Ophthalmology Clinic Running Costs
Running an Ophthalmology Clinic requires significant fixed overhead and specialized payroll Expect monthly operating costs in 2026 to start around $201,517, driven primarily by specialized staff and facility lease payments ($25,000/month) Your largest single expense category is payroll, totaling about $96,458 monthly in Year 1 Variable costs, including medical supplies (60% of revenue) and pharmaceuticals (70% of revenue), add another 130% to your cost of goods sold (COGS) This guide breaks down the seven core monthly expenses you must track to maintain profitability, especially given the high initial capital expenditure (CapEx) of over $2 million for equipment like the Advanced Surgical Laser ($750,000)
7 Operational Expenses to Run Ophthalmology Clinic
| # | Operating Expense | Expense Category | Description | Min Monthly Amount | Max Monthly Amount |
|---|---|---|---|---|---|
| 1 | Staff Payroll | Salaries/Personnel | Salaries for 95 FTEs, covering all clinical and administrative roles, total $96,458 monthly in 2026. | $96,458 | $96,458 |
| 2 | Facility Lease | Fixed Overhead | Fixed monthly cost for the physical location secured via a long-term lease agreement. | $25,000 | $25,000 |
| 3 | Medical Supplies | Cost of Goods Sold (COGS) | Variable costs for disposables, lenses, and general medical items, starting at 60% of revenue. | $19,598 | $19,598 |
| 4 | Pharmaceuticals | Cost of Goods Sold (COGS) | Specialized variable costs for pharmaceuticals and injectables, estimated at 70% of revenue. | $22,864 | $22,864 |
| 5 | Insurance/Liability | Fixed Overhead | Fixed monthly expense covering medical malpractice ($8,000) and general liability ($1,000). | $9,000 | $9,000 |
| 6 | Utilities/Maint. | Fixed Overhead | Fixed operational costs including utilities ($2,500) and facility maintenance ($1,200). | $3,700 | $3,700 |
| 7 | Tech/Billing Fees | Technology/Admin Fees | Covers Practice Management Software ($1.5k), IT Support ($1.8k), and variable insurance processing fees. | $3,300 | $3,300 |
| Total | All Operating Expenses | $179,920 | $179,920 |
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What is the minimum sustainable monthly operating budget required to run the Ophthalmology Clinic?
The minimum sustainable monthly operating budget for the Ophthalmology Clinic must cover $139,458 in fixed and labor expenses, requiring substantial upfront capital to survive the projected negative cash flow peak of -$832,000 in June 2026.
Monthly Cost Floor
- Fixed overhead sits at $43,000 monthly.
- Minimum required payroll is $96,458.
- Total baseline monthly requirement is $139,458 before accounting for variable costs.
- Revenue targets must clear this operational floor before profitability starts.
Cash Runway Imperative
- The biggest immediate risk is the projected negative cash flow peak of -$832,000.
- This cash gap must be covered by initial funding or reserves, defintely not operating cash flow.
- If you're planning out the initial setup, look at How Much Does It Cost To Open An Ophthalmology Clinic? for setup context.
- Sustainability depends on bridging this gap until revenue consistently exceeds the $139,458 monthly floor.
Which cost categories represent the largest recurring financial risks and opportunities for efficiency?
The largest recurring financial risks for the Ophthalmology Clinic stem from personnel costs, specifically the $350,000 annual salary for the Lead Ophthalmologist, and the unsustainable 130% COGS projection for 2026, while the immediate opportunity lies in renegotiating the $25,000 monthly facility lease.
Personnel and Fixed Cost Levers
- Lead Ophthalmologist salary is a fixed $350,000 annually, demanding high utilization.
- Facility lease is $25,000 per month; review escalation clauses now for long-term risk.
- High fixed costs mean you need consistent procedure volume just to cover overhead.
- If onboarding takes 14+ days, churn risk rises defintely.
Supply Chain Margin Erosion
- COGS (Cost of Goods Sold, or direct supply costs) hitting 130% of revenue in 2026 is a critical failure point.
- You must cut supply costs below 40% of revenue to achieve viability.
- Analyze purchasing agreements for high-volume surgical disposables immediately.
- Benchmark current supply expenditures against peer benchmarks to spot waste.
