Clinic Expansion Calculator

Revenue vs cost for adding providers or locations.

New providers to add

Expected visits/day per provider

Avg revenue per visit ($)

Build-out cost per provider ($)

Support staff per provider

Avg staff salary ($)

Annual facility cost per provider ($)

Ramp-up period (months)

Annual supplies per provider ($)

Tab to move between fields

Steady-state annual revenue

$702,000.00

≈ 17 Teslas

Steady-state net income

$489,000.00

≈ 12 Teslas

Total build-out cost$75,000.00

Year 1 revenue (with ramp)$596,700.00

Annual operating cost$213,000.00

Year 1 net income$383,700.00

Operating margin69.7%

Payback period (months)1.8

Total new support staff4

3-year ROI1,715.6%

How to Use This Calculator

Enter New providers to add and Expected visits/day per provider based on your target specialty and market.
Input Avg revenue per visit and Build-out cost per provider for your region to size the capital investment.
Set Support staff per provider and Avg staff salary to capture the fully-loaded staffing cost of the expansion.
Enter Ramp-up period (months) to reflect how long it takes a new provider to reach full patient panel capacity.
Review Steady-state annual revenue and Steady-state net income to assess whether the expansion pencils out.
Use Payback period (months) and 3-year ROI to compare this expansion against alternative capital uses.

How the result changes with Expected visits/day per provider

Expected visits/day per provider	Steady-state annual revenue	Steady-state net income
5.9	$230,100.00	$17,100.00
18	$702,000.00	$489,000.00
33	$1,287,000.00	$1,074,000.00
45	$1,755,000.00	$1,542,000.00

New providers to add: Number of new physicians or advanced practice providers.
Expected visits/day per provider: Projected patient encounters per day once at full capacity.
Avg revenue per visit ($): Blended average net collection per patient encounter.
Build-out cost per provider ($): One-time cost for exam rooms, equipment, IT, furniture per provider.
Support staff per provider: MA, front desk, billing FTEs per provider (MGMA median ≈ 3.5).
Avg staff salary ($): Average annual fully-loaded salary for support staff.
Annual facility cost per provider ($): Rent, utilities, insurance allocated per provider.
Ramp-up period (months): Months for new provider to reach full patient panel.
Annual supplies per provider ($): Medical supplies, labs, and consumables per provider annually.

Total build-out cost: One-time capital expenditure for all new providers.
Year 1 revenue (with ramp): First year gross revenue including ramp-up impact.
Steady-state annual revenue: Expected annual revenue once providers are at full capacity.
Annual operating cost: Staff, facility, and supplies costs per year.
Year 1 net income: Revenue minus operating costs in first year.
Steady-state net income: Annual net income at full capacity.
Operating margin: Net income as percentage of revenue at steady state.
Payback period (months): Months to recover build-out investment from net income. -1 = never.
Total new support staff: Total FTEs needed for support staff.
3-year ROI: Return on build-out investment over 3 years.

Identify Input Parameters
4 parameters
New providers to add = 1, Expected visits/day per provider = 18, Avg revenue per visit ($) = 150, Build-out cost per provider ($) = 75000 = 9 input(s) provided
Calculate Steady-state annual revenue
Steady-state annual revenue = grossRevenuePerProvider * newProviders
702000 = $702,000
Calculate Steady-state net income
Steady-state net income = steadyStateRevenue - totalAnnualOperating
489000 = $489,000
Calculate Total build-out cost
Total build-out cost = buildOutCostPerProvider * newProviders
75000 = $75,000
Calculate Year 1 revenue
Year 1 revenue = year1RevenuePerProvider * newProviders
596700 = $596,700