business plan for health care products

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18 Health Care Business Ideas for Passionate Entrepreneurs

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The health care sector is an amazing place for aspiring entrepreneurs to open up shop. Exploring health care business ideas is smart for lots of reasons.

There’s an opportunity to do a world of good by serving an aging American population and helping those struggling with the national drug crisis. There are lots of new medical and technological advances, and widespread interest in health and wellness, too. And those are all great incentives for passionate entrepreneurs.

Plus, these factors combined mean there's a thriving market for health-related businesses. Aspiring new business owners can turn one of many health care business ideas into a viable way to make a living, including those entrepreneurs who want to work remotely.

This list of health care business ideas should get you started — and maybe inspire you to explore starting a business.

Why businesses in health care are worth exploring

Nationwide spending on health is projected to grow at an average rate of 5.5% annually through 2026. That’s one percentage point faster than the national GDP is projected to grow during that same time. And by 2026, health care is projected to account for nearly 20% of the GDP.

Employment in health care-related occupations is projected to grow 18% from 2016 to 2026, much faster than the average for all occupations, according to the U.S. Bureau of Labor Statistics. Nearly half of the 20 occupations projected to have the highest percentage increase in employment by 2026 are in the health care industry.

What that spells is a lot of opportunity.

One big reason for the surge in health care spending: By 2030, the Census Bureau projects, approximately one-fifth of the population will be 65 and older. This will be the first time in history that the number of Americans over age 65 will surpass the number of Americans under 18.

Keep those numbers in mind as you look through this list of health care business ideas.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

18 health care business ideas to consider

1. medical transcription services.

Medical transcriptionists transcribe doctors’, nurses’ and other health care practitioners’ voice recordings into written documents for patients’ records. Speech recognition technology has definitely improved the efficiency of medical transcription, sure. But it certainly hasn’t yet replaced the need for human transcriptionists to review and correct the transcriptions to make sure they’re accurate.

This is a great business to run from home because you can make your own hours, and all of the work can be done digitally. Plus, if you’re digitally savvy and can create an efficient (and secure) way to share files, you can really one-up the competition.

2. Medical records management

Start a service that manages medical records for hospitals, clinics and doctors’ offices. You can work with clients to identify the best records management systems, implement them and provide their staff with training on how to use the systems.

Another approach? You can offer full-service medical records management, and clients can outsource the work to you. This can be helpful for boutique practices and sole practitioners who need the organization but can’t afford the in-house staff.

3. Physical/occupational therapy center

Physical therapists help patients recover from injuries to regain their full range of motion and reduce pain. Occupational therapists provide more specific therapy to help patients perform tasks of daily living, such as dressing themselves or feeding themselves. You can specialize in one or the other, or put both under one roof. Note that this does require certification.

4. Develop a health care app

Both health care providers and individuals alike are increasingly turning to mobile apps to track, record and manage medical conditions. The world is your oyster if you’re skilled in app development, so you might want to consider developing your own health care app targeting these markets. Do some field research to find out where your skills can fit a need.

5. Diabetic care center

According to the CDC, 9.4% of all Americans either have diabetes or are prediabetic . Opening a diabetic care center can help diabetic patients improve their quality of life by providing nutrition counseling, dialysis and other medical services. You can also provide preventive help such as teaching healthy eating habits or providing support groups for diabetics.

6. Home health care service

A home health care business provides in-home medical care for recently discharged hospital patients, patients with chronic health conditions, seniors and others who need assistance managing their health.

In states with rapidly aging populations, like Florida and California, not only could this be a benefit to the community — but also a strong business prospect for you.

7. Medical foot care

A growing population of seniors and diabetics means more need for foot care services. Something as simple as trimming toenails can be impossible for seniors and overweight patients who can’t reach their feet. You can either open a foot care clinic or save patients a trip to the podiatrist by providing mobile foot care services in their homes or in a van. You’ll need to train as a podiatrist or hire one.

8. Drug treatment/rehabilitation center

As drug use has escalated to become a national crisis in the United States, legitimate places for people to seek treatment for their addictions and rebuild their lives are needed more than ever. Every day, more than 115 Americans die after overdosing on opioids, according to the National Institute on Drug Abuse .

Open a drug treatment and rehabilitation center to help clients with drug addiction. You can specialize in different types of patients, such as juveniles or more senior patients.

9. Childbirth services

Today's expectant parents want to control every aspect of childbirth, and that often includes having a midwife or doula present at the birth. The use of midwives is increasing , according to the American College of Nurse-Midwives.

Midwives are trained health care providers who assist women during childbirth, while a doula is more like a pregnancy coach who helps couples arrange all aspects of the birth and caring for the newborn. You can either become certified yourself or open a business that employs contractors under your umbrella.

10. Medical billing service

Medical billing requires performing complex coding when submitting insurance claims. Keep in mind, certification is required in this field to ensure that doctors and other health care practitioners get paid.

Although big hospitals and health care organizations often have in-house staff, small medical practices that don’t have time to manage billing and coding themselves are an ideal market for medical billing services. Acquire and learn medical billing software, get trained in proper coding and target these smaller medical practices to take medical billing hassles off their hands. And you can even earn your certification online.

11. Nutritionist/dietitian

If you want to help people improve their nutritional intake and habits, you can build a business as a nutritionist or dietitian. Only nutritionists who get a license with the Commission on Dietetic Registration, or CDR, can advertise themselves as dietitians. Some states regulate nutritionists and others don’t.

You can specialize in different types of clients, such as sports nutrition, nutrition for weight loss or holistic nutrition.

12. Alternative health care

Acupuncture and massage therapy are two alternative health care business ideas that are becoming more popular. Many are using these services to supplement their traditional medical treatment — or as a primary treatment unto itself.

Check with your state to see what the requirements are to practice; they vary across the country. Even when health insurance plans don’t provide coverage, Americans are more willing to pay out-of-pocket for these types of care than they used to be.

13. Health information website

If you have health care expertise — or access to people who do — consider starting a website to provide health care information and advice. You can create all kinds of content, such as podcasts, YouTube videos and even online classes, in addition to blog posts.

You might even be able to get health care experts to contribute content for free in exchange for the publicity your site offers. There are a lot of options; just make certain that you do some market research to figure out the white space to fill, and find viable revenue streams to make your business highly sustainable, too.

14. Medical supply sales

Seniors, people with disabilities and those with chronic illnesses have an ongoing need for medical supplies and equipment. This can include walkers, braces, bedpans and more.

Although you can open a physical store, keep in mind that your target customers will often have difficulty getting to your location, so an online store is likely a better bet. Again, research here will be key so you can make sure that you’re stocking the right products and marketing in the right places.

15. Stylish uniforms for medical professionals

Medical professionals who wear scrubs to work are always looking for affordable and durable uniforms. They’re also looking for stylish options — and those aren’t as easy to find. Start a store selling scrubs, comfortable shoes, lab coats and other gear for health care professionals. You can design the goods yourself or source them from multiple places, and encourage your customers with word-of-mouth incentives to drive sales.

16. Hearing aid dispensary

Because hearing aids generally aren’t covered by health insurance, this can be a lucrative health care business idea if you find the right customer base. You might want to open a location to provide hearing tests, recommendations and hearing aid fittings and care. You could even outfit a mobile van to come to customers' homes to clean and repair their hearing aids as an extra service.

17. Respite care service for caregivers

Whether they’re parents caring for severely disabled children or adult children caring for aging parents, caregivers have a stressful job. Provide a much-needed break for caregivers by starting a respite care business. Your caregivers can come in for a few hours or a few days, giving family caregivers a chance to rest.

18. Medical marijuana dispensary

As a growing number of states legalize medical marijuana, this $8 billion industry is projected to continue its growth, according to IBISWorld . Opening a medical marijuana dispensary can be a profitable business in the right location; however, changing state and federal regulations could affect your startup. (Marijuana is still illegal under federal law.)

Looking for financing for your health care business? Check out our roundup of the best medical practice loans .

Frequently asked questions

How do i start a health care business.

When you start a health care business, it can be helpful to begin by writing a business plan, registering your business and hiring employees. While all businesses need to obtain any necessary licenses, permits and forms of insurance, health care businesses may require earning professional designations or taking out extra forms of insurance. Research what you need to run your business safely and legally before you launch.

How do I start a home health care business?

Starting a home health care business requires a high level of professionalism, even if you’re running a business where the bulk of the work will occur in your clients’ homes. For example, you may still need office space to train your employees. Like starting any business, it is important to write a business plan, register your business and create proper business procedures. You should also obtain any necessary licenses, permits and insurance for running a business in your area, as well as for working within the health care industry.

How do I write a business plan in health care?

In general, a business plan is an organizational tool that business owners can follow when they need guidance. This document can also tell outside parties, such as investors, about your business and its value. A good business plan should include thorough research about your industry, market and competitors, as well as dive into your financials, products and services and your marketing plan. When writing a business plan in health care, it will be important to do heavy research on the industry, as well as outline clearly what medical services or products you will be offering and why you or your staff are qualified to run a health care business safely.

LLC Formation

The bottom line

There are a lot of potential great health care business ideas for entrepreneurs interested in the health care sector — and many opportunities for health care business ideas to become real, sustainable businesses.

Be sure to check regulations, licensing, professional training or degrees needed for these businesses before you get started, and do lots of market research. Don’t forget that “care” part, of course.

On a similar note...

7 steps to writing a business plan for your healthcare business

Creating a strong business plan is the key to a successful private healthcare business.

When it comes to building your private healthcare business, writing a strong business plan and implementing it properly is perhaps the most effective strategy to propel your business to success. Whether you are just starting out, or are already an established healthcare practice, it is never too late to write your business plan and put it in place.

We’ve put together seven steps to help you write a healthcare business plan and then implement it. You can also find a sample private practice business plan PDF here to get you started!

Download our free Business Plan template here!

1. Identify your end goal

Perhaps the most important step of writing a business plan is identifying what it is you are trying to achieve. Identifying clear business goals will enable you to build a step-by-step plan to ultimately achieve these aims. 

Dr Gero Baiarda, Clinical Director at GPDQ, states the importance of knowing your practice’s aims in our ‘Launching a Private Practice’ ebook. He states that identifying your purpose, vision, and mission, will help keep you consistent and accountable to your goals. Knowing exactly what you are seeking to achieve in your business will mean that your business plan is tailored to achieving that goal at every step.

2. Get to know your business in numbers

To write a business plan that will enable you to reach your goals, you need to understand how your business is currently performing . Obtaining a complete and in-depth overview of the health of your business will help you to make concrete and achievable goals based on accurate data. 

Tracking data is also essential as you progress further with your business. You can’t make a successful business plan without knowing your business inside and out, and you won’t be able to understand how you are performing against your business plan without measuring data as you go.

Make sure you have access to business management tools that allow you to track the key data, such as revenue, patient numbers, cash flow, and other financial and patient demographics which will be useful for your growth goals.

Find out more about Semble’s business management tools here.

3. Break it into smaller steps

With a business goal in mind, the best way to create a business plan is to break it down into smaller, achievable steps. By doing this you will be able to map out a clear trajectory for your business over the next months or years and it will be easier to track your progress against your aims and expectations. 

Work backwards from the end goal to create smaller steps, each with a clear, quantifiable goal, such as reaching a revenue goal in a certain month or number of patients reached. If you work well with visuals, experiment with creating a visual diagram or board that you can keep close at hand to check and measure up against as you grow your healthcare business.

4. Identify key successes and failures

A business plan is about improving and growing your business, and to do this it is important to understand your strengths and weaknesses. Consider what has worked well for your business and what has not. 

For example, how is your staff management? Does your team work well together, understand their individual roles, and achieve tasks efficiently ? 

By identifying main strengths, you can work them into your plan to help you improve business performance. Identifying any weaknesses will enable you to know areas that need some attention and a greater input of time and resources to help you build an all-around stronger business. 

5. Get to know your target market

An understanding of your patient’s needs is essential to performing well in the market. Your patient population will depend to an extent on the healthcare services you are offering, but conducting key market research into the specific needs of your patients will help you to create a unique and tailored service that will perform better in the market.

Oliver Capel, Managing Director at Medico Digital, explains that market research and patient demographics such as age, gender, religion, income level, and more, can help you to cultivate a more targeted and effective marketing strategy because it provides insight into what sort of marketing materials will be best received by patients. For example, a young mother will respond differently to marketing than a 60-year old male retiree.

Explore how to use patient market research to improve your business performance in Chapter 2 of the ‘Launching a Private Practice’ ebook . 

6. Schedule regular time for business management

You can’t expect to see results in business growth if you don’t invest the time and energy into nurturing it. Whether that be investing in your own development with business management learning time, or setting aside a weekly hour for growth strategy and progress reviewing, it is essential that you carve out time to work on your business.

There are many online courses, books, and guides for basic business management which could help you learn invaluable skills for managing and growing your healthcare business.  Start by identifying areas where you have less knowledge and schedule in an hour a week for learning, planning, and strategy. 

Even as little as one hour a week will have a profound effect on your business skills and management, and the results will soon be evident!

7. Get your team on board

There is little point in setting goals if your team is unaware of what they are. Sharing business goals with your team and employees means that everyone can do their part to reach certain milestones and improve the business. It also helps to create a stronger network that you can rely on to carry out delegated tasks and ease the burden of both business management and the day-to-day running of your private healthcare practice.

Whether it be improving customer service with better bedside manner, or making changes to workflows to improve efficiency, making your team aware of the end goal will help them understand why change is needed and thus more likely to get on board.

Get started writing your business plan with this free private healthcare practice business plan PDF!

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How to Launch a Healthcare Startup: The Guide to Building Great Health-tech Products

How can you start a healthcare startup?

The journey of building a successful medical technology product begins with a viable idea. Happily, there exist countless opportunities for technology integrations in the healthcare, medical, and wellness industries…so many that it’s almost impossible to run short of potential innovations in this sector. 👨‍⚕️💻 

However, few health tech startups survive the early stages … 🚧

Let’s learn everything there is to know about starting your own healthcare business in the United States (or anywhere else across the globe): the steps necessary to start a healthcare startup, including health-tech technology, IT team, risks, potential project costs, and much more. 👇

Healthcare (and health-tech) is a market segment you cannot expect to take by storm. Unlike most sectors, starting a healthcare business requires you to traverse a rocky road of licensing and adherence to rigorous regulations while dealing with government institutions, pharma, and the medical professional community. 

🏥 Studying all the underlying rules, pitfalls, and requirements is a difficult yet crucial piece of homework for any entrepreneur who wants to start a healthcare company or launch a healthcare startup successfully. 

For example, HIPAA compliance is the minimum requirement for security and functionality in health-tech solutions and products in the United States.  

The good news is that a myriad of highly profitable market gaps are just waiting to be explored by ambitious healthcare technology startups. 🚀

Are you planning to start your own healthcare business or expand an existing one with additional health-tech projects or product development? In this article, we will guide you through the entire process of organizing and launching a medical technology startup while addressing all major success factors and risks.

Before we delve into how to start a healthcare company, take a moment to discover more about TATEEDA: 👇

Table of Contents

Why Do Many Healthcare Startups Fail?

Before we delve into starting a healthcare business, we should address another crucial question: How can a young medical technology project break into this conservative, strictly regulated industry? 

The demand for innovative healthcare startups is enormous. For example, the COVID-19 pandemic has led to a significant increase in the adoption and popularity of telemedicine solutions and telehealth options among patients, healthcare professionals, and healthcare insurers. Seventy percent of American adults are now willing to use telemedicine, and 76% of employers are ready to include telemedicine coverage in their insurance plans. In this regard, more and more healthcare startups offer telehealth services like medical second-opinion telemedicine platforms that work as a kind of healthcare expertise marketplaces where patients can find alternative or additional arguments for their health conditions.

Let’s identify the major reasons why healthcare startups usually fail…

⛔ Non-compliance with Industry Standards 

It takes serious preparation and legal consulting before you even start! Most healthcare startups fail early because their founders cannot manage to pass all rounds of industry bureaucracy, accreditation, licensing, testing, and regulatory compliance. However, startup managers who do their homework have greater odds of success.

Before you’re ready to start a healthcare startup, it’s important to remember that…

• Not all startups require the same set of permissions and legal precautions. 
• Some startup types can be introduced to the market faster than others, such as software-only projects (thanks to a shorter preparation cycle).
• Some projects require tedious legal procedures: for example, projects covered by FDA policies, including professional-grade clinical products. 

If you want to start a healthcare startup including innovative medical devices, you’ll need to comply with FDA regulations and ISO certification (which can be a costly and lengthy path).

Learn more: ➡️ Medical Device Software Design and Development . 

🙅‍♀️ Poor Connection with Potential Users and Medical Professionals

Many healthcare startups fail because they do not build solid relationships with potential users, sponsors, and stakeholders. Because of this, they cannot capture attention or obtain sufficient feedback to finalize and refine their products until usable status is attained.  

At least three major aspects that should be considered when creating a health tech business plan…

❓ Is it a professional-grade healthcare startup that requires clinical trials? If so, it’s necessary to contact and pitch your ideas to healthcare institutions and medical professionals to find qualified sponsorship according to the regulations of your legal jurisdiction. 

❓ Is it a consumer-grade healthcare startup? You will still need specific feedback from potential users (like patients or medical practitioners) to make sure you’re on the right track to creating your healthcare product as an efficient solution for real-life problems.

❓ Are you a representative of a healthcare company or institution? A direct relationship with (and specific feedback from) your staff and patients is a huge advantage that will help you launch your healthcare startup and support its continued success with fewer barriers and problems.

