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Hospital Business Plan

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Starting a hospital is a huge responsibility because taking care of millions of people in a year is difficult. If you are considering starting a hospital, then staffing, financial and business planning are necessary, for which a business plan is vital.

Need help writing a business plan for your hospital business? You’re at the right place. Our hospital business plan template will help you get started.

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  • Fill in the blanks – Outline
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How to Write A Hospital Business Plan?

Writing a hospital business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the hospital services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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business development plan for hospital

2. Business Overview

The business overview section of your business plan offers detailed information about your business. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information. Describe what kind of hospital you run and the name of it. You may specialize in one of the following hospital businesses:

  • General hospitals
  • Specialty hospitals
  • Teaching hospitals
  • Children’s hospitals
  • Outpatient clinics
  • Rehabilitation hospitals
  • Maternity hospitals
  • Describe the legal structure of your hospital, whether it is a sole proprietorship, LLC, partnership, or others.
  • Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established hospital, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your target market and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as changes in patient behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your hospital business plan:

  • Conduct market research, industry reports, and surveys to gather data.
  • Provide specific and detailed information whenever possible.
  • Illustrate your points with charts and graphs.
  • Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to patients. To write this section should include the following:

Describe your facilities:

Mention the hospital facilities your business will offer. This list may include,

  • Intensive care
  • Neonatal care
  • You can also mention the number of beds & specialized units

Medical specialties:

Quality measures:.

This section should explain how you maintain quality standards and consistently provide the highest quality facility.

Additional Services:

In short, this section of your hospital plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Marketing Strategies:

Sales strategies:, testimonial and success stories:.

Overall, this section of your hospital business plan should focus on patient acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your hospital business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for the hospital, such as operating rooms, tables, surgical lasers, surgical drills & saws, vital signs monitors, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your hospital business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your hospital, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

  • Add a table of contents for the appendix section to help readers easily find specific information or sections.
  • In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
  • Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
  • Include any legal documents such as permits, licenses, and contracts.
  • Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your healthcare business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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This sample hospital business plan will provide an idea for writing a successful hospital plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our hospital business plan pdf .

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Frequently asked questions, why do you need a hospital business plan.

A business plan is an essential tool for anyone looking to start or run a successful hospital. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your hospital.

How to get funding for your hospital business?

There are several ways to get funding for your hospital, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your hospital?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your hospital business plan and outline your vision as you have in your mind.

What is the easiest way to write your hospital business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any hospital business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

business development plan for hospital

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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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

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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Healthcare Business Plan Template

Written by Dave Lavinsky

Healthcare Business Plan

There are several types of Healthcare businesses, from family medicine practices to urgent care centers to home health care agencies. Regardless of the type of healthcare business you have, a business plan will keep you on track and help you grow your healthcare business in an organized way. In addition, if you plan to seek funding, investors and lenders will use your business plan to determine the level of risk.

Download our Ultimate Business Plan Template here >

Below is the business plan outline you should use to create a business plan for your healthcare company. Also, here are links to several healthcare business plan templates:

  • Assisted Living Business Plan
  • Counseling Private Practice Business Plan Template
  • Dental Business Plan
  • Home Health Care Business Plan
  • Medical Practice Business Plan Template
  • Medical Spa Business Plan Template
  • Non Medical Home Care Business Plan Template
  • Nursing Home Business Plan Template
  • Pharmacy Business Plan
  • Urgent Care Business Plan

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Healthcare business plan example outline, executive summary.

Although it serves as the introduction to your business plan, your executive summary should be written last. The first page helps financiers decide whether to read the full plan, so provide the most important information. Give a clear and concise description of your healthcare company. Provide a summary of your market analysis that proves the need for another healthcare business, and explain your company’s unique qualifications to meet that need.  

Company Analysis

Your company analysis explains your healthcare business as it exists right now. Describe the company’s founding, current stage of business, and legal structure. Highlight any past milestones, such as lining up clients or hiring healthcare providers with a proven track record. Elaborate on your unique qualifications, such as expertise in a currently underserved niche market.

Industry Analysis

The healthcare industry is incredibly large and diverse, but your analysis should focus on your specific segment of the market. Do you specialize in pediatric healthcare? senior healthcare? emergency medicine? family medicine? Figure out where your healthcare company fits in, and then research the current trends and market projections that affect your niche. Create a detailed strategy for overcoming any obstacles that you uncover.  

Customer Analysis

Who will your healthcare company serve? Are they families? The elderly? What is important to them in a healthcare business? How do they select a healthcare provider? Narrow down their demographics as closely as you can, and then figure out what their unique needs are and how you can fulfill them.

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Competitive Analysis

Your direct competitors are those healthcare companies that fulfill the same needs for the same target market as yours. Your indirect competitors are healthcare businesses that target a different market, or other companies that fulfill a different need for your target market. Describe each of your direct competitors individually, and talk about the things that set your healthcare company apart. Categorize your indirect competitors as a group and talk about them as a whole.  

Marketing Plan

A solid marketing plan is based on the four P’s: Product, Price, Promotion, and Place. The Product section describes the healthcare you sell along with any other services you provide. Price will change according to the specifics of the property, but you can delineate your fees here. Promotion is your means of getting new business. Place is your physical office location, along with your web presence and the areas where you sell. Another category, Customer retention, refers to the ways you will build loyalty.

Operations Plan

Your operations plan explains your methods for meeting the goals you set forth. Everyday short-term processes include all of the daily tasks involved in servicing clients. Long-term processes are the ways you will meet your defined business goals, such as expanding into new markets or new types of service.  

Management Team

The management team section highlights the backgrounds of the key members of your team. Focus on those aspects that prove your team’s ability to build and run a successful company. A business mentor or advisor can help fill in any gaps, provided you can identify the specific ways that your advisor will influence your company’s growth.  

Financial Plan

Investors and lenders heavily scrutinize the financial plan, but it is often the most challenging part of the business plan to write. Healthcare is a strong market, it usually not subject to economic turns. The financial plan requires you to detail your individual revenue streams by implementation timeline and relative importance, and disclose any sources of outside funding. You also need to summarize your past and future Income Statements, Cash Flow Statements, and Balance Sheets, based on key assumptions that must be both reasonable and verifiable based on an analysis of similar companies. You should also provide a solid exit strategy that shows your understanding of the market and your desire to capitalize on profitability.  

Your full financial projections should be attached in the appendix along with any other documents that support your claims, such as letters from key partners.

Healthcare Business Plan FAQs

What is the easiest way to complete my healthcare business plan.

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

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

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

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Hospital Business Plan Sample

MAR.14, 2017

business plan hospital

Do you want to start a Hospital business plan?

Starting a business can be very hard and a big responsibility. And starting one that benefits humanity can be an even greater responsibility. However, if you follow the correct steps and stay persistent, it can be very rewarding. Establishing a business like a hospital needs to be very thoroughly planned. 

The best way to plan a business is to write a business plan for the hospital. Adding all the right details of your business will attract investors to the business plan and this will help you in setting up your business. If you want to learn how to write a hospital business plan, you should go through as many samples as possible. 

Plans like nursing home business plan can be a great resource in understanding crucial things about the hospital business. In this business plan, we will be providing all the details for starting a hospital called Mercy Ltd. You can follow this sample to develop a plan for your business.

Executive Summary

2.1 business summary.

Mercy Ltd will be a private healthcare setup, owned and started by Gillian Hail. It will provide state-of-the-art services to all its patients. Additionally, it will also run a free clinic and fund services for those who don’t have enough money to get treatment. 

2.2 About the Management

As a hospital business requires the utmost attention to detail to run well, a business plan is needed ahead of time. It is similar to a business plan for a wellness center in that regard. To make the management of Mercy Ltd smooth, a hospital business development plan was needed. Therefore, we prepared this sample. 

If you want to develop an executive summary hospital business plan for your business, you can consult a healthcare business plan template. Otherwise, to write the business plan, you can also hire experts and guide them along. 

2.3 Customers of Mercy Ltd

Considering that Mercy Ltd is a healthcare center, its customers will primarily be patients seeking treatment or help with funding for treatment. They will belong to all domains and lifestyles. The primary customers will include:

  • OPD Patients
  • Emergency Care Patients
  • Chronic Patients
  • Treatment Fund Patients

2.4 Business Target

The target of Mercy Ltd is to become a trustworthy healthcare center where people can come to get immediate treatment whenever they need it. It will also be a long-term target to expand the business. The financial targets we want to meet within the first three years are mentioned below in this hospital business plan pdf.

Hospital Business Plans - 3 Years Profit Forecast

Company Summary

3.1 hospital ownership.

The hospital will be owned and managed primarily by Gillian Hail. She completed her MD five years ago after which she served as a head neurosurgeon in a renowned hospital in Baltimore. She then assumed the position of a consultant to start her healthcare setup. 

3.2 Why the Hospital Business is Established

Gillian always wanted to make a difference and help people due to which she became a doctor. However, after working in a hospital for so many years, she realized that there was a greater need for a healthcare setup that could deal with patients faster. Therefore, she decided that she would open Mercy Ltd to provide quick care to patients and to gain funding for people whose insurance couldn’t cover them.  

3.3 How will Mercy be Established

Step1: Plan Everything

The first step before establishing any business, no matter what the domain or scope, is thorough planning. You will need to map everything required to start the business in a business plan for starting a hospital. Additionally, you will also need to develop a business plan for hospital expansion if you have any plans to extend the business in the future. The process won’t stop here because at some point, you will also be developing a business continuity plan hospital.

Step2: Get Funding

One of the main reasons to develop a startup hospital business plan is to get funds. As Mercy Ltd had the aim to help treat those who couldn’t afford usual hospital charges, Gillian paid special attention to this hospital business plan sample pdf to attract investors. 

