HEALTHCARE MEDICAl PRACTICE FINANCIAL MODEL
Core improvements are:
– Up to 5 Treatments
– Patients seasonality
– Visits seasonality
Now, you may have up to 5 Treatments which is the cornerstone update. All graphs affected as well as all revenue calculations.
Seasonality feature added to manage precisely patients acquisition and visits through the fiscal year.
SETTING UP PURPOSES AND FORMING A PLAN
Key questions/purposes which will be answered with the help of the Medical Practice financial model Excel template are as follows:
– to understand, whether the business idea is profitable;
– to calculate overall costs of specialized Medical Practice launch;
– to calculate expenses on salaries and wages of Medical Practice workers;
– to calculate expenses on equipment, suppliers, management, education, and advertising;
– to estimate costs of debt and time needed to loan back;
– to calculate an average number of visits within a certain area (population);
– to estimate prices for each procedure;
– to find the main hospital/clinic financial performance indicators;
– to craft an effective strategy for business development.
The model consists of:
– 5-year comprehensive financial projection
– Dashboard with core inputs and core outputs
– Patient base forecast
– Revenue model based on visits
– Flexible visit Pricing by years
– Variable and Fixed expenses assumptions
– Wages and staff strength assumptions
– CAPEX additions and depreciation model
– CapTable & Debt Financing and repayment schedule
– Income Statement, Balance Sheet, and Cashflow (direct & indirect) for 5 years
– Valuation of Company – DCF
BENEFITS OF USING BUDGET FORECASTING IN HEALTHCARE
First and foremost, we did not hard-code any assumptions. It is very helpful both for the client and financial modeler, as all the variables could be edited directly on the dashboard or at the expense/wages sections. Thanks to it, we could test different alternatives and make any edits literally on the fly.
Besides it, the action period of the model is editable, just like the currency.
Last but not least, the hospital/clinic valuation model considered the cost and the period of debt to estimate the time needed to meet acquisition costs. In result, the user received maximally accurate financial statements summary. Thus, our hospital/clinic financial metrics are flexible and editable, what provided the user with great user experience and confidence in the profitability of the business idea.