understand that the business plan and the budget should be developed as separate processes. Here’s the difference. The business plan is a statement of strategic objectives and an outline for how these objectives will be met. The budget is an essential part of the business planning – it is an estimate of income, costs and cash flows over a specified period. It should reflect the objectives set by the business plan and other events that are forecast to occur.

The budget will be drafted ahead of the business plan so that the strategy can be formulated. Once the strategy and business plan are agreed the budget can be fine tuned.

Start planning

Another misconception is that business plans are primarily for new practices or for raising money. They are, however, important for all practices. Given the changes in contracts, government policy, the NHS labour market and the economy in general, a specific plan that confirms your key objectives is essential. It should outline how your practice will remain profitable, how many patients it will take to generate income at current contract rates, and how you are going to achieve your objectives.

It might help to look at what NHS England says about its own business plan for 2016/17.1 It sets out 10 priorities, organised under three headings:

1. Improving health – closing the health and wellbeing gap.

2. Transforming care – closing the care and quality gap.

3. Controlling costs and enabling change – closing the finance and efficiency gap.

NHS England chair Malcolm Grant says in the plan’s foreword: “Our responsibility is to allocate and invest these funds wisely to improve health and wellbeing, secure high-quality care, derive value for money for the public’s investment and create a sustainable future for the NHS.”

As a specialist medical accountant my responsibility is to help GP practices achieve the third point above.

Drafting the budget is the first step. Here are the main components.

1. Income and expenditure

Income and expenditure must be forecasted, broken down into the main elements, which should mirror the categories in your practice accounts.

• Global sum.
• Correction factor.
• Enhanced services – in detail.
• Notional rent.
• Reimbursements.
• Other NHS income.
• Non-NHS income.

Expenditure:

• Manpower costs (see below).
• Administrative/office costs.
• Medical expenses (drugs and subscriptions).
• Bank charges and interest.
• Depreciation.

2. Manpower costs

Manpower is the only cost where significant changes may be made by the partners. Getting the optimum level is crucial to efficiency and profitability.

The manpower budget should be broken down into:

• Non-partner doctor costs – salaried GPs and locums.
• Clinical non-doctor costs – nurses, healthcare assistants, pharmacists.
• Administrative staff – management, secretarial, reception.

Don’t forget to include the cost of employer’s national insurance and superannuation contributions, both of which are significant.

3. Benchmarks 

Compare your income and expenditure per patient and per partner with other practices. Looking at local norms will give you an indication of whether your budget is realistic.

An accredited specialist medical accountant should be able to provide you with benchmarking figures.

4. Profit allocation

Having struck a realistic profit forecast you should allocate this among the GP partners as agreed between them. This is also a good time to check that you have an up-to-date, signed partnership agreement.

5. Partners’ drawings

The profit allocation will represent the projected drawings and will take account of:

• Superannuation contributions.
• Tax and national insurance contributions (if saved in the practice).
• Loan repayments.
• Specific items (for example notional rent or seniority).
• An agreed amount to be retained.

With partner drawings calculated, it is now possible to feed all the above components into a month-by-month cashflow forecast. This also should take account of other changes such as:

• Partner changes and capital repayments and introductions.
• Changes in premises and loans.
• Other likely circumstances dictating a financial impact.

Summary of two to three-year forecast

For the purposes of a business plan, your budget should include a summary profit and loss forecast for years two and three. Admittedly this will be educated guesswork based on the 12-month budget – but it will help the parties reviewing the business plan to focus.  

The business plan

The budgets will be a part of the business planning discussion and a revised budget may be created as a result. The following is how it might be created. 

What is it?

A consensus or agreement by the partners of how the practice should perform over a specified period – which I suggest is the year ahead and then the next two years in outline.

How is consensus reached?

All partners must be allowed to air their views and state their personal objectives and vision for the practice.

