Business Plan for a Physical Therapy Clinic
Benita Hodgson
HCA 311: Health Care Financing & Information Systems
Instructor: Garlyn Lewis
March 17, 2012

Table of Contents 1) Executive Summary 3 2) Services and Equipment 4

3) Organizational Structure 6

4) Marketing Plan 7

5) Financial Analysis 8

6) Summary 11

Business Plan for a Physical Therapy Clinic
Executive Summary Living Well Physical Therapy clinic is a privately owned business with one owner. The owner has a four year degree in healthcare specializing in physical therapy rehabilitation services. The clinic has been in operation for approximately 3 years in a small building located downtown in Fayetteville North Carolina. The business has outgrown the current space and is in need of an upgrade to a bigger building, new equipment, and more therapists. There are many types of services that we offer such as aquatic therapy, physical therapy, occupational therapy, and massage therapy. The plan established is to upgrade the existing rehabilitation facility by expanding the building in its current location to allow for the intake of new patients. The expansion of the building at its current location is a major necessity for the profitability of the clinic. At the establish location patients can make appointments before work, at lunchtime, or immediately after work, creating a convenience for busy patients and their schedules. Currently the clinic services approximately 20 to 25 patients per day and could provide much more if our business plan is approved to expand our building. The clinic's goal is to operate an affordable, profitable business, while providing quality care with all of our patients. The qualified therapist will establish an individualized plan to suit each of the patient's needs as established. The clinic would like to see an increase in the actual number of patients by a minimum of 80%, increased patient awareness of the clinic by 100%, increased staffing by 30%, and operate with a minimum of 50% profitability. With the addition of the space the new building will provide and the new equipment that will be added and in addition to adding additional staffing we should be able to, which all of our set goals. In an effort to reach the goal of the clinic we promise to maintain professional services, quality care, individualized one-on-one attention, maintain a clean professional establishment, and make sure to keep all of our equipment in working condition and up-to-date.
Services and Equipment The Living Well physical therapy clinic will offer specialized programs detailed to each specific patient's needs. The clinic will provide treatment utilizing water therapy, massage therapy, equipment therapy, and occupational therapy. The primary focus of the clinic is the use of aquatic therapy, while researching this type of therapy is proven to provide comfortable, private therapy to patients and allow for a quicker recovery (Accelerated Rehabilitation Clinic, 2012).Aquatic therapy is a therapeutic, low impact exercise program that is performed in water. This type of therapy involves a broad spectrum of cardiovascular endurance and conditioning exercises that are usually and traditionally performed on land (Accelerated Rehabilitation Clinic, 2012). Aquatic therapy allows for vigorous routine workouts to allow for healing with less stress on the body itself. Aquatic therapy will be the primary focus of the clinic due to the many medical conditions this type of therapy can aid within the healing process. Aquatic therapy works with sports injuries, muscle and tissue injuries, pre-and postoperative joint replacements, fractures, spine injuries, acute orthopedic conditions, neurovascular injuries, rehematological disease, and neurological impairment (Accelerated Rehabilitation Clinic, 2012). Water therapy exercises are extremely beneficial when the patient is limited on the amount of weight they can place on their injury. The benefits of aquatic therapy it helps to prove muscle tone and strength, builds up endurance, increases cardiovascular function, decreases the amount of weight-bearing, reducing the impact on the body, increases circulation, flexibility, range of motion, balance, and coordination (Accelerated Rehabilitation Clinic, 2012). Types of equipment the clinic will be utilizing will be the basic weightlifting bench, treadmill, sit up bars, stairs, total fitness equipment that works all parts of the body, and the pool with the chair lift. The chair lift is the one main equipment addition that will bring in more disabled patients’. Installing a chairlift in the pool area will allow for all disabled patients to be able to come to the clinic, and be able to utilize the same water therapy that other patients use. There are some basic regulations that have to be focused on upon installing the chair lift. The basic requirements when installing the chairlift are, it has to be installed and used where the water is not deeper than 48 inches, the seat height wall in the race position has to be 16 inches minimum from the edge of the pool, a clear deck space must have no obstacles and be parallel to seat, seat width has to be a minimum of 16 inches wide, the chair must be equipped with footrests and headrests, and must have a lifting capability of 300 pounds minimum (ADA & Accessibility Guidelines, 2004).

The addition of the chairlift will help increase the number of patients by proximately 10% during the first year, and will continue to rise over the next five years and at this time will pay for itself.
Organizational Structure The following is a chart of the organizational structure for the Living Well clinic: CLINIC MANAGER

FINANCE
MANAGER
SOCIAL
WORKER SUP. PHYSICAL THERAPY DIR.