Step3: Find a Location

To house the healthcare setup, Gillian chose a building in Baltimore. The lower two floors will be for the hospital whereas the top floor will be for management and for housing on-call doctors. 

Step4: Developing a Brand

It is essential to make your business as humane as possible so that your customers can relate to it. Therefore, Gillian not only focused on her business model to help people but also described it in a way that is understandable to its customers. 

Step5: Promote and Market

To get the word out about her unique business model, Gillian established a partnership with as many local and big hospitals as she could so they refer patients to Mercy Ltd for treatments.

Hospital Business Plans - Startup Cost

To write a business plan for a hospital, one needs to be clear about the type of business they want to establish. And this is true for every business plan, be it a reiki practice business plan or a private hospital business plan pdf. 

To develop a hospital business plan sample, you will need to know the services you want to provide to your customers as your services will form the basis of your setup. Here, we have provided a hospital business plan template that you can follow when writing about the services of your business. You can also look at any other hospital business plan example for reference. 

We will provide all the basic outpatient facilities including diagnosis, testing, and providing immediate treatment to patients. This will apply to patients with simple ailments like infection, common cold, fever or pain, etc. 

  • Emergency Services

Mercy Ltd will also provide emergency services to patients who have been involved in an accident and need immediate care for stabilization. We shall also provide ambulances to transport these patients to bigger hospitals for complete and thorough treatment and recovery. 

  • Regular Treatment and Therapy

For the patients who have chronic ailments or pain and who need regular care and treatment, we will offer therapy sessions and a complete care package that they can use utilize regularly.

One of our core services will be to provide treatment funding to deserving patients. The cases and situations of the patients will be thoroughly analyzed to ensure that there is no problem.

Marketing Analysis of Hospital Company

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It can be very tricky to gain success as a new business. You need solid hospital strategic goals to ensure a clear direction in all the business operations. A good business owner needs to do a lot of research into hospital business development strategies before starting a business in this domain. 

A good business plan covers all details regarding the business such as hospital planning team and business model of the hospital. This information helps in showing the objectives of hospital planning to the investors. And all of this can only be achieved if you have a strong understanding of your target market. This includes your customers as well as your competitors. 

In this hospital marketing plan template, we have outlined all the marketing strategies that would be employed by Gillian to ensure the success of her business. You can follow this hospital business plan sample or a relevant plan like a massage therapy center business plan for more guidance. 

5.1 Market Trends

According to PolicyAdvice, the healthcare industry is one of the fastest-growing industries in the U.S. and the trend is expected to continue as the U.S. spends almost twice on healthcare when compared with other countries. Right now, the market share of the healthcare industry in the U.S. is at almost $10 billion and it is expected to rise. Therefore, healthcare is one of the best sectors to start a business.

5.2 Marketing Segmentation

The target customer groups of Mercy Ltd will be:

Hospital Business Plans - Marketing Segmentation

5.2.1 OPD Patients

Our primary services are centered around situations where patients only need immediate care and have straightforward illnesses. Therefore, these patients with simple ailments will be the key customers of Mercy Ltd as they will utilize our services more often. 

5.2.2 Emergency Care Patients

Our second target customers will be the people who need immediate care after an accident such as a fall or a crash. Our main responsibility will be to stabilize these patients so that they can be safely transferred to hospitals for full care. 

5.2.3 Chronic Patients

We will also get business from people with chronic ailments who only need to go to hospitals for regular check-ups but find it hard to. We will provide them with in-house regular check-ups and treatment facilities so that they don’t have to spend too much time or energy on commute. 

5.2.4 Treatment Fund Patients

Lastly, one of our primary services is funding, we will also take up cases of patients who need money for treatment but due to some reasons are not able to. The funding for these patients will come from our investors as well as from 8% of our profits.

5.3 Business Target

  • To become the best immediate care hospital in Baltimore.
  • To expand our services across the US in the form of multiple small centers.
  • To earn a net profit margin of $15k/month by the end of our second year.
  • To be the first healthcare service that helps patients with funding.

5.4 Product Pricing

Our prices will be similar to that of our competitors. However, we will aim at boosting our efficiency through efficient load management.

Marketing Strategy

To become successful in a market as tough as healthcare, you will need to work on your hospital business strategy. This strategy will be reflected in your business plan for the hospital . You can also look at strategic plan example for hospital startup for reference. 

Understanding all aspects of planning in hospital will help you gain a better view of the market and get your business to succeed. So, whether it is a business plan for healthcare setup or a business plan for occupational therapy , you should look into the market for a stronger plan.

6.1 Competitive Analysis

  • We have excellent and unique services
  • Our customers can get basic healthcare in half the time as required by regular hospitals.
  • We provide treatment funding to people who cannot afford it.
  • Our customers can avail of our ambulance and emergency services through a quick phone call as well.

6.2 Sales Strategy

  • We will get the word out through partnerships with hospitals.
  • We will organize health awareness seminars to get us known.
  • We will use social media for a wider reach.
  • We will offer discounts to deserving people.

6.3 Sales Monthly

Hospital Business Plans - Sales Monthly

6.4 Sales Yearly

Hospital Business Plans - Sales Yearly

6.5 Sales Forecast

Hospital Business Plans - Unit Sales

Personnel plan

A good business plan for hospitals will reflect all the aspects of the setup thoroughly for better management. This even includes the workforce and employees that make it possible to run a setup. In this hospital business plan template, we will be looking at the employee and hiring structure of Mercy Ltd. 

7.1 Company Staff

  • 1 Co-Manager to help in overall operations
  • 8 Certified Doctors
  • 3 General Cleaners
  • 1 Technician to upkeep the machinery
  • 1 HR Executive
  • 2 Ambulance Drivers
  • 2 Receptionists

Financial Plan

The success of a business and its smooth running depends on your research and asset management techniques.  Before stepping into the business world, you need to explore various hospital business plans. You need to ensure that you have enough finances to support your operations and range of services. This is where hospital financial planning comes in. 

To ensure that everything is running with balance and you’re not going into a loss, you will need to keep proper track of your finances. One way to deal with the overwhelming load of financial management is to make a financial plan. This can act as a guide for you to follow as the business progresses. 

Here, we are detailing the financial plan for Mercy Inc. You can also look at similar plans such as a non-medical home care business plan to get a hint. 

8.1 Important Assumptions

8.2 break-even analysis.

Hospital Business Plans - Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Hospital Business Plans - Profit Monthly

8.3.2 Profit Yearly

Hospital Business Plans - Profit Yearly

8.3.3 Gross Margin Monthly

Hospital Business Plans - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Hospital Business Plans - Gross Margin Yearly

8.4 Projected Cash Flow

Hospital Business Plans - Project Cash Flow

a. How do you start a hospital business?

You can start a healthcare setup by reviewing the strategic management in hospitals. This will inform you if you can manage the plethora of responsibilities that come with every healthcare business. After that, you need to plan everything and execute the business operations in steps. For the planning stage, you can take help from the sample business plan provided above.

b. What is a hospital business plan?

A business plan for hospitals is a document that is developed before starting a venture. It is done to ensure that you take the right steps to make your business a success. It helps with planning, management, and problem resolution among other things. 

c. What are the 4 types of hospitals?

The basic 4 types of hospitals in the US according to JamaNetwork are:

  • Community Hospitals
  • Federal Govt Hospitals
  • Non-Federal Psychiatric care
  • Non-Federal Long-term care

The business plan hospital provided here was written for a private community hospital. 

d. How do I write a hospital proposal?

You can write a hospital proposal by going through the private hospital business plan provided above and following all the tips mentioned.

Download Hospital Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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hospital business development

Business development for vmos in hospitals, digital marketing for hospitals.

Kris Borgraeve - Co-founder Digital Practice

"Our workshops cover essential topics for specialists in private practice, with a focus on digital marketing. How to transform your practice so you don’t rely on GP referrals alone? Dozens of specialists have been able to double their business volume applying our proven strategies."

Case study hospital business development

In one Australian private hospital, our dedicated program covered a number of workshops to educate specialists about the power of Content Marketing. As a result, a vast number of private practices started working with Digital Practice and started growing their practice in unprecedented ways.

One year after launching their new websites and strategies, the Case Study for this one hospital shows spectacular results for a cluster of 22 doctors in private practice. Tenfold (10x) the visibility compared to when we started, for essential online searches into services and procedures the hospital offers. This now represents about 2,000 enquiries per month (via phone and email) based on the Digital Practice strategies, just for one hospital. They are hot leads because all content is based on research.

Why this unique new marketing method creates hot leads

The failproof data that underpins every page on every new website that we build comes directly from local market research. Patient Search Behaviour Data gives us detailed insights into what patients search for. We build the content pages with that data in mind, to only attract relevant visitors: potential future patients with a genuine health concern who are looking for a specialist.

More visibility: More top-3 positions in Google search

Hospital business development strategies | Digital Practice

More traffic: More patients who find the hospital’s surgeons

The increased visibility, and the top positions in Google for all this local traffic from patients and GPs, trigger another set of data that the hospital benefits from. Traffic to an average cluster of 10 Digital Practice websites increases by a 1 0x factor in just 12 months time . We now have more traffic for relevant searches, documented by keyword research, for all participating specialists.

More hot leads: 2,000 enquiries per month

It all starts with education, hospital business development strategies.

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Author hospital business development

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  • Top 12 Hospital Marketing and Advertisement Strategies for 2024  

Top 12 Hospital Marketing and Advertisement Strategies for 2023

Hospital marketing is nothing short of challenging, and there are two main reasons why: 

First, no one wants to visit a hospital willingly.  If patients are coming to you, it’s because they need immediate medical attention to get better.  