I like the idea of a partners’ away day or time-out meeting. A Saturday morning works well for GP practices. Here are some key points to consider when planning an away day:

• Everyone who should participate does so, and is allowed to state their own objectives. If a GP is intending to retire in 12 months’ time, this is when they should tell everyone. 
• A facilitator (perhaps independent of the practice) can help at the meeting to resolve conflicts and help put together the consensus. They are not there to lecture.
• A written action plan is created.
• A follow-up meeting is scheduled.

What should you talk about?

A SWOT analysis – strengths, weaknesses, opportunities and threats – should allow you to cover most issues. 

In looking at SWOT consider questions such as:

• What do we do well? l What do we do badly or inefficiently? l What are our neighbours doing? Should we talk to them?
• What forthcoming events do we need to plan for?
• Are we paid for everything we do?
• Are we sure that all services turn a profit?
• How will contract changes impact on us?
• Do we pay ourselves too much?
• Are our financial controls strong enough?
• What feedback do we get?
• Do we need more patients? 
• How will contract changes impact on them?
• Have we got the right staff mix?
• How good is staff morale?
• When was the last time we took notice of staff suggestions?
• Have we got the right partner/GP mix? 
• Are our premises up to scratch?
• Are we using our premises as much as we could be?

Inevitably the practice’s budget will scrutinised as part of this review. Benchmarking of performance against similar practices is of great value in pinpointing strengths and weaknesses.

Strategic planning pitfalls

Common pitfalls practices encounter in strategic planning are:

• Not involving everyone. 
• Being unable to reach a consensus – not being able to write down the plan will result in failure. 
• Failure to implement the plan – this is the biggest mistake.

Creating the plan

Once the budget has been prepared and the strategy agreed, the next step is to create a written plan. How long should the plan be? Well, it’s a plan, not a work of art – so be concise so that everyone is inspired, not bored into inaction. Points to include:

• An executive summary of action points.
• Where the practice is now.
• SWOT analysis.
• Partners’ personal objectives.
• Practice objectives and goals.
• Forthcoming challenges in meeting those objectives.
• Proposed action and responsibilities.
• Financial implications (budgets).
• Procedures for monitoring and review.

A business plan is only a plan, but it provides specific goals to work towards and can be a simple way for practice managers and their GP partners, even those with limited business knowledge, to take control of issues and reduce them to manageable tasks and ideas. But everyone must buy into it. As Stephen Hawking said: “Intelligence is the ability to adapt to change”.

1. NHS England Business Plan 2016/17. www.england.nhs.uk/publications/business-plan/

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General Practice (GP) Business Plan Template

Download this General Practice (GP) Business Plan Template Design in Word, Google Docs, Apple Pages Format. Easily Editable, Printable, Downloadable.

Are you a general practitioner who’s looking for a business plan to successfully practice your profession? If so, then you are in the right place! We  offer you our General Practice (GP) Business Plan Template and get to practice more efficiently and productively. When you utilize this business template, it will help you achieve your business goals as well as anticipate any issues that may arise along the way. This template comes with a comprehensive suggestive content that you can make use of by just simply replacing highlighted texts with your own details. Save yourself the hassle and get more done by downloading this GP Business Plan template today!

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GP mythbuster 69: Business continuity - arrangements for emergencies and major incidents

We have updated this mythbuster to include more detail on the features and content of an exemplar business continuity plan.

GP practices need to plan for and respond to a number of wide ranging incidents that could affect health or patient care.

Pandemic influenza remains one of the top risks for the UK and any outbreak will have significant implications for primary care. Therefore all practices should plan for pandemic influenza as part of their business continuity arrangements. Practices should ensure they have identified core, essential services and can maintain these when faced with an increase in patients with influenza-like symptoms whilst possibly experiencing staffing disruptions arising from the outbreak.

Other incidents and emergencies could be extreme weather conditions, a major traffic accident, industrial action or loss of premises. Planning ahead should enable your practice to recover more quickly and continue to provide a service to the population you serve.