⚠️ Other Potential Medical Startup Problems Include…

• Technological complexity and tech skill barriers.
• Low usability: intricate interfaces, unbalanced functionality, and more. 
• Availability of better or/and cheaper alternatives. 
• Poor marketing, PR, and lack of communication. 
• Unreliable or disorganized technological partners. 

Slava Khristich

Healthtech cto.

Based in San Diego, Slava knows how to design an efficient software solution for healthcare, including IoT, Cloud, and embedded systems.

How Entrepreneurs Validate Healthcare Startup Ideas

With the exception of medical and fitness wearables (like IoT devices coupled with custom healthcare applications ), few high-tech products have gone viral with the ordinary public. A great number of healthcare startups have never even been released to their audience because their ideas were not understood or accepted by potential sponsors.    

Here, we offer several tips on how to estimate the potential viability and future success of your healthcare startup idea before you even start…  

✅ Does your healthcare startup belong to one of the most successful sectors? 

In 2023 and beyond, the most viable healthcare startup categories/ideas include…

• MRI and medical data analytics
• Telemedicine
• On-demand healthcare staffing platforms  
• Nutrition science
• Healthcare data visualization development
• Remote patient supervision
• Data mining in healthcare
• Mental health management
• Medical insurance applications
• Robotics in surgery
• Predictive life sciences.

If your healthcare startup belongs to one of these categories , you have higher odds of success thanks to increased interest on the part of investors in these sectors as well as upcoming medical technology trends. Learn more here: ➡️ Major Healthcare Technology Trends . 

✅ Do you set realistic financial expectations to back your ideas?

In the healthcare industry, with its strict regulations, bureaucracy, and long sales cycles, it’s imperative to maintain sufficient funding to survive the pre-release stage. 

🏗️ No matter how brilliant your startup idea may be, it’s necessary to maintain a solid, long-term strategy that includes a financial buffer to help you sustain your project team for at least 3-5 years before releasing your product or MVP to the market, investors, or clinical practice.

Learn more: ➡️ Healthcare Product Development: How to Build an MVP .

If you represent a mature company that has decided to launch a healthcare startup to expand its project portfolio, you are definitely in a better starting position than those who decided to start a healthcare business from scratch. Your financial conditions and background will allow you to grow and test your ideas with less risk.  

✅ Is your startup idea the fruit of your own deep industry experience?

If you have generated and shaped your startup ideas after years of experience in a specific healthcare market niche, you have higher odds of success in this venture. You definitely know how to make changes in the industry for the better, and you’re ready to convert your knowledge into an efficient solution ready to hit the market.  

✅ Have you discussed your healthcare startup ideas with medical professionals? 

Any healthcare startup idea should be examined and verified by active medical professionals and/or patients. Their feedback and suggestions will drive further startup development. If you have early access to user opinions, you will obtain one of the most valuable assets a healthcare startup can dream about. Make sure healthcare professionals are involved as early as possible.

So, if your healthcare startup idea is ⇒

• relevant to one of the most promising fields in healthcare
• accompanied by a sound health tech business plan
• based on your own deep expertise
• endorsed and verified by potential users…

…you can be reasonably certain you’re on the right track to success!  

Custom Healthcare Solutions

See how we can engineer healthcare software, validate your ideas, and manage project costs for you.

Important Things to Consider Before Launching a Healthcare Startup

Before you start your new project, it’s essential to identify all fundamentals and pay attention to thoughtful creation of a business plan for your healthcare startup. Let’s look at the major areas you should consider…

👓 Respect the Conservative Market & Regulatory Compliance

It’s no secret that the American healthcare market is one of the fastest-growing yet deeply conservative and rigidly regulated in existence. You should have an experienced legal advisor or powerful team of law consultants to help your healthcare startup pave a path through legal barriers and pitfalls.

One of the most crucial compliance frameworks for healthcare projects in the United States is HIPAA. At TATEEDA GLOBAL, we understand HIPAA compliance, and would be happy to help you develop a medical startup according to HIPAA requirements and rules. Learn more: How Custom Healthcare Software Is Developed for Secure HIPAA Compliance .    

🔄 Develop Interoperability of Health Data

When you start a healthcare business with a custom technological component such as a software system, it’s necessary to design it for compatibility with other medical systems, devices, data formats, and technologies. If you want to start a medical practice, you’ll definitely need to adopt a healthcare practice-management system with administrative (back-office) and front-office functionalities, like patient profiling, appointment scheduling, bookkeeping, and revenue analytics.

⚡ Our experienced health-tech engineers can define a specific interoperability configuration for your individualized project ⇒

There exist different standards of interoperability for healthcare systems, including…

• Fast Healthcare Interoperability Resources (FHIR)
• Electronic Data Interchange (EDI)
• Health Level Seven (HL7). 

Learn more: ➡️ HL7 Integration: How to Build Interoperability Interface for Your Healthcare Systems

🤝 Build a Friendly Network of Sponsors and Supporters 

A community as conservative as American medicine can be extremely reluctant to trust and welcome your young healthcare startup. As mentioned previously, it’s necessary to find healthcare providers that can build trusted relationships with you and sponsor your project until you are ready to release a viable product after going through all circles of development, accreditation, and testing. 

Potential healthcare startup sponsors include…

• private hospitals
• medical centers
• health-tech companies
• insurance companies
• charity organizations
• private practitioners.  

A solid and reliable health-tech business plan is a good foundation that will help you coordinate with potential sponsors. The three main startup qualities to be maintained throughout your healthcare business plan are…

🔹 Validity : relevant, verified business objectives  

🔹 Compliance : technical and legal preparedness

🔹 Safety : full protection of medical records and personal data. 

👔 Prepare for Lengthy Sales Cycles

Be ready for the fact that many months can pass between pitching your project to potential clients or sponsors and their readiness to move forward. 

⌚ Keep your morale high, and remember that closing a successful deal in the healthcare software development industry requires a long-term commitment.

⌚ Make sure your team understands the situation, requirements, and perspectives, and is ready to sustain them.

⌚ Consider hiring a professional representative who specializes in pitching healthcare startup ideas to potential clients/sponsors and investors on daily basis.  

Delivered Healthcare Software Portfolio

The leading American healthcare companies benefit from working with us.

Where and How to Hire a Team For a Medical Startup

If you want to launch a healthcare startup or company, you cannot achieve success without a professional team behind it: 

• Health-tech engineers 
• Healthcare software developers 
• QA engineers
• Business analysts
• …and many more. 

Each healthcare tech startup is unique, so it requires individualized team composition and a flexible staffing model to keep it going with minimum overhead. Let’s take a look at some options…

👩‍💼 Gather a core team 

Begin teaming up with key members and co-founders. Ideally, they must bring diversity in terms of qualities, capabilities, and experiences your startup can benefit from, including…

• Shared business vision and values. 
• Tech and engineering skills. 
• Deeper expertise in medical institution processes.
• Business administration, project management, and PR for startups.  

👨‍🔧 Hire an experienced CTO

A medical tech startup will be successful only if it is supervised and managed by an experienced engineer (CTO, or chief technical officer) who takes care of…

• All tech-related processes, like software architecture and development tasks.
• Dealing with third-party contractors and partners: tech specifications, communications, consulting, meetings, reporting, and more. 
• Delegation of project tasks to outsourced developers, testers, analysts, etc., as well as task execution and control.  

🧑‍💻 Outsource your software development

You can save a great deal of time and money by hiring third-party professionals and outsourcing your high-tech project tasks to them. There exist a number of technology experts who can undertake software development processes for you. You don’t have to invest a huge amount of resources into recruiting and organizing your own team, because…

• A dedicated team of developers, engineers, and software testers provided by a specialized vendor can offer you streamlined expertise along with a better hourly rate than a locally hired or in-house team, including HR overhead and other costs. 
• Professional outsourcers must have considerable experience. They must be able to offer appropriate skills, smooth professional processes, and flawless teamwork practices, including convenient collaboration tools so you don’t have to establish these practices from scratch.  
• You can easily scale your team up or down according to your current startup needs, without bureaucracy and the associated administrative difficulties.  

TATEEDA GLOBAL can provide you with a team of senior developers, project managers, UI designers, QA testers, and more on a flexible, convenient basis. 

You can delegate various project tasks to us, including mobile, web, IoT, and desktop application development in healthcare and biotech. 

All of our specialists are our own employees, not freelancers! If you want to discuss the details, please contact us today .    

How to Start a Healthcare Startup, Step by Step

The process of starting a new healthcare business venture is basically the same in the U.S. and all other countries, except for several legal nuances. Let’s check out the steps…

Step #1: Draw up a convincing business plan and budget

💼 Writing a health-tech business plan for a startup is a keystone task that requires considerable expertise and time. This document will be your guide throughout the startup process and will cover each and every aspect, including budget, technical components, marketing, operation, product design, and much more. 

Your health-tech business plan should have standalone sections that explain the following matters and strategies…

• Accumulation and release of your startup capital.
• Organization structure of team units and project departments.
• People responsible for the technical aspects of your healthcare product build-out.
• Medical data security and compliance: methods and strategy.
• Roadmap of product planning, design, development, testing, and MVP release.

Step #2: Gather your medical advisory board

👨‍💼👩‍💼 As they say, two heads are better than one . Working with advisors who possess rich, sophisticated experience in the healthcare and health-tech sectors is a crucial advantage that will allow you to shape and follow the right business strategy. 

Gathering an efficient advisory board is fundamental to putting the rest of your crew together, as these advisors will take part in choosing other team members and contractors, and will organize all internal operations and processes. 

Learn more: ➡️ Healthcare Payroll Software Development

Step #3: Work on HIPAA compliance and respect all other regulations 

HIPAA is a set of special regulations that must be obeyed throughout the process of medical software development and project management/organization. This regulatory framework involves three major components:

📃 The HIPAA Privacy Rule (2003)

📃 The HIPAA Security Rule

📃 HITECH Act (2009)

Basically, these regulations describe the way in which medical records and patient data should be securely treated, stored, managed, and more. If you launch a healthcare startup for the American or global health-tech market, HIPAA compliance is obligatory. Other jurisdictions can have additional or local regulations for healthcare software solutions. Contact us for more information!

Step #4: Develop your online presence

📱 Build a comprehensive website and social media pages to represent your startup objectives, ideas, value, advisory board members, contacts, and more. You can also add a donation button and crowdfunding options to improve your financial performance. 

You can also implement blockchain functionalities to distribute project tokens and accept crypto coins (make sure to learn and respect your local legislation accordingly.) Additionally, you can list your healthcare startup in specialized directories and catalogs while booking your presence at industrial conferences.     

Step #5: Hire your startup staff and arrange a payroll procedure

🧾 Your business plan must include the roles and responsibilities of all employees and team members involved at every stage of your startup development. This document should elaborate on the following essentials…

• payroll processes and pay schedules as defined by your national jurisdiction 
• methods and strategies for capital attraction and distribution 
• an incentive plan to keep your team members motivated
• the collaboration formats you choose to develop for your team
• …and everything else that helps you convince your potential sponsors and investors of your solid financial base while offering ways for them to join…   

Learn more: ➡️ Medical Staff Management Software Development

Technology Ideas that Can be Included in Your Future Healthcare Startup for Market Success

There is an ocean of opportunities for your healthcare startup. Meaningful use of certain technologies can help your solution stand out from the competition and become more noticeable to industrial magazines, startup hunters, and potential users.      

Some of the best tech to become a part of your potential innovative healthcare startups include…

🔹 Protected patient portals for authorized user access according to roles and permissions: patients, physicians, clinical representatives, and more. 

🔹 VR and AR for innovative functionalities or improved accessibility for alternatively-abled persons. 

🔹 Voice recognition and application command options.

🔹 Electronic prescription management apps with optical character recognition options . 

🔹 Profile management for different types of users. 

🔹 Diagnosis database for doctors and symptom-checkers or chatbots for patients. 

🔹 Remote patient monitoring and custom telemedicine solutions .

🔹 A social platform for patients and physicians to connect with each other. 

🔹 Protected video , chat, and other functionalities. 

🔹 Smart (AI-powered) virtual nurse software .  

🔹 Access to a repository of medical data and health documents.  

🔹 Useful content: lab tests, helpful tips, articles, and more.

🔹 Custom patient payment, billing, and claim-processing solutions . 

🔹 Custom cloud technology integrations .

🔹 Health-specialist scheduling and appointment notifications.

🔹 Custom medication reminder functionality and health-supervision log books & diaries.  

🔹 Online pharmacy features and pharma product research/comparison.  

🔹 Senior care digital tools and remote senior supervision tools. 

TATEEDA GLOBAL’s Experience in Building Healthcare Startups

We have assisted a number of young health-tech and biotech projects with…

• Integration of healthcare devices with custom software components 
• Embedded programming (electronic device programming)
• API integration of third-party modules 
• Complicated client-server architecture. 

One of the startups we worked with was Ventrilink. This medical IoT device development project involved an innovative, portable ECG-monitoring biosensor for remote patients. 

We assisted them in the establishment of a stable/optimized connection and interaction between the device and software components, such as the server portion and fast tablet-installed client application with real-time scalable ECG visualizations and many other interesting functions. ➡️ Learn more here .   

We helped the Ventrilink startup team build a healthcare technology platform, complete with a range of IoT and mobile technologies. We’re well-equipped to create a medical startup environment for you!

FAQ : Instructions on How to Start a Healthcare Business

What are the pros and cons of starting a healthcare startup.

The stakes are high in starting a health-tech business. If your healthcare solution is successful, you can earn a fortune, but it’s still a long way to go with a lot of potential pitfalls and a high risk of bankruptcy, too. TATEEDA GLOBAL cannot guarantee your marketing, legal, or strategic success, but we can guarantee the best possible quality of the technological products we produce along with full industrial compliance in terms of medical data security.  

How much money do you need for a healthcare startup?

It’s necessary to have a considerable financial base to start your health-tech business or projects. As we mentioned earlier, there are a variety of ways to attract initial startup capital as well as prolonged financial funding for longer periods of time. 

We can tell you that the average cost of healthcare startup product development (for a technical solution used in healthcare or biotech) is about $70,000-100,000+ depending on a wide range of factors. Contact us for more information!

What are some useful metrics for healthcare startups?

We do not provide marketing analytics or services, but we do know a thing or two about starting new businesses and projects. There can be….

• Annual Revenue per Account. This depends on what your healthcare startup is all about. Is it expected to deal with one (or a few) enterprise clients (e.g. medical organizations, clinics, hospitals, and others), or is it targeting an army of smaller contributors?
• Cost of Customer Acquisition . Once again, it depends on the size of the typical client you want to get (and the revenue they’re estimated to bring in, on average). For example, attracting one large customer can cost you $10,000 or more. 
• Customer Lifetime Value . How long do you want them to stay with you? If it’s a long-term sponsorship that includes continuous software maintenance, potential value can achieve tens or even several hundred thousand dollars in a time.   
• Customer Interest . How many potential customers contact you in a period of time, and how often? How can this number be improved?

How to start a healthcare company in the United States?

• Develop a detailed business plan with your future company’s mission, goals, target market, marketing strategy, financial projections, and timeframe for launching.
• Decide on a legal structure for your healthcare company: for example, a limited liability company (LLC), or corporation. The most popular legal structure among healthcare companies in the U.S. is the Limited Liability Company (LLC.) Boutique medical practitioners can opt for a sole proprietorship license. Consult with a lawyer or accountant to determine which structure is best for your business.
• Obtain any necessary licenses and certifications to operate a healthcare company in your state. You may need to register with state health agencies or obtain permits from regulatory bodies. A specific process of starting a healthcare business in your location must be discussed with a professional lawyer.
• Determine the size of the funds you will need to start and maintain your company. Develop a plan for secure funding . To start a healthcare business you may need to find investors, apply for bank loans, or consider crowdfunding options.
• Hire qualified staff, including healthcare professionals, administrative staff, and support personnel. If you want to know how to start a digital health company, consult with IT service staff providers to augment your team with health-tech developers and IT system engineers.
• Develop policies and procedures to ensure that your company is operating in compliance with all healthcare-related regulations and best practices. In the United States, starting a medical business is tightly associated with HIPAA compliance for startups.
• Develop a marketing strategy to promote your healthcare services to potential customers. Consider advertising, social media, and networking events to build your customer base.

What are the best future business ideas for healthcare?

Here are the top ten potential healthcare business ideas:

• Telehealth services : There exists a growing demand for digital health companies and startups that provide virtual medical consultations, remote patient monitoring, and other telemedicine services.
• Personalized medicine : Healthcare startups that specialize in individualized medical approaches can offer customized treatment plans and therapies matching an individual’s unique genetics and other very specific health details.
• Digital therapeutics : These include digital tools and apps that provide behavioral or cognitive interventions or assistance for patients to improve health outcomes or treat specific conditions.
• AI-powered diagnostics : Artificial Intelligence (AI) and machine learning (ML) capabilities can be integrated into diagnostic tools and device operating systems to help healthcare professionals make more accurate diagnoses and decisions.
• Wearable health technology : Companies that create wearable or adhesive devices or technologies help patients track and monitor vital signs and/or other health metrics to enable users better manage their health.
• Healthcare analytics : Companies that offer high-end solutions for healthcare data analytics help healthcare organizations improve operational efficiency, reduce costs, and enhance patient outcomes.
• Patient engagement platforms : These are health-tech platforms that encourage patients to take an active role in managing their health, such as via wellness tracking, education, and support practices.
• Health and wellness coaching : Companies that offer personalized coaching and advice to help their clients achieve their optimal health and wellness goals.
• Home healthcare services : This type of medical startup offers in-home healthcare services, including nursing, physical therapy, and other healthcare services, and helps patients receive individualized care in a more comfortable and convenient setting.
• Mental health services : This category of innovative healthcare startup companies provide virtual mental health counseling and other psychological care services to patients who may not have access to traditional in-person therapy.