You must immediately tackle the projected 130% Cost of Goods Sold (COGS) for 2026; this means supplies cost more than revenue generated, which isn't sustainable. Before diving deep into that supply chain mess, you should review the overall operational health—Is The Ophthalmology Clinic Achieving Sustainable Profitability? The immediate goal is cutting supply costs below 40% of revenue.
How much working capital and cash buffer are needed to survive the first 12–24 months of operation?
You need enough liquidity to cover the peak operating deficit of $832,000 plus the $750,000 capital expenditure for the surgical laser before the 20-month payback period hits. Honestly, securing financing that covers at least $1.58 million is defintely essential to survive the initial ramp-up for the Ophthalmology Clinic.
Covering Peak Operating Burn
- If you are thinking about launching an Ophthalmology Clinic, you must understand that Have You Developed A Clear Business Plan For Ophthalmology Clinic To Successfully Launch Your Eye Care Practice? requires serious upfront capital planning.
- The model shows the lowest point for operating cash hits $832,000 negative in June 2026.
- This deficit must be covered by financing until the business achieves positive cash flow.
- Recovery time is estimated at 20 months from launch.
Accounting for Major Capital Needs
- Financing structure must account for immediate, large asset purchases alongside the operating burn rate.
- A key initial outlay is the $750,000 required for the surgical laser equipment.
- Your total liquidity cushion needs to bridge the gap between investment and revenue stabilization.
- If patient onboarding takes 14+ days, churn risk rises, delaying those first revenue injections.
If patient volume or reimbursement rates drop by 20%, how will we cover fixed running costs?
A 20% revenue shock immediately pressures your projected $1,334,000 EBITDA in Year 1, demanding quick cuts to discretionary spending before you touch clinical staffing levels needed for future capacity.
Modeling the 20% Revenue Shock
- A 20% volume or reimbursement drop directly reduces your projected $1,334,000 Year 1 EBITDA.
- Your first lever is the 30% marketing budget; cut this immediately to protect contribution margin.
- Calculate the exact dollar amount lost to see how many months of fixed overhead that covers.
- Don't wait for Q3 to act; immediate expense freezes save cash flow now.
Staffing Triggers vs. Service Capacity
- Staffing is sticky; cutting roles now hurts recovery speed later.
- Set a trigger point, like 3 straight months below 70% utilization, to pause hiring.
- If the downturn persists, you must defintely review the 20 FTE Ophthalmic Technicians planned for 2026.
- Understanding key metrics is vital for this decision; see What Is The Most Important Metric To Measure The Success Of Your Ophthalmology Clinic?
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Key Takeaways
- The estimated minimum sustainable monthly operating budget required to run a new 2026 Ophthalmology Clinic starts at approximately $201,517.
- Specialized staff payroll and benefits represent the largest single expense category, consuming nearly half of the monthly operating budget at $96,458.
- Managing the high Cost of Goods Sold (COGS), which averages 130% of revenue in the first year due to supplies and injectables, is crucial for profitability.
- Significant working capital is necessary to cover the initial negative cash flow peak of -$832,000 until the clinic achieves its estimated 20-month capital payback period.
Running Cost 1 : Staff Payroll and Benefits
Staff Payroll Baseline
Staff payroll and benefits are your largest fixed operating cost, hitting $96,458 monthly by 2026. This covers 95 full-time equivalents (FTEs), spanning specialized surgeons down to administrative support. You must budget precisely for this headcount to maintain service quality.
Inputs for Payroll Cost
Estimating this cost needs granular detail on staff mix. You need quotes for surgeon compensation versus administrative wages, plus the employer burden for taxes and insurance. For 95 FTEs, the $96,458 figure implies an average burdened cost of about $1,016 per employee per month, which seems low for specialized clinical roles.
- Verify surgeon salary benchmarks.
- Factor in 25% employer burden rate.
- Map hiring schedule to revenue ramp.
Controlling Labor Costs
Managing this high fixed cost means optimizing utilization, not cutting necessary staff. Since surgeons drive revenue, ensure their schedules maximize billable procedures daily. Avoid overstaffing front desk roles early on; use part-time or shared services until patient volume justifies the full 95 FTEs commitment.
- Stagger hiring based on patient flow.
- Cross-train admin staff immediately.
- Benchmark administrative wages vs. local clinics.
