Hyperbaric Oxygen Therapy Clinic Running Costs
Running a Hyperbaric Oxygen Therapy Clinic requires substantial fixed overhead before variable costs In 2026, expect fixed operating costs—primarily facility lease and specialized payroll—to total around $65,633 per month This figure includes $19,800 in non-payroll fixed expenses (like $12,000 for the facility lease and $3,000 for malpractice insurance) plus $45,833 for the initial 6 full-time equivalent (FTE) staff Variable costs, including medical oxygen and marketing, add another 120% of revenue The high average treatment price (ranging from $300 to $500 in 2026) supports rapid scaling The model shows a fast path to profitability, with the clinic reaching break-even in just 1 month and achieving a 16-month payback period, driven by a first-year EBITDA of $1128 million You must maintain a minimum cash buffer of $166,000 to cover operational dips, especially during the initial ramp-up phase before full capacity utilization This analysis breaks down the seven core running costs essential for sustainable operations
7 Operational Expenses to Run Hyperbaric Oxygen Therapy Clinic
| # | Operating Expense | Expense Category | Description | Min Monthly Amount | Max Monthly Amount |
|---|---|---|---|---|---|
| 1 | Staff Payroll | Personnel | This is the largest expense, starting at $45,833/month in 2026 for 6 FTEs including the Medical Director and technical staff. | $45,833 | $45,833 |
| 2 | Facility Lease | Fixed Overhead | The fixed monthly lease expense is $12,000, which must be secured for the full term (01012026–31122030). | $12,000 | $12,000 |
| 3 | Malpractice Insurance | Fixed Overhead | Required specialized coverage costs $3,000 per month, reflecting the high liability associated with medical procedures. | $3,000 | $3,000 |
| 4 | Medical Supplies (COGS) | Variable Cost | Costs of goods sold (COGS) are lean, totaling 50% of revenue, covering medical-grade oxygen and disposable treatment supplies. | $0 | $0 |
| 5 | Marketing Spend | Variable Cost | Marketing spend is variable, budgeted at 50% of revenue to drive patient volume and maintain capacity utilization. | $0 | $0 |
| 6 | Utilities & Cleaning | Fixed Overhead | Fixed utilities and specialized medical cleaning services total $2,500 monthly, essential for maintaining a clinical environment. | $2,500 | $2,500 |
| 7 | Admin Software/Fees | Fixed Overhead | Essential administrative costs, including EHR software subscriptions and professional services, total $2,300 per month. | $2,300 | $2,300 |
| Total | All Operating Expenses | All Operating Expenses | $65,633 | $65,633 |
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What is the total monthly operating budget needed to sustain the Hyperbaric Oxygen Therapy Clinic for the first year?
Sustaining the Hyperbaric Oxygen Therapy Clinic requires covering fixed overhead of $65,633 monthly, plus an additional $166,000 cash reserve, while immediately addressing the structural issue where variable costs are projected at 120% of revenue; you should review What Is The Current Customer Satisfaction Level For Hyperbaric Oxygen Therapy Clinic? to ensure volume can offset this cost structure.
Defintely Required Budget Components
- Fixed overhead runs $65,633 monthly.
- This covers payroll and rent commitments.
- You need a $166,000 cash reserve for runway.
- This reserve ensures operational continuity if revenue lags.
Variable Cost Exposure
- Variable costs are pegged at 120% of collected revenue.
- This means you spend $1.20 for every $1.00 earned.
- The clinic generates negative contribution margin instantly.
- To cover fixed costs, revenue targets are mathematically impossible under this cost structure.
Which cost categories represent the largest recurring monthly expenses and how are they scaled?
For the Hyperbaric Oxygen Therapy Clinic, the largest recurring monthly expenses are projected to be Payroll ($45,833/month in 2026) and the Facility Lease ($12,000/month); staffing costs scale directly with patient volume as you add more HBOT Technologists, which is critical since patient satisfaction levels heavily influence referral rates, as shown in What Is The Current Customer Satisfaction Level For Hyperbaric Oxygen Therapy Clinic?
Fixed Cost Structure
- Facility Lease is a flat $12,000 per month, a non-negotiable baseline expense.
- Projected 2026 payroll hits $45,833 monthly, making it the single largest operating cost.