And second, medical services are used by everyone. They’ve become something of a commodity, making it difficult for hospitals and other healthcare facilities to stand apart.  

In either case, hospital marketing can help you acquire new patients , connect with them and ensure a healthy, profitable future. 

Before we discuss the hospital marketing and hospital advertising strategies, let’s understand what marketing for a healthcare organization entails. 

What is hospital marketing?

hospital marketing

Hospital marketing is the strategic process of promoting and advertising the healthcare services and facilities offered by a hospital or healthcare institution. The aim of hospital marketing is to build brand awareness and reach and attract potential patients. It also helps in building positive relationships with existing patients and the community. There are various marketing strategies and channels, such as digital advertising, social media, content marketing, community outreach, and public relations. These channels help attract and engage patients, ultimately driving growth and success for the hospital. 

Effective hospital advertising goes beyond simply promoting services; it aims to create a positive perception of the hospital brand and foster trust among potential patients. Targeted hospital advertising helps you to reach your desired audience and inspire them to choose you for their healthcare needs. 

Top 12 hospital marketing and advertisement strategies   

Don’t forget to analyze your competitors as well to find out what they are ranking for. Then devise an SEO plan and create content with the aim to rank on Google. This makes your hospital easy to find.

One more thing: don’t forget to do local SEO. This would simply mean ensuring that you register your hospital with GoogleMyBusiness. Then, you’d turn up on people’s searches when they use terms such as, ‘Hospitals near me’ or ‘Pediatricians near me’. Ensure you claim your address and use keywords that are relevant to your hospital/clinic.

hospital marketing and advertising strategies infographic

1. Create a patient-centric website

Once you start with your hospital marketing activities, your website becomes the most essential asset. As for many patients, your website may be the first experience they have with your brand. Websites should be informative, but they also need to be helpful. Here are a few ways to improve your hospital’s website:

1. Optimize for mobile devices  

To better cater to your patients, make sure your website is optimized for mobile devices.  Studies show that 55% of website traffic in general comes from mobile devices. Moreover, 92.3% of users access the internet using a mobile phone. 

2. Create a user friendly interface  

Ensure your design is clean, user-friendly, intuitive, and easy to navigate. Contact information should be prominently displayed, along with multiple options for patients to get in touch. In addition, you should include a patient FAQ that addresses the most common questions and enable self-service options, such as an appointment scheduler .  

3. Integrate healthcare chatbots  

Healthcare chatbots can solve basic inquiries instantly. Patients don’t have to wait for hours to connect with someone to help them with their questions, or book appointments. It also helps hospitals inform patients about the treatments and on-call doctors. 

healthcare chatbot example

2. Ensure you rank on search engines  

Make it easy for your patients to find you online. For your awesome hospital marketing activities to translate into business, people need to be able to find you first. Spend some time to understand what your patients are looking for in a healthcare provider. Then write blogs and share information around it. An easy keyword research can help you out!  

You can use the following tools for keyword research and figure out what your target audience is searching for: 

  • SEMrush  
  • BuzzSumo  

Don’t forget to analyze your competitors as well to find out what they are ranking for. Then devise an SEO plan and create content to rank  on Google. This makes your hospital easy to find. 

Another helpful tip: Invest in local SEO! 82.8% of people use search engines to find a healthcare provider. So, it is essential to ensure that you register your hospital with Google MyBusiness . Then, you’d turn up on people’s searches when they use terms such as, ‘Hospitals near me’ or ‘Pediatricians near me’. Ensure you claim your address and use keywords that are relevant to your hospital/clinic. 

3. Exercise your brand on social media  

Social media is an increasingly powerful tool in hospital marketing. Historically, hospitals have been slow to adopt social media as part of the mix, but it’s been shown to be a highly effective and free channel to build your brand. In October 2022, 4.74 billion people worldwide actively used  at least one social media platform. 

Interestingly, only about 13% of marketing budgets are allocated to social media marketing, even though 97% of marketers have adopted some form of social media presence. However, in 2022, social media accounted for approx. 33% of the average marketing spend .  

Running paid advertisements for healthcare institutions can get a bit tricky since healthcare data is protected, and it limits targeting. But rather than promoting products and services, if you focus on building trust with your prospective patients, the results from marketing on social media can exceed your expectations.  

Focus on delivering value with each post, such as helpful health-related content. If you can establish trust and authoritativeness in the healthcare sector, patient visits will become a natural by-product. 

4. Run paid hospital advertising campaigns  

Organic healthcare marketing is all well and good, but it comes with two major issues: it is slow and unpredictable. Cracking Google’s code is not so easy, as the algorithm keeps changing. Though the benefits are long-lasting if you want quicker results from your hospital advertising efforts, PPC campaigns may be the way to go.  

Almost all social media platforms offer ad services, right from Facebook, Instagram, LinkedIn, Twitter, and even the new kid on the block: TikTok. You can run campaigns on these media and try to attract more patients to your website and improve visibility.

5. Add a human element to your brand  

Most people associate hospitals with white, sterile environments, and brand images tend to follow this trend. However, you know you have much more to offer than a clean environment and top-notch care, so infuse the human side into your hospital marketing strategy.  

A PwC study discovered that one in three consumers feel that trust is the most important element that influences their decision, even more so than price. Trust is imperative for a healthcare organization, after all your patients are entrusting their health and well-being to your facility, and you want them to feel confident about coming to you.  

Focus on highlighting your providers, community partnerships, events, and other elements that will connect people to your brand. Social media can be a powerful outlet for humanizing your facility by letting patients see the doctors, nurses, and healthcare staff  that make your hospital so special. 

6. Engage in the community  

Most local hospitals focus on serving niche or local communities, and the best way to reach them is simply by engaging with them. 

A few ways that hospitals can stay active and contribute to the community are:  

  • Sponsor events 
  • Participate in or host health fairs 
  • Provide free wellness information 
  • Talk to local groups, and build your own community from within.  

1. Organize healthcare webinars  

Healthcare webinars are an effective way to advertise your facility and educate both existing and potential patients. But for that your webinar needs to be equal parts of interesting and informative. 

Let’s look at a few steps that’ll help you organize an interactive healthcare webinar: 

  • Understand your audience and pick a relevant topic. 
  • Connect with experts, such as doctors, researchers, and healthcare counselors, and invite them as speakers 
  • Promote your webinar through various channels: Facebook, Instagram, YouTube, etc. 
  • Include polls during the session 
  • Allocate some time for a Q&A session at the end. 
  • Invite recurring patients and primary caregivers to attend support group sessions using email marketing.  

7. Build long-term relationships for short-term care  

While hospitals generally focuses on short-term treatments while advertising their services to patients, their efforts deliver long-term results. Because, the majority of patients you reach with your hospital advertising won’t need immediate medical attention, but they’ll be glad to know you’re on their side when they do need your expertise.  

Focus on building long-term relationships with patients than focusing on immediate results. Building a positive brand image is a never-ending process, but with consistent effort over time, you’ll become a name that your patients can trust and rely on.

You can start with: 

  • Sending relevant information to patients about regular body check-ups or tips to improve their health.  
  • Update them about offers, such as membership plans or family plans, that can benefit them. 
  • Maintain transparency related to medical services and costs 
  • Ensure that all patient-related data is secure 

8. Engage your patients with frequent email campaigns  

Email campaigns are a powerful way to deliver targeted messages as a part of your hospital marketing initiatives. You can use email campaigns to: 

  • Share information about new services 
  • Send timely reminders for appointments or follow-ups  
  • Share healthcare or post-treatment care tips 

To make the process efficient, you can use marketing automation software. It helps you automate email campaigns and generate reports to analyze their performance.  

Tips to improve the open and conversion rates of your healthcare email campaigns: 

  • Curate a segmented list for your campaign to personalize the communication 
  • Ensure your healthcare email templates include an engaging email body, a good subject line, and a CTA at the end.  
  • Set up your email template on the platform to schedule the campaign and test which time works the best for your patients.  
  • Analyze open rate, CTR and conversions to improve future campaigns 

9. Prioritize patient engagement in your hospital marketing plan 

The aim of starting hospital marketing should not only be to attract patients but also to engage them. An efficient patient engagement plan will help you improve overall patient experience . Hospitals can focus on setting up automated yet personalized communications like sending appointment reminders, health tips, and birthday greetings. Collecting patient feedback through surveys or feedback forms helps identify areas for improvement. You can encourage patients to utilize patient portals for appointment scheduling and accessing medical records. The best channels for patient engagement are SMS, WhatsApp, and emails. 

These ready-to-use SMS templates will get you started right away:  

  • Appointment scheduling templates  
  • Patient outreach messaging templates  

10. Patient reviews  

According to a study by Neilsen, 92% of people trust recommendations from family and friends over any advertising. With this in mind, you should try to get your existing patients to share their experiences. Include a referral program in your hospital marketing strategy to incentivize your patients to recommend your hospital to their social circle. For example, you could offer a small discount on their next checkup or a voucher for an add-on service. 

The next place where people look for validation is online reviews. Maintain a good online reputation by collecting feedback from patients after each consultation. 

11. Leverage traditional media for healthcare advertising   

Include traditional media in your hospital advertising plan. Though going digital is all well and good, the old school method still has some magic. Advertise your healthcare practice by running ads on newspapers, TV, billboards or even the radio. The downside of using traditional media is that it can get difficult to track where your revenue is coming from. 

healthcare billboard advertising example

However, traditional media increases brand recall value.  In times of emergency, you might very well be the first hospital that pops into the minds of your prospects. 