Payroll Risk Check
This $96,458 payroll commitment is locked in before major revenue hits. If patient volume projections for 2026 are missed, this fixed labor cost will quickly erode your operating margin. Review hiring timelines defintely against your Q1 2026 capacity needs.
Running Cost 2 : Facility Lease and Rent
Lease Fixed Cost
Securing the physical location for the clinic demands a fixed commitment of $25,000 per month. This rent is a bedrock fixed expense that must be covered regardless of patient volume. Founders need a long-term lease agreement in place to ensure operational stability for this specialized medical facility.
Cost Inputs
This $25,000 monthly covers the specialized physical space required for advanced diagnostics and surgical suites. Budgeting requires exact lease quotes detailing duration and any tenant improvement allowances. Here’s the quick math: if you secure a 5-year lease, that’s $1.5 million in committed rent over the term, excluding operating expenses.
- Negotiate lease duration commitment.
- Clarify included square footage estimates.
- Confirm security deposit requirements.
Managing Rent Risk
Since this is a fixed cost, management focuses on negotiation before signing. Look for rent abatement periods to offset build-out expenses. A major risk is signing a lease that doesn't scale well with future expansion needs. Aim for lease terms that align closely with your projected cash flow runway; defintely don't overcommit early.
- Negotiate rent-free months upfront.
- Ensure favorable early termination clauses.
- Factor in potential escalation clauses annually.
Fixed Cost Baseline
This $25,000 rent is a major component of your fixed overhead, sitting below the massive $96,458 payroll burden. You need enough patient volume to cover this high fixed base before variable costs start eating into margin. It sets the minimum revenue floor you must hit every single month.
Running Cost 3 : Medical Supplies (COGS)
Supply Cost Baseline
Medical supplies, covering disposables and lenses, are your primary variable expense after specialized injectables. Expect these Cost of Goods Sold (COGS) items to start at 60% of revenue, translating to roughly $19,598 monthly based on 2026 revenue estimates. This cost scales directly with patient volume, so managing inventory efficiency is crucial right away.
Inputs for Supply Cost
This 60% COGS bucket covers items used per procedure, like single-use lenses and standard disposables. You need itemized vendor quotes and usage tracking tied to specific procedures like cataract removal. It’s a major drag on gross margin, sitting just below the 70% pharmaceutical cost projection.
- Covers disposables and lenses.
- Scales directly with procedures.
- Starts at $19,598 monthly in 2026.
Controlling Supply Spend
You can’t skimp on quality for eye care, but you must negotiate volume tiers aggressively. Centralize purchasing across all surgeons to gain leverage with suppliers. Avoid stocking too many specialized, slow-moving SKUs that tie up capital unnecessarily. Defintely track spoilage rates.
- Negotiate multi-year supply contracts.
- Monitor usage variance against procedure codes.
- Target a reduction toward 55% over 18 months.
Margin Risk Check
If your actual supply cost exceeds 60% early on, immediately check your billing accuracy or procedure mix. High utilization of expensive surgical kits without corresponding high reimbursement rates will quickly erode profitability, especially since fixed payroll is already $96,458 monthly.
Running Cost 4 : Pharmaceuticals and Injectables (COGS)
High COGS Percentage
Injectable pharmaceuticals are a major cost driver for your ophthalmology practice. These specialized materials start at 70% of revenue, hitting roughly $22,864 monthly early on. This high percentage demands tight inventory control right out of the gate. Honestly, this cost line will define your initial gross margin.
Cost Breakdown
This cost covers sterile drugs, anesthetics, and specialized injectables used directly in patient procedures like cataract surgery or glaucoma treatment. The calculation relies on tracking usage against procedure volume. If revenue is $32,663 in month one, 70% is $22,864. That's a huge chunk of gross profit to manage.
- Covers sterile drugs and anesthetics.
- Tied directly to procedures performed.
- Input: Procedure volume $\times$ Unit cost.
Managing Injectables
Managing 70% COGS requires supplier negotiation and precise inventory tracking. Avoid overstocking high-cost, short-shelf-life items, which can lead to write-offs. Since this is a key variable cost, optimizing utilization directly improves margin performance. You defintely need better purchasing power here.
- Negotiate bulk pricing with suppliers.
- Implement strict expiration tracking.
- Audit waste rates monthly.
