Asthma & Allergy Clinic Running Costs: $68K Fixed Overhead

Asthma and Allergy Clinic Running Costs

Running an Asthma and Allergy Clinic requires substantial fixed overhead before clinical payroll is even factored in Based on 2026 projections, your minimum monthly fixed and administrative costs start around $68,300 This includes a $12,500 facility lease, $4,500 for malpractice insurance, and $44,708 for administrative salaries (Medical Director, Clinic Manager, etc) Variable costs, primarily medical supplies (145% of revenue) and marketing (50% of revenue), add another significant layer Total known running expenses (excluding clinical staff salaries) approach $111,000 per month in the first year The good news: the model shows a rapid path to profitability, with breakeven achieved in just 1 month, and a strong Year 1 EBITDA of $1149 million, assuming full clinical staff salaries are covered and utilization targets (eg, Senior Allergists at 650% capacity) are met You need to defintely budget for high fixed costs upfront

7 Operational Expenses to Run Asthma and Allergy Clinic

#	Operating Expense	Expense Category	Description	Min Monthly Amount	Max Monthly Amount
1	Staff Wages	Payroll	Clinical and administrative payroll is the largest expense, totaling 9 clinical roles and 55 administrative FTEs in 2026, requiring careful salary benchmarking and benefit structuring.	$0	$0
2	Clinic Lease	Fixed Overhead	The Clinic Facility Lease is a major fixed cost at $12,500 per month, demanding long-term commitment and careful negotiation based on square footage and location.	$12,500	$12,500
3	Malpractice Insurance	Compliance	Medical Malpractice Insurance is a non-negotiable fixed cost of $4,500 monthly, which must be reviewed annually based on staff size and service scope.	$4,500	$4,500
4	Medical Supplies	Variable COGS	Medical Supplies and Test Kits represent 85% of revenue in 2026, requiring strict inventory management and bulk purchasing to achieve the projected cost reduction to 65% by 2030.	$0	$0
5	Pharmaceuticals/Serums	Variable COGS	Pharmaceuticals and Serums are 60% of revenue in 2026, necessitating reliable supply chains and minimizing waste, aiming for 40% of revenue by 2030.	$0	$0
6	Patient Acquisition	Marketing	Digital Marketing and Referrals cost 50% of revenue in 2026, a variable expense that should be tracked for patient lifetime value (LTV) and conversion efficiency.	$0	$0
7	EHR Software	Technology	EHR Software Subscription is a fixed technology cost of $1,800 per month, essential for compliance, billing, and patient data management.	$1,800	$1,800
Total	Total	All Operating Expenses		$18,800	$18,800

What is the total monthly running cost budget needed to operate the Asthma and Allergy Clinic sustainably?

The total monthly running cost budget for the Asthma and Allergy Clinic is dominated by a massive fixed overhead of $683,000 annually, but the true sustainability challenge is the 145% Cost of Goods Sold (COGS), meaning expenses for delivering care exceed patient payments; you can read more about operational earnings potential here: How Much Does An Asthma And Allergy Clinic Owner Make?

Fixed Overhead Reality

Annual fixed overhead sits at $683,000.
This requires a baseline monthly fixed burn of $56,917 ($683,000 divided by 12 months).
This budget covers facility leases, insurance premiums, and essential administrative staff.
Clinical payroll must be factored into this baseline cost structure.

Variable Cost Trap

Variable costs are reported at 145% of revenue (COGS).
For every dollar collected from fee-for-service billing, $1.45 is spent on delivery.
This results in a negative contribution margin, meaning you lose money on every treatment.
The immediate action is reducing supply costs or renegotiating vendor contracts defintely.

Which recurring cost category represents the single largest financial risk in the first year?

The single largest financial risk for the Asthma and Allergy Clinic is payroll, since scaling to 64 staff members (9 clinical, 55 admin) creates a cost base far exceeding the fixed facility expense of $12,500 per month.

Payroll Outpaces Fixed Overhead

Staffing projections show 64 Full-Time Equivalents (FTEs).
Fixed facility costs are set at $12,500 monthly.
Payroll becomes the dominant operating expense driver.
This high FTE count demands significant, consistent patient volume.