12. Get referrals from doctors  

A good hospital marketing plan should not only focus on patients but also on the other people involved in the journey of providing care, for example, doctors. Build a good relationship with the local doctor community. A lot of doctors own private clinics or work in smaller healthcare outlets. Informing them about your hospital’s amenities and the treatments that you provide will help them recommend you to their patients.  

Now, you know the most effective healthcare marketing strategies. While each of these strategies requires significant time and constant improvement to succeed, they will eventually help your medical organization in a couple of ways. 

Benefits of hospital marketing  

Many of your hospital marketing initiatives will not deliver instant results. But if you continue with patience, you will start observing the following benefits: 

1. Increased patient acquisition  

Raising awareness about the hospital’s services, specialties, and expertise will eventually drive patient acquisition. It leads to hospital growth, higher appointments, and increases registrations.  

2. Enhanced brand awareness and reputation  

You can build and strengthen your healthcare practice’s brand identity . Consistent messaging and positive brand experiences contribute to building trust and establishing a reputable image within the community. 

3. Improved patient engagement and loyalty  

With hospital marketing you can deliver informative and valuable content, educate patients, and provide personalized experience. These efforts will cultivate loyalty and strengthen patient-provider relationships. 

4. Targeted outreach and community engagement  

Hospital advertising helps you target and reach specific demographics. By tailoring marketing campaigns to the needs and preferences of the target prospective patients, you can engage them more efficiently.  

5. Strategic differentiation from competitors  

One of the biggest benefits of hospital marketing is that you get an edge over your competitors. You can differentiate yourself by showcasing unique services, specialized expertise, cutting-edge technology, or exceptional patient experiences.  

But, how would you know if our healthcare marketing efforts are hitting the mark? By tracking important metrics, you can understand the effectiveness of your campaigns and make data-driven decisions to drive even better results.  

Let’s take a closer look at these KPIs. 

Tips to ensure the success of your hospital marketing campaigns

1. evaluating return on investment (roi)  .

Your marketing campaigns are not delivering if they do not have positive ROI. To measure it, you need to track a few metrics and healthcare KPIs . A few important ones are: 

  • New patients acquired
  • Conversion rates
  • Engagement rate  
  • Revenue generated

Calculating the ROI will help you allocate resources wisely and double down on the most effective sources.  

2.Identifying effective channels and tactics  

Identify which marketing channels and practices drive the most engagement and generate the desired outcomes. To rank them by performance, track metrics like:  

  • Website traffic – The number of people visiting your website daily. 
  • Social media engagement – The number of likes, comments and shares on your post. 
  • Email open rates – The percentage of emails opened as compared to the total number of emails that have been delivered.  
  • Campaign performance – Calculate the reach, engagement and ROI of your other campaigns.  

The most engaged sources and content help you understand what resonates best with your prospective patients. 

3. Monitoring patient satisfaction and feedback  

Go beyond quantitative metrics. You can also monitor patient satisfaction through surveys, reviews, and feedback mechanisms. This qualitative data offers invaluable insights into the patient experiences. It allows you to identify areas for improvement and address concerns promptly. Positive patient experiences drive loyalty, referrals, and ultimately contribute to the overall success of the hospital. 

4. Continuous improvement and adaptation  

Measuring and tracking activities provide hospitals with the opportunity to continuously learn, adapt, and improve their marketing strategies. You can do so, by analyzing data trends, identifying patterns, and conducting A/B testing. These experiments will refine your messaging and ensure you stay ahead of evolving patient expectations. 

Conclusion  

Hospital marketing drives growth, enhances patient engagement, and builds strong connections within the healthcare landscape. In this article we covered some best practices for hospital marketing and advertising. We also discussed how to measure the success of your campaigns and ensure continues growth. 

If you are looking for a one-stop solution to plan and execute efficient marketing campaigns, check out Leadsquared.  

The 5 Ps of hospital marketing are Product (healthcare services), Price (cost of services), Place (hospital location), Promotion (marketing strategies), and People (target audience and staff). 

The roles and responsibilities of hospital marketing include developing strategies to promote services, managing digital marketing, building relationships with healthcare providers, community outreach, public relations and monitoring campaign effectiveness.  

The ethics of hospital marketing includes maintaining patient privacy and confidentiality. It also involves sharing accurate information and avoiding false or misleading advertising. 

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Awantika is a healthcare marketer with LeadSquared. She has been a part of the content and product marketing game for almost 3 years. You can connect with her on LinkedIn or write to her at [email protected].

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ProfitableVenture

Hospital Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Healthcare and Medical » Hospital and Clinic

Are you about starting a hospital/healthcare center? If YES, here is a complete sample hospital business plan template & feasibility study you can use for FREE .

Okay, so we have considered all the requirements for starting a hospital . We also took it further by analyzing and drafting a sample healthcare service marketing plan template backed up by actionable guerrilla marketing ideas for hospitals. So let’s proceed to the business planning section.

It might no longer be new to you that health is indeed wealth. We all have come to know that aphorism without no hassle.

It is therefore in place to say that when one has a sound health, one can be of optimum relevance to the society. This is one of the reason those who are in the medical line are solving this problem through diverse healthcare businesses. One healthcare business that is focus here is the hospital business.

Starting a hospital is one of those businesses that require you to first look at the existing laws in the country or the State you reside, before going all out to start the business. This is so because there is hardly any country that does not pay serious attention on their health sector.

The health industry is usually highly regulated so as to guide against the infiltration of quacks or substandard hospital or health facilities.

If you have interest in starting your own hospital business, then you would need to pay a visit to the health and medical regulatory body in your country ( the department / ministry of health and medical services ) to get all the needed information that is required before you can legally start your own hospital business in your city.

Also the business plan is something that you have got to tackle with before launching out in business. Very vital information such as the vision, mission, marketing plans, legal documents, as well as many other things will be looked in a business plan. Here is a sample hospital business plan that is capable of leading you all the way;

A Sample Hospital Business Plan Template

1. industry overview.

No doubt, the healthcare cum medical industry of which hospital business is a subset of, is perhaps one of the fastest growing and largest industries in the world; this is so because the wealth of any nation depends on the health of the nation.

Obviously there is hardly any country where the healthcare industry is not handled with all seriousness. As a matter of fact, the healthcare industry is known to gulp well over 10 percent of gross domestic product (GDP) of most developed countries.

Basically, a healthcare provider is a health professional such as nurse or doctor et al or an establishment such as a hospital or a medical clinic or a healthcare center / facility that provides preventive, curative, promotional, rehabilitative or palliative healthcare / medical services in a systematic way to individuals, families or communities.

The hospital industry comprises of operators who are licensed as general medical and surgical hospitals that provide surgical and nonsurgical diagnostic and medical treatment to inpatients with medical conditions. In general, hospitals maintain inpatient beds and usually provide other services such as outpatient services, operating room services and pharmacy services.

There is indeed a very large market for hospital (healthcare service) providers in the united states and of course in most parts of the world.

For instance, the World Health Organization (W.H.O) estimated that there are about 9.2 million physicians, 19.4 million nurses and midwives, 1.9 million dentists and other dentistry personnel, 2.6 million pharmacists and other pharmaceutical personnel, and over 1.3 million community health workers worldwide. This goes to show that the healthcare industry is indeed one of the largest segments of the workforce of any nation.

It is on record that in 2011, healthcare costs paid to hospitals, physicians, nursing homes , diagnostic laboratories, pharmacies, medical device manufacturers and other players in the healthcare system business value chain consumed an estimated value of 17.9 percent of the Gross Domestic Product (GDP) of the United States; this is indeed the largest of any country in the world.

As a matter of fact, experts projected that the healthcare share of the GDP of the United States will continue to grow, reaching 19.6 percent of GDP by 2016. The Healthcare cum Hospital industry is indeed a very massive industry in the U.S.

Statistics has it that The Hospital industry in the United States of America, is worth $986bn, with an estimated growth rate of 3.4 percent.

There are about 3,184 registered and licensed hospital businesses in the United States and they are responsible for employing about 5,513,669 people that comprises of doctors, nurses, pharmacists, dentist, opticians, surgeons and other health and non – health workers.

It is important to state that there is no hospital with a lion share of the available market in the United States. If you are considering starting your own hospital in the United States, then you should try and work around the industry barriers.

The truth is that, the barriers to entry in the Hospitals industry are high and this is due to the significant regulatory requirements and the experience and strength of incumbents. For example, medical licensure creates a barrier to entry in the healthcare sector.

As a matter of fact, it is absolutely compulsory for any investor who is looking towards starting a hospital to meet extensive federal, state and local laws and regulations. These regulations relate to the adequacy of medical care, equipment, personnel, operating policies and procedures.

Regulations also involve maintaining adequate records, preventing fires, setting rates and complying with building codes and environmental protection laws. These regulations make it difficult and costly for aspiring entrepreneurs to enter the industry.

Over and above, if you are determine and you are ready to go all the way, you will surely succeed in establishing your hospital in the United States of America and you will be glad you did because it is indeed a profitable line of business.

2. Executive Summary

Joan & Phil® Hospital, LLC is a standard, licensed and certified hospital service provider that will be located in the heart of Miami Beach, Florida – United States of America. We have been able to acquire a standard facility that is highly suitable for the kind of hospital business we want to operate.

Joan & Phil® Hospital, LLC is in the hospital industry to provide healthcare services such as Inpatient care, Outpatient care, Anatomical pathology services, Diagnostic X-ray services, Clinical laboratory services, Operating room services and other medical services. We are well trained and equipped to service the market segments that require healthcare services.

We are in the hospital business to deliver excellent healthcare services to all those who will patronize our services. We will also ensure that in the line of carrying out our duty, we comply with the laws and health regulations in Florida and The United States of America. Our employees are well trained and qualified to handle the wide range of healthcare services.

