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Dialysis center business plan

Executive Summary

Overview

At Fresenius Kidney Care, we’re passionate about helping people with chronic kidney disease (CKD) and end-stage renal disease (ESRD) live fuller, more active, and vibrant lives. Fresenius Kidney Care, a division of Fresenius Medical Care North America (FMCNA), is a world leader in renal disease treatment and a pioneer in kidney disease research. Our dialysis care staff is dedicated to assisting patients in thriving on dialysis and living longer, healthier lives. Over 190,000 patients are served at over 2,400 sites throughout the country.

Mission:

“As the most trusted healthcare partner, we will give an unrivaled experience.”

Vision:

“We aspire to inspire optimism and contribute to health and well-being by providing the best care to every patient via integrated clinical practice, education, and research.”

Industry Overview:

until 2027, the in-center dialysis sector is expected to grow at a CAGR of roughly 6%. In-center patients have the opportunity to rest, read, and mingle with other patients and staff, which promotes treatment effectiveness and overall wellness. Furthermore, the rising popularity of in-center dialysis treatment is attributable to the availability of trained kidney care healthcare experts providing the finest care possible, which will propel the sector forward even further.

Financial Overview

This sample chart is derived from the financial model of this dialysis center business plan. Find out more about financials.

Financial model for business plan

Financial Highlights:

 2020A2021A2022F2023F2024F
Ratio Analysis     
Liquidity     
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency     
Interest coverage ratio  8.211.114.2
Debt to asset ratio0.010.010.200.180.16
Profitability     
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

Fund Usage:

dialysis center investment

Organogram:

dialysis center Organogram

Industry Analysis:

A dialysis center business plan template might help you if you are planning to raise a relatively lower amount (below $100K) but a custom business plan is required if you are serious about getting funded. We need to conduct thorough research on your industry analysis to find the potential market size, your competitors’ status, growth prospects, etc. Our business plan consultants can increase your chances of getting funded!

Overview

Type, product & service, end-user, and region are the four segments that make up the dialysis market. The two forms of dialysis that are available are hemodialysis and peritoneal dialysis. The three forms of hemodialysis are conventional hemodialysis, short daily hemodialysis, and night hemodialysis. Peritoneal dialysis is divided into two types: continuous ambulatory peritoneal dialysis (CAPD) and automated peritoneal dialysis (APD) (APD). On the basis of Product & Service, it is divided into equipment, consumables, pharmaceuticals, and services. Subcategories exist for dialysis machines, water treatment systems, and other kinds of equipment. Consumables include dialysis machines, catheters, and transfer sets. In-center dialysis and home dialysis are the two categories depending on the end-users. North America, Europe, Asia-Pacific, Latin America, and the Caribbean (LAMEA) are the four regions.

dialysis center industry analysis

Type Segment Review

Hemodialysis is the most significant contributor to the dialysis market’s growth due to the market’s maturity, and it is the preferred way of therapy among healthcare professionals and patients with ESRD. There are two forms of hemodialysis: conventional and daily (short daily and nocturnal hemodialysis). Although hemodialysis is preferred by the majority of patients, peritoneal dialysis is expected to grow at the quickest rate throughout the projection period owing to the efficient removal of hazardous substances and a rise in dialysis patients’ demand for homecare.

dialysis center industry analysis

Marketing Plan:

Promotional Budget Allocation

dialysis center marketing plan

Discounts

People want to feel as if they’re getting a good bargain, so it’s no wonder that dialysis patients follow suit and look for savings when making purchases. The power of a huge discount resides in its ability to convince customers that they are receiving special treatment, an offer that isn’t generally available. Discounts, on the other hand, won’t get you very far in the dialysis clinic sector unless you can demonstrate clear value. Change the products you discount to encourage customers to keep an eye on your marketing platforms for better outcomes.

Social Media

According to research, 41% of people would choose a doctor based on their social media presence. Isn’t it clear that a social media strategy is even more important to your company’s objectives? Customers may engage with you outside of meetings using social media platforms such as Facebook, Twitter, and LinkedIn. Creating and publishing content on a regular basis keeps you top-of-mind with patients, so they know where to find you when you’re needed.

dialysis center business plan

Email Marketing

Email is a really useful tool. Encourage your IT department to maintain a subscriber email list and to send out informative emails regarding the patient’s condition. It displays to your patients that you care about them even after they leave your facility. Maintaining communication with relevant, useful, and high-value material is essential for building a strong hospital brand.

SEO

Isn’t it true that you already know where your potential consumer will look? The first page of a potential patient’s search for the best healthcare practice should include your hospital’s website. This is accomplished via search engine optimization (SEO). Make SEO keywords a top priority for your site’s developer and editor. You don’t have to recruit a full-time employee to hire an SEO specialist.

Content Marketing

Medical marketing for doctors requires a well-thought-out content marketing approach. Content marketing increases overall traffic to your website and this improves organic search, increases brand awareness, and positions you as a thought leader in your sector. A well-structured, well-performing blog can and should generate up to 50% of a website’s organic traffic.

Financial Plan

This is amongst the most important parts of the dialysis center business plan so if you are applying for a bank loan then it is most likely that your loan officer will look at this right after the executive summary.

Earnings:

dialysis center business plan

Break-Even Analysis:

dialysis center business plan

Income Statement:

2020A2021A2022F2023F2024F
ANNUAL REVENUE
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase528%193%133%87%
COST of REVENUE
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918

Cash Flow Statement:

2020A2021A2022F2023F2024F
CASH FLOW from OPERATING ACTIVITIES
Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Depreciation$44,267$85,333$120,504$158,127$199,512
Payables
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Receivables
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
CASH FLOW from INVESTING ACTIVITIES
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
CASH FLOW from FINANCING ACTIVITIES
Equity$400,000$440,000$484,000$532,400$585,640
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet:

2020A2021A2022F2023F2024F
NON-CURRENT ASSETS
Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Total$180,000$347,200$497,240$656,960$832,652
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
CURRENT ASSETS
Cash-$114,536-$411,693-$546,014$29,978$1,863,105
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
LIABILITIES
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
EQUITIES
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122

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