If you want to jump at any of these healthcare business opportunities, please contact our IT engineers and health technology consultants for a (free) deeper consultation.

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Vlad Nazarov

Content Manager

TATEEDA builds custom software projects and provides IT staff augmentation.

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Medical and Health Business Plan Templates

Written by Dave Lavinsky

In the medical and healthcare industry, where the balance between patient care and operational efficiency is paramount, a comprehensive business plan stands as a critical element for success. It serves as a strategic guide, vital for navigating the sector’s regulatory complexities, technological advancements, and evolving patient needs.

Below you will find an extensive array of business plan examples for a variety of medical and healthcare businesses, including private clinics, medical device startups, telemedicine services, and healthcare consulting firms. Each plan is meticulously crafted to address crucial aspects such as market research, compliance with healthcare regulations, service delivery models, and financial management. These plans are invaluable for professionals and entrepreneurs in the healthcare sector, providing a structured approach to developing services that are not only medically effective but also financially viable and operationally sustainable. They underscore the importance of strategic planning in creating a healthcare business capable of delivering high-quality patient care while navigating the challenges of this highly regulated and competitive industry.

Medical Practice Business Plans

Acupuncture Business Plan PDF Chiropractic Business Plan Chiropractic Business Plan PDF Counseling Private Practice Business Plan Dental Business Plan Medical Clinic Business Plan PDF Medical Practice Business Plan Mental Health Private Practice Business Plan Mobile Health Clinic Business Plan Optometrist Business Plan  

Nursing Home, Elderly Care and Home Health Business Plans

Assisted Living Business Plan Elderly Daycare Business Plan Group Home Business Plan Sample Group Home Business Plan PDF Home Health Care Business Plan Non Medical Home Care Business Plan Nursing Home Business Plan  

Other Medical and Health Business Plans

Apothecary Business Plan Drug Rehabilitation Business Plan Health Coaching Business Plan IV Hydration Business Plan Medical Billing Business Plan Medical Device Business Plan Medical Device Business Plan PDF Non Emergency Medical Transportation Business Plan Mobile Phlebotomy Business Plan Pharmaceutical Business Plan Pharmacy Business Plan Physical Therapy Business Plan Physical Therapy Business Plan PDF Sober Living Business Plan Transitional Housing Business Plan Urgent Care Business Plan Medical Transportation Business Plan Medical Lab Business Plan

Medical & Health Care Business Plans

• IT, Staffing & Customer Service
• Construction, Architecture & Engineering
• Food, Beverage & Restaurant
• Real Estate & Rentals
• Mobile Apps & Software
• Education & Training
• Beauty Salon & Fitness
• Medical & Health Care
• Retail, Consumers & E-commerce
• Entertainment & Media
• Transportation, Logistics & Travel
• Agriculture, Farm & Food Production
• Nonprofit & Community
• Manufacturing & Wholesale
• Clothing & Fashion
• Children & Pets
• Fine Art & Crafts
• Cleaning, Maintenance & Repair
• Hotel & Lodging
• Finance & Investing
• Consulting, Advertising & Marketing
• Accounting, Insurance & Compliance

How To Write an Apothecary Business Plan + Template

How to Write Sober Living Home Business Plan + Free Template

Mobile Phlebotomy Business Plan

Yoga Studio Business Plan

Esthetician Business Plan

Urgent Care Business Plan

Health Coaching Business Plan

Medical Lab Business Plan

Optometrist Business Plan

IV Hydration Business Plan

CrossFit Gym Business Plan

Medical Transport Business Plan

Medical Billing Business Plan

Mental Health Private Practice Business Plan

Telemedicine Business Plan

Veterinary Clinic Business Plan

Rehabilitation Center Business Plan

Hospital Business Plan

Counseling Private Practice Business Plan

Chiropractic Business Plan

Dental Business Plan

Medical Practice Business Plan

Physical Therapy Business Plan

Wellness center Business Plan

Senior Daycare Business Plan

Cannabis Cultivation Business Plan

Tanning Salon Business Plan

CBD Business Plan

Non-Medical Home Care Business Plan

Medical Spa Business Plan

Gym Business Plan

Medical Equipment Business Plan

Massage Therapy Business Plan

Pharmacy Business Plan

Home Health Care Business Plan

Dispensary Business Plan

Skin Care Business Plan

Residential Assisted Living Business Plan

Personal Trainer Business Plan

Did you find what you are looking for.

Whether you plan to start a professional medical practice or a veterinary clinic, you need a clear roadmap to drive it to success.

Need help writing a business plan for your healthcare business?

This library of healthcare and medical business plan examples here can inspire and guide you as you begin to plan your business. So, don’t worry; we got you covered on that part.

Let’s learn more about these sample health and medicine business plans, starting with their benefits.

Benefits of using an industry-specific business plan example

Believe it or not, using an industry-specific business plan example is the best and probably the quickest way of writing a business plan.

Doubt it? Hold, this may change your perception; an extended list of the benefits of using an industry-specific business plan template.

• Inspiration : Reading a business-specific template can be incredibly helpful in getting content inspiration. Furthermore, it helps you gain insights into how to present your business idea, products, vision, and mission.
• Risk-free method : You are taking a reference from a real-life, let’s say, health coaching business plan—so you know this plan has worked in the past or uses a method subscribed by experts.
• Deep market understanding : Analyzing and reading such examples can provide clarity and develop a deeper market understanding of complex industry trends and issues you may not know but relate directly to the realities of your business landscape.
• Increased credibility : A business plan developed using an example follows a standard business plan format, wisely presents your business, and provides invaluable insights into your business. There’s no question it establishes you as a credible business owner, demonstrating your deep business and market understanding.
• Realistic financial projections : Financial forecasting being a critical aspect of your plan, this real-life example can help you better understand how they project their financials—ultimately helping you set realistic projections for your business.

These were the benefits; let’s briefly discuss choosing an medical business plan template that best suits your business niche.

Choosing a Medical and Health Care Business Plan

This category itself has 30+ business plan templates for various healthcare businesses. With many similar business types and templates, you may not find the most suitable one through manual scrolling.

Here are the steps to consider while choosing the most suitable business plan template.

Identify your business type

Are you going to be a rehabilitation providing nature therapy? Or a medical lab? Or planning on starting an urgent care center?

Asking yourself these questions will help you identify your business type, which will help in choosing a niche-specific business plan template.

Once you identify your business type, you can choose between templates for different business segments.

Search for the template

We have an in-built search feature, so you can easily search for a business-specific template using your business name as a key term. Once you have the search results, choose the most suitable one. Simple as that.

Review the example

Look closely at the content of the sample business plan you are considering. Analyze its sections and components to identify relevant as well as unnecessary areas.

Since all the Upmetrics templates are tailored to specific business needs, there won’t be many fundamental customizations. However, a hybrid business model targeting multiple customer segments may require adjustments.

For instance, if you plan to start a medical practice that also provides urgent care services—you may need to make necessary adjustments in some of your business plan sections based on your service offerings.

No big deal—you can view and copy sections from other business plan examples or write using AI while customizing a template.

That’s how you find and select the most suitable medical business plan template. Still haven’t found the perfect business plan example? Here’s the next step for you.

Explore 400+ business plan examples

Discover Upmetrics’ library of 400+ business plan examples to help you write your business plan. Upmetrics is a modern and intuitive business plan app that streamlines business planning with its free templates and AI-powered features. So what are you waiting for? Download your example and draft a perfect business plan.

From simple template to full finished business plan

• Start free trial

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11 Healthcare Business Ideas for Emerging Entrepreneurs

The health care market is growing. Learn how the health care industry is changing and get inspired with profitable health care business ideas.

Sooner or later, everyone needs health care. This means there’s a US heath care market of more than 330,000 million—a market rife with opportunities for aspiring entrepreneurs.

Indeed, the number of health care startups in the US health care market has steadily increased during the past decade, with nearly 600 launched in 2022 alone. Here’s what industry experts predict for the future of the health care industry, plus medical business ideas for startups to inspire you today.

Table of contents

Why entrepreneurs start healthcare businesses

Health care business ideas, health care business ideas faq.

Analysts expect the healthcare market to grow—both in total dollar value and as a share of gross domestic product (GDP). As of 2023, the healthcare sector accounted for more than 18% of US GDP, and healthcare expenditures are forecast to exceed 20% of GDP by 2031, according to the Peter G. Peterson Foundation .

At the same time rising costs and technological advances are driving change within the industry. Deloitte predicts healthcare organizations will combat declining profit margins by outsourcing labor to third-party service providers. Large healthcare systems will also continue to explore the potential for next-generation digital technologies to transform business operations, manage medical information, communicate with patients, and deliver care.

As the healthcare industry expands, aspiring entrepreneurs can earn money by helping healthcare organizations and independent service providers boost profits, reduce operating costs, and provide quality care.

• Medical accounting service
• Medical billing service
• Health care industry marketing
• Medical transcription service
• Home health care service
• Medical records management
• Medical supplies
• Medical apparel
• Health insurance specialist service
• Health care blogging business
• Medical cleaning

Health care is big business, meaning there are plenty of ways for you to earn money by meeting market needs. Here are some of the top medical business ideas to inspire your own health care business:

1. Medical accounting service

Many profitable health care business ideas focus on helping medical practices outsource key business tasks, including accounting services. If you’re a certified public accountant (CPA), you can start a business that helps health care providers manage their finances and file taxes. You’ll need expertise in industry-specific skills like navigating private and government insurance programs. You can provide accounting services remotely, making this a flexible online health care business idea.

2. Medical billing service

Although large health care organizations typically have internal billing departments, many health care providersoperate independently or out of smaller clinics—and small private medical practitioners often outsource medical billing processes to third-party service providers.

Medical billing is a specialized field that requires certification by an accredited body like the American Health Information Management Association (AHIMA) as well as an advanced understanding of insurance billing, reimbursement, and related processes.

Billing specialists file insurance claims, collect payments from insurers and patients, and help practices use and maintain medical billing software systems. If you’re interested in a medical billing business, you can obtain certification online and offer your services to small and mid-size practices.

3. Health care industry marketing

If you’re into marketing, start a company that helps health care providers reach their target audiences and attract new patients: Smaller clinics and independent health care providers frequently retain third-party service providers for this type of support.

Consider also developing your expertise in a particular niche. For example, you might position your company as a marketing service for dental offices, veterinary clinics, or providers of alternative health care services like acupuncture or massage therapy.

4. Medical transcription service

Some health care organizations let medical professionals make audio recordings of patient chart information—an approach that can save time but requires the support of a medical transcriptionist. These specialized transcriptionists type up the audio recordings to include in written patient records that are easily accessible by all members of a patient’s health care team.

Start a medical transcription business offering this service to medical service providers. The increasing popularity of telehealth services can also increase the demand for transcription services. Many telehealth software solutions automatically generate transcripts that require a check for accuracy by a knowledgeable reviewer.

5. Home health care service

Home health care workersprovide medical services and care for temporary or long-term health care needs, such as patients recovering from surgeries or other medical treatments, patients with severe or chronic health care conditions, or senior citizens. The training requirements for home health care providers vary by state, but in most cases, care providers must complete a certification program and pass a test.

If you have strong interpersonal skills and want to support positive health outcomes for clients, you can earn money as a home health care provider. The need for home health care services is expected to increase as the US population ages, so you have the opportunity to start a successful business that can scale over time. As your business grows, you might consider hiring employees to provide care, allowing you to serve a larger client base and freeing you up to focus on business operations.

6. Medical records management

Medical records management is a time-intensive task, and many health care organizations need specialized support. Start a medical record-keeping business to help independent medical providers and small medical practices manage their patients’medical records effectively.

You can also offer your services as a consultant, working with organization leadership to develop electronic health record management systems and support staff through the implementation process. 

7. Medical supplies

Although many health care business ideas focus on business services, you can also start a business-to-consumer (B2C) ecommerce company selling medical supplies like braces, wound care supplies, or wheelchairs directly to patients.

Consider starting a medical equipment rental service. Individuals recovering from injury or invasive medical procedures often have a temporary need for expensive medical equipment, meaning there’s a consistent rental market for big-ticket items like oxygen concentrators, scooters, and hospital beds. 

8. Medical apparel

Other B2C health care startup ideas can include targeting health care professionals by selling comfortable, functional apparel, such as scrubs, lab coats, and footwear. You might create a line of stylish, durable shoes for hospital workers or curate a selection of products designed to meet the needs of busy health care workers. 

9. Health insurance specialist service

Health care insurance specialists help patients understand and navigate the health care insurance landscape. They can offer administrative support and insurance counseling services, assist with selecting health insurance plans, help patients understand benefits, and communicate with insurance companies and care providers.

Start your own health insurance specialist business and serve individual clients or partner with corporate HR departments.

10. Health care blogging business

If you’re knowledgeable about health care and the health care industry, earn money with a blogging business aimed at a target audience of industry professionals or health-conscious individuals.

Depending on your interests, you might focus on a specific niche such as mental health, medical technology, medical tourism, drug addiction and treatment, or even veterinary medicine. Help readers keep up with industry news, access resources, and find answers to common questions—and once you’ve developed a following, you can earn money by selling advertisements on your site.

You can also offer your expertise as a health care writer to industry publications, medical product makers, or even medical practices interested in developing a content marketing strategy .

11. Medical cleaning

Earn money by offering professional cleaning services to health care facilities such as medical labs, clinics, and offices. Medical cleaners follow specific protocols for disposing of medical waste and sanitizing facilities and equipment.

You can also offer medical-grade cleaning to business owners eager to curb the spread of viruses and other seasonal or infectious diseases so leadership can assure employees and clients that their spaces have been cleaned and disinfected by a trained sanitation team.

How do I start a small health care business?

Here’s how to start a small health care business:

• Conduct market research.
• Identify your target audience.
• Develop your unique value proposition .
• Obtain any necessary training or licensing.
• Design and launch your website or online store .
• Market your business.

How do you grow your health care business?

Here are three strategies to help you grow your health care business:

• Start a referral marketing program .
• Build your social media presence.
• Use outbound sales strategies .

Do you need a medical background to start a health care business?

No. Many health business ideas sell supplies or provide business services to health care organizations, neither requiring specific medical training.

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How to Write a Business Plan for Healthcare

• Small Business
• Business Planning & Strategy
• Write a Business Plan
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How to Start a Financial Services Business

Example of a medical transportation business plan, how do i start a home business caring for elderly people.

• How to Create an Audit Template for a Client Account Review
• How to Get Federal Funding for a Clinic Start-Up

Writing a business plan for a healthcare involves preparing a document that outlines the services you plan to provide and how you intend to run your company. Health care businesses usually deal with reimbursement, fee schedules, billing systems, managed care contracts and operational issues. By describing how your company handles these challenges, you can prove to potential investors that your business strategy is sound and worthy of their investment.

Available Internet Resources

Use the resources provided by websites, such as the Business.gov and the Small Business Administration Small Business Planner websites, to get started writing your health care business plan. Use the self-assessment tool provided by the Small Business Administration website as well as other resources, such as free online courses, access to online mentoring and templates.

Description of Your Health Care Business

Write a description of your health care business. For example, list how your service offers elderly or disabled clients non-medical support at home. If you plan to purchase and run a franchise operation, the parent company typically provides information and training that describes the business.

For example, urgent care center businesses typically provide care by a certified physician, on-site lab services, prescription services and extended hours. Describe the skills and experience of your staff, such as technicians.

Marketing Strategy and Competitive Analysis

Use resources, such as the Plunkett Research website, to identify the industry outlook and trends in the health care industry. Identify your competitors. Analyze their strengths and weaknesses. Prepare your own promotional campaigns, which could mean describing your plans to develop a website to advertise your services or conduct an email marketing campaign to attract new customers.

Describe your community and how you intend to obtain referrals, such as making connections with doctors and hospital administrative personnel. These health care professionals frequently refer patients requiring home health care to local reputable agencies providing quality service to discharged patients.

Organization and Management 

Add a section describing how you intend to organize your health care business. List the software programs you intend to use for charting and billing. Establish a mechanism for receiving payment and obtaining reimbursement for services. List the licenses required to operate a health care business in your state, using the resources provided by the Business.gov website.

Ensure that you meet the guidelines for providing health care services and that your services can be reimbursed by Medicare, Medicaid and private insurance.

Financial and Strategic Goals

Describe how you plan to finance your company and specify a multi-year plan. For example, state the number of patients you hope to serve by the end of the first year. Classify these patients by type, such as home health care or personal injury cases. Set success criteria, such as 80 percent customer satisfaction as reported by follow-up surveys you conduct with clients.

Use the resources provided by the Business.gov website to pay your taxes and ensure you adhere to all the required regulations.

• Bplans.com: Free Medical and Health Care Business Plans
• Applied Health Strategies: Working Draft of the Safety Net ACO Business Plan for the “Next Coalition”
• Entrepreneur: Health and Personal Care
• SCORE: Templates for Your Business
• Small Business Administration: Assessment Tool

Tara Duggan is a Project Management Professional (PMP) specializing in knowledge management and instructional design. For over 25 years she has developed quality training materials for a variety of products and services supporting such companies as Digital Equipment Corporation, Compaq and HP. Her freelance work is published on various websites.

