How Profitable is a Chiropratic Clinic? Costs & Revenue Stats
The U.S. chiropractic market, valued at $19.5 billion in 2023, is on an upward trajectory, projected to reach $21.9 billion by 2028. But with over 67,000 chiropractic businesses vying for a piece of the pie, what does this mean for individual clinics? How much can a chiropractic clinic expect to earn, and what are the costs involved in setting one up?
In this article, we’ll break down the market segments, average revenues, startup costs, and profitability metrics for chiropractic clinics.
Using data from industry sources and insights from over 1,050 franchised clinics, we provide a comprehensive financial overview of the chiropractic industry in 2023. Dive in to discover the potential of running a chiropractic clinic and the factors that influence its profitability.
Chiropractic Clinic Business Plan Template (Download)
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Chiropractic Clinic Business Plan Template (Download)
Download an expert-built 5-year Excel financial model for your business plan
Chiropractic market overview
As per IBIS, the Chiropractic market in the US represented revenue of $19.5 billion in 2023 and is expected to grow to $21.9 billion by 2028.
General Chiropractic care represents the largest share ($12.5 billion) followed by family chiropractic care ($2.5 billion), sports and rehabilitation Chiropractic care ($1.8 billion). Yet, with over 67,000 Chiropractic businesses across the country, the competition is also fierce.
How much revenue makes a Chiropractic clinic?
Using the same source earlier, it’s safe to assume that the average turnover for a Chiropractic clinic is around $289,000. Indeed, the US Chiropractic industry is worth $19.5 billion in 2023 and there are about 67,000 Chiropractic clinics across the US.
Now, using data from more than 1,050 franchised chiropractic clinics, a Chiropractic clinic earns $412,000 in gross revenue per year on average. This number is the average gross revenue per clinic from 1,050 clinics of the largest 6 chiropractic franchises in the US.
With an average cost of visit of $65, that’s a total of ~4,400 visits per year. Assuming 250 working days per year, that’s on average 18 visits per day per clinic. Naturally, you can assume this would require about 2-3 chiropractors, each grossing a total revenue (before costs) of $140,000 – $200,000 per year.
Yet, not all Chiropractic clinics have the same yearly revenue. Logically some will earn more than others because of many factors like location, popularity, number of patient visits, consumer spendings, number of people having private health insurance, etc.
When it comes to pay, assuming that you are both the owner and the clinic manager, the average annual salary you can expect is $83,000 which ranges between $52,800-$113,400. This makes sense considering the average revenue generated (before costs) of $140,000 – $200,000.
How much does it cost to start a Chiropractic clinic?
On average, it costs between $220,000 and $480,000 to open your own chiropractic clinic.
This includes various costs such as building, construction and/or remodeling costs (leasehold improvements), medical and office equipment, business licenses, insurance and legal fees, working capital for the first few months to finance the business (salaries, etc.).
- Security lease (5%): the first 3 months of rent and any other security deposits (assuming you rent the premises)
- Architecture and design fees (5%)
- Leasehold improvements (47%): construction and / or remodeling costs to build or renovate the clinic, the interior and the facilities
- Signage (2%)
- Equipment (9%): office equipment, furniture, fixtures, hardware equipment as well as chiropractic and other medical equipment
- Licenses and legal fees (5%)
- Initial marketing (8%): grand opening marketing expenses as well as local advertising costs for the first 3 months
- Working capital (14%): funds needed to operate the business for the first 3 months to pay for operating costs (mostly salaries)
- Other expenses (5%): other startup supplies, uniforms, software fees, etc.
How profitable is a Chiropractic clinic?
A chiropractic clinic has a ~25% operating profit margin (EBITDA margin) after operating costs (salaries, rent, etc.) have been incurred.
Indeed, there are various recurring costs involved in running a Chiropractic clinic. The major expenses include labor followed by facility costs:
- Salaries (30-45% sales): This cost includes chiropractor doctor wages, wellness coordinator wages, bonuses, employee health insurance and worker compensation costs
- Facilities Expenses (8-10% sales): This cost includes rent, CAM’s, utilities, telephone, internet and property taxes
- Operating expenses (20-25% sales): These costs include costs for software and other recurring hardware fees, credit card merchant fees, business licenses and taxes, advertising and local advertising costs, etc.
| Profit and loss | Amount (US$) | % revenue |
|---|---|---|
| Gross Revenue | $412,000 | 100% |
| COGS | $(10,300) | 3% |
| Gross Profit | $401,700 | 98% |
| Labor expense | $(156,560) | 38% |
| Rent | $(37,080) | 9% |
| Other operating costs | $(103,000) | 25% |
| EBITDA | $105,060 | 26% |
Chiropractic Clinic Business Plan Template (Download)
Download an expert-built 5-year Excel financial model for your business plan
Chiropractic Clinic Business Plan Template (Download)
Download an expert-built 5-year Excel financial model for your business plan