Controlling Staffing Burn Rate

Because revenue is fee-for-service, managing capacity is key. Before you commit to those 64 roles, you need a solid plan for patient volume; check the initial capital outlay needed, as that informs how long you can sustain staff before revenue catches up. You can see estimates on initial setup costs here: How Much To Open An Asthma And Allergy Clinic? If onboarding takes 14+ days, churn risk rises. We defintely need tight utilization tracking.

Link utilization rate to every FTE hire.
Track patient volume against practitioner capacity.
High fixed cost if patient flow is slow.
Avoid over-hiring admin staff early on.

How many months of cash buffer are required to cover operating expenses before positive cash flow?

The required cash buffer for the Asthma and Allergy Clinic must cover operating expenses until you secure the $812,000 minimum cash balance projected for February 2026, regardless of how quickly you hit operational breakeven. This means calculating the runway based on the cumulative net cash burn rate leading up to that stabilization point; review How Increase Profits At Asthma And Allergy Clinic? for immediate profit acceleration tactics.

Buffer Calculation Focus

The target is reaching the $812k floor by February 2026.
Determine the average monthly net cash burn rate needed to bridge the gap.
A fast breakeven point shortens the time, but the required capital cushion remains fixed.
You defintely need to model the cash flow trajectory to that specific date.

Working Capital Levers

Focus on practitioner scheduling to maximize patient treatments per day.
Aggressively manage the time between service delivery and cash collection.
Negotiate favorable payment terms for high-cost supplies upfront.
Fixed overhead, like facility costs, must be minimized before launch.

If patient volume falls 25% below forecast, how will we cover the $23,600 in core fixed operating expenses?

If patient volume for the Asthma and Allergy Clinic falls 25% below forecast, you immediately face a cash crunch against the $23,600 in core fixed operating expenses. Before looking at financing options, like understanding How Much To Open An Asthma And Allergy Clinic?, the first move is surgically reducing variable spend that doesn't touch patient care quality; defintely start with marketing spend.

Slicing Variable Spend When Volume Drops

Digital Marketing is 50% of revenue; cut this first.
Determine the minimum spend needed for essential patient acquisition.
Protect costs tied directly to service delivery, like testing supplies.
Variable costs scale down automatically, but not fast enough for fixed needs.

Covering Fixed Costs Under Stress

A 25% volume drop means 25% less revenue supporting fixed costs.
Identify non-essential administrative contractor hours for immediate pause.
Review vendor contracts for immediate volume-based price renegotiations.
If cuts fail, you must generate $23,600 in replacement revenue monthly.

Key Takeaways

The minimum required monthly fixed overhead for an Asthma and Allergy Clinic, covering facility, insurance, and core administration, begins at approximately $68,300.
The projected model shows rapid financial stability, achieving breakeven in just one month and forecasting a Year 1 EBITDA of $1149 million on $228 million in revenue.
Staff wages, encompassing 9 clinical and 55 administrative FTEs by 2026, represent the single largest recurring expense category that requires careful benchmarking and management.
Capturing the high projected profitability requires strict control over variable costs, such as Medical Supplies (initially 145% of revenue), and maintaining high patient utilization targets.

Running Cost 1 : Staff Wages

Payroll Dominance

Payroll will dominate your operating expenses as you scale the Asthma and Allergy Clinic. By 2026, you project 9 clinical roles and 55 administrative full-time equivalents (FTEs). Getting salary levels and benefit packages right is critical since this cost dwarfs others.

Cost Inputs Needed

This cost covers everyone from the allergists providing immunotherapy to the front-office staff handling billing. You need precise 2026 headcount targets (9 clinical, 55 admin) and current market rates for specialized medical roles in your region. Benefits-like health insurance and retirement matching-can add 25% to 35% on top of base wages.

Determine base salary per role.
Calculate required benefit overhead percentage.
Factor in payroll taxes accurately.

Managing Wage Spend

Benchmarking salaries against regional medical groups prevents overpaying upfront. A common mistake is standardizing clinical pay when specialists demand premium rates. Focus on structuring benefits to be competitive but cost-controlled; maybe offer tiered health plans. If onboarding takes 14+ days, churn risk rises.