MEDICAL DIRECTOR

OUTPATIENT SERVICES PATIENT DISCHARGE BILLING
SUPERVISOR
SOCIAL WORKERS THERAPISTS PATIENT SERVICES

The clinic manager has received a Masters degree in hospital administration, she has run another clinic or 4 years, and has been running this clinic for the last 3 years. The medical director is an M.D. of pediatrics he was the pediatrician for 20 years and after retirement wanted to continue his employment without the stress of a large hospital. The physical therapy director has a bachelor’s degree in physical therapy and was previously a licensed physical therapist and a smaller clinic for 6 years. The social worker supervisor has a Masters degree in social work she worked for the Department of Social Services for 10 years. The financial manager ran a bank for 15 years with a bachelor degree in finance.
Marketing
The reason patients come to receive physical therapy services are to help improve their mobility and paying they are in during usually due to an accident or injury. This service provides the ability to restore and maintain physical abilities of every individual who is having problems because of injuries, diseases, toxicity and other factors (Market Planning, 2011). While researching target audiences the research team surveyed 1300 people with current and past ailments in order to establish what the current market for therapy requirements are. When we are discussing target audiences we are talking about ages, gender, and ailments of possible patients needing therapy. While researching target audiences we also discovered that 62% of patients needing therapy are females and 38% of them are males. Most patients are between the ages of 30 to 45 years old, and most patients needing therapy are located midtown by 49%, and only 42% of those patients have active health insurance. Below is a chart showing some target audiences (Marketing Planning, 2011).

Advertisement will play a key factor in marketing for the clinic. Advertisements will be placed in papers, television ads, public websites, and handouts be implemented. The advertisement will state the name of the clinic, address, phone number, the hours of operation, and a short description of the various types of services that will be provided. The competitors in the local area are few most of the other clinics are centrally located near the hospital for referral purposes. In an effort to be competitive with these clinics we will offer discount coupons to new customers, and a discount to each patient accompanied by a referral. We will offer we can hours and longer hours during the week to help with patients that work and cannot come to the clinic on a typical work week Monday through Friday 8 AM to 5 PM.
FINANCIAL ANALYSIS The financial analysis below is at this time the best example of the Living Well Physical Therapy clinic’s performance over the next 3 years.
Chart 1: Projected Income Statement | 2012 | 2013 | 2014 |

Revenue Amount | $89,200 | $92,000 | $115,000 | Labor Required | 5 | 7 | 9 | Labor Cost | $8,000 | $10,000 | $12,000 | Supplies | $2,200 | $5,100 | $7,800 | Drugs/Devices | $1,000 | $1,200 | $2,000 | Equipment | $3,000 | $6,200 | $7,500 | Space Required | 5,000 square feet | 5,000 square feet | 5,000 square feet | Cost of Space | $2,500 | $2,500 | $3,000 | | Chart 2: Cash Flow 2012 | 2013 | 2014 | Capital asset purchase/lease | $10,000 | $3,000 | $1,000 | Capital Salvage | 0 | 0 | $500 | Cash Inflow | $115,000 | $121,000 | $125,000 | Cash Outflow | $90,00 | $73,000 | $83,000 |
Chart 3: Balance Sheet | 2012 | 2013 | 2014 | | Cash | $250,000 | $150,000 | $100,000 | Accounts Receivable | $60,000 | $80,000 | $90,000 | Inventories | $32,000 | $50,000 | $60,000 | Property/Equipment | $13,000 | $14,000 | $14,000 | Accounts Payable | $6,000 | $4,000 | $8,000 | Current Liabilities | $10,000 | $14,000 | $18,000 | Equity | $282,000 | $200,000 | $160,000 | | | This business plan is being submitted on behalf of the Living Well Physical Therapy Clinic. If approved this clinic will immediately begin to show a profit, since we are already an established clinic just in need of more space, equipment, and staffing. We will be able to serve approximately 1,000 additional patients with an average billing cost of $500 dollars per visit for a basic service, and $700 dollars for a more advanced therapy service. The location of our facility is considered to be a prime location right downtown among all the state offices and major businesses. | | |
References
Accelerated rehabilitation centers. (2007). Retrieved March 11, 2012, from http://www.accereratedrehab.com.
ADA and ABA Accessibility. (2005). Guidelines for buildings and facilities. Published in the Federal Register, Retrieved from www.access.borad.gov/ada-aba/final.cfm.
Baker, J. (2011). Health Care Financing: Basic Tools for Nonfinancial Managers; 3rd Ed [3] (Vital Source Bookshelf), Retrieved from http://online.vitalsource.com/books/780763791254.
Business Plans. (Unknown). Physical Therapy Massage Business Plan. Retrieved March 11, 2012 from http://www.bplans.com/physical_therapy.
Esterson, S. (2005). Starting and managing your own Physical Therapy Practice. Jones and Bartlett Publishers. Retrieved from http://www.books.google.com.
Marketing Plan Examples. (2011). Marketing planning examples. Retrieved March 15, 2012 from http://www. marketplanning.org.

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