50+ Sample Clinic Budgets

What Is a Clinic Budget?

A clinic budget is a formal document that provides comprehensive financial data of a health clinic. The purpose of having a sound budget is to protect the interests of the clinic while also maximizing its clinical services to patients and the general public. 

According to a report by the Centers for Medicare and Medicaid Services, clinical and physician services expenses grew 5.4% to more than $8 billion in 2020. As compared to the previous year, a rate of 4.2% was recorded in 2019.   

What Goes Into a Clinic Budget?

Whether it is a small rural clinic or an established healthcare provider, operating a medical clinic will always entail some expense. When it comes to a comprehensive clinic budget, there is understandably more essential expenditures than non-essential. The following examples describe just some of the items that go into a typical clinic budget.  

Rent. Like most office spaces, rent is a fixed expenditure that can take up a big chunk of one’s monthly dues. In the case of a clinic, the cost of rent will vary depending on various factors. Floor size and location are important factors too in the rent value. Generally, smaller clinics cost less than bigger and more spacious medical clinics. And if a clinic is located in a prime area such as a central business district (CBD), the cost is also typically more expensive. Most hospitals rent out spaces and rooms for private doctors and health professionals to conduct their practice. These medical professionals and practitioners pay rent to the hospital as a tenant would pay a landlord. Unless, of course, you own the area or property, then you can make do without monthly rent. But for many clinical practices, rent is one reality they cannot skirt or do without. Equipment. Another key expenditure that clinics cannot do without is medical equipment. The facilities and equipment would obviously depend on the type of clinic you are operating. A dentist’s clinic would house different tools and facilities than a maternity or birthing clinic. Cost would also vary depending on individual needs and preferences of the healthcare professionals running the clinic. For example, a general healthcare clinic may choose to have laboratory facilities or x-ray services. This would entail more cost versus a clinical practice that does not offer specialized medical services. In summary, a clinic cannot perform its functions without the necessary medical equipment. Examples of these facilities include hospital beds, weighing scales, medical face masks, drip chambers, wheelchairs, and CT scanners. Manpower. Aside from rent and equipment, labor is another basic expenditure in a clinic budget. Without people running and operating the clinic, patients may not be able to obtain the services they need. Although it is possible for a doctor or a dentist present to conduct their practice on their own, it is rare for clinics to have no support staff at all. Whether it is a single receptionist or a couple of dental assistants, manpower is what maintains the daily operations in the clinic. Smaller clinics have no more than one support staff just to keep track of patient records and doctor’s schedules. Bigger and more established clinical practices can have several medical practitioners and support staff all under one roof. The salaries and benefits of these healthcare professionals and staff make up a significant part of fixed monthly expenditures. Overhead. Along with rent, other overhead expenses are required for a clinic’s upkeep. These include various utilities such as electricity and water. Just as a border is made to pay monthly dues in order to have reliable power and a steady supply of water, clinics and similar establishments must do the same. Whether you are running a household, a commercial establishment or a medical clinic, operating costs are essential and cannot be avoided. But unlike rent, utilities are not fixed expenses because these may rise and dip depending on monthly usage. Hence, the more electricity and water you consume on a monthly basis, the higher your monthly bills.

Types of Clinics

There are different kinds of clinics that cater to different types of needs. From maternity clinics to veterinary clinics and even psychiatric clinics, health encompasses a broad range of services. The following examples below describe just some of the major types of clinics.  