- This payroll covers necessary clinical staff, including HBOT Technologists and physician oversight.
- You must cover this $57.8k minimum before accounting for supplies or utilities.
Staffing as the Primary Scaling Lever
- Staffing scales directly based on required practitioner availability to meet treatment demand.
- Adding capacity means hiring more FTEs (Full-Time Equivalents) like HBOT Technologists.
- If patient volume grows significantly, payroll will defintely increase faster than the fixed lease expense.
- Revenue is fee-for-service per session, so utilization must cover the added labor cost immediately.
How much working capital is required to cover operations during periods of low patient capacity?
To manage operational gaps before revenue stabilizes, the Hyperbaric Oxygen Therapy Clinic needs a minimum cash reserve of $166,000 set aside by June 2026, a figure critical for covering fixed expenses during low patient volume, which is a common early-stage challenge discussed when looking at How Much Does The Owner Of A Hyperbaric Oxygen Therapy Clinic Typically Make?. This required cash balance acts as the working capital buffer to maintain operations while scaling patient capacity.
Fixed Cost Runway
- The $166,000 target covers fixed overhead costs like rent and physician salaries.
- This cash runway must be established before utilization rates stabilize post-launch.
- Low capacity means revenue from fee-for-service sessions won't cover immediate outflows.
- You'll need to defintely track monthly burn rate against this target.
Capacity and Liquidity
- Physician referrals are the primary driver of reliable, recurring volume.
- Wellness clients provide upside but carry higher volume uncertainty risk.
- The model assumes a slow ramp; cash is required to ensue liquidity during this lag.
- Every month below capacity erodes this working capital buffer.
If treatment volume falls below 60% capacity, how will we cover the fixed monthly overhead?
If the Hyperbaric Oxygen Therapy Clinic runs below 60% capacity, you must have a plan ready to cover the $65,633 monthly fixed overhead; Have You Developed A Clear Business Plan For Your Hyperbaric Oxygen Therapy Clinic? Missing the 16-month payback timeline means cash reserves must bridge this gap defintely until volume stabilizes.
Fixed Cost Exposure
- Fixed overhead sits at $65,633 per month, regardless of patient volume.
- Below 60% utilization, the clinic burns cash monthly against this fixed base.
- Model the cash runway needed if the 16-month payback target slips.
- Determine the exact number of sessions required monthly to cover $65.6k in costs.
Contingency Levers
- Immediately pause non-essential capital expenditures planned post-launch.
- Negotiate variable payment terms with key suppliers, especially chamber maintenance.
- Activate targeted physician outreach campaigns to boost referrals quickly.
- Offer short-term, high-value wellness packages to fill immediate treatment slots.
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Key Takeaways
- The foundational monthly operating expense for an HBOT clinic is substantial, starting at $65,633, dominated by specialized payroll ($45,833) and facility lease costs ($12,000).
- Variable costs are relatively lean, totaling approximately 120% of revenue, split between medical supplies (50%) and marketing/processing fees (70%).
- The financial model projects a rapid path to profitability, achieving the break-even point in just one month, supported by high average treatment prices.
- Founders must secure a minimum working capital buffer of $166,000 to ensure liquidity and cover operational dips before reaching the projected 16-month payback period.
Running Cost 1 : Specialized Staff Payroll
Payroll Expense Baseline
Payroll is your biggest fixed cost, representing the core investment in clinical delivery. Expect specialized staff payroll to hit $45,833 per month starting in 2026. This covers 6 full-time equivalents (FTEs), which must include your critical Medical Director and necessary technical support staff. That number sets your operating expense floor.
Staff Cost Inputs
Pinpoint this cost by mapping required roles to market salaries. You need 6 FTEs: the Medical Director, plus technical staff to manage chambers and patient care. Since this is a 2026 projection, factor in a standard 3% annual salary escalation if you are budgeting earlier than that date. What this estimate hides is the cost of benefits and payroll taxes.
- Define required clinical skill sets now
- Model salary bands for specialized roles
- Calculate total fully-loaded cost per FTE
Managing Staff Costs
Managing this heavy fixed cost requires strict utilization planning. Avoid over-hiring technical staff before patient volume justifies it; hiring too early burns cash fast. Consider using highly specialized contractors for initial setup defintely, instead of full-time hires until you hit steady state. A common mistake is underestimating the Medical Director's required time commitment versus billing capacity.