Joan & Phil® Hospital, LLC will operate a 24 hours 7 days a week healthcare service; our hospital will be opened round the clock to attend to clients (patients). We have a standard medical call center that is manned by trained health workers.

Our work force is going to be well trained to operate within the framework of our organization’s corporate culture and also to meet the needs of all our customers. Joan & Phil® Hospital, LLC will ensure that all our patients cum customers are given first class treatment whenever they visit our hospital.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base grows. Joan & Phil® Hospital, LLC is a family business that is owned and managed by Dr. Marvin Clarkson and his wife Joan Clarkson (Nurse). Dr. Phil Clarkson is going to be the Medical Director (Chief Executive Officer) of the hospital;

He is a qualified and well trained Medical Doctor with well over 15 years of experience working as a medical doctor and medical researcher with the United States’ government. He will be ably supported by his wife Joan Clarkson who has grown in her career to become one of the most respected senior nurses in Miami, Florida.

3. Our Products and Services

Joan & Phil® Hospital, LLC is in the business of ensuring that our patient / clients are well treated and taken care of and our services will be carried out by highly trained professional doctors, dentist, surgeons, opticians, nurses, nurse’s aides, mental health counselors, chiropractors, medication management counselors, physical therapists and other health and non – health workers, who know what it takes to give our highly esteemed customers (patients) value for their money.

These are the healthcare services that Joan & Phil® Hospital, LLC will be offering;

  • Inpatient care
  • Outpatient care
  • Anatomical pathology services
  • Diagnostic X-ray services
  • Clinical laboratory services
  • Operating room services
  • Occupational, Physical, and Speech Therapy
  • Personal Injury Case Management

4. Our Mission and Vision Statement

  • Our vision is to become the number one choice when it comes to healthcare service delivery in the whole of Florida and also to be amongst the top 20 ( hospital ) healthcare service provider in the United States of America within the next 10 years.
  • Joan & Phil® Hospital, LLC is in business is to establish a first class hospital that will take care of both highly placed clients and lowly placed clients as long as they can afford our services.
  • We want to become one of the leaders in the hospital cum healthcare services industry in Florida, and in The United States of America.

Our Business Structure

Joan & Phil® Hospital, LLC is a business that will be built on a solid foundation. From the outset, we have decided to recruit only qualified professionals (doctors, dentist, surgeons, opticians, nurses, nurse’s aides, chiropractors, medication management counselors, physical therapists and other health and non – health workers) to man various job positions in our organization.

We are quite aware of the rules and regulations governing the hospital cum healthcare industry which is why we decided to recruit only well experienced and qualified employees as foundational staff of the organization. We hope to leverage on their expertise to build our hospital brand to be well accepted in Florida and the whole of the United States.

When hiring, we will look out for applicants that are not just qualified and experienced, but honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders ( the owners, workforce, and customers ).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. These are the positions that will be available at Joan & Phil® Hospital, LLC;

  • Chief Medical Director / Chief Executive Officer
  • Doctor / Surgeon / Dentist

Nurses / Nurse’s Aides

  • Information Technologist (Contract)
  • Admin and Human Resources Manager
  • Sales and Marketing Executive
  • Accountant / Cashier
  • Customer Care Executive

5. Job Roles and Responsibilities

Chief Medical Director / Chief Executive Officer:

  • Responsible for providing direction for the business
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Attend to high profile clients and severe medical cases
  • Responsible for fixing prices and signing business deals
  • Responsible for recruitment
  • Responsible for payment of salaries
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Responsible for providing professional medical services to our patients
  • Responsible for offering occupational, physical, and speech therapy
  • Responsible for handling medical emergencies.

Pharmacist:

  • Responsible for managing the daily activities in the company (dispensary store)
  • providing advice about health issues, symptoms and medications in response to customer enquiries
  • Responsible for recruiting, training and managing staff
  • Responsible for processing prescriptions and dispensing medication
  • Responsible for ordering, selling and controlling medicines and other stock
  • Responsible for meeting medical representatives
  • Responsible for managing the organizations’ budgets
  • Responsible for keeping statistical and financial records
  • Responsible for preparing publicity materials and displays
  • Handle marketing services
  • Interfaces with third – party providers (vendors)
  • Handle any other duty as assigned by the Medical Director.
  • Responsible for managing our patients
  • Handles personal injury case management
  • Responsible for offering medication management services
  • Assist the doctors in treating patients

Sales and Marketing Manager

  • Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Model demographic information and analyze the volumes of transactional data generated by customer
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • Responsible for handling business research, market surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develop, execute and evaluate new plans for expanding increase sales
  • Create new markets cum businesses for the organization
  • Empower and motivates the sales team to meet and surpass agreed targets

Information Technologist

  • Manage the organization website
  • Handles e-commerce aspect of the business
  • Responsible for installing and maintenance of computer software and hardware for the organization
  • Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
  • Manage the organization’s CRM software application
  • Handles any other technological and IT related duties.

Accountant / Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for Joan & Phil® Hospital, LLC
  • Serves as internal auditor for Joan & Phil® Hospital, LLC.

Client Service Executive

  • Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the creative director in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
  • Responsible for cleaning the hospital facility at all times
  • Ensure that toiletries and supplies don’t run out of stock
  • Cleans both the interior and exterior of the hospital facility
  • Handle any other duty as assigned by the admin and HR manager.

6. SWOT Analysis

Joan & Phil® Hospital, LLC is set to become one of the leading hospital cum healthcare service providers in Florida which is why we are willing to take our time to cross every ‘Ts’ and dot every ‘Is’ as it relates to our business. We want our hospital to be the number one choice of all residence of Miami and other cities in Florida.

We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation. We must ensure that we follow due process in setting up the business.

Even though our Chief Medical Director (owner) has a robust experience in health management services, public health and medical research, we still went ahead to hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support in helping us structure our business to indeed become a leader in the hospital / healthcare industry.

This is the summary of the SWOT analysis that was conducted for Joan & Phil® Hospital, LLC;

Our strength lies in the fact that we have a team of well qualified professionals manning various job positions in our hospital. As a matter of fact, they are some of the best hands in the whole of Miami Florida.

Our location, the Business model we will be operating on, opening 24 hours daily and 7 days in a week, multiple payment options, well equipped medical call center and our excellent customer service culture will definitely count as a strong strength for us.

Our perceived weakness lies in the point that we are just starting out and we may not have the required finance to sustain the kind of publicity that we intend giving the business and also the finance needed for the acquiring some of the latest medical and surgical equipment et al.

  • Opportunities:

The opportunities that are available to hospitals cum healthcare services providers are unlimited considering the fact that hospital is not only meant for those who are sick and need treatment; people who are not sick may be required to conduct routine medical checkups from time to time and we are going to position our hospital to make the best out of the opportunities that will be available to us in Florida.

Just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies (healthcare reform). It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new and bigger / well established hospital or healthcare brand in same location where our hospital is located.

7. MARKET ANALYSIS

  • Market Trends

The hospital cum healthcare industry is indeed a thriving and dynamic industry; with the aid of technology, it is becoming easier to treat, manage and cure some ailments that before now are not easy to handle. No doubt there are many ways of providing healthcare services in this changing era since the place of delivery may be in the patient home, the community, the workplace, or in health facilities.

The hospital industry has recently begun consolidating, largely due to the pressures of healthcare reform. The truth is that, the demand for hospital cum healthcare services has steadily grown over the last five years, as healthcare reform legislation broadened insurance coverage and the plummeting unemployment rate increased disposable income.

As an investor in the hospital cum healthcare industry, in order to maintain an advantaged position in this competitive industry, you should source for the most skilled and specialized healthcare professionals. One thing about this industry is that labor costs is on the high side. However, hospitals have also faced nurse and physician shortages and have struggled to recruit qualified personnel.

Industry profitability has generally risen over the past five years due to increases in service prices. No doubt the home healthcare industry will continue to grow and become more profitable because the aging baby-boomer generation in Unites States is expected to drive increasing demand for healthcare services.

8. Our Target Market

Joan & Phil® Hospital, LLC is in business to service a wide range of customers in Miami Beach, Florida – United States of America and other cities such as Green – acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.

We will ensure that we target but self – pay customers (who do not have health insurance cover), and those who have health insurance cover. Generally, every living person, whether old or young will at one point or the order need to visit the hospital.

The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the hospital cum healthcare industry in the United States. Our staff is well – trained to effectively service our customers and give them value for their monies.

Our customers can be categorized into the following;

  • The whole residents within the area where our hospital is located
  • Expectant Mothers
  • Injured Sports Men and Women
  • Corporate organizations such as banks, insurance companies, manufacturing companies, oil and gas companies et al
  • Health Management Organizations (HMOs)

Our Competitive Advantage

Aside from the competitions that exist amongst various hospitals, they also compete against other healthcare services providers such as home healthcare services providers, health centers and community clinics et al.

To be highly competitive in the hospital cum healthcare industry means that you should be able to deliver consistent quality patient service and should be able to meet the expectations of your patients at all time; they should experience improvement in their health when they patronize your hospital.

Joan & Phil® Hospital, LLC is coming into the market well prepared to favorably compete in the industry. Our hospital facility is well positioned ( centrally positioned ) and visible, we have enough parking space with good security. Our staff is well groomed in all aspect of healthcare service delivery and all our employees are trained to provide customized customer service to all our clients (patients).

Our services will be carried out by highly trained professionals ( doctors, dentist, surgeons, opticians, nurses, nurse’s aides, chiropractors, medication management counselors, physical therapists and other health and non – health workers ) who know what it takes to give our highly esteemed customers value for their money.