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ZenBusinessPlans

100+ Sample Healthcare Business Plans and Templates

Without healthcare, some people with medical conditions would be unable to survive, and we would not be able to access medical assistance when needed. Access to healthcare and treatment is something that is a right by law in many countries, and it should be treated as such.

There are a lot of reasons why you might be considering setting up a business, and there is no better time to start taking the first step. Entrepreneurs have already begun to use the healthcare system to their advantage, and it can be a great source of additional income for those who are wanting to set up their own business or even begin saving for retirement.

Creating your own business within the healthcare field can open a lot of doors for you. That is why this guide has been created to help you learn everything you need to know about starting a healthcare business. It has been aimed at people who want to get started on a new project that will eventually allow them to build a reputation as a local entrepreneur.

Sample Healthcare Business Plans

1. assisted living business plan.

Residential assisted living facilities are created for people who are independent but require day-to-day assistance to be able to carry out basic tasks such as taking their medications, bathing, feeding themselves amongst others. It is important to state that people in licensed residential care may require more assistance daily as they usually have complex health care needs.

2. Drug Rehab Business Plan

A drug rehab center is a specialized clinic that has medical staff who provide outpatient services that are related to the diagnosis as well as treatment of alcohol, drugs, and other substance abuse. The size of this business depends on the kind of firm it is, as for-profit firms tend to be larger and more highly concentrated in the industry than public and nonprofit firms.

3. Sober Living Home Business Plan

A sober living house (SLH), which is also known as a sober home is a facility that provides safe housing and supportive, structured living conditions for people moving out of drug rehabilitation programs. Sober living houses serve as a transitional environment between such programs and mainstream society.

Many sober living facilities also accept people who are in recovery from substance use disorders but have not recently completed a rehabilitation program.

4. Foster Care Group Home Business Plan

A group home is a community-based, long-term facility for specific types of residents (juveniles) who cannot live with their families due to behavioral issues. It is important to state that some group homes treat the mentally ill and the disabled.

5. Non Medical Home Care Business Plan

With more senior citizens preferring to age at home for as long as they can, there is a massive demand for non-medical home care providers in the United States. According to reports, non-medical home care has become one of the fastest-growing businesses – but it is not to be confused with medical home care.

Medical home care providers tend to offer licensed nursing and rehab services that are prescribed by a physician with stipulated guidelines.

6. Non Emergency Medical Transportation Business Plan

Non-medical transportation businesses help people get to pre-scheduled healthcare appointments, including doctor visits, rehab, clinical testing, follow-up exams, and more. In recent times, the demand for safe and reliable public transportation for people with medical issues and disabilities, particularly in rural communities, has witnessed massive growth.

According to industry reports, this demand is expected to continue growing and also remain strong in any economic climate.

7. Elderly Group Home Business Plan

An elderly group home is a facility or business that provides a comfortable living environment that is restricted in the kind of care they provide. This means that an elderly group home does not provide the high level of care provided at nursing homes, but they give elderly people the option to live among peers.

8. Maternity Group Home Business Plan

A maternity group home or preferably the Maternity Group Home Program (MGH) is a niche-group home facility that supports community-based, adult-supervised, transitional living arrangements for homeless pregnant or parenting young women who are between the ages of 16 and 22, as well as their dependent children.

The maternity group home business is designed to provide an environment where young mothers can function independently in the community.

9. Hospice Agency Business Plan

A hospice agency is a public agency or private organization or a subdivision of either that is engaged in providing care to terminally ill individuals, and has a valid Medicare provider agreement. The industry rakes in a whooping sum of $24 billion annually with an annual growth rate projected at -0.2 percent between 2016 and 2022.

10. Medical Spa Business Plan

A medical spa is a business that typically offers numerous health treatments. Unlike regular spas, medical spas pay detailed attention to more difficult issues such as widespread discoloration and wrinkles. The treatments include deeper chemical peels, injections (such as Botox), and laser treatments.

11. Medical Supply Business Plan

A medical supply company is a business that purchases medical and surgical equipment, instruments, and supplies, stores these items at distribution centers, and delivers these products to medical practitioners, clinics, hospitals, etc.

Recent data made available online shows that the global medical supplies market was worth USD 80 billion in the year 2019 and it is projected to reach USD 95.04 billion by 2026.

12. Teeth Whitening Business Plan

A teeth whitening clinic is a business that primarily provides elective dental services that improve the appearance of teeth and gums. Some teeth whitening clinics go as far as offering services that include cosmetic crown and bridgework, veneers, inlays and outlays, and direct bonding which is not generally covered by insurance, making them highly discretionary.

Available data from the United States shows that the value of the global teeth whitening market amounted to about 6.14 billion U.S. dollars in 2020, and is forecasted to grow to 8.21 billion U.S. dollars by 2026.

13. Medical Waste Disposal Business Plan

A medical waste disposal company is a business that disposes of medical waste. Medical waste essentially comprises wastes generated in the hospitals, laboratories, clinics, diagnostic centers et al. This waste can be harmful to humans if not properly disposed of.

14. IV Hydration Therapy Business Plan

An IV hydration therapy clinic is a business that offers hydration therapy to its patients. Hydration therapy is a simple treatment that delivers fluids directly into your bloodstream through a small IV inserted into your arm.

The fluids may also include vitamins, electrolytes, antioxidants, and even medications. Available data from the United States shows that the global intravenous solutions market size is expected to reach USD 18.9 billion by 2028 according to a new report by Grand View Research, Inc.

15. Adult Daycare Business Plan

An adult daycare center is a non-residential daycare facility that provides support in the area of health, nutrition, social, and daily living needs of adults in a professionally staffed, group setting. Adult daycare is designed to provide adults with transitional care and short-term rehabilitation especially when they are discharged from the hospital or when their family members are not around to take care of them.

How to Start a Healthcare Business in 2023

If you have taken the time to carefully research your business idea, and have decided which direction you’d like to go down, then it is time to start thinking about how you want to go about creating your healthcare business. These are some of the steps that you should take on your journey to setting up your business, and some key things to think about.

1. Conduct Your Own Market Research

Firstly, an essential first step when it comes to creating any kind of business is the market research. This step cannot be stressed enough, and you should carefully consider whether there is a gap in the market for your product or service.

Luckily, within the healthcare industry there is often a lot of room for improvement, so you could use this as an opportunity to provide something that you think your local healthcare system needs.

2. Create a Business Plan

Try to be as specific as possible in order to know what direction you plan on taking your business down. This can allow you to approach local funders who might be interested in helping you out, because they will know where their money will be going as well as the fact that you have worked hard to find a gap in the market.

It is better to be over prepared, because it allows you to adapt without worrying about the consequences as much. In addition to this, creating a more detailed business plan can help you follow an appropriate time frame, and encourage you to stay passionate about your agenda.

3. How Will You Fund Your Business?

If you are new to the world of entrepreneurship, you might not know that businesses can cost a lot of money. Creating brands and advertising alone can be very expensive, which is why you should allow the time to think about how you intend to fund your business.

This can be using your savings account, or even asking local investors or other entrepreneurs if they would like to invest in the set-up of your business for a certain percentage of revenue once you begin to see profit.

If this isn’t an option for you, then you should consider applying for a loan. Schedule a meeting with your bank supplier in order to see what your options are, and what kind of interest rates you would face during the repayment period.

4. Will You Have a Designated Business Location?

Some people find it easier to imagine their business in a physical location, whether that involves a small store or setting up a stall at the next community event. However, it largely depends on the service offered.

For example, if you are providing at-home care or online services then there is less need for a store, whereas you might want a business location if your business involves a personal touch. This can include selling medical supplies, or specially designed uniform for hospital workers.

5. Identify Your Business Structure

This is something that new business owners tend to overlook, but it is important to think about your business structure because it will determine how your business functions legally.

From taxes to workers’ wages, the business structure is an important part of any business when it is in its early stages. Ensuring that you have taken the time to carefully consider business structure can allow you to focus on generating clients and a customer base during the later stages.

6. Decide On Your Business’s Name

This can be more challenging than you might have anticipated, because a catchy name can be a little difficult to come up with. Try to find something unique to you and your business that isn’t too long. A good business name is easy to remember and say. It is also worth avoiding using a name that already exists because this can cause confusion as well as legal complications.

7. Register Your Business

Once you have a unique name and rough idea about your branding, you should register your business. This can help to legally protect your brand name, and make it feel more legitimate. Registering your business can allow you to claim ownership of your brand name and ensure that nobody else can use it for their business.

8. Apply For The Correct Taxes

You do not want to get into legal trouble within the first few weeks of business, so you should apply for the correct taxes that agree with your business structure as soon as possible.

When completing forms like these, it is worth doing your own research in order to figure out which taxes you need to pay and what to apply for. Another thing that you can do is speak with a lawyer about what steps you need to take in order to make your business legal.

9. Open A Business Bank Account

This can be done using an Employer Identification Number (EIN), which is also needed to deal with the taxes of your business. Opening a business account can allow you to apply for more benefits within your bank supplier, as well as using it to apply for business loans if you need one.

Once you get to the stage of growth that you can hire additional employees, you will want to use your business bank account in order to pay wages as well as your own income.

10. Apply For Your Business License And Permits

Make sure that your business is running legally in order to prevent additional challenges from arising. This can be a complex process, and it could be worth consulting a lawyer about what licenses and permits you will need. Because the requirements differ between state, industry, and location, it is definitely worth seeking appropriate advice before applying for the right permits and licenses.

Tips on How to Build a Sustainable Healthcare Business

In order to ensure that your business will stay as active as it can be over a long period of time, you should consider some of the following things. This can allow you to continue to make money, and keep investors as well as your clients happy.

Some businesses tend to hit the ground running for several months, and then begin to plummet. Try to do some of the following things in order to keep your business gaining momentum for as long as possible.

a. Keep Yourself Educated

Always understand what is happening in your business and industry as a whole. This can allow you to anticipate your business’ next moves as well as figure out how you can adapt to the changing market. Take the time to learn about how current affairs are affecting the healthcare industry as a whole, because it can help you to make predictions and figure out what you should do to stay on top of your business.

b. Know Your Competitors

They always say to keep your enemies close, and it’s mostly so that you can figure out what they might be planning next. Keep a close eye on your competitors and try to figure out how their marketing strategy differs from yours. You could also compare their branding and target audience, depending on the specific service provided.

c. Build a Strong Business Plan

This can be something that sets you apart from other businesses on the horizon, because a good quality, strong business plan allows you to stick to your guns and focus on the moment. Rather than worrying about what your next moves are or what you need to change, you can rest easy knowing that you have already created a comprehensive business plan.

d. Build a Strong Branding Strategy

Try to think about how you can make your brand stand out from the crowd. Create a dilemma that needs to be solved, and offer a solution through your business. Try to use this to generate local interest, because these will be your main clients unless you set up an online site.

e. Build a Strong Marketing Strategy

Again, try to present your business as a solution to a problem, whether that is a hole in the market or lack of resources. Try to do your own research in order to figure out how different businesses in the past have failed, and which were more successful.

Make your research more specific by comparing your competitors’ marketing strategies and think about how you can adapt that and make it stronger.

f. Know Your Target Audience

This depends largely on the type of service your business provides, but it is worth knowing your target audience so that you know how to reach them. In addition, it is worth changing your language, tone, and advertising platform depending on your audience.

For example, younger people might not want to receive a pamphlet in the mail, whereas older audiences might not appreciate digital marketing as much.

g. Always Stay Passionate

This is something that cannot be underestimated. Try to focus on your audience, competitors and do what you need to do to stay motivated.

Setting up a business can be challenging, which is why a lot of people need to be reminded to stay passionate about their brand. It can be easy to lose sight of what is important to you, so you should try to keep some level of perspective and stick to what works best for you.

Medical Clinic Business Plan Template & PDF Example

• July 22, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful medical clinic. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your medical clinic’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a medical clinic business plan but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the healthcare industry, this guide, complete with a business plan example, lays the groundwork for turning your medical clinic concept into reality. Let’s dive in!

Our medical clinic business plan is carefully designed to cover all the important parts needed for a good strategy. It explains how the clinic will run, how we’ll take care of patients, how we’ll tell people about our services, what the healthcare situation is like, who our competitors are, who’s in charge, and how much money we expect to make.

• Executive Summary : Provides an overview of the Medical Clinic’s business concept, healthcare market analysis , management structure, and financial strategy.
• Facility & Location: Describes the clinic’s physical setup, including its architectural design, medical equipment, patient amenities, and the strategic choice of its location to maximize accessibility for its target patient base.
• Treatments & Pricing: Enumerates the healthcare services the clinic will provide, from general medical consultations to specialized treatments, alongside a transparent pricing model .
• Key Stats: Shares industry size , growth trends, and relevant statistics for the healthcare market.
• Key Trends : Highlights recent trends affecting the healthcare sector, such as technological advancements, patient care innovations, and regulatory changes.
• Key Competitors : Analyzes the main competitors in the vicinity and differentiates the clinic based on services, patient care quality, and operational efficiency.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis tailored to the healthcare context.
• Marketing Plan : Strategies for attracting and retaining patients, including digital marketing, community health programs, and patient service excellence.
• Timeline : Key milestones and objectives from the clinic’s establishment through the first year of operation, including licensing, staff recruitment, and service launch.
• Management: Information on the healthcare professionals managing the medical clinic and their roles, emphasizing their medical expertise and healthcare management experience.
• Financial Plan: Projects the clinic’s 5-year financial performance, including revenue from medical services, operational costs, profits, and expected expenses, ensuring a sustainable and profitable healthcare service model.

Medical Clinic Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces our medical clinic’s business plan, offering a concise overview of the clinic and its healthcare services. It details our market positioning, the comprehensive medical services we provide, its location, size, and an outline of our day-to-day operations. 

This section will also delve into how our clinic will integrate into the local healthcare market, including an assessment of the direct competitors in the area, identifying who they are, and highlighting our clinic’s unique selling points that set us apart. 

Additionally, it includes information about our management and co-founding team, outlining their roles and contributions to the clinic’s success. A summary of our financial projections, including expected revenue and profits over the next five years, will also be presented to offer a clear view of our clinic’s financial outlook.

Medical Clinic Business Plan Executive Summary Example

Business Overview

In the  business overview , you should clearly define your gym’s characteristics. This includes its name, location, facility details, membership plans, and the variety of classes offered. This part of the summary is critical for showcasing what makes your gym stand out in a competitive fitness industry.

Example: For instance, “FitFusion Gym,” situated in the city center, offers a 15,000 sq. ft. space with an open-plan design and state-of-the-art equipment. Its unique selling points include a comprehensive range of fitness classes, from HIIT to Yoga, and premium amenities like a wellness center. These features position FitFusion as a versatile and appealing fitness destination.

Market Overview

In this section, you should analyze the gym market, including its size, growth trends, and  key competitors . This gives context to where your gym fits within the industry and highlights how it can capitalize on current fitness trends.

Example: FitFusion Gym enters a robust U.S. market valued at $30.8 billion. It sets itself apart from the five main competitors in its vicinity by offering a blend of holistic wellness and cutting-edge fitness technology, tapping into the growing demand for integrated health and fitness experiences.

Management Team

Detailing the experience and roles of your management team is vital. This section should highlight their qualifications in gym and wellness management, underscoring their ability to drive the gym’s success.

Example: The CEO of FitFusion brings extensive experience in fitness management, guiding the gym’s strategic direction and operations. The CFO & Marketing Director, with a strong background in finance and marketing, plays a crucial role in managing the gym’s finances and developing effective  marketing strategies  to enhance customer engagement and retention.

Financial Plan

A clear presentation of financial goals and projections is key in this section. It should include targets for revenue and profit margins, offering insight into the gym’s financial health and growth prospects.

Example: With a target of $2.0 million in yearly revenue and a 22% profit margin by 2027, FitFusion Gym is positioned for significant growth. Its financial strategy is supported by an ambitious marketing approach and a focus on delivering exceptional customer experiences, aligning the gym for success in the competitive fitness market.

For a medical clinic, the Business Overview section can be concisely structured into 2 main components:

Facility & Location

Briefly describe the clinic’s facilities, highlighting the state-of-the-art medical equipment, patient-centric design, and a welcoming atmosphere that ensures comfort and privacy.

Mention the clinic’s strategic location, emphasizing its accessibility and conveniences such as proximity to main transit routes and ample parking. Explain how this location was selected to serve the clinic’s target patient demographics effectively.

Treatments & Pricing

Detail the comprehensive range of medical services provided, from routine health check-ups to specialized treatments in areas like cardiology, pediatrics, or orthopedics.

Describe your pricing model, ensuring it mirrors the high standard of care offered and is competitive within the healthcare market. Highlight any health plans, membership options, or loyalty programs designed to offer added value to patients, fostering long-term relationships and patient loyalty.

Industry size & growth

Start your medical clinic business plan by looking at how big the healthcare world is, especially for the services you provide like general health, special treatments (skincare, children’s health), or quick care. Think about how this area is growing and where you might find new chances to grow.

Key market trends

Then, talk about what’s new in healthcare, like how people want care that’s just for them, using tech to help patients (like video doctor visits or digital health records), and focusing on keeping people healthy before they get sick. Point out that people are looking for services that meet their specific health needs and that there’s a growing interest in clinics that care for the whole person.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your medical clinic in the market; it’s also a fundamental component of your business plan.

This analysis helps in identifying your medical clinic’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Competitors in the Healthcare Sector

Begin by mapping out direct and indirect competitors in the healthcare industry. Direct competitors might include other medical clinics, specialized treatment centers, or hospitals offering similar services within your local area. 

