The Costs Of Opening A Medical Clinic

Collaborative post – may contain affiliate links

There are lots of perks to setting up a private medical clinic. It can be more profitable in the long run and more stress-free – you get to choose your workload and the types of treatment you offer. The biggest obstacle faced when starting a medical clinic is the upfront cost of setting it up. After the cost of university and medical school, few people are able to then justify taking out a massive loan to start a business. Whilst you will make a substantial return in the future, it’s important to effectively budget when considering starting up a clinic. Many doctors go into a partnership with someone who can split the costs and handle the business side. Here are just a few of the costs that need to be covered to get your medical business off the ground.  


Physicians starting their own clinic are required by law to take out malpractice insurance. This can be anywhere between $4k to $70k a year depending on the state. Insurers such as Towergate provide these insurance scheme – it’s worth comparing rates. If you’re taking on staff, you may need to also take out employer’s liability insurance. Property insurance can also be beneficial for covering your premises against damage and theft.

Leasing space

Most people starting up a clinic will rent or lease out space. It’s possible to buy your own space, but this is obviously more costly upfront. The cost will depend on the size and location of the property you need.


You’ll most likely want to refurnish the place to feel more like a clinic if it wasn’t already one before. Renovation companies like Perfect Practice specialize in remodeling medical clinics. Costs can vary widely here too ranging from $15k to $50k depending on the scale of the project.


You’ll next want to kit out your clinic with the necessary machines such as computers and X-ray machines and furniture such as beds and chairs. You can expect to pay up to $50k on all this equipment. That said, you can save upfront costs by leasing equipment or buying second-hand. Most used equipment is likely to be fully functional, although you’ll want to thoroughly assess the condition of it first (especially computers and machines).


If you’re taking on employees, you’ll need to be able to provide them with a regular wage. Some clinics can operate with one physician, but you’ll still want medical assistants and receptionists. If you keep patients in overnight, you’ll definitely need extra staff to offer round the clock assistance. As mentioned already, you’ll also need employer’s liability insurance if you’re hiring staff.


To let people know about your services, you’ll need to do some marketing. This could include paying to design a website, printing off flyers, create radio ads and possibly even getting news coverage with the help of a PR company.


As your clinic is also a business, you’ll need to handle various business-related admin including keeping clear records of taxes, billing patients correctly and organizing HR-related matters such as creating rotas and keeping on top of staff holiday and sickness. This will require extra software as well as potentially hiring staff to handle it. As mentioned earlier, it’s wise to go into a partnership with someone business-oriented who can help organize all this, allowing you to focus on patient care and organization of the medical side.

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