When starting a business, you have to factor in costs. But one thing you might overlook is your income as the owner. After all, you are responsible for ensuring the business is profitable. If you’re passionate about offering urgent care and are looking for medical franchise investment consider American Family Care.
That aside, how much can you make? Or, more broadly, how much can your facility make? An urgent care can earn between $400,000 and $2 million in profits annually. But, the truth is there’s no exact answer, as your cut is anyone’s guess. Plus, the amount of money your urgent care makes depends on a variety of factors, including:
A larger facility in a densely populated urban area will likely generate more revenue than a smaller one in a rural town. Your facility’s size largely depends on the foot traffic you expect to receive.
If you’re located in a high-traffic area, you’ll need a larger facility to accommodate the demand. Similarly, a facility located in an easily accessible spot – close to potential patients – can expect to see more business than its harder-to-get-to competitors.
An urgent care offering a broad range of services – such as x-rays, lab testing, and immunizations – can generate more revenue than one focusing solely on basic medical care. More patients will likely opt for an urgent care facility that meets all their needs in one stop.
Still, the prices you charge for services will impact your overall profits. But if you want to maximize earnings, you’ll need to strike a balance – between charging enough to cover costs and making your services affordable for patients.
The patients you treat also affect how much money your urgent care makes. Patients with private insurance tend to generate more revenue than those on Medicare or Medicaid. Essentially, private insurers reimburse at higher rates than government health programs.
In addition, treating a higher number of children can also impact your bottom line. That’s because, generally, pediatrics generate higher copayments than adult medicine. And let’s not forget that patient numbers also play a role – the more patients you treat, the more revenue your urgent care can generate.
The cost of running your facility also factors into the equation. As such, high overhead costs – such as rent, utilities, and staffing – will eat into your profits. Sure, you could be generating increased revenue, but if your expenses are too high, you’ll have a hard time turning a profit. To succeed, you need to create enough revenue to cover your costs and then some.
If you accept a broad range of insurance plans, you’re likely to see more patients – and generate more revenue. However, you’ll also need to factor in each insurer’s reimbursement rates. For example, some insurers may reimburse at a higher rate than others. Plus, if you offer multiple payment options – such as cash discounts or flexible payment plans – you could also see an uptick in business, given that patients are more likely to use your services if they can afford them.
Every business needs some form of marketing to succeed. In the same vein, the amount of effort put into marketing can significantly impact how much you can make.
Marketing can be costly, and if an urgent care owner does not have the budget to cover a full-scale marketing campaign, they may not see as much of a return on their investment. However, even a little effort can have a big impact. For instance, a simple website or social media account can help increase visibility and attract new patients.
Plus, word-of-mouth is often one of the most effective forms of marketing, so it pays to provide good quality care. That way, you can encourage patients to tell their friends and family about the business. By doing so, your facility can make inroads into the community and generate more revenue.
The state of the economy largely impacts business revenue. When times are tough, people are less likely to visit the doctor – even if they’re sick. As a result, an urgent care facility may see a decline in business. However, people may be more inclined to seek urgent care if there’s an outbreak of a disease such as the flu.
Similarly, competition from other urgent care centers or hospitals can impact earnings. If potential clients are spoilt for choice in your service area, you may struggle to attract new business.
How much you make hinges on multiple variables, some of which could impact your business directly or indirectly. It’s advisable to keep a close eye on all the factors that could affect your earnings so you can make the necessary changes to stay afloat. That said, if you play your cards right, urgent care can be a cash cow.