Medical Clinic. Under the category of medical clinic falls a number of different subcategories as well. Since medicine and health have a broad definition, it can be further classified into specific areas and specializations. Medical clinics can either offer general health service or it can be specific and targeted towards a particular group of patients. The clinic does not necessarily have to be located in a hospital or health facility. Many clinics are situated in malls and other areas easily accessible to the general public. This makes it more convenient for patients who do not want to go through the hassle of going to a hospital. A typical medical clinic also offers various types of services including laboratory tests, regular check-ups, and physical exams. The latter includes urinalysis, eye exams, and a series of blood tests. Dental Clinic. Dentists normally hold practice in small to medium-sized clinics. A dental clinic provides a specific service to patients. In this case, oral health care and treatment of oral problems is the primary service. But this can be further broken down into specialized services such as orthodontics, oral surgery and dental implants. As previously stated, a clinic can have various arrangements. It can be a sole proprietorship or alternative arrangements could also have multiple dentists coming together and sharing a single clinic, thereby sharing the costs as well. By doing the latter, it is the more economical choice as opposed to having just one individual pay for all the monthly dues. Dental clinics require specialized equipment too. Aside from the upkeep and repair of these facilities, upgrading to better and more advanced dental equipment would incur additional cost as well. Animal Clinic. It is not just people who require medical attention, pets and animals may suffer from health problems as well. Domestic animals such as dogs and cats are treated by veterinarians in a clinic. From immunization to life-threatening diseases, an animal clinic is normally equipped to handle both minor and major health issues in animals. And just like doctors and nurses, veterinarians must also undergo rigorous training to earn a license to treat animals. A lot of people consider their pets family, and when a medical problem affects their beloved pet, they would do what anyone would if their loved one is beset with an illness. Normally, animal clinics come in all sizes. Some are small, neighborhood-type clinics while others are bigger in size to accommodate more animals and to conduct more complicated procedures.

How to Create a Clinic Budget

To create a clinic budget, you need to have a firm grasp of what your clinic actually needs. And if you are looking for easy and convenient budgets to use a reference, you can download any of the available templates above. Choose one that best suits your needs and follow the basic steps below.   

Step 1: Format

The initial step in crafting a clinic budget is to establish a format first. A typical budget can come in a spreadsheet or table format. Your clinic budget should contain several elements including the revenue and costs. In addition, it should be organized and classified accordingly as well. As discussed in previous sections, there can be several expenses in the operation of a health clinic. It is important to classify these expenses in a rational way. You can either group them according to what is fixed and flexible, or what is essential and non-essential. But since it is a clinic budget, most expenditures might be considered essential. Thus, you are better off classifying costs as fixed or flexible. 

Step 2: Revenue

A fundamental item in any budget is income. In the case of clinic budgets, the income earned from offering health services to patients is key. Without the professional fees, service fees and other miscellaneous costs, there would be no revenue source for the upkeep and maintenance of the clinic. Even a small clinic needs a steady stream of income to be able to continue delivering medical services to its patients. When crafting your clinic budget, make sure the sources of income are clearly identified and the values or variables are accurate.     

Step 3: Expenses

You cannot separate income and expenditures. These two must always go together. Operating a health clinic is not a walk in the park. For healthcare professionals, clinical work can be gratifying but it can also come with different challenges. As mentioned earlier, the cost of running a clinic will vary depending on a number of factors. However, common expenses include overhead costs, labor costs, and medical equipment maintenance and repair. These must be enumerated and specified in your budget. Don’t forget to include the total amount and always double check each value for accuracy.    

Step 4: Budget Tracker

The last step in creating a clinic budget is to incorporate a monitoring tool or tracker. There has to be a mechanism in place that will enable you to keep track of the financial data you input. A budget rarely remains the same all throughout. There can be a jump or dive in both income and expenses, depending on different circumstances. Hence, you need to constantly update and modify your budget as the need arises. If you are unsure of how a tracker can fit into your overall budget, there are dozens of sample budget templates that you can use as a reference guide.    

FAQs

How do you budget for a medical practice?

To create a sound budget for a medical or clinical practice, you need to have a good understanding of your needs and objectives. It is also important to do your research and weigh the available options. For example, choosing a location to put up your medical practice is a major decision. You need to consider rent, accessibility and other key factors.

Is a clinic profitable?

A clinic can be a profitable venture with the right preparation and execution. Ideally, you need to study its feasibility and weigh the different pros and cons.

What is the budgeting process in healthcare?

Budgeting in healthcare is crucial if you want to truly maximize your business and deliver optimum service to patients. Budgeting allows you to properly allocate funds and prioritize what is essential over what’s non-essential.

If you plan on putting up a clinic or medical practice of your own, you need to learn how to budget effectively. Browse the wide selection of editable templates above, select one that suits your needs and download a sample budget today!