2005 results for our new clinic

[Guest guest]

Hi all-

When I was doing the pro-forma for our

clinic, I found numbers from existing clinics helpful. So here are

ours. I keep intending to do an analysis of all our numbers so far, but

don’t get to it. Here are some of our preliminary results:

We opened August 1, 2005. These are

for our first five months. We opened in a modified low overhead. We

are in a 1,000 square feet with one office available for another physician

hopefully this august. We purchased e-MD’s complete EMR/PMS.

We bought the recommended servers and equipment. (The generic versions

though, not Dell.) We have just purchased a CLIA Waived Lipid system and an

A1c testing system. (More on those below.) We handed out a lot of three

fold brochures to nurses at the hospital and other doctors. (This and being

listed on insurance company web sites are our primary form of advertising.) We

donate 10% of our proceeds to charity. We do our own billing.

Elise is the doctor. I am the part

time business guy and receptionist up until we hired . I have been

working about one day a week since then. is an MA who acts as a

receptionist and nurse. She is working with high cholesterol patients. (Giving

a introduction to cholesterol appointment with suggestions, literature, a work

out and diet journal. She follows this up with calls to see how they are

doing and another lipid panel at two months.) We are hoping to add

diabetes and hypertension to the list soon. She is also setting up a

mothers group for our single mothers. (We found that a lot of them were

suffering with depression and looking for nonjudgmental support.)

We added the Lipid and A1c test simply so

that we could have the results before the appointment if we new the patient

needed them, eliminating the need to call with results. It doesn’t

take much longer that drawing blood to send to the lab and doesn’t

involve needles, just a finger stick. (Hey, it’s our ideal

practice.)

Now to the actual results:

Total patients: 330 about 80 who followed

Elise

Total visits: 620

Total collected to date: $48,131

Total AR less than one month old: $17,440

Total AR over one month: $2,000

Locum Tenum income: $4,680 (This is in

addition to the collected amount.)

Operating Expenses: $24,000

Our salary: $40,000

We were able to pay our expenses in the second

month without salary.

We borrowed about $79,000 which was spent

on:

Computers and software (anything electronic):

$31,000

Testing equipment: $4,000

Office furnishings: $9,000

Start-up (licensing, etc.): $2,000

Expenses and salary: $24,000

Cash on hand: $7,000

Pre-paid expenses: $2,000

Our monthly cash inflow from patient

visits was:

August $200

September: $5,500

October: $8,100

November: $15,380

December: $19,000

We were fairly conservative until about

month two. Then we spent more on things we wanted as it became assured

that we would have the visits to support our clinic long term. We don’t

anticipate doing another draw on our operating line. We do anticipate

starting to pay it down soon. We do not have additional big ticket items

to purchase. We could have spent less on our computers, skipped the

testing equipment for a while, spent less decorating and on furnishings.

I would not trade e-MD’s for a different system.

Cheers,

Ernie

Leland

Orchards Family Medicine, Inc.