- Stagger hiring based on utilization milestones
- Negotiate performance bonuses over base salary
- Review contractor vs. FTE cost annually
Fixed Cost Anchor
This $45,833 monthly staff expense is fixed overhead that must be covered before you see profit. If revenue targets slip, this cost dictates how quickly you burn through runway. Compare this figure against the $12,000 facility lease to understand your true minimum monthly burn rate.
Running Cost 2 : Clinic Facility Lease
Lease Commitment Locked
The facility lease sets a firm $12,000 monthly floor expense starting January 1, 2026, locking you in until the end of 2030. This fixed cost demands high utilization early on to cover overhead.
Lease Inputs
This $12,000 covers the rent for your physical clinic space, including specialized build-out if applicable. You need signed quotes for the five-year term (Jan 2026 through Dec 2030) to anchor your fixed overhead. It’s a major component of pre-revenue setup costs.
- Lease term: 60 months total.
- Total commitment: $720,000 minimum.
- Start date: 01012026.
Managing Fixed Space
Since this lease is non-cancellable for the full term, focus shifts from reduction to revenue generation to cover it. Avoid signing before patient volume projections are solid. A common mistake is underestimating tenant improvement allowences.
- Negotiate rent abatement periods.
- Verify escalation clauses carefully.
- Ensure facility use matches protocol needs.
Operational Risk
This fixed liability of $12,000 monthly dictates your break-even point before payroll even starts. If operations delay past 01012026, you start accruing occupancy costs without revenue, defintely eating into runway.
Running Cost 3 : Medical Malpractice Insurance
Insurance Fixed Cost
Medical malpractice insurance is a fixed, non-negotiable cost for this clinic. You must budget $3,000 monthly for this specialized coverage due to the inherent liability of administering hyperbaric oxygen therapy (HBOT). This cost is fixed regardless of patient volume or revenue generated.
Coverage Inputs
This $3,000 monthly premium covers professional liability arising from patient treatment errors during pressurized oxygen sessions. It is based on the risk profile of the medical procedures offered and the required physician supervision. This expense must be covered before calculating operating profit.
- Fixed monthly cost: $3,000.
- Coverage required for all treatments.
- Essential for regulatory compliance.
Managing Risk
Managing this fixed premium means focusing on loss prevention, not just premium negotiation. A poor claims history will defintely spike future rates quickly, making this cost variable over time. Ensure all treatment protocols meet the standards set by referring physicians to keep risk low.
- Maintain perfect compliance records.
- Review coverage limits annually.
- Keep claims history clean.
Overhead Context
While this insurance cost is fixed at $3,000, it is only one piece of your overhead. Compare it to the $45,833 payroll starting in 2026. If patient volume is low, this insurance cost represents a much higher percentage of your gross margin, so utilization is key to absorbing it efficiently.
Running Cost 4 : Variable Medical Supplies
COGS at 50 Percent
Your Variable Medical Supplies cost is locked at 50% of revenue, covering critical items like medical-grade oxygen and disposables. This means your gross margin starts at 50% before factoring in fixed overheads or the substantial marketing spend.
Input Costs Tracking
This 50% COGS covers medical-grade oxygen and all disposable treatment supplies used per patient session. To validate this, you need the unit cost for oxygen tanks or bulk supply versus the price of disposable items like tubing. If you project $200,000 in monthly revenue, supplies will cost exactly $100,000.
- Track oxygen consumption per hour.
- Standardize disposable supply kits.
- Verify supplier volume discounts.
Cost Control Tactics
To manage this 50% input cost, focus on procurement leverage, defintely. Negotiate volume discounts for medical-grade oxygen based on your projected annual usage, not just monthly needs. Standardize disposable kits to reduce waste from unused components.
- Lock in bulk oxygen pricing now.
- Audit disposable kit contents monthly.
- Watch for inventory shelf-life issues.
Margin Pressure Point
Because COGS consumes half your revenue, the remaining 50% gross margin must cover all fixed operating expenses ($12k lease, $45.8k payroll, etc.) plus the 50% marketing budget. This structure means high patient volume is essential to cover fixed costs quickly.