The Civil Contingencies Act (2004) provides a framework for what tasks should be performed in the event of a civil emergency and how organisations should cooperate. Some NHS organisations are identified as ’category one‘ responders who have a legal duty to develop robust continuity management arrangements to help them maintain their critical functions in a major emergency or disruption. Practices are not in ’category one’, but it is good practice for all providers of NHS funded care to act as if they were and to develop robust business continuity management arrangements.

Business continuity plans

When planning, practices may find it useful to collaborate with other users of their premises or with neighbouring practices. This can be particularly important for services that operate from a single location or when the issue affects multiple services (such as bad weather or influenza).

Arrangements should be responsive to incidents that have a short, medium or long term impact on the running of the practice. Some scenarios to consider when developing a business continuity plan are:

• Significant numbers of staff could not come into work
• IT systems were disrupted significantly
• You could not use your premises for a period of time
• Paper records were destroyed or damaged beyond use
• A supplier was unable to deliver essential goods or services.

A robust plan should:

• Name a person responsible for delivering business continuity
• Reflect local risk registers and NHS England’s Core Standards for Emergency Preparedness, Resilience and Response
• Set out key functions needed to deliver services
• State a maximum acceptable disruption time for these functions
• Describe how the key functions will be restored within the maximum acceptable disruption time
• Identify key materials, external services or staff required to maintain patient care

Exemplar plans may incorporate:

• Key roles and tasks to be undertaken to respond to an incident
• Prompts (for example action cards) to support an individual undertaking a role or task
• Key information needed to restore practice function (account/contract details, contact numbers etc.)
• Processes for collaboration with other services and across a health community
• Systems for ensuring that the most up to date plan is available on and off site at all times
• Systems to test key elements of the plan and identify lessons learned
• local health service providers
• key stakeholders including NHS England, CCG and CQC (see GP mythbuster 21: Statutory notifications to CQC ) .

Our inspections

Key line of enquiry S5 considers how well a practice anticipates and plans for potential risks to the service. During an inspection we will look at what arrangements are in place to respond to emergencies and major incidents.

Further resources

NHS England has produced a management toolkit with examples for practices to consider - NHS England Business continuity toolkit

Practices may wish to contact their CCGs or local area teams – some have developed template business continuity plans.

GP mythbusters

Snippet gp mythbusters rh.

Clearing up some common myths about our inspections of GP and out-of-hours services and sharing agreed guidance to best practice.

See all issues:

• GP mythbusters: listed by key question
• GP mythbusters: full list
• GP mythbusters: recently updated

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Buckland Medical Centre

Tara surgery, introduction.

The purpose of this Continuity Plan is to provide both a first response and a framework under which the Practice may be managed and continue to operate under exceptional and adverse circumstances.

Source Documentation

A copy of this document is kept off the premises in hard copy by the Practice Manager and at least one of the partners, who will also hold a hard copy off the premises where it is easily accessible in the event of an emergency. The document is also available online at practice website.

General Responsibilities

Practice manager.

Responsible for

• Preparing the initial draft of the plan
• Reviewing the plan annually or at agreed intervals
• Updating the plan as changes occur (e.g. in personnel)
• Distributing the plan to all staff by the agreed means below at each update
• Holding a hard-copy and an electronic copy of the plan at work and at home
• Ensuring that the patients receive up to date information regarding the situation by the designated means (see below)
• Liaising with NHS England and other health bodies / services

Responsible for:

• Holding a hard-copy of the plan at work and at home
• Contributing to the plan content
• Initiating response / recovery action as detailed below
• Liaising with the press / media if appropriate
• Holding a hard copy or an electronic copy of the plan accessible from home
• Advising  Sue Thatcher  of changes to personal circumstances to allow the plan to be updated.
• Dealing with patient enquiries and informing other health service personnel as directed.

This plan will be distributed to the partners and staff to hold at each update, and contributions or comments will be invited from everyone.

The Partners and the Practice Manager as a collective body will be responsible for implementing the plan in the event of a recovery situation.

IMMEDIATE RESPONSES FOLLOWING A SIGNIFICANT EVENT

Surgery building – long term or short term loss of access.