Benchmark against local specialty groups.
Use tiered benefit structures.
Watch for unexpected hiring delays.

Scaling Risk

Since payroll is your largest line item, small errors in salary assumptions compound fast. If your average loaded cost per FTE is only $5,000 too high, that mistake costs $315,000 annually across 64 employees. Defintely review those assumptions now.

Running Cost 2 : Clinic Lease

Lease Impact

The clinic lease sets your baseline overhead fast. At $12,500 per month, this fixed cost locks in significant overhead before you see a single patient. Location and size dictate this number, making negotiation critical for early-stage financial health. You need to nail this figure down early.

Cost Drivers

This monthly payment covers the physical space needed for diagnostics and treatment rooms. To estimate this accurately, you must finalize the required square footage for 9 clinical roles and 55 administrative FTEs planned for 2026. Location within your target market directly impacts the $12,500 baseline. It's a non-negotiable fixed overhead component.

Fixed monthly overhead.
Tied to location quality.
Scale based on staffing needs.

Lease Tactics

Since this is a long-term commitment, avoid signing without favorable exit clauses. Negotiate tenant improvement allowances to offset initial build-out costs. If patient onboarding takes longer than expected, this high fixed cost pressures cash flow immediately. Don't overpay for square footage you won't use for at least 12 months.

Negotiate free rent periods.
Secure favorable renewal terms.
Tie rent escalation to CPI.

Lease Threshold

This $12,500 lease must be covered by patient volume before you touch variable costs like supplies (85% of revenue in 2026). If you aim for 100 treatments daily, the lease alone requires significant utilization just to break even on fixed costs. It's defintely the anchor weighing down your initial operating leverage.

Running Cost 3 : Malpractice Insurance

Insurance Cost Fixed

Medical Malpractice Insurance is a fixed overhead of $4,500 per month that you can't avoid. This cost is mandatory for providing specialized care at your Asthma and Allergy Clinic. You must plan to review this premium every year because it scales directly with your staff count and the complexity of services you deliver.

Cost Inputs Defined

This premium protects the practice against professional liability claims related to patient diagnosis or treatment. To calculate the initial budget impact, you need the quote reflecting your 9 clinical roles and the scope of immunotherapy offered. It is a non-negotiable fixed expense, meaning it doesn't change with patient volume, unlike supplies or marketing.

Fixed at $4,500/month.
Review based on staff count.
Essential for compliance.

Managing Premiums

Since this is a fixed cost, optimization is about shopping, not cutting coverage quality. Shop quotes early and annually before renewal, defintely if you maintain a clean claims history over time. A common error is failing to update coverage limits when you expand services or add new specialists to the team.

Shop quotes yearly.
Adjust limits with growth.
Avoid coverage gaps.

Annual Review Timing

Schedule the Malpractice Insurance review for the fourth quarter (Q4) annually. This timing lets you align the updated premium-based on the next year's planned staffing-with your overall operating budget forecast. This ensures your $54,000 annual baseline accurately reflects operational reality going into the new fiscal year.

Running Cost 4 : Medical Supplies

Supply Revenue Drain

Medical Supplies and Test Kits will consume 85% of your 2026 revenue, making inventory control your most urgent operational lever. You must implement bulk buying now to hit the 65% cost target by 2030.

Supply Cost Structure

This cost covers all consumables for testing, diagnosis, and treatment, like swabs, diagnostic reagents, and immunotherapy materials. Since supplies hit 85% of revenue in 2026, expect $0.85 of every dollar earned to be spent immediately on inventory. This is extremely high for a service business.

Track unit cost per test kit.
Estimate annual volume based on patient capacity.
Factor in 2026 revenue projections.

Cutting Supply Drag

The gap between 85% (2026) and 65% (2030) requires aggressive sourcing changes, not just small tweaks. You need vendor consolidation and multi-year contracts to lock in lower unit prices. If onboarding takes 14+ days, churn risk rises, so supplier reliability is defintely key.

Negotiate bulk discounts immediately.
Centralize purchasing across all locations.
Implement just-in-time inventory tracking.

Cash Flow Impact

High supply costs mean your cash conversion cycle is tight; you pay for inventory before you bill insurance or patients. Hitting that 65% target by 2030 depends entirely on achieving volume purchasing power quickly, otherwise, working capital will be permanently strained.