Additionally, consider indirect competitors such as urgent care facilities, telemedicine services, or alternative medicine practitioners that might attract your target patients.

Utilize online tools and directories, such as Google Maps and healthcare-specific platforms like Healthgrades or Zocdoc, to gain insights into the distribution and offerings of competitors.

Patient reviews and ratings on these platforms offer valuable information about competitors’  strengths and weaknesses . For instance, glowing reviews highlighting short waiting times and personalized care at a rival clinic indicate a competitive advantage worth noting.

Medical Clinic’s Competitors’ Strategies

Analyzing competitors’ strategies involves evaluating several facets:

• Services Offered:  Assess the range of medical services and specialties offered by competitors. For instance, if a neighboring clinic specializes in integrative medicine or offers holistic approaches, it may attract a different patient demographic than a clinic focusing solely on traditional treatments.
• Treatment Approaches:  Consider the medical philosophies and approaches adopted by rival clinics. A clinic known for evidence-based treatments may appeal to a different patient base than one embracing alternative therapies or holistic healing methods.
• Pricing and Payment Models:  Compare pricing structures and payment models offered by competitors. Determine if your clinic’s pricing aligns with those of budget-friendly clinics or premium healthcare service providers in your area.
• Marketing and Patient Outreach:  Analyze competitors’  marketing strategies . Do they heavily invest in digital marketing, have a strong online presence, or engage in community health programs and events?
• Patient Experience:  Evaluate the patient experience at rival clinics. For instance, a competitor might be recognized for its friendly staff, minimal waiting times, or advanced appointment scheduling systems, contributing to an enhanced patient experience.
• Operational Efficiency and Technology Integration:  Observe if competitors leverage technology to streamline patient management and appointment scheduling or offer telemedicine services for remote consultations.

What’s Your Clinic’s Value Proposition?

Reflect on your clinic’s  unique value proposition . This could include specialized treatments, cutting-edge medical technology, a focus on personalized patient care, or convenient access to healthcare services.

Identify gaps in the market through patient feedback and healthcare trends. For example, if there’s an increasing demand for preventive care or a specific medical service in your area that competitors aren’t adequately addressing, this presents an opportunity for your clinic.

Consider your clinic’s location and community demographics. Tailor your services to meet the needs of the local population-urban clinics might emphasize convenience and efficiency, while clinics in residential areas could focus on building stronger patient relationships and community engagement.

First, conduct a SWOT analysis for the medical clinic , identifying Strengths such as a team of expert medical professionals and a comprehensive suite of healthcare services. Weaknesses might include factors like high operational costs and the complexity of insurance processes. Opportunities can arise from the growing emphasis on health and wellness and the potential for telemedicine services. Threats could stem from increased competition and the impact of economic downturns on discretionary healthcare spending.

Marketing Plan

Next, develop a marketing strategy aimed at attracting and retaining patients. This strategy should focus on targeted advertising to reach specific demographics, offering promotional incentives for referrals, maintaining an active and engaging presence on social media, and fostering community ties through health education and events.

Marketing Channels

Deploy a diverse array of marketing channels to effectively reach potential patients and cultivate lasting relationships.

Digital Marketing

• Website and SEO:  Develop a comprehensive website housing detailed information about your services, healthcare professionals, patient testimonials, and educational resources. Optimize it for local SEO to enhance visibility and attract local patient traffic.
• Social Media:  Utilize various social media platforms – LinkedIn for professional networking and educational content, Facebook for community engagement and healthcare updates, and Instagram for visual storytelling and patient education.
• Content Marketing:  Regularly publish informative blog posts, articles, and videos addressing prevalent health concerns, treatment options, preventive care measures, and breakthroughs in the medical field. This content serves to establish your clinic’s expertise and attract patients seeking credible information.

Local Advertising

• Community Engagement:  Sponsor or participate in local health fairs, wellness events, or educational seminars aimed at fostering health awareness within the community. These events offer a platform to educate the public about prevalent health issues and position your clinic as a reliable source of healthcare information.
• Collaborations:  Forge partnerships with local gyms, wellness centers, corporate offices, or community organizations to offer healthcare screenings, educational workshops, or health campaigns. Collaborative efforts broaden your reach and establish your clinic as an integral part of the community’s well-being.

Promotional Activities

Engage potential patients through compelling offers and initiatives:

• Free Consultations:  Introduce a promotional campaign offering free initial consultations for new patients. This initiative provides an opportunity for patients to experience your clinic’s services and expertise firsthand.
• Referral Programs:  Create a structured referral program incentivizing existing patients to refer others to your clinic. Offer discounts, loyalty points, or small rewards for successful referrals, fostering a sense of community and trust.
• Seasonal Health Campaigns:  Launch health-related campaigns aligned with seasonal health concerns (e.g., flu vaccination drives and summer wellness check-ups) to draw attention to your clinic’s services and encourage visits during these periods.

Sales Channels

Efficient  sales channels  are vital for patient engagement and service delivery optimization.

Appointment Optimization

• Online Booking:  Implement a user-friendly online appointment scheduling system accessible through your website and social media channels. Simplifying the booking process enhances patient convenience and accessibility to your services.
• Telemedicine Services:  Introduce telemedicine services for non-emergency cases, providing patients with remote access to healthcare consultations and follow-ups. Telehealth services cater to the evolving needs of patients seeking convenient healthcare solutions.

Patient Retention Strategies

• Patient Experience Enhancement:  Focus on providing exceptional patient care, personalized attention, and consistent follow-up communication. Creating a positive patient experience fosters patient loyalty and encourages referrals, augmenting your clinic’s reputation.
• Membership Programs:  Develop membership plans offering regular check-ups, discounts on services, or additional perks for loyal patients. Membership programs instill a sense of exclusivity and reward patient loyalty, leading to increased patient retention rates.

Strategy Timeline

Finally, create a detailed timeline that marks essential milestones for the clinic. This includes the initial setup and opening phase, followed by the launch of marketing initiatives, efforts to expand the patient base, and strategies for broader service offerings, all designed to ensure the clinic progresses with a clear and defined purpose.

The management section focuses on the medical clinic’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the medical clinic toward its financial and operational goals.

For your medical clinic business plan, list the core team members, their specific responsibilities, and how their expertise supports the medical clinic’s mission.

The Financial Plan section is a comprehensive analysis of the medical clinic’s financial strategy, including projections for revenue, expenses, and profitability. It lays out the clinic’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your medical clinic business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your main assumptions (e.g. prices, customers, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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How to Create a Profitable Healthcare Business Plan for Your Medical Practice

Marketing is crucial for any industry, and healthcare industry is no exception. Whether you are a big hospital or private practice, creating and implementing an effective marketing plan will help to attract new patients, retain the existing ones and maintain relationships with your staff and patients. An effective marketing strategy will play an integral role in increasing revenue, building patient trust, improving online reputation and expanding your reach.

A healthcare business plan can help you define and identify the target audience and key prospects. It can also assist in evaluating and comparing your practice data against your industry. Clearly, a business plan is necessary, so does your practice have one? Here are some more benefits of creating a strategic plan for your medical practice:

• Physician business plan provides clear direction to your marketing initiatives, preventing random activities that may work against each other.
• The process of developing a strategic plan offers an opportunity for everybody involved to collaborate in shaping the future of the practice. Active participation of all the stakeholders ensures the success of projects and priorities.
• A strategic healthcare business plan helps the physician set marketing goals and priorities for the medical practice.
• Clarity of aims and objectives can improve the quality of patient care.

Strategic business planning offers great long-term value. After the initial planning is done, a practice can use it as the benchmark for measuring progress and monitoring areas of improvement.

The process for preparing a strategic business plan is not clear-cut, but it is one of the most important things you should do for the strategic growth of your practice. A well-defined marketing plan will outline how you will retain existing patients and attract new patients, retain staff and communicate your message in the most efficient manner.

You do not need to hire expensive consultants to create a marketing plan for your healthcare practice. All that you need is the willingness to put in time and effort. An ideal healthcare marketing plan should address every aspect related to promoting your practice, and to effectively plan, you must do some research.

Identify your target audience

The first step in any business plan is to figure out who is going to seek your service. If you have a specialty practice, you probably know the answer. According to industry experts, your marketing efforts will be effective only if they are targeted. So to identify your potential patients, start by defining the common characteristics of your current patients. Always remember, your marketing plan is all about reaching your target audience and adjusting your approach to fit their preferences. Beyond demographics, try to learn the reasons why your potential patients will come to your practice, know your competition and understand your competitors’ approach in reaching the target audience. Examine how your competitors market their practice and then compare their approach, services and marketing strategies with yours. You must also determine your unique selling proposition and understand what makes you different from your competition.

Marketing is all about keeping up-to-date. So make sure while doing your research, you stay updated on current affairs. The idea is to keep up-to-date with financial, political and marketing trends that influence the medical community so you can create an effective business plan that responds to changing market conditions.

Time for some brainstorming sessions

After you have identified your potential market and patients, you will need to categorize and address critical operational questions about your medical practice. You may need to set up brainstorming sessions with people you trust, including family, friends, team members or other professionals. During these sessions, try to find answers to these basic but critical questions:

Question: Which marketing platforms will make be most suitable for promoting your services?

Pro tip: You will need to think regarding how to present or sell your services. For instance, consider offering packages that are generic in nature and offer value for money.

Question: What is the best time and frequency of marketing your service?

Pro tip: Too much promotion can create a negative brand image in the minds of potential patients. Too much advertising tends to make patients suspicious. So depending on your target audience, determine the best time for promoting your practice.

Question: What are you trying to achieve from your business plan? How do you plan to measure these goals?

Pro tip: According to experts, your marketing plan should include basic tasks that have short-term goals so that you do not end up compromising on the patient experience. You can consider using big data to evaluate and measure results and their impact on ROI.

Penning the business plan

Now that you have completed the groundwork, it is time to put all your facts and figures into words. Here are some basic steps for creating a business plan for your medical practice:

• Define your mission and vision: This is where you need to determine your goals. You have to understand where you want your practice to be in five to seven years. You will need to prepare a list of all the marketing techniques and tactics and determine what options will work best for your practice. Some of the effective marketing tactics are networking, direct marketing, print advertising, training sessions, media, open houses, social media, blogs, third-party websites and much more.
• Identify your team: In order to build support and generate enthusiasm, you should determine the outgoing personalities in your organization. Find people who will help support your marketing efforts by hosting open houses, patient training sessions, interviews and other public relations initiatives.
• Market segmentation: Consider potential patients think outside the box. Look within your organization first – you may find some of your best customers and marketers there. You must understand where your patients come from and dive deeper into your business model. Is your practice mainly run by physician referrals, or do patients refer directly? You need to create an extensive list of potential patients and categorize them.
• Create patient personas: Patient personas are representations of your ideal patients. You must create patient personas based on your research and reflect on their needs and issues. For instance, if one of your buyer personas is a diabetic, his or her needs will be different from a flu patient.
• SWOT analysis: SWOT matrix is another important component of the business plan. You can use this analysis to assess your practice’s strengths, weaknesses, opportunities and threats. This study will help you understand your market situation better and discover growth opportunities. For a successful SWOT analysis , you must be specific, realistic, compare different situations and keep your business plans and goals updated.
• Prepare a budget: Now that you have all the market information you need and have established the best way to reach your potential patients, focus on your budget to support your marketing campaign. To begin with, it is advisable to stick with the 80/20 rule. According to this rule, 80 percent of your business volume will often come from 20 percent of your patients.
• Share your vision: The first step is to make sure the plan is received and understood by your organization’s leadership. Next, make sure your plan becomes a part of the organizational culture. You must encourage employees to come up with ideas that will support your idea. Always share your plans with physicians, volunteers, employees, board members and top leadership.
• Plan the rollout: To begin with, introduce your campaign internally. Your organization’s leadership and staff are often your best support. If they get the message, your marketing efforts will be successful.
• Measure and evaluate: You should regularly track new patients, physician referrals, leads, website hits and procedure volumes in order to assess the success of your business plan.

Don’t forget the 7Ps

Even the most insightful services, supported by the best business plan, will not survive on the market if they are unable to reach potential patients. That is why practices need to invest in strategies that will bridge the gap between them and the target audience. For your marketing initiatives to be successful, you must address the 7Ps in order to evaluate and measure your business activities. These seven Ps are product, price, promotion, place, packaging, positioning and people. These 7Ps will help you review and define key issues that impact your marketing activities.

• Product: When was the last time you took an unbiased look at your products, service, facility or value proposition? Do your products meet the needs of the patients? Do your products and services deliver value? Is your medical practice properly presented? The ‘product’ for your healthcare practice is the happiness and satisfaction of your patients, which is intangible and cannot be quantified. The only way is to know that customers receive value and comfort by way of your medical practice.
• People: Healthcare is all about people – your current patients, potential patients, staff and management – everyone delivers or receives a service plays a significant part in the product category. Your patients will evaluate the service and satisfaction based on assumptions and interactions. Usually, patients do not have much insight to your medical skills, but they will know if they are pleased based on how you deal with them. Your reputation and your image are not yours alone – it is teamwork.
• Price: It is the amount people pay in exchange for the product received. Therefore, the price must be competitive, enough to generate profit, but may vary when bundled with promotional offers. Sometimes, price is the biggest factor. Therefore, as a practice owner, you must take a serious look at those areas where there is flexibility and be open to adjusting and reducing prices to meet your patients’ needs.
• Promotion: This refers to all the direct and indirect ways of communicating about your product to your people or potential patients. This may include personal and mass interaction. In all instances, promotion should always be carried out in a professional manner. The objective of promoting your practice is to examine how, when, what and where you can offer your service to your target audience.
• Place: This points to presenting your products or services to your target audience in the right place and at the right time. Needless to say, the ‘place’ will be your office where the product will meet the user. However, in healthcare, a change in location can impact the user’s decision to buy.
• Packaging: Take an unbiased look at the appearance of your office, front office, waiting area, brochures and website and the appearance of your medical staff. You might be surprised to see what patients are observing when they walk through your front door.
• Positioning: This refers to the way your brand, products or service are perceived by your target customers. If you could get the opportunity to create the ideal impression in the minds of your patients, what would you want it to be?

For successfully growing their practice and attracting new patients, many practices are working with medical marketing agencies. As a medical marketing agency , Practice Builders knows what is suitable for different medical specialties. We can introduce you to the best marketing tactics that will draw new patients to your practice. Moreover, we know how to develop effective business plans that will lead to significant growth in your medical practice. To find out more, contact us today.

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Sharon has spent 25 years building teams and developing people to work together to help improve the client experience in the markets we serve. This ultimately benefits both customers and staff equally. Sharing best practices and ideas helps clients and team members envision new alternatives, which is quite fulfilling when positive change results. Sharon enjoys working closely with clients to understand the true drivers that are affecting their business environment. By engaging clients in meaningful exploration of their goals and challenges, she often discovers that an issue they asked for help in solving is merely a symptom of something else or something greater. Solving the real issue through truly listening and not just addressing the symptoms helps create true partnerships with clients.

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32 Health and Wellness Business Ideas for 2024  

So, you love health and wellness, and you’ve also always wanted to be your own boss. Wouldn’t it be great to work in an industry that you love – every day?

Unfortunately, being passionate about wellness isn’t enough to earn you a healthy income! You’ll need to turn your passion into a business, and in this article, we’ll cover 32 types of wellness businesses.

There are many types of wellness business that suit different people. It really depends on your interests and skills, but also your desired lifestyle:

• Do you want to be location independent? If so, you’ll want to look for a business that lets you work online, so you don’t need to be in a physical location.
• Do you want to work with clients 1:1 or in groups, or not at all?
• Do you want to write books, or create courses, or teach classes?
• Do you want to create a physical product to sell?

Knowing YOUR interests is the first step to choosing the best health and wellness business for YOU to start.

On The Wellpreneur Podcast , I’ve interviewed over 100 wellness entrepreneurs about how they’ve built successful businesses.

These wellpreneurs range from health coaches to personal trainers to yoga teachers to authors to retreat planners to natural skincare brands .

There are so many ways that you can create a job you love in the wellness industry.

Starting a Health and Wellness Business in 2024

2024 is the year that we need to start thinking more outside of the box about wellness. It is time to take a more serious approach to alternatives available in the healthcare industry while finding new ways to serve our communities. Creating a personal wellness business in 2024 is also a great way for many to find fulfillment in their lives as they continue to grow.

FREE CHECKLIST

Start Your Wellness Business -  from scratch!

If you are here, then you are already interested in starting a business in the health and wellness industry, so here are a few tips to get you going before we get into our top 32 ideas for 2024.

Find Your Focus

This is going to be the first step. The focus is on what helps determine what kind of service or product you are going to provide. In the health and wellness industry, there are several ways to go, including something more clinically focused or spa focused, for example.

Determine Startup Costs

This is going to be the amount of money you need to get started. Consider the initial and monthly costs of the rent for any office space you may need to secure along with the costs of materials for any business cards, letterheads, flyers, or brochures you need. Also, factor in the costs of building a website, obtaining a web host, and securing a domain.

In addition, you should also take into consideration any costs there may be for owning your business. For example, are there additional taxes you have to pay? Do you have the income to continue to live comfortably while building your business?

Identify a Target Audience

When you have a clear focus, it will be much easier to identify your target audience. When identifying your target audience, make sure to pinpoint what is also going to set you apart from your competition.

Obtain Proper Licenses

You want to familiarize yourself with the laws and licensing requirements in your state. You need to make sure that your business and any contractors you hire are fully licensed by the state you are in.

