Concussion Clinic Break-Even Analysis: ~$75K Monthly Revenue

Fixed costs $19.7K/mo Monthly overhead base

Contribution margin 58% After variable costs

Break-even revenue $33.9K/mo Needed each month

Break-even timing Month 1 Launch month

Break-even calculator

Use this to test how monthly revenue, variable expenses, and fixed costs shape break-even for a concussion clinic.

Lean Base Full

Monthly revenue Revenue sets the cash available to cover variable costs and fixed overhead each month. $ Low volume High volume Variable expenses Use the direct costs that move with visits, testing, billing, supplies, and referral work. $ Low cost High cost

Money available to cover fixed costs $246,733 $306,500 revenue - $59,767 variable expenses

Margin ratio

81%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the clinic must cover before profit starts. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which clinic expenses are fixed, and which move with patient volume?

Cost classification

Break-even is reliable only when monthly overhead stays separate from visit-linked spend. In the first operating year, the clinic reaches break-even in Month 1, so misclassifying even one recurring item can distort the safety margin.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Facility Rent	Fixed	Use $12,500 per month in fixed overhead.	Tying rent to patient visit count.
Professional Malpractice Insurance	Fixed	Use $3,200 per month in fixed overhead.	Treating insurance as per-claim spend.
EHR and Patient Portal Subscription	Fixed	Use $850 per month as recurring platform overhead.	Burying it inside software COGS.
Medical Consumables and Supplies	Variable	Model at 4.5% of revenue in the first year.	Ignoring supply use per visit.
Diagnostic Software Licensing Fees	Variable	Model at 3.5% of revenue in the first year.	Treating usage fees as one-time capex.
Medical Billing and Collection Fees	Variable	Model at 6.0% of revenue in the first year.	Putting billing inside fixed admin.
Marketing and Referral Development	Variable	Model at 8.0% of revenue in the first year.	Assuming referral spend stops at opening.
Clinical Provider Additions	Semi-fixed	Add capacity in steps as clinician count rises.	Hiring ahead of demand without cash runway.

How does break-even change from a lean launch to a full clinic setup for this concussion clinic?

Scenario table

Lean reaches break-even fastest, but the cushion is smaller. Base and full setups add revenue, yet payroll and room load rise too, so referral depth and staffing access decide how safe the margin really is.

Planning assumptions only; actual payer mix, referral flow, staffing, and utilization can move break-even up or down.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch setup	$127.3k	$28.0k	$58.8k	78.0%	$40.5k	Above break-even, but the cushion is still thin.
Base growth setup	$306.5k	$59.8k	$74.9k	80.5%	$171.9k	Clearer cushion, but staffing and room use must stay full.
Full capacity setup	$537.4k	$99.4k	$87.5k	81.5%	$350.5k	Strong cushion, if referrals and credentialing keep pace.

What breaks the break-even plan for this concussion clinic?

Stress test

The base plan clears break-even, but the cushion gets thin fast if referrals slow, claims denials rise, or overhead climbs. In the combined downside, the clinic still clears break-even by only about $143K before taxes, debt, and capex.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	Year 1 assumes $1.273M revenue, 22% variable expenses, and $588K fixed monthly costs.	$754K	$519K cushion	Base case clears break-even, but not by a wide margin.
Revenue shortfall	Revenue falls 15% to $1.082M while the cost mix stays the same.	$754K	$328K cushion	Lower patient flow still works, but referral conversion must hold.
Fixed-cost rise	Fixed monthly costs rise 10% to $647K.	$829K	$444K cushion	Overhead moves break-even up fast, so staffing and rent matter.
Margin pressure	Variable expenses rise from 22% to 27%, cutting contribution margin to 73%.	$806K	$467K cushion	Reimbursement pressure and denials eat contribution before volume does.
Combined pressure	Revenue drops 15%, variable expenses rise to 27%, and fixed monthly costs rise 10%.	$939K	$143K cushion	One weak payer month or underused therapy room can erase most of the cushion.

What must the founder verify before signing the lease and hiring the full team?

Founder checklist

Don’t sign the lease or hire the full team until referral partners, payer credentialing, and EHR workflows point to at least 531 weighted visits a month. Year 1 revenue is about $127.3K a month, and the model still needs $800K cash in Month 2, so the opening must clear both demand and cash tests.

1Referral pull531 visits/mo

Confirm sports medicine, emergency departments, primary care, schools, athletic trainers, and workers’ comp can fill 531 weighted visits a month before you commit to the lease.

2Contribution margin78% CM

Year 1 variable costs total about 22.0% of revenue, so contribution margin is roughly 78.0%; keep billing, denials, and referral spend tight or break-even slips.

3Staffing ramp7 clinicians

Use the Year 1 team of 2 neurologists, 1 neuropsychologist, 2 physical therapists, 1 vestibular specialist, and 1 occupational therapist only if that mix can hold the 531-visit plan.

4Fixed load$58.8K/mo

Rent, insurance, utilities, EHR, maintenance, admin, and wages add up to about $58.8K a month, so check the lease against that fixed load before you lock in.

5Cash cushion$800K Month 2

Hold the model's $800K minimum cash through Month 2, because the opening buildout is $365K and collections will lag the first patient visits.

6Capex phasing$365K capex

Stage the $365K capex across Months 1 to 8 and track wait time, no-shows, and follow-up completion, so you do not buy rooms and equipment faster than demand fills them.