Running Cost 5 : Pharmaceuticals/Serums

Serum Margin Defense

You must lock down your supply chain for serums now because they represent 60% of revenue in 2026. Managing this massive cost is critical for profitability, demanding tight inventory controls to hit the 40% target by 2030. That's a 20-point swing you need to plan for defintely today.

Inputs for Serum Costing

This cost covers all injectable medications and immunotherapy agents used in treatment protocols. To estimate this, you need projected service volume multiplied by the average cost per vial or dose. Since this is 60% of revenue in 2026, it dwarfs fixed costs like the $12,500 clinic lease. We need solid supplier contracts immediately.

Projected annual treatment units.
Current unit cost per serum/medication.
Target waste percentage (aim for <5%).

Cutting Serum Spend

Reducing this cost from 60% to 40% requires an aggressive procurement strategy, not just hoping for volume discounts. Focus on minimizing spoilage from patient cancellations or expired stock. If patient onboarding takes 14+ days, utilization dips, driving up the effective cost percentage. You need firm agreements now.

Negotiate tier pricing based on 2026 projections.
Implement just-in-time inventory for high-value serums.
Track waste rates against utilization targets weekly.

Supply Chain as Margin Lever

Supply chain reliability isn't just logistics; it's margin protection when 60% of your top line is tied up in goods sold. Compare supplier lead times against your Patient Acquisition cost of 50% of revenue; slow delivery means lost revenue opportunities you can't afford to miss.

Running Cost 6 : Patient Acquisition

Acquisition Cost Shock

Patient acquisition costs are your biggest variable drain right now. In 2026, expect Digital Marketing and Referrals to consume 50% of total revenue. This high burn rate means every new patient must deliver significant long-term value to justify the initial spend. You need tight control here.

Inputs for Costing

This 50% of revenue figure covers all spending to bring in new patients via online ads and referral bonuses. To model this accurately, you need the cost per click (CPC) for digital ads and the average referral fee paid out. You must know your monthly patient volume to calculate the absolute dollar spend for the month.

Track digital ad spend (CPC/CPA).
Calculate total referral payouts.
Map cost to initial treatment booked.

Optimize Conversion

Controlling this massive 50% expense hinges on measuring Patient Lifetime Value (LTV). If your average patient spends $5,000 over three years, spending $2,500 upfront to acquire them is too risky. Focus on channels delivering high-value, long-term patients; you must defintely optimize conversion efficiency.

Calculate LTV versus Customer Acquisition Cost (CAC).
Prioritize high-retention referral sources.
Test marketing spend efficiency monthly.

Variable Risk Check

Because this cost scales directly with revenue, any slowdown in patient volume immediately shrinks your margin, even if fixed costs stay put. If revenue drops 20% in Q3, acquisition spending must drop proportionally, or you'll quickly burn cash waiting for the next paying patient.

Running Cost 7 : EHR Software

Fixed Tech Cost

EHR software is a non-negotiable fixed operating cost of $1,800 monthly, critical for running compliance and billing operations. This technology spend must be budgeted before patient volume dictates revenue flow.

Budgeting the EHR

This $1,800 monthly fee covers the core Electronic Health Record (EHR) system needed for HIPAA compliance and claims processing. It's a fixed technology overhead that starts immediately upon opening your doors. You need quotes for per-provider pricing to confirm this baseline. Honestly, if you skip this, you skip billing entirely.

Covers patient charts.
Handles insurance claims.
Ensures regulatory adherence.

Controlling Tech Spend

Reducing this fixed cost is tough since compliance is mandatory. Avoid overpaying by ensuring you only subscribe to the modules you actively use, like cutting advanced analytics if you won't use them yet. Avoid long-term lock-ins; signing a five-year contract too ealy is a major trap. Stick to annual terms defintely.

Audit unused features.
Check integration fees.
Negotiate support tiers.

Impact on Unit Economics

Because this is a fixed cost, it acts as a high hurdle rate for initial operations. If your clinic sees only 100 billable visits in Month 1, the EHR cost alone represents $18 per visit, which must be covered before you even look at payroll or supplies.