Running Cost 5 : Patient Acquisition Marketing
Variable Spend Trap
Your patient acquisition marketing is budgeted at 50% of revenue to hit volume targets, but you're facing a structural problem. Since variable medical supplies also cost 50% of revenue, you generate zero gross contribution before covering your fixed overhead of $19,800 monthly.
Budgeting Marketing Volume
Marketing spend must scale with the revenue needed to utilize your chambers effectively. To budget this, first determine the required monthly revenue that covers your fixed base of $19,800, plus a profit margin. If you target $60,000 in monthly revenue, the marketing allocation is immediately fixed at $30,000.
- Revenue target drives marketing spend.
- Marketing funds capacity utilization.
- Costs must be tracked daily.
Optimizing Acquisition Rate
Because marketing is half your revenue, you must aggressively reduce your Cost Per Acquisition (CPA). Shift focus from expensive general advertising to physician referral channels, which are often more qualified and cheaper to convert. If you can shift 20% of volume from paid ads to referrals, you save defintely $6,000 monthly toward fixed costs.
- Prioritize physician referrals over ads.
- Track CPA by referral source.
- Negotiate better media rates.
The Margin Reality Check
This 50% marketing spend, combined with 50% supply costs, means you must raise prices or cut supplies immediately. You need at least a 10% contribution margin above variable costs just to cover your fixed payroll and facility costs.
Running Cost 6 : Utilities and Cleaning
Fixed Upkeep Cost
Fixed utilities and specialized medical cleaning are a non-negotiable $2,500 monthly overhead for this clinic. This covers essential operational upkeep, including maintaining the sterile conditions required for hyperbaric oxygen therapy (HBOT) treatments. Don't confuse this fixed base with variable consumption costs that might fluctuate slightly.
Cost Inputs
This $2,500 monthly expense covers two distinct fixed items: standard utilities and specialized medical cleaning protocols. You need quotes from local providers for both services starting January 1, 2026, to lock this figure in. It’s a small but critical piece of your fixed monthly base before the $45,833 payroll expense.
- Utilities cover power for chambers and HVAC.
- Cleaning covers mandated clinical sanitation levels.
- This cost is fixed for the facility lease term.
Optimization Tactics
Reducing costs here risks compliance failure, so focus on efficiency, not cuts. Negotiate longer utility contracts to lock in lower rates, potentially saving 5% annually. Ensure cleaning schedules are optimized for low-traffic periods; defintely avoid letting the vendor dictate frequency without review. A common mistake is underestimating the cost of specialized medical waste disposal.
- Benchmark utility rates against local commercial averages.
- Audit cleaning scope every six months.
- Do not bundle cleaning with general facility maintenance.
Operational Risk
Never treat this cost as discretionary; it directly supports the regulatory compliance and patient safety standards required for HBOT. If cleaning standards slip, you risk immediate operational shutdown, regardless of patient volume. This $2,500 is operational insurance against downtime.
Running Cost 7 : Software and Professional Fees
Admin Tech Costs
Essential administrative overhead for software and professional services locks in at $2,300 per month. This covers required technology like the Electronic Health Record (EHR) system and necessary external compliance expertise for operating a specialized medical clinic.
Cost Inputs
This $2,300 is a fixed monthly drain covering critical infrastructure. You need signed quotes for the EHR software tier, which must support medical billing, plus retainer agreements for specialized external services like legal review or high-level accounting support. This cost is non-negotiable for compliance.
- EHR software subscription fees.
- Retainer for external legal/accounting.
- Total fixed monthly spend.
Managing Fixed Fees
Since these are fixed, focus on usage efficiency, not cutting the core tools. Review your EHR licenses annually; if you have ten seats but only use seven, downgrade the tier. Be defintely wary of adding too many auxiliary software tools early on that fragment patient data or increase complexity. Bundle professional services if possible.
- Audit software seat counts.
- Bundle professional services.
- Avoid unnecessary compliance tools.
Pricing Impact
At $2,300 monthly, this administrative cost is minor compared to payroll ($45.8k) but still significant. If you only run 100 treatments in a slow month, this overhead alone adds $23 per treatment before you account for oxygen supplies or marketing spend. Price every session to cover this.
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Frequently Asked Questions
Fixed costs start at $65,633 per month, primarily driven by payroll and the $12,000 facility lease Variable costs add about 120% of revenue, leading to a projected EBITDA of $1128 million in the first year;