Margin Pressure Point
Because this cost is 70% of revenue, managing it is more important than managing the 60% medical supplies line item. If your projected revenue is low initially, this $22,864 fixed-percentage cost will pressure your operating runway hard before payroll kicks in.
Running Cost 5 : Medical Insurance and Liability
Insurance Fixed Cost
Your required insurance commitment is a fixed $9,000 per month. This covers both malpractice and general liability, making it a non-negotiable baseline expense before seeing the first patient in your specialized clinic.
Cost Inputs
This fixed cost combines two necessary coverages for specialized medical practice. Medical malpractice insurance is $8,000 monthly, protecting against claims related to surgical errors or misdiagnosis. General liability adds another $1,000 monthly for slips, falls, or property damage claims on site.
- Malpractice: $8,000/month
- General Liability: $1,000/month
- Total Fixed Insurance: $9,000/month
Managing Liability
Since this is fixed, you can’t cut it with volume, but you can manage the policy structure. Shop quotes annually, focusing on the deductible amount versus the premium increase. A higher deductible might save you 10% on the premium defintely, if your cash reserves can handle the increased self-insurance risk.
- Shop multiple brokers yearly.
- Evaluate deductible trade-offs.
- Ensure coverage scales with procedure volume.
Operational Context
Honestly, $9,000 monthly is a small fraction of your $96,458 staff payroll, but it’s a hard floor. This expense must be covered by your initial capital raise or operational cash flow before you even process your first billable cataract procedure.
Running Cost 6 : Utilities and Maintenance
Fixed Utility Baseline
Your facility overhead includes $3,700 monthly for essential non-clinical services. This covers $2,500 for utilities like power and water, plus $1,200 for required facility cleaning and maintenance. This is a predictable fixed cost you must cover before procedural revenue starts flowing. Defintely budget for this before seeing your first patient.
Utility Cost Inputs
This $3,700 figure is based on square footage and expected usage for a state-of-the-art clinical setting. Utilities ($2,500) depend on HVAC load for surgical suites and diagnostic equipment power draw. Maintenance ($1,200) reflects scheduled cleaning contracts necessary for HIPAA compliance and hygiene standards. You need quotes based on your planned facility size.
- Utilities: $2,500 monthly estimate.
- Maintenance: $1,200 for cleaning/repairs.
- Input: Facility square footage.
Control Facility Spend
Managing these fixed costs requires locking in favorable contracts early. Avoid variable maintenance agreements; fixed-price cleaning contracts offer better cost control. For utilities, look into energy-efficient diagnostic equipment upgrades, even if the upfront capital expenditure is higher. Small efficiency gains here compound over the lease term.
- Lock in fixed-rate utility contracts.
- Avoid hourly maintenance billing.
- Upgrade HVAC for efficiency gains.
Fixed Overhead Anchor
Utilities and maintenance are non-negotiable fixed costs totaling $3,700 monthly, which must be covered by your initial patient volume before you generate positive operating cash flow.
Running Cost 7 : Technology and Billing Fees
Tech and Billing Cost Structure
Technology and billing fees mix fixed software costs with a major variable hit tied directly to collections. You must manage the 30% insurance processing fee aggressively, as it dwarfs the $3,300 in monthly fixed tech expenses.
Breaking Down Fixed Tech Spend
Fixed technology spend is $3,300 monthly, covering the Practice Management Software ($1,500) and IT Support ($1,800). The big drain is the 30% Insurance Processing Fee, which scales directly with gross revenue.
- Fixed tech: $3,300 monthly.
- Variable fee: 30% of revenue.
- This fee applies after services are rendered.
Managing Variable Processing Fees
Optimize the 30% fee by improving front-end collections to reduce bad debt write-offs. Focus IT spend on systems that speed up clean claim submission, reducing rework time. If you process over $500k monthly, audit current clearinghouse contracts for lower tiers.
- Shift focus to upfront patient payments.
- Audit clearinghouse fee structures.
- Ensure swift claim scrubbing saves time.
Variable Cost Leverage
That 30% variable processing fee means every dollar of revenue has a high, built-in cost of acquisition before it hits your bottom line. If revenue targets are missed, this fee defintely accelerates margin compression faster than fixed costs do.
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Frequently Asked Questions
Monthly running costs for a clinic starting in 2026 are estimated at $201,517, with payroll accounting for $96,458 and fixed overhead at $43,000