Many of the sections below will refer to the procedures outlined in this section relating to adverse effect on the building or part of it.

If the building becomes unavailable for use for any reason, suitable alternative accommodation must be identified. The following have been identified locally and may have rooms and facilities available which are suitable for temporary surgeries.

In the event of an incident, the practice will ensure that patients and staff are notified of any service changes.  If services are affected, patients will be notified of any changes in a number of ways:

• Notice on the Surgery door
• Calling patients who have appointments
• Changing voicemail message
• Providing information on the Practice website.

SKCCCE/NHSE will be able to provide advice and support.

 In the longer term patients will be requested to watch the practice website www.bucklandmedicalpractice.co.uk  which will be updated on a regular basis.

Immediate Action to be taken or considered:

• Evacuation of building if in working hours – staff to take personal belongings including house keys, mobile phones, the surgery mobile phones, essential records and contact information.
• Set the telephone system to the evacuation message
• Lock records cabinets. Remove keys from site.
• Staff to be instructed to access practice website on a regular basis for up to date information if sent home.
• Ring the police and fire service if appropriate
• Ring the gas board and the electricity board if appropriate (safety).
• Ring NHS England /South Kent Coast CCG and speak to a senior staff member
• Ring Clinical Supplier
• Ring telephone service provider. Ensure surgery number is still available with the suitably recorded message. Re-record special message if appropriate.
• Ring alarm company.
• Post signs on the doors if appropriate.
• Turn off the gas, electricity and water. (Electrical shut-down will effect the telephones and alarms)
• Ensure building locked. Close security shutters if appropriate. Set alarms if electricity still available.
• Allocate a senior staff member to remain close to the site if appropriate to guide and deal with emergency vehicles. Provide with a mobile phone.
• Re-convene at remote “Emergency Control Centre” location
• Instruct the Royal Mail to hold all mail at the sorting office until this can be collected by a staff member.

A contact list is at the end of this document including our normal contractors

Evacuation of Building and the Emergency Services.

This is in accordance with published fire orders. A senior member of staff or partner will direct operations and the removal of equipment or records depending on the nature of the emergency. Staff will normally be instructed to return home and await further information. In the event of a bomb alert telephones and the fire bell will not be sounded and evacuation will be by word of mouth.

Establishing an Emergency Control Centre

For purposes of an emergency meeting and planning the partners and the practice manager will convene at the Peter Street Surgery as soon as possible following the event. This will be the command centre until suitable alternative accommodation has been arranged. An IPad or other suitable computer, printer and a telephone(s) and fax machine will be available at that location. The address and telephone number is in the Contacts List attached.   Any outstanding action from the evacuation points above may be taken at this time.

Immediate Communication Issues

Staff should not make comments to the media and all enquiries should be referred to the nominated partner or practice manager in the first instance, who may decide to issue a basic and standard statement to prevent misrepresentation of facts.

Once the Control Centre has been established the following should be advised of the emergency, if not previously informed:

• The emergency services
• The Out of Hours service
• NHS England emergency planning officer-
• Staff not involved in the initial incident
• All local surgeries
• All local hospitals
• All local pharmacies
• Our insurers

And the phone number of the Control Centre should be given out to each.

Damage Assessment

The partners and the practice manager will liaise with the emergency services to conduct an immediate assessment of the situation and determine the extent and likely duration of the emergency. A decision will then be taken as to the duration of the event and the emergency steps to be taken. Staff will then be advised.

The Practice Manager will liaise with the practice insurers and other agencies to ensure that a swift and correct recovery is supported and achieved; including contact with the possible sources of alternative accommodation.

Communication with Patients

In the event of a major communication need liaise with the CCG and ask them to request the Health Authority to write to all patients on the list, advising them of the nature of the incident and to watch the website for up to date information.

Loss of Computer system

Short term loss.

For short-term loss reception will revert to a paper-based call system and a paper record of appointments will be maintained. Clinicians will revert to paper records if available, and will implement paper notes recording individual consultations if not.