Naming Your Business

Finally, when it comes time to establish a  name for your health and wellness business , first make sure that the name is available through your state's Secretary of State directory and then develop your logo and website to promote your new business. To help you with your name, you can also use a business name generator to help you come up with ideas.

Check the Competition

Always research other businesses in the area that are offering the same products and services as you. Check their website, their pricing, and research who their ideal customer is. Having all this information will help you grow and scale your own business and establish your own health and wellness career.

Here are 32 ideas to get you started, categorized by type of business.

Health and Wellness Business Idea: Personal Services

Health and Wellness Coach (or Holistic Health Counselor)

A health or wellness coach helps their clients to make sustainable, healthy changes in their life, based on that client’s personal goals and lifestyle.

Health Coaching is a really popular wellness business because it can easily complement other modalities or products.

For example, many wellpreneurs are yoga teachers AND health coaches. Or personal trainers AND health coaches. Or you could be a health coach who also sells essential oils or other products that support a healthy lifestyle.

Another benefit of the health coaching business is that it’s quite flexible. You can work in-person or online, 1:1 or in group coaching programs , or package up your programs into online courses or books.

Plus, many wellpreneurs say that going through health coach training helps them and their families live a healthier life too! You can try a sample class from health coach training here .

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Corporate Wellness Coach / Trainer / Consultant

Corporate wellness is a booming niche market.

This is an especially good option for aspiring wellpreneurs who are  transitioning from a corporate day-job  into entrepreneurship. Companies realize that improving the health of their employees is good for business (fewer sick days, lower stress, happier employees, etc) – and they’re ready to invest in workshops, programs, and coaching.

You can  train as a health coach to do corporate wellness , or get connected with an existing corporate wellness company. Here’s an interview I did with one health coach who  started providing wellness services within his current company .

Yoga Teacher

If you’re a passionate yogi, who wants to teach others how to do yoga safely and regularly, you could consider training as a yoga teacher. Most yoga teachers work with students in person, via 1:1 or group classes. However, there is a growing trend in teaching yoga online. Here’s an  interview about teaching yoga online .

Personal Trainer

Becoming a personal trainer is another hugely popular avenue to entrepreneurship for wellness entrepreneurs. While many people believe you have to work in-person as a personal trainer, that’s not the case.

Similar to yoga, there’s a trend of personal trainers either creating online courses or working with a client via video call to deliver training no matter where they live! Don’t miss this interview with Betty Rocker about how she runs a  successful fitness and wellness business online .

Nutritionists and Nutritional Therapists

Although it takes a bit more schooling, becoming a nutritionist is a well-proven path to working in health and wellness. Nutritionists are in-demand at hospitals, wellness centers, gyms, spas, corporations, and more. It’s a well-known profession that allows you to work as an employee or entrepreneur.

Herbalists help their patients improve their health using medicinal herbs and foods. This career also requires extensive schooling, but if you’re passionate about plants and health, it is a great option. Typically, herbalists would work in person with their patients, but it’s also possible to create online courses or write books. Have a listen to this interview about how to take your herbal medicine practice online .

Acupuncturist

Acupuncture is a holistic therapy that comes from Traditional Chinese Medicine, where you stimulate specific points on the body using very thin needles. You’ll need extensive training to do this safely, and it can also be complementary to other therapies or modalities such as health coaching, massage, or aromatherapy. In this interview, we learn how an acupuncturist complements her in-person practice with online wellness programs .

Weight Loss Coach

Weight Loss is the main motivation for many people to get serious about their health fitness and wellness, so working with clients to lose weight never goes out of style! There are many certifications you could do to help with weight loss, from personal training to health coaching to nutrition and more. Here’s a case study about how one weight loss coach enrolled 70 students in her first group program !

Personal Chef

A personal chef either teaches their clients how to prepare healthy meals, teaches cooking classes, or even prepares daily or weekly meals directly for their clients. You might not realize that you can expand your personal chef business to teaching online classes, as well. In this interview, we learn how this personal chef made the transition to online business .

Massage Therapist

Massage therapy is a hugely popular route into the wellness industry. Many people first become interested in massage because it feels so good, but then realize that it’s a viable business option as well. Massage therapy complements many other modalities, such as aromatherapy or health coaching.

Services Related to Aging and Senior Health

The percentage of elderly people is growing in many western countries, and that means that products and services which support healthy aging are in demand! You could focus on delivering any of the above services specifically to target aging concerns, or even become a wellness provider within a retirement community or other wellness center focused on healthy aging.

Wellness Retreats

Running health and wellness retreats is a huge trend this year – and growing! At a retreat, you invite a group of people for a multi-day experience, which often includes their housing, delicious healthy meals, classes, workshops, treatments, tours, experiences, and more.

As a retreat leader, you can choose to run your wellness retreats at centers around the world, giving you the opportunity to travel while you’re working. In this interview, I speak with a wellpreneur who runs luxury wellness vacations .

Health and Wellness Business Ideas: Physical Wellness Products

Essential Oils

Essential Oils are hugely popular to support natural health. You can join a popular essential oil company and sell these oils either as your full business or as a complement to your other health and wellness work. Selling essential oils is especially popular for health and wellness coaches and massage therapists.

Dietary Supplements

If there’s a dietary supplement that has personally helped you to achieve your health and wellness goals, you might be able to sell it to others as well. Each company has its own way of handling this, from a multi-level marketing approach to being a reseller or distributor. You could also partner with a company or scientist to create your own supplement brand.

Specialize in a Type of Workout CLOTHING (yoga, cross-fit, cycling, etc.)

Workout enthusiasts always need new clothing to support their practice – and you could provide it! You can either partner with an existing brand to sell their products, or you could manufacture your own products and sell them.

Specialize in a Type of Workout GEAR (yoga, cross-fit, cycling, etc.)

Similar to workout clothing above, there’s always a need for more specialized or better quality gear to support our health and fitness habits. You could choose to sell an existing brand’s product, or you could manufacture and sell your own workout gear.

Healthy Food Products

From breakfast bars to shakes, chia seeds to teas, wellness enthusiasts are always looking for new healthy food products! You could either sell an existing product or manufacture your own! Here’s an interview about a wellpreneur who started selling avocado ice cream .

Natural Beauty Products

Once you’ve read an ingredient label and realized how much chemical junk goes into our beauty products, you’ll want to go natural – and your clients will too! You can either sell existing natural beauty products or manufacture your own. In this interview, we learn how this wellpreneur created her own natural skincare brand .

Anti-Aging Products

Anti-aging products are always popular. Whether it’s food, beauty, supplements, or workouts – if your product can help people to feel better longer, it could fall into the anti-aging category. You can manufacture your own product to sell, or possibly resell existing products in this category.

Weight Loss Products

Like Anti-Aging, there is always a need for weight loss products! Many people get interested in health and wellness solely to lose weight, so they are always looking for products to support their weight loss. You could manufacture your own product or sell an existing one to a new market.

Healthy Cooking Kitchen Products

People who love to cook often also love healthy cooking gadgets and food products. Do you have a product that can make preparing healthy meals easier, quicker, or cheaper? You could sell an existing product or manufacture one of your own! Check out this interview with a pair of wellpreneurs who also sell physical products through their website .

Health and Wellness Business Ideas: Physical Locations

Wellness Center, Studio or Clinic

Many wellpreneurs dream of creating a wellness center. You might create a large, professional clinic with numerous professionals, or a cozy natural wellness center with an organic cafe and yoga studio. When you set up a center, studio, or clinic, you have the opportunity to bring in other wellpreneurs to work with you (or to give classes or services in your center.)

The spa industry is well-established and popular. You could create a spa that provided hydrotherapy as well as treatment rooms where other practitioners can provide their wellness services.

Retreat Center

Retreats are becoming more and more popular! If you create a retreat center in a location that you love, you can invite other wellpreneurs to run their own retreats at your center.

Juice bars have gone mainstream, although that means there’s more competition for them as well. You could set up a juice bar in a physical location or consider franchising with an existing brand.

Healthy Restaurant or Cafe

Starting a healthy restaurant is a continually popular idea for wellpreneurs. Of course, having experience in the restaurant industry will help here, plus you’ll need money up-front to rent your space, fit it out, and get all the food and equipment needed for a restaurant!

Health and Wellness Business Ideas: Technology + Media

Mobile Wellness and Health Tracking Apps

If you’re into technology, why not partner with a developer to create an app that supports health and wellness? You could create an app for nutrition, fitness, healthy habits, quantified-self, buying guides, corporate wellness, connection with other health-minded people, and more.

Books (Print + Digital)

If you love to write and have the expertise to share, you can write and publish your own book. While a single book probably won’t be enough to replace your full-time income, you can write a series of books, or use your book as a lead generation tool to book speaking engagements or 1:1 clients! In this podcast episode, I share the process I used to write my first book .

Software to Support Wellpreneurs

As the wellness industry grows, so do the needs of wellness practitioners. Consider creating a software product to support wellpreneurs in growing their businesses – for example, software for working with coaching clients, managing an email list, or creating amazing meal plans are just a few ideas.

Health + Wellness Blog

Yes, there are lots of health and wellness blogs – but when done well, your health blog can generate revenue and could even replace your full-time income if your site became popular enough.

But you need to understand that simply writing a blog doesn’t generate income. The key is to build your audience.

Once you have a big enough audience, and you’re a trusted, credible blog, you can then generate revenue through advertising, selling affiliate products, or even creating your own online products and courses.

If you’d like to get started blogging, I have a free 5-day blogging challenge here , just for wellness entrepreneurs!

Health + Wellness Podcast

If you love to interview people and don’t mind the sound of your own voice, consider starting a health and wellness podcast. While the podcast alone doesn’t generate revenue, once you have an established audience, you can sell sponsorships or advertising, recommend affiliate products, or even sell your own products and services through your podcast. You can check out my wellness business podcast here.

Media Hub for Wellness

You could create a media site that becomes the ultimate source for a specific type of health information. With a media site, you might work with other experts as guest writers to create authoritative content for your site.

Like the other online business ideas above, your revenue potential starts when you’ve built a big enough audience for your site. Then you can sell advertising or affiliate products, run online courses, workshops, or seminars, or branch out into books and other products to expand your online brand.

Of course, having a great idea for your wellness business is just the first step .

Next, you’ll want to connect with some people already running that type of business and talk with them about their experience. Listening to interviews with successful wellpreneurs can also be really helpful (if you want to become a health coach, definitely check out our  Health Coach Decision Kit here !)

What’s the most important factor for you in deciding what type of wellness business to start? Tell us in the comments!

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Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

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But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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Home Health Care Business Plan Template

Written by Dave Lavinsky

Home Health Care Business Plan

You’ve come to the right place to create your home health care business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their home health care businesses.

Home Care Business Plan Example

Below is a template to help you create each section of your home health care agency business plan.

Executive Summary

Business overview.

St. Helen’s Home Care is a new home healthcare business that serves the aging population of Austin, Texas. As individuals age, they are more susceptible to diseases and other conditions and need extra help to receive health care. However, many individuals wish to receive care in the comfort of their homes instead of going to a nursing home or hospital. St. Helen’s will provide this population with the care they need without them needing to travel. Our nursing services include physical therapy, skilled nursing care and other healthcare services that can be conducted in the home. We also provide warmth, compassion, and companionship to create lasting relationships with our clients.

St. Helen’s Home Care is run by Helen Parker, who has been a nurse for twenty years. She has specialized in working with aging populations and has extensive knowledge of the common conditions and needs of this age group. Her experience and connections have helped her find other medical professionals who want to join our company. Furthermore, she was able to establish an initial client base from the list of patients she has been helping for years.

Services Offered

St. Helen’s Home Care offers a variety of home health care services that serve the aging population of Austin, Texas. These services include but are not limited to:

• Physical therapy
• Occupational therapy
• Speech-language therapy
• Skilled Nursing Services
• Personal care and housekeeping

Customer Focus

St. Helen’s Home Care will serve the aging population of Austin, Texas, primarily residents over the age of 65. This population is susceptible to many conditions that make daily living difficult such as Alzheimer’s, dementia, arthritis, and diabetes. This population needs more health care than other age groups, but not all services require a visit to the hospital or doctor’s office. St. Helen’s will provide any medical service that can easily be conducted in a home setting.

Management Team

St. Helen’s Home Care is owned and operated by Helen Parker, a local nurse who has worked at local hospitals for over the past twenty years. She has worked with hundreds of elderly patients and their families and has helped them find adequate and affordable home health care upon being released from the hospital. Helen Parker has realized there is a lack of quality and affordable home healthcare agencies in Austin. She aims to provide in-home services while also being affordable for the patient and their families.

Aside from the medical professionals she will have on staff, Helen has also employed an Administrative Assistant, Accountant, and Marketing Specialist to help her operate the company.

Success Factors

St. Helen’s Home Care will be able to achieve success by offering the following competitive advantages:

• Compassionate Staff: Helen’s will employ a compassionate and friendly staff of nurses, therapists, home health care aides, and social workers who are highly knowledgeable and experienced in their field.
• Quality Care: Helen’s will provide expert nursing services so that the patients are at the highest comfort level.
• Pricing: Helen’s pricing will be more affordable than other home health care agencies. They will also work on payment arrangements with the patient and their family so that the patient won’t have to sacrifice any type of care because the cost is too high. The company is also working to partner with local and national insurance companies so that our patients can have their care partially or fully covered by their insurance plans.

Financial Highlights

St. Helen’s Home Care is seeking $340,000 in funding to launch the home healthcare business. The capital will be used for funding equipment and supplies, staffing, marketing expenses, and working capital.

The breakdown of the funding may be seen below:

• Equipment and supplies (such as computers and medical equipment): $150,000
• Marketing costs: $50,000
• Staffing costs: $60,000
• Working capital (to include three months of overhead expenditures): $80,000

The following graph outlines the pro forma financial projections for St. Helens’ Home Care over the next five years:

Company Overview

Who is st. helen’s home care.

St. Helen’s Home Care is a new home healthcare business that serves the aging population of Austin, Texas. As individuals age, they are more susceptible to diseases and other conditions and need extra help to receive health care. However, many individuals wish to receive care in the comfort of their homes instead of going to a nursing home or hospital. St. Helen’s will provide this population with the care they need without them needing to travel. Our services include physical therapy, nursing, and other healthcare services that can be conducted in the home. We also provide warmth, compassion, and companionship to create lasting relationships with our clients.

St. Helen’s Home Care History

Helen Parker has worked with thousands of elderly patients during her career as a nurse. She often found that many people did not need to travel to a doctor’s office or hospital for their care. Instead, these patients often enjoyed a higher quality of life when they received care from their homes. This revelation inspired her to start a business where she and other professionals could provide care to local elderly patients in the comfort of their homes. After conducting the market research needed to establish the company, Helen incorporated St. Helen’s Home Care as an S-corporation on May 15th, 2022.

Since incorporation, St. Helen’s has achieved the following milestones:

• Found an office location and signed a Letter of Intent to lease it
• Developed the logo and website for the company
• Finalized list of services the company will be able to provide
• Determined the office equipment and inventory requirements
• Created an initial client base from Helen’s pre-existing patient list
• Started creating partnerships with local and national medical insurance companies
• Began recruiting key employees, including medical and administrative staff

St. Helen’s Home Care Services

Industry analysis.

According to Grand View Research, the global home health care industry was valued at $336 billion USD in 2021. It is also expected to grow at a compound annual growth rate of 7.93% from 2022 to 2030 and reach a value of $666.9 billion USD by 2030. This shows that these services will be in great demand, which means it is a great time to start a home healthcare business.

This growth is primarily driven by a growing geriatric population. People are living longer than ever before, and therefore, they will need comfortable healthcare services for much longer. Furthermore, baby boomers comprise a large population and are now entering their retirement years. It is expected that this enormous population will have a significant need for healthcare (whether in the home or doctor’s office) and may create a strain on the current industry. However, this also means there is an enormous opportunity for healthcare businesses to be extremely profitable in the near future.

This is especially true for home healthcare services, which are increasing in demand. Most aging people would rather receive medical care at home than go to a nursing home or hospital. Therefore, there is an incredible demand for these particular services.

The only challenge affecting the industry is a lack of properly trained staff who can take on a healthcare career. However, this will only mean that home healthcare services will be even more valued. These industry trends will only help boost the popularity and success of St. Helen’s Home Care.

Customer Analysis

Demographic profile of target market.

St. Helen’s Home Care will primarily target the aging population of Austin, Texas. This includes anyone over the age of 65, especially those who live with diabetes, Alzheimer’s, arthritis, or other conditions that affect their quality of life.

The precise demographics of Austin, Texas, are:

Customer Segmentation

St. Helen’s will primarily target the following customer profiles:

• Aging individuals over the age of 65
• Individuals living with Alzheimer’s and dementia
• Elderly individuals with other health conditions

Competitive Analysis

Direct and indirect competitors.

St. Helen’s Home Care will face competition from other home health care agencies with similar business profiles. A description of each competitor company is below.

Travis County Home Health

Travis County Memorial Hospital’s Home Health & Hospice has provided home health services for over a decade. Their staff is composed of dedicated professionals who are committed to providing quality care in the comfort and convenience of their patients’ homes. Their home health aides can assist the patient with grooming and light chores around their home. Home health care will verify if home health aide services are covered by their insurance policy. They accept Medicare, Insurance/HMO/PPO, Medicaid, and Private Pay. The home health care team works closely with the physician to plan the care and monitor the patients’ progress. The nurse will contact the physician with any laboratory results, medication changes, or alterations in their health status.