We are going to be one of the few hospitals cum healthcare service providers in the whole of Florida that will run a standard medical call center for 24 hours a day and 7 days a week. We have enough trained health workers that are ready to run a shift system.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups hospitals cum healthcare service providers in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Joan & Phil® Hospital LLC will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry. Below are the sources we intend exploring to generate income for Joan & Phil® Hospital, LLC;

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. We have been able to critically examine the healthcare market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Miami – Florida. Below is the sales projection for Joan & Phil® Hospital, LLC it is based on the location of our hospital and of course the wide range of our services and target market;

  • First Year-: $100,000 ( From Self – Pay Clients / Patients ): $250,000 ( From Health Insurance Companies )
  • Second Year-: $250,000 ( From Self – Pay Clients / Patients ): $500,000 ( From Health Insurance Companies )
  • Third Year-: $500,000 ( From Self – Pay Clients / Patients ): $1,500,000 ( From Health Insurance Companies )

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

The marketing and sales strategy of Joan & Phil® Hospital, LLC will be based on generating long-term personalized relationships with customers. In order to achieve that, we will ensure that we offer top notch all – round healthcare services at affordable prices compare to what is obtainable in Florida.

All our employees will be well trained and equipped to provide excellent and knowledgeable healthcare services and customer service.

We know that if we are consistent with offering high quality healthcare service delivery and excellent customer service, we will increase the number of our customers by more than 25 percent for the first year and then more than 40 percent subsequently.

Before choosing a location for our hospital, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Miami Beach, Florida – United States of America and other cities such as Green – acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al where our services will be available.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the hospital cum healthcare industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Florida. In summary, Joan & Phil® Hospital, LLC Services will adopt the following sales and marketing approach to win customers over;

  • Introduce our business by sending introductory letters to residence, business owners and corporate organizations
  • Advertise our hospital in community based newspapers, local TV and local radio stations
  • List our hospital on yellow pages ads (local directories)
  • Leverage on the internet to promote our hospital
  • Engage in direct marketing
  • Leverage on word of mouth marketing (referrals)
  • Enter into business partnership with health management organizations, government agencies and health insurance companies.
  • Attend healthcare related exhibitions / expos.

11. Publicity and Advertising Strategy

We are in the hospital business -to become one of the market leaders and also to maximize profits hence we are going to explore all available conventional and non – conventional means to promote our hospital. Joan & Phil® Hospital, LLC has a long term plan of opening of hospital in key cities around Florida which is why we will deliberately build our brand to be well accepted in Miami Beach before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the general public. Here are the platforms we intend leveraging on to promote and advertise Joan & Phil® Hospital, LLC;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community health programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
  • Install our Bill Boards on strategic locations all around Miami Beach Florida.
  • Engage in road show from time to time
  • Distribute our fliers and handbills in target areas
  • Ensure that all our workers wear our branded shirts and all our vehicles and ambulances are well branded with our company’s logo et al.

12. Our Pricing Strategy

Joan & Phil® Hospital, LLC will work towards ensuring that all our services are offered at highly competitive prices compare to what is obtainable in The United States of America.

On the average, hospitals and healthcare service providers usually leverage on the fact that a good number of their clients do not pay the service charge from their pockets; private insurance companies, Medicare and Medicaid are responsible for the payment.

In view of that, it is easier for hospitals and healthcare service providers to bill their clients based in their discretions. However, in some cases hospitals and healthcare service providers also adopt the hourly billing cum per visit billing method.

For example, it is easier and preferable for hospitals and healthcare services providers to bill personal injury case management services by the hour as against a fixed price.

  • Payment Options

At Joan & Phil® Hospital, LLC, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

  • Payment by cash
  • Payment via Point of Sale (POS) Machine
  • Payment via online bank transfer (online payment portal)
  • Payment via Mobile money
  • Check (only from loyal customers)

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

If you are looking towards starting a hospital, then you should be ready to go all out to ensure that you raise enough capital to cover some of the basic expenditure that you are going to incur. The truth is that starting this type of business does not come cheap.

You would need money to secure a standard hospital facility, you will need money to acquire medical equipment and supply and you would need money to pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay them.

Besides it is expensive to acquire a standard well – equipped ambulance. The items listed below are the basics that we would need when starting our hospital in the United States, although costs might vary slightly;

  • The Total Fee for Registering the Business in the United States – $750.
  • Legal expenses for obtaining licenses and permits – $1,500.
  • Marketing promotion expenses for the grand opening of Joan & Phil® Hospital, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
  • Cost for hiring Business Consultant – $2,500.
  • Cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
  • Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
  • Cost for hospital remodeling (construction of racks and shelves) – $20,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $300,000
  • The cost for Start-up inventory (stocking with a wide range of products) – $150,000
  • Storage hardware (bins, rack, shelves,) – $3,720
  • Cost for Nurse and Drugs Supplies (Injections, Bandages, Scissors, et al)- $3,000
  • Cost for medical equipment – $300,000
  • Cost of purchase of ambulance and other vehicles : $100,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
  • The cost of Launching a Website: $700
  • Miscellaneous: $10,000

We would need an estimate of $1.2M to successfully set up our hospital in Miami Beach – Florida. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Joan & Phil® Hospital, LLC

Joan & Phil® Hospital, LLC is a private business that is solely owned and financed by Dr. Phil Clarkson and his wife Joan Clarkson (Nurse). They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas Joan & Phil® Hospital; LLC intends to generate our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $1M from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Joan & Phil® Hospital, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our healthcare services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Joan & Phil® Hospital, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organizations’ corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check:>Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and remodeling the facility: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of Medical Equipment and Ambulances et al: In Progress
  • Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In Progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Compilation of our list of products that will be available in our pharmacy store: Completed
  • Establishing business relationship with vendors (wholesale pharmaceutical companies): In Progress .

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Hospital Business Plan and SWOT Analysis

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Hospitals are completely immune from negative changes in the economy given that people are going to continue to need to have emergency medical services, surgeries, and specialized diagnostic procedures performed on a regular basis. In fact, hospitals are generally some of the most profitable businesses in the world given that their service that can only be provided by qualified and licensed physicians, nurses, nurse practitioners, and related medical personnel. The barriers to entry for a new hospital are extremely high. In fact, it can be reasonably stated that starting a new hospital is one of the most difficult types of for-profit organizations to create given the drastically large sums of money needed to develop a state-of-the-art hospital facility. Typically, hospitals can have a startup cost ranging anywhere from $50 million to $250 million depending on the scope and scale of the facility.

The median startup cost for a new hospital that features surgical capabilities is approximately $100 million. The gross margins generated from hospital services typically range anywhere from 75% to 85% depending on whether or not physicians and surgeons are considered to be employees of the hospital rather than independently contracted personnel. Generally, the amount of time it takes to start a new hospital facility is also incredibly long. From planning to development – it can be expected will take approximately three years to five years to get the operations of a new hospital or related medical facility off the ground. The most difficult aspect of starting one of these businesses is that there is a significant amount of licensure that is required in order to operate as a surgical and hospital facility. One of the other aspects that makes this business difficult to start and why the barriers to entry are so extremely high is that the amount of time it takes to raise and secure the capital as well.

Provided that the founder and management team are prepared to make a 15% to 20% capital infusion into the business, a financial institution is almost always willing to put up the remaining capital needed in order to develop this type of business. This is primarily due to the fact that a substantial portion of any borrowed funds will be used for the acquisition and development of real estate, medical equipment, and general furniture, fixtures, and equipment. A hospital business plan is going to be required and it should feature a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page features industry-standard information specific for a hospital.

As it relates to industry research, hospitals generally in excess of $1 trillion per year within the United States and employ nearly 5 million people. Annual payrolls in each of the last five years has exceeded $490 billion. The growth of the industry’s revenues are expected to be significant given that many people from the baby boomer population are now reaching senior citizen age. As such, the complexities relating to their health care are going to increase significantly and thus there will be a substantial more demand for these types of services.

Prior to developing operations, a full demographic profile is going to be required as well. This includes a significant overview of the population, population density, population size, median household income, median family income, percentage of people that are enrolled in publicly funded health systems, percentage of people have private insurance, and percentage of people that are expected to require emergency medical services in any given year. This will assist the entrepreneur or group of entrepreneurs in determining the number of personnel that is going to be needed to any given time, the number of people who are uninsured are going to be required to have care, and other relevant metrics that go into the development of a hospital.

In many instances, the development of a hospital business plan is done in conjunction with a team of medical professionals as well as healthcare consultants. While this may contribute to a higher startup costs, hiring a healthcare consultant to develop the business plan may be favorable given that they have an extensive understanding of the revenues, profits, and operating expenses can be expected from the facility on a year-to-year basis. The return on investment for hiring the consultant can be significant provided they do a good job in estimating annualized revenues and expenses.

A hospital marketing plan is going to be needed as well and this is going to be an expansive document that discusses how the hospital will develop ongoing relationships with referring physicians, ambulance services, municipal agencies, state agencies, and regional medical clinics that will refer patients to the hospital for specialized procedures or medical emergencies. One of the ways that most hospitals conduct their marketing operations as to the use of billboards, print advertisements, radio advertisements, and television. Online marketing is also an important part of a hospital’s overall advertising plan given that many people will use their phones and related devices to find a hospital in the event of a medical emergency. As such, while the online presence of a hospital does not need to be major – it does need to exist so that people can easily find the hospital, understand the services rendered, insurance is accepted, and related information has to have a medical or surgical procedure completed at the facility.