Loss of hardware is covered by the Practice insurance policy. Note that the NHS England/South Kent Coast CCG should be consulted about replacement. The Practice will need to contact the South Kent Coast CCG ICT Manager to arrange replacements

Long Term Loss

The Practice is run from a Hosted Server (VES).  InPs are responsible for the backing up of all computer data on a daily basis.

We also run and manage Peter Street Surgery, Dover.  Patients could also be seen at Peter Street as the clinical system is the same as at Buckland Medical Centre and there is full access to all patient records available at all 3 sites (i.e. all records, appointments, audits etc can be seen and information recorded as necessary).

Loss of Access to Paper Medical Records

All paper medical records are stored in fireproof cabinets.

Emergency Security of Non-Patient Procedural Records, Protocols, and Clinical Guidelines and Information.

Where time allows the following documents should be removed off-site for possible use elsewhere:

• Paper based medical records
• Letters and correspondence from today
• Printed patient lists for today’s appointments
• Printed prescriptions and referral letters awaiting collection
• Blank prescription forms

Essential Forms List

In order to effectively recover total loss of facilities the following forms will need to be ordered. These can be borrowed on a temporary basis from Peter Street Surgery.

Hardware and Software Specifications

A full specification of all IT equipment on the premises including system details and installed software is documented.

Essential Equipment

Where time allows the following equipment should be removed off site for possible use elsewhere:

Loss of Telephone System

Ring British Telecom on 154 for the fault to be investigated. Ring the other local surgeries and advise them that we have a fault and they may receive some of our calls. Use the mobile phones if extra outgoing lines are needed.

SCS maintain the telephone system under contract, and should be consulted immediately a problem arises and asked to attend if the property is still accessible. Arrange also for the fax number to be temporarily suspended to prevent unactioned faxes from being received in the surgery premises. 

The telephone system is dependent upon the electricity supply, and there should be a battery back up, however if power is lost for a long period telephone functionality on the premises will also be lost, and any long-standing changes will need to be effected at the Exchange.

If the power fails for any reason, there should be “power fail” telephone sockets in the reception office and handsets to be used if the power does fail.

Loss of Electricity Supply

In the event of a power failure within the building, the first thing to check is the main fuse box, which is situated in the cupboard at the bottom of the stairs.

If the fuse box is not the cause of the problem, the electricity supply company should be contacted. They need to be told that we have a phased supply into the building.

The Practice is reliant on electricity to power the building.  In the event of a power failure, the following systems will not work:

• Computer (the UPS system will supply very short-term power)
• Clinical Refrigerators ( these should remain closed to retain the cold status)
• Lighting (except emergency lights)

If the power does fail, cancel all surgeries until such time as the power is restored. Building should be secured, and deal with resultant issues as under Section 2.1 above.

If the power is not going to be restored for some period of time, arrange to transfer vaccines from the cold stores to Peter Street Surgery.

The computers in the consulting rooms and other parts of the building should be switched off at the sockets, to prevent damage when the power is restored.

Loss of Gas Supply

In the event of a gas leak in the building, the shut off valve can be found in the box on the front of the building at both Buckland Medical Centre and Tara.

Open windows and the building should normally be evacuated.

The gas company E.ON should be called.  If the boiler or pumps fail call Worcester Bosch who has the maintenance contract.  The boiler supplies all the hot water as well as heating.

In the event of the heating failing, electric heaters can be used. Loss of hot water will pose a problem for hand washing and cleaning of surgical instruments – use the kettle

Incapacity of GPs

If for any reason the GP(s) is unable to provide medical services due to incapacity or death, NHS England should be informed as soon as possible.

Absences are dealt with under the terms of the Partnership Agreement.  If a partner is incapacitated through ill health from providing medical services to the patients, the remaining partners will cover for a period of weeks to be agreed, after which time the partners will make a decision whether to employ a locum.  Short term cover is provided internally by the partners or locums.  In the event of the death of one of the partners, NHS England should be informed as a matter of urgency.