Elara Caring

Elara Caring is one of the nation’s largest providers of home-based care, with a footprint in most regions of the United States. Elara Caring brings together three award-winning organizations – Great Lakes Caring, National Home Health Care, and Jordan Health Services, into one transformational company. They provide the highest-quality comprehensive care continuum of personal care, skilled home health, hospice care, and behavioral health. Their intimate understanding of their patients’ needs allows them to apply proprietary platforms to deliver proactive, customized care that improves quality of life and keeps patients in their homes.

Encompass Health

Encompass Health is one of the nation’s leading providers of home health services. They continually set the standard of homecare through their people, their approach, and their outcomes.

The patient experience is at the core of everything they do. That’s why they work collaboratively with the patient’s team of experts to craft a plan of care that meets their specific needs. Their skilled nurses, physical therapists, occupational therapists, speech-language pathologists, medical social workers, and home health aides use a coordinated, interprofessional approach to deliver compassionate, specialized care in the comfort of home. Whether recovering from a surgery, a recent hospital stay, or managing a disease or injury, Encompass Health’s services are designed to meet patients where they are.

Competitive Advantage

• Compassionate Staff: Helen’s will employ a compassionate and friendly staff of nurses, therapists, aides, and social workers who are highly knowledgeable and experienced in their field.
• Quality Care: Helen’s will provide expert services so that the patients are at the highest comfort level.
• Pricing: Helen’s will provide affordable home health care. They will also work on payment arrangements with the patient and their family so that the patient won’t have to sacrifice any type of care because the cost is too high. The company is also working to partner with local and national insurance companies so that our patients can have their care partially or fully covered by their insurance plans.

Marketing Plan

Brand & value proposition.

The St. Helen’s brand will focus on the company’s unique value proposition:

• Knowledgeable, friendly, compassionate staff of healthcare professionals.
• Quality level of service and care.
• Offering the best nursing, therapy, social worker, and home aide services at competitive prices.

Promotions Strategy

St Helen’s Home Care will target elderly residents living in the Austin, Texas area. The company’s promotions strategy to reach the most clientele include:

Local Hospitals

Helen Parker already has great relationships with the local hospitals. She will work to make sure the hospitals send referrals and highly recommend the company to its patients and their families upon releasing them from the hospital.

Website/SEO Marketing

St. Helen’s has a website that is well-organized and informative and lists all our available services. The website also lists the company’s contact information and information about the medical professionals who provide our services.  We will utilize SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Austin home health care” or “Austin health care,” St. Helen’s will be listed at the top of the search results.

St. Helen’s Home Care will have a billboard at a busy intersection where thousands of cars and pedestrians pass daily. The location of the billboard will be in an area of town where there are a lot of doctors’ offices, rehab facilities, and a hospital nearby.

Insurance Partnerships

St. Helens will partner with local and national insurance companies so that our patients can be partially or fully covered for the services we provide. We will ask the insurance companies to recommend our services to their customers and have our business listed on their websites.

St Helen’s pricing will be moderate so customers feel they receive great value when purchasing its services. Services will either be charged directly to the patient or to their insurance plan.

Operations Plan

The following will be the operations plan for St. Helen’s Home Care.

Operation Functions:

• Helen Parker will be the Chief Executive Officer of the company. She will be in charge of the business operations side of the business and provide home healthcare services until we have a full staff of medical professionals.
• Helen is assisted by her longtime colleague Mary Green. Mary will be the Administrative Assistant and help with all general administration tasks, including taking phone calls and scheduling appointments.
• Keith O’Reilly will serve as the Staff Accountant. He will provide all accounting, tax payments, and monthly financial reporting.
• Betty Lopez will work as the Marketing Specialist. She will run the website, social media, and other marketing efforts.
• Helen will hire a large team of medical professionals to serve our growing client base. So far, some of her former colleagues have agreed to work for her business.

Milestones:

St. Helen’s Home Care will have the following milestones completed in the next six months.

8/1/202X – Finalize lease for the office space.

8/15/202X – Finalize personnel and staff employment contracts.

9/1/202X – Begin refurbishment and furnishing of the office space.

9/15/202X – Begin networking at medical industry events.

9/22/202X – Begin marketing campaign to attract the first clients.

11/1/202X – St. Helen’s Home Care opens for business.

St. Helen’s Home Care is owned and operated by Helen Parker, a local nurse who has worked at local hospitals for over the past twenty years. She has worked with hundreds of elderly patients and their families and has helped them find adequate and affordable home health care upon being released from the hospital. Helen Parker has realized there is a lack of quality and affordable home healthcare agencies in Austin. She aims to provide the best in-home health care services while also being affordable for the patient and their families.

Financial Plan

Key revenue & costs.

The revenues for St. Helen’s Home Care will come from the fees it will charge the patients and their insurance for the provided health care services.

The major cost drivers for the company will be the staff payroll, marketing expenses, lease, and office equipment.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials as well as pay off the startup business loan.

• Number of clients per month: 100
• Annual lease: $50,000
• Overhead costs per year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Home Health Care Business Plan FAQs

What is a home health care business plan.

A home health care business plan is a plan to start and/or grow your home health care business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Home Health Care business plan using our Home Health Care Business Plan Template here .

What are the Steps To Start a Home Health Care Business?

Starting a home health care business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Home Health Care Business Plan – The first step in starting a business is to create a detailed home health care business plan that outlines all aspects of the venture. This should include market research on the home health care industry and potential target market size, information on the home health care services you will offer, marketing strategies, pricing detailed and your financial forecast.  

2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your home health care business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your home health care business is in compliance with local laws.

3. Register Your Home Health Care Business – Once you have chosen a legal structure, the next step is to register your home health care business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options – It’s likely that you’ll need some capital to start your home health care business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Home Health Care Equipment & Supplies – In order to start your home health care business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your home health care business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful home health care business:

How to Start a Home Health Care Business

The future of healthcare: Value creation through next-generation business models

The healthcare industry in the United States has experienced steady growth over the past decade while simultaneously promoting quality, efficiency, and access to care. Between 2012 and 2019, profit pools (earnings before interest, taxes, depreciation, and amortization, or EBITDA) grew at a compound average growth rate of roughly 5 percent. This growth was aided in part by incremental healthcare spending that resulted from the 2010 Affordable Care Act. In 2020, subsidies for qualified individual purchasers on the marketplaces and expansion of Medicaid coverage resulted in roughly $130 billion 1 Federal Subsidies for Health Insurance Coverage for People Under Age 65: CBO and JCT’s March 2020 Projections, Congressional Budget Office, Washington, DC, September 29, 2020, cbo.gov. 2 Includes adults made eligible for Medicaid by the ACA and marketplace-related coverage and the Basic Health Program. of incremental healthcare spending by the federal government.

The next three years are expected to be less positive for the economics of the healthcare industry, as profit pools are more likely to be flat. COVID-19 has led to the potential for economic headwinds and a rebalancing of system funds. Current unemployment rates (6.9 percent as of October 2020) 3 The employment situation—October 2020 , US Department of Labor, November 6, 2020, bls.gov. indicate some individuals may move from employer-sponsored insurance to other options. It is expected that roughly between $70 billion and $100 billion in funding may leave the healthcare system by 2022, compared with the expected trajectory pre-COVID-19. The outflow is driven by coverage shifts out of employer-sponsored insurance, product buy-downs, and Medicaid rate pressures from states, partially offset by increased federal spending in the form of subsidies and cost sharing in the Individual market and in Medicaid funding.

Underlying this broader outlook are chances to innovate (Exhibit 1). 4 Smit S, Hirt M, Buehler K, Lund S, Greenberg E, and Govindarajan A, “ Safeguarding our lives and our livelihoods: The imperative of our time ,” March 23, 2020, McKinsey.com. Innovation may drive outpaced growth in three categories: segments that are anticipated to rebound from poor performance over recent years, segments that benefit from shifting care patterns that result directly from COVID-19, and segments where growth was expected pre-COVID-19 and remain largely unaffected by the pandemic. For the payer vertical, we estimate profit pools in Medicaid will likely increase by more than 10 percent per annum from 2019 to 2022 as a result of increased enrollment and normalized margins following historical lows. In the provider vertical, the rapid acceleration in the use of telehealth and other virtual care options spurred by COVID-19 could continue. 5 Bestsennyy O, Gilbert G, Harris A, and Rost J, “ Telehealth: A quarter-trillion-dollar post-COVID-19 reality? ” May 29, 2020, McKinsey.com. Growth is expected across a range of sub-segments in the services and technology vertical, as specialized players are able to provide services at scale (for example, software and platforms and data and analytics). Specialty pharmacy is another area where strong growth in profit pools is likely, with between 5 and 10 percent compound annual growth rate (CAGR) expected in infusion services and hospital-owned specialty pharmacy sub-segments.

Strategies that align to attractive and growing profit pools, while important, may be insufficient to achieve the growth that incumbents have come to expect. For example, in 2019, 34 percent of all revenue in the healthcare system was linked to a profit pool that grew at greater than 5 percent per year (from 2017 to 2019). In contrast, we estimate that only 13 percent of revenue in 2022 will be linked to profit pools growing at that rate between 2019 and 2022. This estimate reflects that profit pools are growing more slowly due to factors that include lower membership growth, margin pressure, and lower revenue growth. This relative scarcity in opportunity could lead to increased competition in attractive sub-segments with the potential for profits to be spread thinly across organizations. Developing new and innovative business models will become important to achieve the level of EBITDA growth observed in recent years and deliver better care for individuals. The good news is that there is significant opportunity, and need, for innovation in healthcare.

New and innovative business models across verticals can generate greater value and deliver better care for individuals

Glimpse into profit pool analyses and select sub-segments.

Within the context of these overarching observations, the projections for specific sub-segments are nuanced and tightly connected to the specific dynamics each sub-segment is currently facing:

• Payer—Small Group: Small group has historically seen membership declines and we expect this trend to continue and/or accelerate in the event of an economic downturn. Membership declines will increase competition and put pressure on incumbent market leaders to both maintain share and margin as membership declines, but fixed costs remain.
• Payer—Medicare Advantage: Historic profit pool growth in the Medicare Advantage space has been driven by enrollment gains that result from demographic trends and a long-term trend of seniors moving from traditional Medicare fee-for-service programs to Medicare Advantage plans that have increasingly offered attractive ancillary benefits (for example, dental benefits, gym memberships). Going forward, we expect Medicare members to be relatively insulated from the effects of an economic downturn that will impact employers and individuals in other payer segments.
• Provider—General acute care hospitals: Cancelation of elective procedures due to COVID-19 is expected to lead to volume and revenue reductions in 2019 and 2020. Though volume is expected to recover partially by 2022, growth will likely be slowed due to the accelerated shift from hospitals to virtual care and other non-acute settings. Payer mix shifts from employer-sponsored to Medicaid and uninsured populations in 2020 and 2021 are also likely to exert downward pressure on hospital revenue and EBITDA, possibly driving cost-optimization measures through 2022.
• Provider—Independent labs: COVID-19 testing is expected to drive higher than average utilization growth in independent labs through 2020 and 2021, with more typical utilization returning by 2022. However, labs may experience pressure on revenue and EBITDA growth as the payer mix shifts to lower-margin segments, offsetting some of the gains attributed to utilization.
• Provider—Virtual office visits: Telehealth has helped expand access to care at a time when the pandemic has restricted patients’ ability to see providers in person. Consumer adoption and stickiness, along with providers’ push to scale-up telehealth offerings, are expected to lead to more than 100 percent growth per annum in the segment from 2019 to 2022, going beyond traditional “tele-urgent” to more comprehensive virtual care.
• HST—Medical financing: The medical financing segment may be negatively impacted in 2020 due to COVID-19, as many elective services for which financing is used have been deferred. However, a quick bounce-back is expected as more patients lacking healthcare coverage may need financing in 2021, and as providers may use medical financing as a lever to improve cash reserves.
• HST—Wearables: Looking ahead, the wearables segment is expected to see a slight dip in 2020 due to COVID-19, but is expected to rebound in 2021 and 2022 given consumer interest in personal wellness and for tracking health indicators.
• Pharma services—Pharmacy benefit management: The growth is expected to return to baseline expectations by 2022 after an initial decline in 2020 and 2021 due to the COVID-19-driven decrease in prescription volume.

New and innovative business models are beginning to show promise in delivering better care and generating higher returns. The existence of these models and their initial successes are reflective of what we have observed in the market in recent years: leading organizations in the healthcare industry are not content to simply play in attractive segments and markets, but instead are proactively and fundamentally reshaping how the industry operates and how care is delivered. While the recipe across verticals varies, common among these new business models are greater alignment of incentives typically involving risk bearing, better integration of care, and use of data and advanced analytics.

Payers—Next-generation managed care models

For payers, the new and innovative business models that are generating superior returns are those that incorporate care delivery and advanced analytics to better serve individuals with increasingly complex healthcare needs (Exhibit 2). As chronic disease and other long-term conditions require more continuous management supported by providers (for example, behavioral health conditions), these next-generation managed care models have garnered notice. Nine of the top ten payers have made acquisitions in the care delivery space. Such models intend to reorient the traditional payer model away from an operational focus on financing healthcare and pricing risk, and toward more integrated managed care models that better align incentives and provide higher-quality, better experience, lower-cost, and more accessible care. Payers that deployed next-generation managed care models generate 0.5 percentage points of EBITDA margin above average expectations after normalizing for payer scale, geographical footprint, and segment mix, according to our research.

The evidence for the effectiveness of these next-generation care models goes beyond the financial analysis of returns. We observe that these models are being deployed in those geographies that have the greatest opportunity to positively impact individuals. Those markets with 1) a critical mass of disease burden, 2) presence of compressible costs (the opportunity for care to be redirected to lower-cost settings), and 3) a market structure conducive to shifting to higher-value sites of care, offer substantial ways to improve outcomes and reduce costs. (Exhibit 3).

Currently, a handful of payers—often large national players with access to capital and geographic breadth that enables acquisition of at-scale providers and technologies—have begun to pursue such models. Smaller payers may find it more difficult to make outright acquisitions, given capital constraints and geographic limitations. M&A activity across the care delivery landscape is leaving smaller and more localized assets available for integration and partnership. Payers may need to increasingly turn toward strategic partnerships and alliances to create value and integrate a range of offerings that address all drivers of health.

Providers—reimagining care delivery beyond the hospital

For health systems, through an investment lens, the ownership and integration of alternative sites of care beyond the hospital has demonstrated superior financial returns. Between 2013 and 2018, the number of transactions executed by health systems for outpatient assets increased by 31 percent, for physician practices by 23 percent, and for post-acute care assets by 13 percent. At the same time, the number of hospital-focused deals declined by 6 percent. In addition, private equity investors and payers are becoming more active dealmakers in these non-acute settings. 6 CapitalIQ, Dealogic, and Irving Levin Associates. 7 In 2018, around 40 percent of all post-acute and outpatient deals were completed by an acquirer other than a traditional provider.

As investment is focused on alternative sites of care, we observe that health systems pursuing diversified business models that encompass a greater range of care delivery assets (for example, physician practices, ambulatory surgery centers, and urgent care centers) are generating returns above expectations (Exhibit 4). By offering diverse settings to receive care, many of these systems have been able to lower costs, enhance coordination, and improve patient experience while maintaining or enhancing the quality of the services provided. Consistent with prior research, 8 Singhal S, Latko B, and Pardo Martin C, “ The future of healthcare: Finding the opportunities that lie beneath the uncertainty ,” January 31, 2018, McKinsey.com. systems with high market share tend to outperform peers with lower market share, potentially because systems with greater share have greater ability not only to ensure referral integrity but also to leverage economies of scale that drive efficiency.

The extent of this outperformance, however, varies by market type. For players with top quartile share, the difference in outperformance between acute-focused players and diverse players is less meaningful. Contrastingly, for bottom quartile players, the increase in value provided by presence beyond the acute setting is more significant. While there may be disadvantages for smaller and sub-scale providers, opportunities exist for these players—as well as new entrants and attackers—to succeed by integrating offerings across the care continuum.

These new models and entrants and their non-acute, technology-enabled, and multichannel offerings can offer a different vision of care delivery. Consumer adoption of telehealth has skyrocketed, from 11 percent of US consumers using telehealth in 2019 to 46 percent now using telehealth to replace canceled healthcare visits. Pre-COVID-19, the total annual revenues of US telehealth players were an estimated $3 billion; with the acceleration of consumer and provider adoption and the extension of telehealth beyond virtual urgent care, up to $250 billion of current US healthcare spend could be virtualized. 9 Bestsennyy O, Gilbert G, Harris A, and Rost J, “ Telehealth: A quarter-trillion-dollar post-COVID-19 reality? ” May 29, 2020, McKinsey.com. These early indications suggest that the market may be shifting toward a model of innovative tech-enabled care, one that unlocks value by integrating digital and non-acute settings into a comprehensive, coordinated, and lower-cost offering. While functional care coordination is currently still at the early stages, the potential of technology and other alternative settings raises the question of the role of existing acute-focused providers in a more integrated and digital world.

Would you like to learn more about our Healthcare Systems & Services Practice ?

Healthcare services and technology—innovation and integration across the value chain.