Given the scope and scale of a hospital’s operations, usually a large-scale internal marketing division is developed in order to properly ensure that people can know the company’s brand name and where the facilities are located. However, maintaining an in-house marketing force is expensive in many hospitals – given their substantial access to capital – will frequently use a third-party marketing and advertising firm to handle this aspect of operations. While the upfront expenses for this type of operation is significant, it can drastically reduce the amount of payroll taxes that are normally associated with the operations of this type of business. Additionally, there are now many firms that specialize specifically in healthcare marketing and advertising, which can be of great benefit to a hospital that is looking to create brand name within a regional market.

A hospital SWOT analysis should be produced as well. As it relates to strengths, once established the barriers to entry for a new hospital facility are extremely high. In fact, in any major metropolitan area or rural regional area – there are usually only a handful of full-scale trauma level hospitals in operation. As such, these businesses are almost always able to have minimal competition as a progress to their business operations. Again, these businesses are also able to generate revenues in any economic climate given that people are going to continue to become sick and require immediate healthcare. Given that hospitals maintain reimbursement from private insurance, Medicare, and Medicaid – most people have access to the type of health care that they need.

For weaknesses, these businesses have extraordinarily high operating costs given that they must employ a veritable army of physicians, surgeons, nurses, nurse practitioners, physicians assistants, and nursing aides that will render services to patients that have been admitted to the hospital. As such, these highly skilled medical professionals to require a substantial salary. This is going to be one of the most major ongoing expenses for any type of hospital facility.

For opportunities, establish there’s generally very few opportunities that exist for hospital given that they are in a large-scale facility. However, many hospitals have taken to developing ongoing relationships with group practices within a specific regional market in order to have specialized procedures performed at their facilities. Additionally, many hospitals have sought to purchase large-scale group practices in order to have satellite locations so that additional billings can be rendered from outside of the centralized hospital facility.

Relating to threats, there are always a number of ongoing pieces of regulation and legislation that impact the way that hospitals operate especially in regards to Medicaid and Medicare reimbursement schedules. As such, the senior management team is going to need to keep a close eye on these pending pieces of legislation and regulation to ensure that pricing schedules and operational procedures can be appropriately modified when these changes to occur. The revenues of these companies are subject to political changes as well.

Hospitals are one of the most centralized and most important businesses within the United States. They can be highly lucrative provided that they are operated properly and they are always going to remain in demand. Changes in technology, especially relating to automation, should have only a minimal to negligible impact on the way they ways that these companies conduct business. This is one of the mainstay industries within the United States, and will continue to be so in the coming years.

College of Nursing

A call for more nurse leaders in the c-suite.

View as pdf A later version of this article appeared in  Nurse Leader ,  Volume 21, Issue 6 , December 2023 .

As the interim CEO for the University of Iowa Hospitals and Clinics, I was recently asked to speak on a panel of nurse leaders addressing health system CEOs about ongoing disruptions in the nursing workforce. As I spoke, strong non-verbal communications for the audience heightened their intrigue with the panel’s discussion. Descriptions of the now decades-long challenges of the nursing shortage, constraints that prevent nursing schools from quickly escalating the number of nurse graduates to meet the surging demand, increased career opportunities for nurses outside of healthcare even after they are trained, the resulting strategies needed by hospitals to increase recruitment and retention of nurses, and changes in care models were all top-of-mind concerns shared by the CEOs. 

A Dearth of Nurse Leaders in C-Suite Roles 

Nurse leaders have a wealth of knowledge and experience that positions them well to lead healthcare organizations, both as Chief Nursing Officers (CNO) and Chief Executive Officers (CEOs). Although accurate estimates of the proportion of nurses serving in CEO roles are difficult to obtain, according to a study published in JAMA Network Open that reviewed 3911 healthcare executives, only 17.5% are female. 1 According to the US Bureau of Labor Statistics, 87% of the nursing workforce identifies as female. 2 These data show that nurses are underrepresented in the CEO role. As nurses are overwhelming female and have first-hand experience in patient care, nurse leaders represent a natural source to help address the gender inequities evident in the female healthcare CEO ranks. In a recent study of Fortune 500 companies, Srivastava, Kashmiri, and Mahajan concluded that “female influence in the top management team is positively associated with (1) customer orientation of the firm and (2) long-term financial performance.” 3 In healthcare, customer orientation refers to patient care. Given a keen interest in improving both patient care and financial performance, now is the time for healthcare organizations to recruit CEOs from the ranks of highly qualified nurse leaders. 

Nurses Learn from First-hand Patient Care 

Indeed, in healthcare, our core business is patient care, and nurses are essential in delivering that care. As nurses rise to leadership positions, those nurse leaders can leverage experience in caring for patients to improve their institution’s processes and resulting operational excellence and learn to apply holistic thinking (systems thinking) skills to better address challenges associated with healthcare today. 

Incorporating effective nursing processes into healthcare is fundamental to practice. With experience, nurses learn to develop and apply strong assessment skills across a range of challenging patient situations. Through those assessments, nurses analyze key issues important to the patient and collaborate with multidisciplinary team members to develop a plan of care to help the patient meet appropriate goals. Beyond collaborating to develop a plan, nurses work diligently with the patient and other team members to implement the plan. Throughout the process, nurses collect and document data and then analyze it to assess the effectiveness of the care plan. And finally, nurses adjust patient plans to better achieve established goals, for both the patient and the organization. 

Nurses also demonstrate remarkable listening skills with patients, families, and members of the healthcare team. Nurses look at situations holistically and seek to understand patients’ goals, motivations, and barriers to care. Through these experiences, nurses develop as effective communicators, infusing reason into highly emotional situations, and they do so with exceptional compassion. These strengths of nurse leaders are directly transferrable to C-Suite decision-making, where compassion for patients, an ability to place the goals of the organization above one’s self-interests, and an understanding of whether an idea can be implemented are paramount. 

Inside Modern C-Suites 

Too often, C-Suite leaders become too far removed from the work of front-line caregivers. They may not understand the challenges of delivering patient care, and that concern gets compounded when they don’t spend time with caregivers to hear and consider suggestions. Consequently, some C-Suite decision-making is not well informed about the realities of the workplace. The importance of workplace issues ranging from inefficiencies in documentation to poor communication between members of healthcare teams to staffing and workplace safety challenges influences long-term financial performance and thus warrants inclusion in strategic decisions. 

In a recent survey by the American College of Healthcare Executives, Chief Executive Officers ranked workforce challenges as their number one concern and financial challenges as number two. 4 Aiken et al. (2023) conducted a cross-sectional multicenter survey study with 21,050 physicians and nurses at 60 nationally distributed US Magnet hospitals. Survey participants reported “high burnout, job dissatisfaction, and intentions to leave their current job.” 5 They also reported a lack of confidence in leadership to take action to resolve issues identified by clinicians. Executive leaders with nursing experience can better understand the issues and subsequently work with clinicians to implement changes that will lessen employee dissatisfaction, which improves retention. Moreover, employee satisfaction impacts patient satisfaction—and that ultimately drives revenues. 

Nurse Leaders and the Business Side of Healthcare 

Healthcare centers on the lives and welfare of people, but it is also a business. While the strengths of nurse leaders are vitally important for leadership roles, nurses can acquire business skills through advanced degrees (e.g., MBA, DNP) or experience to understand the business dynamics of healthcare. Nurse leaders can learn how employee satisfaction, operational excellence, and remarkable patient experiences all contribute to the “bottom line.” Both revenues and costs must be balanced to deliver positive operating margins. 

To gain credibility with the more traditional business-focused leaders, nurse leaders need to understand the different perspectives of C-Suite members and communicate using a language understood by each member’s respective discipline. Just as nurses learn to communicate with patients, knowing such perspectives is vital to delivering a message that resonates. The following is a summary of common perceptions of C-Suite members adapted from the American Hospital Association’s C-Suite Cheat Sheet. 6  

  • Chief Executive Officers (CEOs) tend to focus on strategy for the organization and want to be certain that planned initiatives will create a return on investment. 
  • Chief Nursing Officers (CNOs) focus on patient care operations, workforce issues, and improving quality and safety. 
  • Chief Financial Officers (CFOs) speak in numbers and are focused on budgets, payer issues, and ensuring a positive bottom line. 
  • Chief Medical Officers (CMOs) value clinical data and are focused on improving clinical performance. 
  • Chief Operating Officers (COOs) focus on healthcare operations to meet financial targets and drive service line growth. 

As with any team, each member of the C-Suite team brings relevant strengths to the table. More successful leaders connect the strategic vision of the organization and leverage the team’s expertise to drive change and achieve goals. Nurse leaders can develop the requisite skills needed to bring C-Suite teams together in their efforts to improve outcomes. Focusing on the core business of patient care, achieving operational excellence, and supporting caregivers are all vital components to a health system’s success, and that success is a reward our patients deserve. 

Steps in Pivoting to the CEO Role 

The role of a CEO is broad as it includes all facets of the organization, of which nursing is only a part. CEOs are responsible for setting the strategic direction of the organization and working with leaders to develop and execute plans to meet strategic objectives. The CEO is often a champion of the organization’s culture and ensures financial and operational excellence, growth, and strong community relationships. 

A question asked by many nurse leaders today is how do I prepare myself to become a CEO? First, conduct an honest assessment of your skills and experience. Meet with your CEO and express your desire to move into a broader leadership role. Talk with them about their role and the skills most needed to be successful. Then seek learning opportunities to strengthen your knowledge of important areas such as finance, legislative issues in healthcare, and organizational development. 

Be open to accepting interim assignments that allow you to develop needed skills. Although new assignments may require you to work outside of your comfort zone, they are very valuable to your growth and demonstrate a willingness to take on new responsibilities. These assignments allow others to see your leadership capabilities through a different lens and may lead to other opportunities in the future. 