No prescriptions should be printed or written on prescription pads/ Computer code for that GP. Any prescription pads, Med3s etc. in that partners name should be kept in a secure place until arrangements can be made to destroy them.

Arrangements must also be made to suspend the prescribing details of that partner on the computer and then they should be deleted.

Incapacity of Staff

In the event of a member of staff being incapacitated through ill health, no formal arrangements exist, except that other members of staff cover for the absent staff member.

Loss of Burglar Alarm

This is covered by a service contract with Javes Security and can be telephoned on 01843 590363

Loss of Fire Alarm

A service agreement exists with Javes Security and can be telephoned on 01843 590363

Loss of Water Supply

The stop valve for the water can be found in cleaners cupboard under the stairs at Buckland Medical Centre and in the waiting area at Tara.  Any problems contact Affinity Water (03453572424)/Business Stream(03301232000)

This will be dealt with in accordance with standard fire orders.

Flood/loss of water supply

Buckland Medical Centre is situated near a river which has never been known to flood.  In the unlikely case of flooding there are two rooms upstairs which could be used for consultations in an emergency. 

Tara, the surgery at St Margaret’s Bay is on high ground so would be prone to flooding. 

There are no overhead tanks, should internal water pipes burst a mopping-up operation would be put into place and electricity supplies turned off until it was considered safe to restore them.

Epidemic / Pandemic

In the event of an official alert the Practice Manager will liaise with the Emergency Planning Officer at NHS England to ensure that the practice conforms and co-operates with the joint efforts being made across the region to respond to the emergency. The practice manager or a nominated person will secure immediate delivery of extra clinical supplies to include masks, gloves, and gowns as appropriate.

The senior partner will liaise with Public Health to ensure a co-ordinated clinical response to the emergency and to initiate or confirm the arrangements by which patients will be informed, either directly from the Practice or via a central mailing.

The partners will consider short-term measures to ensure that as far as possible the risk of cross-infection is contained locally, and this may include a general communication to patients who suspect that they may be infected to stay at home and request a home visit, rather than attend a surgery. Notices may be placed on the surgery doors to this effect.

The partners will consider the risk to front-line staff and may instruct the issue and wearing of protective clothes and masks. Open surgeries may be suspended and appointment surgeries may be staggered, with lengthened appointment slots to reduce the incidence of patients sitting in the waiting areas together. An isolation room will be nominated-waiting room where symptomatic patients can wait – this will be subject to special cleaning / infection control arrangements.

Consideration will be given, in liaison with NHS England Emergency Planning Officer, to the setting up of special reception centres remote from GP surgeries to deal exclusively with patients reporting symptoms.

Subject to the above, the following specific actions will be taken:

• The practice will suspend routine appointments, clinics, and peripheral activities and plan activities such that they may still be maintained with 25% of both administration and clinical staff absent through illness (25% is the expected impact during a pandemic)
• The Practice will approach other practices in the area with a view to merging operations for the duration in order to share the remaining available staff and clinicians and resources to deal with the situation. Where this occurs one of the practice premises may become dedicated to the Pandemic symptomatic patients.
• A separate waiting area will be allocated to symptomatic patients. This will be the waiting room
• All door handles (which are a one of the most common sources of contamination) are to be disinfected hourly.
• Patient information will be provided constantly in the waiting room displays, website and on the front door.
• All staff will be issued with Filter Masks.
• All patients ringing the surgery to arrange to be seen will be asked if they have flu-like symptoms. Patients will be directed according to protocols established via the PCT
• Patients with symptoms will be advised that a friend or relation should collect the prescription.
• Doctors visiting symptomatic patients will adopt disposable respiratory protection.

Response to Major Incident – Accident / Terrorism

In the event of a major incident the Practice Manager will liaise with the Emergency Planning Officer at NHS England to ensure that the practice conforms and co-operates with the joint efforts being made across the region to respond to the emergency. The practice manager or a nominated person will secure immediate delivery of extra clinical supplies to include masks, gloves, gowns, vaccines as appropriate.

