Hospital Business Plan

Business Plan Articles

There are many factors to consider when creating a hospital, such as the location of the facility, size of the operation, and scope of services provided. Pro Business Plans has worked with many hospitals from the early planning stages to raising capital and scaling with custom business plans. This article provides information about what is included in a custom hospital business plan.

hospital business plan

Hospital Business Plan

Vary rarely are two hospitals comparable, as they vary in size and operating structure to accommodate the unique location and access to funds. This is not only the case on a transnational basis, but also within the same country.

Therefore, a custom hospital business plan should include such factors as the expense structure of the facility, its location, and operations plan to ensure full compliance with the regulatory environment . If the hospital is seeking funding, investors may request the plan to also understand how profitable the hospital will be and where the key risks lie.

Operation Plan

The operation section of a hospital business plan is designed to clearly outline how the hospital intends to function at a high level. This includes the full scope of services provided from emergency room care to checkups, types of surgeries, and related services. It also includes information about the structure of the administration and background of the management team, particularly if the hospital is seeking accreditation or financing support. A professional operations plan will not only instill trust with third party readers, but communicate that the facility is well prepared to treat patients in an effective and reliable manner.

Facility Information

Unlike the operations section of the hospital business plan, the facility information includes factors that are less subject to modification. This may include the size and location of the building, number of beds, and staff to be hired. Comparable facilities may be used to forecast the amount of beds needed per geographic area, in addition to the machinery required to fulfill the full scope of services as outlined in the operations plan. The facility information, including the construction schedule if it has not yet been built, will serve to support the financial projections as described in the next section.

Financial Projections

The financial projections for a hospital business plan are generally based on the facility information and demand forecasts. It also depends on the custom financing structure of the hospital and the fees charged to patients, which vary by geographic location. In relatively low budget areas, the hospital may be located in an area where land is cheaper, staff are paid far lower salaries and less sophisticated equipment is used to enable lower service prices. In contrast, some areas where the hospital has extensive access to funding and treats wealthy patients, the operating cost and staff salaries may be higher so that the quality of care increases relative to the price paid. Pro Business Plans can work with your hospital to create the custom financial projections, as well as internal budgeting and risk modeling for your hospital business plan.

What is Included in Our Custom Hospital Business Plan?

  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

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