Consider serving in a COO role. Some organizations now combine CNO and COO roles into one. Many COOs demonstrate the ability to lead the operations of a hospital or health system and in doing so work closely with the CEO. This experience and exposure often lead to promotional opportunities to the CEO role. 

Above all, be confident in your ability to lead. As a nurse you possess a critically important skill of caring for and leading people. This skill is essential to lead healthcare today. 

1. Odei BC, Seldon C, Fernandez M, et al. Representation of Women in the Leadership Structure of the US Health Care System. JAMA Network Open . 2021;4(11): e2136358. 

2. US Bureau of Labor Statistics. Accessed July 30, 2023. https://www.bls.gov/cps/cpaat1.1.htm 

3. Srivastava C, Kashmiri S, Mahajan V. Customer orientation and financial performance: Women in top management teams matter! Journal of Marketing 2023;87(2):190-209. DOI:10.1177/00222429221120419 

4. Survey: Workforce Challenges Cited by CEOs a Top Issue Confronting Hospitals in 2022. Accessed July 30, 2023. https://www.ache.org/about-ache/news-and-awards/news-releases/survey-workforce-challenges-cited-by-ceos-as-top-issue-confronting-hospitals-in-2022 

5. Aiken LH, Lasater KB, Sloane DM, Pogue CA, Fitzpatrick KE, et al. Physician and nurse well-being and preferred interventions to address burnout in hospital practice. JAMA Health Forum . 2023;4(7): e231809.doi:10.1001/jamahealthforum.2023.1809 

6. C-Suite Cheat Sheet. Accessed July 30, 2023. https://sponsor.aha.org/resources/ceo-cheat-sheet 

Return to College of Nursing Winter 23/24 Newsletter

IMAGES

  1. Hospital Business Plan

    business development plan for hospital

  2. 10+ Hospital Strategic Plan Template & Samples

    business development plan for hospital

  3. Healthcare Marketing Plan

    business development plan for hospital

  4. FREE 41+ Sample Business Plan Templates in PDF

    business development plan for hospital

  5. 10+ Hospital Strategic Plan Template & Samples

    business development plan for hospital

  6. Create a Winning Hospital Business Plan: Sample Template & Expert Tips!

    business development plan for hospital

VIDEO

  1. Career Growth and development

  2. business plan

  3. Planning Board looking at development proposal for former hospital site

  4. The healthcare industry is CHANGING!

  5. business plan

  6. Business Development Plan 2nd Training Session

COMMENTS

  1. Hospital Strategic Planning: A Five-Year Plan

    1. Look 10 years out. Above, we mentioned a few ways healthcare has changed in the last six years. But those things won't remain stagnant. So it's critical to practice what is often called "scenario planning" or "creating an envisioned future." To do this, answer the following questions to the best of your knowledge:

  2. PDF 2022-2024 STRATEGIC PLAN

    2022-2024 AHA's Strategic Plan sets forth five strategic objectives or pillars that will guide the association's work as we advance health in America. With input and direction from the AHA Board of Trustees, the framework includes an ambitious set of goals: Provide Better Care and Greater Value

  3. Hospital Business Plan [Free Template

    Download Template Learn more How to Write A Hospital Business Plan? Writing a hospital business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary An executive summary is the first section planned to offer an overview of the entire business plan.

  4. PDF Business Plan Development Guide Overview

    The Comprehensive Business Plan Development Guide is a detailed guideline for developing concise, coherent and complete business plans for presentation and review by hospitals' senior leadership and executive boards. It guides planners in the development of consistent, complete and efficient business plans even though each opportunity is unique.

  5. Is the hospital business model of the future here today?

    Article 17 minute read 25 June 2020 Transforming the hospital business model Kulleni Gebreyes Jason Wainstein Wendy Gerhardt Leslie Korenda The rapid adoption of virtual care and digital technologies and changing consumer sentiment during the COVID-19 crisis may echo throughout hospital business models long after the pandemic scales down.

  6. Next-generation business models creating value

    The future of healthcare: Value creation through next-generation business models January 4, 2021 | Article (12 pages) The healthcare industry in the United States has experienced steady growth over the past decade while simultaneously promoting quality, efficiency, and access to care.

  7. Hospital Business Planning Best Practices

    Best practices for your hospital's business planning include: Align business planning efforts with strategic initiatives Getting started, associate business planning efforts with strategic goals and objectives. Some hospitals benefit by having a board-level strategic planning committee to identify overarching strategic initiatives.

  8. John Hopkins Medicine Strategic Plan

    Innovation 2023 is Johns Hopkins Medicine's Strategic Plan for fiscal years 2019 through 2023. Innovation 2023 will provide direction for JHM's priorities, guide our business strategies and decisions, and help us continue to advance our legacy of innovation and excellence in patient care, research and education.

  9. Doing Business with Johns Hopkins

    As a dedicated advocate for these partners, Johns Hopkins Health Plans provides a wide-range of services and support, including: Johns Hopkins Health Plans also boasts a unique care management program to provide support for members with chronic conditions. For additional informational information on Johns Hopkins Health Plans, call 410-424-4400 or:

  10. How to Write an Effective Business Plan in Medicine

    Therefore, a business plan is a standardized tool that can help to align the vision of a gastroenterologist with the hospital's mission to demonstrate investment value to hospital administrators. 2. , 3. , 4. A business plan serves 2 main goals: (1) it allows a gastroenterologist to thoroughly analyze the various processes that contribute to ...

  11. Strategic Planning in Healthcare: A Guide for Executives

    1. The Analysis & Assessment Phase First, it's critical to gain a basic understanding of what direction you're trying to go in (while taking into account your internal organizational structure and any external factors you have to consider). You'll want to hold the majority of your strategy meetings during this phase.

  12. Creating a Healthcare Business Plan

    In a nutshell, a detailed healthcare business plan acts as a blueprint to help a practice define its goals including securing capital, developing a strategic budget, marketing its services, building a patient base, recruiting employees, and planning for future growth.

  13. Healthcare Business Plan Template [Updated 2024]

    Written by Dave Lavinsky There are several types of Healthcare businesses, from family medicine practices to urgent care centers to home health care agencies. Regardless of the type of healthcare business you have, a business plan will keep you on track and help you grow your healthcare business in an organized way.

  14. Hospital Business Plan Example [2024 Updated]

    The best way to plan a business is to write a business plan for the hospital. Adding all the right details of your business will attract investors to the business plan and this will help you in setting up your business. If you want to learn how to write a hospital business plan, you should go through as many samples as possible.

  15. PDF Creating a Business Plan for a Community Health Center Capital Project

    of the business plan, as shown in the suggested business plan format on the following page. Throughout the manual, informational hints, tips and other suggestions are highlighted in boldface or placed in boxes for ease of reference. Have fun and good luck! INTRODUCTION 4 † Creating a Business Plan for a Community Health Center Capital Project

  16. The Healthcare Business Development Process

    The median salary for a Healthcare Business Development Manager is $75,000, with the top 61% earning $90,000. A healthcare business development manager in the United States can expect to earn between $60,000 and $90,000 per year. A HBDM's average salary is $75,000, with 67% earning more than $90,000.

  17. Hospital business development strategies

    Patient choice and competition are real. That is why - since 2016, Digital Practice has developed unique and customised programs for hospitals, in particular for Business Development Directors. Kris Borgraeve, co-founder Digital Practice. "Our workshops cover essential topics for specialists in private practice, with a focus on digital marketing.

  18. Top 12 Hospital Marketing and Advertisement Strategies for 2024

    1. Create a patient-centric website Once you start with your hospital marketing activities, your website becomes the most essential asset. As for many patients, your website may be the first experience they have with your brand. Websites should be informative, but they also need to be helpful. Here are a few ways to improve your hospital's website:

  19. Hospital Business Plan [Sample Template]

    1. Industry Overview No doubt, the healthcare cum medical industry of which hospital business is a subset of, is perhaps one of the fastest growing and largest industries in the world; this is so because the wealth of any nation depends on the health of the nation.

  20. The Medical Staff Development Plan: New Hospital Planning Tools for

    Realistic Road Map. Ultimately, the Medical Staff Development plan defines a realistic approach to physician recruitment and retention that is achievable in terms of marketplace realities and sensitive to the needs and concerns of hospital staff, medical staff, and the community. Integral to Strategic Business planning.

  21. WakeMed plans $157M expansion for Raleigh hospital

    The approval means WakeMed can move forward in developing a 121,000-square-foot patient tower at WakeMed North Hospital on Falls of Neuse Road. The 5-story tower would include 35 acute care beds ...

  22. Strategic Planning of Business Development in Health Care

    Crisis management is defined :as a series of steps an organization performs to deal with a catastrophic event. one of the pillars of our business development plan : By: (12) 1- identify Risks, threats, needs, and requirements. 2- timeframes deadlines. 3-Collect Appropriate data.

  23. Hospital Business Plan and SWOT Analysis

    A hospital business plan is going to be required and it should feature a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page features industry-standard information specific for a hospital. As it relates to industry research, hospitals generally in excess of $1 trillion per year ...

  24. Hospital Business Development jobs

    113 Hospital Business Development jobs available on Indeed.com. Apply to Director of Business Development, Business Development Manager, Business Development Specialist and more! ... The business plan will be accessed and updated no less than quarterly to ensure that all business indicators are met. State-of-the-art equipment. Employer Active 2 ...

  25. A call for more nurse leaders in the c-suite

    Beyond collaborating to develop a plan, nurses work diligently with the patient and other team members to implement the plan. ... The following is a summary of common perceptions of C-Suite members adapted from the American Hospital Association's C-Suite Cheat Sheet.6 Chief Executive Officers (CEOs) tend to focus on strategy for the ...