Growth in the healthcare services and technology vertical has been material, as players are bringing technology-enabled services to help improve patient care and boost efficiency. Healthcare services and technology companies are serving nearly all segments of the healthcare ecosystem. These efforts include working with payers and providers to better enable the link between actions and outcomes, to engage with consumers, and to provide real-time and convenient access to health information. Since 2014, a large number and value of deals have been completed: more than 580 deals, or $83 billion in aggregate value. 10 Includes deals over $10 million in value. 11 Analysis from PitchBook Data, Inc. and McKinsey Healthcare Services and Technology domain profit pools model. Venture capital and private equity have fueled much of the innovation in the space: more than 80 percent 12 Includes deals over $10 million in value. of deal volume has come from these institutional investors, while more traditional strategic players have focused on scaling such innovations and integrating them into their core.

Driven by this investment, multiple new models, players, and approaches are emerging across various sub-segments of the technology and services space, driving both innovation (measured by the number of venture capital deals as a percent of total deals) and integration (measured by strategic dollars invested as a percent of total dollars) with traditional payers and providers (Exhibit 5). In some sub-segments, such as data and analytics, utilization management, provider enablement, network management, and clinical information systems, there has been a high rate of both innovation and integration. For instance, in the data and analytics sub-segment, areas such as behavioral health and social determinants of health have driven innovation, while payer and provider investment in at-scale data and analytics platforms has driven deeper integration with existing core platforms. Other sub-segments, such as patient engagement and population health management, have exhibited high innovation but lower integration.

Traditional players have an opportunity to integrate innovative new technologies and offerings to transform and modernize their existing business models. Simultaneously, new (and often non-traditional) players are well positioned to continue to drive innovation across multiple sub-segments and through combinations of capabilities (roll-ups).

Pharmacy value chain—emerging shifts in delivery and management of care

The profit pools within the pharmacy services vertical are shifting from traditional dispensing to specialty pharmacy. Profits earned by retail dispensers (excluding specialty pharmacy) are expected to decline by 0.5 percent per year through 2022, in the face of intensifying competition and the maturing generic market. New modalities of care, new care settings, and new distribution systems are emerging, though many innovations remain in early stages of development.

Specialty pharmacy continues to be an area of outpaced growth. By 2023, specialty pharmacy is expected to account for 44 percent of pharmacy industry prescription revenues, up from 24 percent in 2013. 13 Fein AJ, The 2019 economic report on U.S. pharmacies and pharmacy benefit managers , Drug Channels Institute, 2019, drugchannelsinstitute.com. In response, both incumbents and non-traditional players are seeking opportunities to both capture a rapidly growing portion of the pharmacy value chain and deliver better experience to patients. Health systems, for instance, are increasingly entering the specialty space. Between 2015 and 2018 the share of provider-owned pharmacy locations with specialty pharmacy accreditation more than doubled, from 11 percent in 2015 to 27 percent in 2018, creating an opportunity to directly provide more integrated, holistic care to patients.

Challenges emerge for the US healthcare system as COVID-19 cases rise

A new wave of modalities of care and pharmaceutical innovation are being driven by cell and gene therapies. Global sales are forecasted to grow at more than 40 percent per annum from 2019 to 2024. 14 Evaluate Pharma, February 2020. These new therapies can be potentially curative and often serve patients with high unmet needs, but also pose challenges: 15 Capra E, Smith J, and Yang G, “ Gene therapy coming of age: Opportunities and challenges to getting ahead ,” October 2, 2019, McKinsey.com. upfront costs are high (often in the range of $500,000 to $2,000,000 per treatment), benefits are realized over time, and treatment is complex, with unique infrastructure and supply chain requirements. In response, both traditional healthcare players (payers, manufacturers) and policy makers (for example, the Centers for Medicare & Medicaid Services) 16 Centers for Medicare & Medicaid Services, “Medicaid program; establishing minimum standards in Medicaid state drug utilization review (DUR) and supporting value-based purchasing (VBP) for drugs covered in Medicaid, revising Medicaid drug rebate and third party liability (TPL) requirements,” Federal Register , June 19, 2020, Volume 85, Number 119, p. 37286, govinfo.gov. are considering innovative models that include value-based arrangements (outcomes-based pricing, annuity pricing, subscription pricing) to support flexibility around these new modalities.

Innovations also are accelerating in pharmaceutical distribution and delivery. Non-traditional players have entered the direct-to-consumer pharmacy space to improve efficiency and reimagine customer experience, including non-healthcare players such as Amazon (through its acquisition of PillPack in 2018) and, increasingly, traditional healthcare players as well, such as UnitedHealth Group (through its acquisition of DivvyDose in September 2020). COVID-19 has further accelerated innovation in patient experience and new models of drug delivery, with growth in tele-prescribing, 17 McKinsey COVID-19 Consumer Survey conducted June 8, 2020 and July 14, 2020. a continued shift toward delivery of pharmaceutical care at home, and the emergence of digital tools to help manage pharmaceutical care. Select providers have also begun to expand in-home offerings (for example, to include oncology treatments), shifting the care delivery paradigm toward home-first models.

A range of new models to better integrate pharmaceutical and medical care and management are emerging. Payers, particularly those with in-house pharmacy benefit managers, are using access to data on both the medical and pharmacy benefit to develop distinctive insights and better coordinate across pharmacy and medical care. Technology providers, together with a range of both traditional and non-traditional healthcare players, are working to integrate medical and pharmaceutical care in more convenient settings, such as the home, through access to real-time adherence monitoring and interventions. These players have an opportunity to access a broad range of comprehensive data, and advanced analytics can be leveraged to more effectively personalize and target care. Such an approach may necessitate cross-segment partnerships, acquisitions, and/or alliances to effectively integrate the many components required to deliver integrated, personalized, and higher-value care.

Creating and capturing new value

These materials are being provided on an accelerated basis in response to the COVID-19 crisis. These materials reflect general insight based on currently available information, which has not been independently verified and is inherently uncertain. Future results may differ materially from any statements of expectation, forecasts or projections. These materials are not a guarantee of results and cannot be relied upon. These materials do not constitute legal, medical, policy, or other regulated advice and do not contain all the information needed to determine a future course of action. Given the uncertainty surrounding COVID-19, these materials are provided “as is” solely for information purposes without any representation or warranty, and all liability is expressly disclaimed. References to specific products or organizations are solely for illustration and do not constitute any endorsement or recommendation. The recipient remains solely responsible for all decisions, use of these materials, and compliance with applicable laws, rules, regulations, and standards. Consider seeking advice of legal and other relevant certified/licensed experts prior to taking any specific steps.

Before the COVID-19 pandemic, our research indicated that profits for healthcare organizations were expected to be harder to earn than they have been in the recent past, which has been made even more difficult by COVID-19. New entrants and incumbents who can reimagine their business models have a chance to find ways to innovate to improve healthcare and therefore earn superior returns. The opportunity for incumbents who can reimagine their business models and new entrants is substantial.

Institutions will be expected to do more than align with growth segments of healthcare. The ability to innovate at scale and with speed is expected to be a differentiator. Senior leaders can consider five important questions:

• How does my business model need to change to create value in the future healthcare world? What are my endowments that will allow me to succeed?
• How does my resource (for example, capital and talent) allocation approach need to change to ensure the future business model is resourced differentially compared with the legacy business?
• How do I need to rewire my organization to design it for speed? 18 De Smet A, Pacthod D, Relyea C, and Sternfels B, “ Ready, set, go: Reinventing the organization for speed in the post-COVID-19 era ,” June 26, 2020, McKinsey.com.
• How should I construct an innovation model that rapidly accesses the broader market for innovation and adapts it to my business model? What ecosystem of partners will I need? How does my acquisition, partnership, and alliances approach need to adapt to deliver this rapid innovation?
• How do I prepare my broader organization to adopt and scale new innovations? Are my operating processes and technology platforms able to move quickly in scaling innovations?

There is no question that the next few years in healthcare are expected to require innovation and fresh perspectives. Yet healthcare stakeholders have never hesitated to rise to the occasion in a quest to deliver innovative, quality care that benefits everyone. Rewiring organizations for speed and efficiency, adapting to an ecosystem model, and scaling innovations to deliver meaningful changes are only some of the ways that helping both healthcare players and patients is possible.

Emily Clark is an associate partner in the Stamford office. Shubham Singhal , a senior partner in McKinsey’s Detroit office, is the global leader of the Healthcare, Public Sector and Social Sector practices. Kyle Weber is a partner in the Chicago office.

The authors would like to thank Ismail Aijazuddin, Naman Bansal, Zachary Greenberg, Rob May, Neha Patel, and Alex Sozdatelev for their contributions to this article.

This article was edited by Elizabeth Newman, an executive editor in the Chicago office.

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7 business models you didn’t know about, reshaping the healthcare marketplace

“This is part 2 of the Juggernaut special series on the ‘on demand economy’ . In this series, we’ll explore how sharing economy is touching all industries”

When I first saw this collection of words puddled together, I found myself wondering if any of this would make more sense if the arrows were directed? Only when I googled it, did I come to know that this was a hassle map . From what I’ve understood, hassle maps are word clouds trying to map all existing challenges that impede a better customer experience in any industry. Above is a description of the problems that an average customer faces in making health care choices while s/he is already paying a whopping 60% of these expenses out of pocket! And this is barely the tip! As you keep reading, you’ll soon have an epiphany; the same I had – healthcare landscape is set on the path to epic transformations; a paradigm change precipitating at an accelerating pace aided by big data, e-commerce revolution and a transition into sharing economy. This change, this web of ideas thrown in disarray above, is a euphemism of the enormity of a challenge that belies the rapid evolution of this industry.

Fortunately, sharing economy has helped ease this transformation, by unlocking the assets of economy for sharing rather than ownership, and allowing excess to be distributed among the bourgeoisie at reasonable costs. With transportation and retail having seen their day, now, it is the turn of a segment, so far overlooked by governments & dominated by private players – healthcare.

Healthcare was once a single-chain, supply side, wholesale industry; but now, it is edging towards becoming a hyper-competitive, multi chain & demand driven industry, one that is location-independent & information based. The consumerism in this space is bound to explode, through smartphones and mobile apps, into a new, $20 billion market.

The visible fatigue among patients for one-size fits all, months of waiting, gaps in information, lack of transparency & absence of crowdsourcing portals like Yelp in healthcare industry will soon materialize into a $1 trillion market in US alone.

Let us probe how the technology enabling these on-demand and marketplace business models can reinvent an entirely new supply paradigm, one which trades information rather than building assets, in order to scale.

On Demand Health models

Let us define what is an on demand economy. In the words of Shervin Pishevar & Scott Stanford, Co-founders & Managing Partners, Sherpa Ventures, the on demand economy is the ‘Instant, pervasive access to goods and services, tailored to individual needs, often without the burden of long-term ownership or commitment’.

The landscape is fast changing to accommodate this philosophy & the needs for personalization & instant gratification among consumers; the biggest hurdles being the incumbent players, who want to maintain status quo without addressing the Triple Aim – reducing cost, improving outcomes and improving patient experience.

Let us establish some context and try to explore what spurred this change.

An ideal framework to map this change, during the course of nearly a decade, could be drawn if we address the following five touch points in the health care cycle of a typical customer.

• Personalized Health Solutions Consumers expect health care services customized to suit their needs, health history & scores of other personal attributes.
• Information on Request Appropriate access to health knowledge is vital for the management of individual health.
• Patient Experience Benchmarks Health systems are beginning to embrace more patient–centric metrics of care, by focusing on treatment outcomes.
• Care-anywhere networks Technology will reduce the utilisation of hospitals, nursing homes, and physician office visits. Wherever they go, the care network shall follow!
• Telehealth Through collaboration and investment, a grid of technicians, clinicians, hospitals & doctors would be able to offer consultations remotely.

To understand this framework in relevance with the on demand economy now taking roots in healthcare industry, let’s take a look at the possible business models, and the constituent layers of interaction.

These possibilities together contribute towards the creation of this new ecosystem which shall change the healthcare landscape for good, in favor of consumers. Keeping in view the above model, here’s a detailed analysis of the respective models explained along with corresponding developments in the on demand health care economy.

On Demand On Site

1. Medicast is a healthcare technology service that connects patients with nearby on-call doctors 24 hours a day, to deliver high quality, compassionate care in the comfort of a patient’s own home, office, or hotel and all with the click of a button. This startup, a doctor on demand service for in house visits, has so far received a funding of $1.9 million in 2 rounds from 12 investors.Only physicians are available for call, and the user, like other mainstream on demand services, cannot choose the doctor.

To qualify an industry for its ability to thrive as an ‘uber for’ business, we used the Mike Ghaffery’s framework, as discussed in our previous post here . Following are the three pillars of his philosophy –

• Standardization of service,
• Standardization of price &
• Ensuring speedy delivery of said good/service.

In each of the example above, the companies have hired third parties for vetting or hiring and training to standardize services across the industry. Prices in this industry are fast changing to reflect the intended causality – that of market forces tending to a perfect competition, a consequence of reverse auction phenomenon. This leads to standardization of prices in long run. At last, speed of delivery is one area, where the first head start for their business operations happened! As these startups scale, time taken in delivery of said service would reach an industry wide equilibrium. Take Teladoc for instance. They have more than 5 million members, and yet have an average response time of 22 minutes.

To me, it seems that the long due consumer empowerment has finally arrived in the healthcare industry , though 15 years later than others. In 2014 itself, as many as 85 million consumers with $600 billion in purchasing power may be shopping for their own health care, and in the process, transforming the status quo in favor of a better future.

With the industry boundaries fast blurring and newer entrants making ground-breaking innovations, health care industry has become ripe for disruption, and that incumbents must watch their step, for the change would neither be linear, nor gradual and the turbulence bound to ensue shall consolidate this market in the favor of those who’ve learnt from similar precedents in other industries.

Marketplace models

When businesses must have first started adapting to this reform, they might have never imagined the sheer velocity and prowess of this change. It was a wave. One, which enabled the disaggregation of physical assets in space and time, creating digital platforms that make these components – service, goods or information – amenable to pricing, matching, and exchange.

The sharing economy revolution in healthcare delivery, coupled with a monumental shift in focus from volume to value has eroded traditional models, empowered individuals and democratized entrepreneurship to enable crowdsourcing of information, individual skills or assets. This sums up to create an ecosystem conducive to creation of such marketplaces at a rapid pace.

Some of the existing enterprises which fit this definition can be explored here –

• Doctors/Clinicians – Hospitals Marketplace Health Gorilla™ is an online healthcare marketplace to connect all doctors and clinicians with over 9,000+ diagnostic labs and 35,000+ radiology centers. Founded by Steven Yaskin, this startup has raised $2 million in 2 rounds from 9 investors. This emancipation has led to reduced prices for hiring, which in turn has helped the bottom line of healthcare enterprises, and would, in long run enable flow of these profits to the bottom of pyramid.
• Medical Devices – Hospitals Marketplace Cohealo is an asset mobilization and analytics platform for the healthcare industry. They help hospitals use their non-emergency medical equipment more efficiently and save money on their future equipment purchases. Founded by Mark Slaughter, this company has raised $17 million in 7 rounds from 3 investors, and holds a promising position when you rope in Big Data, and the combined possibilities for improved IT infrastructure of hospitals and public health.
• Crowdsourced Safety Net HelpAround is a help search engine that provides a crowdsourced, human “safety-net” for people who battle difficult life circumstances (e.g. a chronic condition, demented parent). The HelpAround crawler discovers relevant peers on the web, Twitter, Google Plus, etc, and creates a virtual “peer support network”, and makes them available via the HelpAround App for requests, advice, and emergencies. Founded by Shlomi Aflalo & Yishai Knobel, this company has raised $550 thousand in 1 round from 4 investors.

These marketplaces, work on the principle of reverse auction, a method which enables buyers to be sought by the sellers, thus resulting in reduced purchasing cost, increased market efficiency and access to a larger supplier base.

They operate and inhabit the paradigm of sharing economy village, wherein, the market forces drive a more personalized, accessible, and a valuable customer experience. The core factors which must be done right to enable this experience for the customer and create this shift are – trust, collaboration & geographic proximity. Of all things, trust factor or review layer is one thing which must be done right for people to get onboard for the want of authenticity and early adoption.

These marketplaces have enabled a review/trust layer, a payment module, a deployment algorithm which aligns with the goal of geographic proximity, along with an ability for consumers to take part in this sharing exercise on their own terms, a reason why this model has bode well with the fast changing ideals of our society.

Similarly, the curation models have come to play a crucial role in informing the decisions of the common man about their day to day health care issues.

Curation Models

These business portals thrive on the singular idea of trust – a reason for accelerated transformation of our economy. With businesses capable of sourcing trust from both sides of the market, they have made a newer degree of freedom possible, one which is powering this consumerization.

The ‘trust’ we’re talking about has now come to be measured in terms of reviews, ratings or recommendations from peers or other third party verification agencies. One such successful model is Sharecare . Here, review or trust layer takes the center stage since information from trusted peers only is deemed worthy of action by users. Shown in the left is a snapshot of how Shervin & Scott put the evolution of ‘our global village’ when on demand economy brings it to scale.

At Juggernaut, we strongly believe in investing ahead of where the market is today. Which is to say, many people still don’t know if they need all services on the tap of a button, personalized doses of medicine or a health advice customized to suit their medical history, because they think all of this would mean fuss, friction and expense. But if you use our technology and make something fast and easy, consumers will come to appreciate it — and maybe even pay for it. So the upfront investment is worth it!

For the same reasons, we’re creating an ecosystem wherein people can create on-demand businesses or perhaps their own marketplaces, and help create a better world, one wherein people share more.

If you are planning to start something or looking for a technology partner for a solution that you are already working on, do get in touch and we’d be happy to assist you.

Understanding the On Demand Economy

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