How Much It Costs to Start a Medical Practice: Examples & Budget
Starting a medical practice requires a significant investment, with costs varying based on size, location, and the services provided.
A small medical clinic may need $152,000 to cover basic leasehold improvements, essential medical equipment, and technology systems like EHR and billing software. A larger, premium clinic with custom interiors, advanced equipment, and a comprehensive marketing plan can cost up to $525,000.
In this post, we explore real-world examples of medical practice startup costs, including various types of practices. We also break down startup costs for independent practices, providing both low and high estimates for equipment, leasehold improvements, technology, and marketing.
FREE MEDICAL PRACTICE BUDGET TEMPLATE
This is our free budget template built for entrepreneurs who need to estimate their startup costs for a medical practice. We’ve included low and high estimate cost breakdowns. Free download.
Medical Practice Startup Costs: 3,400 Real Examples
Here’s a table showing the average investment (startup costs) required to start a number of healthcare businesses. Please note these are based on franchised healthcare businesses, using the public disclosure of more than 3,400 real franchised healthcare businesses.
The number “franchises” below represents the number of franchisors. Each franchisors operates a network of anywhere from a dozen to hundreds of independent businesses.
As you can see, the average investment ranges between $450,000 for a medical spa/clinic, to $171,000 for a physical therapy clinic for example. Some businesses requiring much less investment upfront than others. In this blog post, we will look at Medical practices (falling under Medical Spa below).
Medical Practice Startup Cost Breakdown Summary
How much does it cost to start a medical practice? Starting a medical practice can cost between $152,000 and $525,000 depending on the scale, services offered, and equipment required.
Smaller clinics can begin with essential medical equipment, basic renovations, and minimal technology systems. High-end clinics require a larger investment in premium medical equipment, advanced healthcare technology, and comprehensive marketing.
- Low Estimate: $152,000 covers essential equipment, basic leasehold improvements, and minimal staffing.
- High Estimate: $525,000 includes premium equipment, custom interiors, advanced technology (EHR systems), and extensive marketing strategies.
| Cost Item | Low | High |
|---|---|---|
| Leasehold Improvements | $10,000 | $50,000 |
| Medical Equipment & Supplies | $50,000 | $150,000 |
| Technology (EHR, billing software) | $15,000 | $70,000 |
| Office Furniture & Fixtures | $5,000 | $20,000 |
| Initial Marketing | $5,000 | $20,000 |
| Staffing Costs (salaries) | $50,000 | $150,000 |
| Insurance (malpractice, liability) | $10,000 | $40,000 |
| Permits & Licensing | $1,000 | $5,000 |
| Utilities Setup | $3,000 | $10,000 |
| Legal & Accounting Fees | $3,000 | $10,000 |
| Total Estimated Cost | $152,000 | $525,000 |
Leasehold Improvements
Leasehold improvements are crucial when setting up a medical practice. They adapt the space to meet healthcare standards and ensure comfort for patients and staff.
- For a smaller clinic, leasehold improvements typically cost around $10,000. This covers basic updates like flooring, painting, lighting, and minor adjustments to meet operational needs.
- For larger or premium clinics, costs can go up to $50,000. This higher budget includes custom interiors, specialized treatment rooms, advanced plumbing, and upgraded HVAC systems to create a comfortable and efficient environment.
| Cost Item | Low | High |
|---|---|---|
| Flooring & Wall Treatments | $3,000 | $15,000 |
| Painting & Basic Renovations | $2,000 | $10,000 |
| Lighting Installation | $1,500 | $5,000 |
| Plumbing (sinks, bathrooms) | $1,500 | $10,000 |
| Electrical Work | $1,500 | $5,000 |
| HVAC System Setup | $1,500 | $5,000 |
| Total Leasehold Improvements | $10,000 | $50,000 |
Medical Equipment & Supplies
Medical equipment and supplies are one of the biggest expenses when starting a medical practice. These include diagnostic tools and consumable supplies used daily.
- For smaller clinics, costs are around $50,000. This covers essential diagnostic tools, exam tables, sterilization equipment, and medical supplies like gloves and syringes.
- For larger or specialized practices, costs can exceed $150,000. This allows for advanced equipment like ultrasound machines, X-ray systems, and specialty instruments. High-end practices may also invest in EMR-integrated devices to streamline patient care and data management.
| Cost Item | Low | High |
|---|---|---|
| Basic Diagnostic Equipment | $10,000 | $50,000 |
| Exam Tables & Furniture | $5,000 | $20,000 |
| Sterilization Equipment | $3,000 | $10,000 |
| Consumables (gloves, syringes, etc.) | $5,000 | $20,000 |
| Advanced Equipment (X-ray, Ultrasound) | $20,000 | $50,000 |
| Specialty Instruments | $7,000 | $30,000 |
| Total Medical Equipment & Supplies | $50,000 | $150,000 |
Medical Equipment & Supplies
Medical equipment and supplies are a major expense for any medical practice. These include essential diagnostic tools and daily-use supplies.
- For a smaller clinic, costs can start at $50,000. This covers basic diagnostic equipment, exam tables, sterilization units, and essential consumables like gloves and syringes.
- For larger or specialized clinics, costs can go up to $150,000. This budget includes advanced equipment like X-ray machines, ultrasound systems, and specialty instruments.
| Cost Item | Low | High |
|---|---|---|
| Basic Diagnostic Equipment | $10,000 | $50,000 |
| Exam Tables & Furniture | $5,000 | $20,000 |
| Sterilization Equipment | $3,000 | $10,000 |
| Consumables (gloves, syringes, etc.) | $5,000 | $20,000 |
| Advanced Equipment (X-ray, Ultrasound) | $20,000 | $50,000 |
| Specialty Instruments | $7,000 | $30,000 |
| Total Medical Equipment & Supplies | $50,000 | $150,000 |
Technology (EHR, Billing Software)
Technology systems such as Electronic Health Records (EHR) and billing software are crucial for managing patient data and streamlining clinic operations.
- For smaller clinics, technology setup can cost around $15,000. This typically covers basic EHR software, billing systems, and standard IT infrastructure.
- For larger practices or those requiring more advanced features, the cost can rise to $70,000. This includes more comprehensive EHR systems, advanced billing software, and integration with other healthcare technologies.
| Cost Item | Low | High |
|---|---|---|
| EHR Software | $8,000 | $35,000 |
| Billing Software | $3,000 | $10,000 |
| IT Infrastructure (hardware, setup) | $4,000 | $15,000 |
| Patient Management & CRM Systems | $0 | $10,000 |
| Total | $15,000 | $70,000 |
Office Furniture & Fixtures
Office furniture and fixtures are essential for creating a professional and comfortable environment for both staff and patients. These costs can vary based on the size and design preferences of the practice.
- For a smaller clinic, office furniture and fixtures may cost around $5,000. This would include basic desks, chairs, reception furniture, and storage solutions.
- For larger or more upscale practices, costs can rise to $20,000. This budget includes high-quality furniture for reception areas, patient waiting rooms, exam rooms, and additional storage units.
| Cost Item | Low | High |
|---|---|---|
| Reception Desks & Chairs | $1,500 | $5,000 |
| Patient Waiting Area Furniture | $1,000 | $6,000 |
| Exam Room Furniture | $1,500 | $4,000 |
| Storage Cabinets & Shelving | $1,000 | $3,000 |
| Decorative Fixtures | $0 | $2,000 |
| Total Office Furniture & Fixtures | $5,000 | $20,000 |