The practice manager will arrange for the cancellation of all routine appointments and clinics and arrange, if appropriate, for the OOH service to provide immediate cover. Consideration will be given to the securing of locum services by contacting the locums available within the current locum list to be on-site in the event that they are needed.

Useful Contact Numbers:

Gas – EON – 0345 055 0065

Electric – EON – 0345 055 0065

Insurance – Towergate – 01438 739891

Alarm – Javes - 01843 590363

InPS – Helpdesk – 02075017105

NELSCU – IT Helpdesk 03000 424242

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Modern general practice model

What is the modern general practice model.

The  Delivery plan for recovering access to primary care  commits to supporting practices to move to a modern general practice model

This model is a way of organising work in general practice that enables practices to:

• see all patient need, by providing inclusive, straightforward online and telephone access
• understand all need through structured information gathering
• prioritise and allocate need safely and equitably (including continuity of care)
• make best use of other primary care services and the multi-professional team
• improve the efficiency of their processes and reduce duplication.

Understanding demand and capacity

To establish a modern general practice model, it is essential for practices to have as complete a view as possible of all demand coming into the practice by all routes and to understand the nature and pattern of this demand, eg across different days of the week and at different times of year.

It is also important for practices to understand the capacity available in terms of staff time and skills. It is then possible to design and implement processes to match capacity to demand more effectively.

Improving the experience of telephoning the practice and using online access routes

The modern general practice model involves providing a smooth, equitable experience of access to patients across phone, online and walk-in routes.

Supporting practices to move to and optimise the capability of cloud-based telephony is essential to help provide a better experience for patients (eg so patients can be provided with queue position and callback options) and to enable practices to proactively manage peaks in demand through real time data monitoring and to support evidence-based service decisions.

Well-designed practice websites are also critical and need to give clear information on how to request help and what steps patients can take for themselves.

Online forms (provided via ‘online consultation tools’) should be available via the practice website and via tools like the NHS App to provide an easy route for patients to explain what they need and to request support.

Improvements to other tools and integration of digital services are also important to the model to allow increased self-service and more streamlined flows between different services.

Enhancing navigation and triage processes

The modern general practice model moves away from the 8am phone call queue and ‘first come, first served’ process for allocating appointments.

Instead, the model requires consistent structured information to be collected at the point of contact – to let the practice know about symptoms, ask a question, make a request or follow up about something – with patients either providing this information via an online form or to reception staff who capture the information about their needs.

Patient needs can then be consistently assessed and prioritised (triaged), allowing practices to provide patients with the most appropriate care or other response, from the right member of the practice team, including signposting or referring patients to other appropriate services.

The ability to better allocate patients to the right health professional or service supports effective use of all staff time and skills, including staff employed through the Additional Roles Reimbursement Scheme (ARRS).

It also supports improved ability and capacity to provide continuity of care for those that would benefit most, including vulnerable patients and those with long-term conditions.

The use of different consultation modalities, including text or online messages, is also important to facilitate flexible working for staff (which supports retention) and provides a variety of options for patients to receive care and advice in the most effective way depending on their needs.

Management of non-patient-facing practice workload

The modern general practice model gives practice staff better control over their workload with demand more consistently understood and managed, and the consistency of processes and workflows improved.

Alongside these changes, other improvements can also be made to streamline non-patient-facing processes in the practice, increase efficiency and reduce burden on staff.

This could also improve the trust that patients hold in practices as they will receive the care they need when they need it, from the person best suited to help them, preventing wasted visits and multiple calls to the surgery.

The General Practice Improvement Programme helps practices and PCNs to implement the modern general practice model by supporting change to be made and by providing tools, guidance and resources to make the change easier – building on what other practices have learnt and developed.

Where practices have innovated and created the different elements of the modern general practice model, these have been collated and codified and are being shared more widely, helping practices and PCNs make changes more easily and realise the benefits more quickly.