CDT Clinic Startup Costs: $168K CAPEX, $865K Cash

You’re planning a Complete Decongestive Therapy (CDT) clinic before payer cash is steady, so the budget has to cover assets, opening costs, and runway This researched planning case includes $168,000 in startup CAPEX, $9,550 in monthly fixed overhead, and a modeled $865,000 minimum cash need in Month 2 These are planning assumptions for the first operating year, not vendor quotes or guaranteed pricing

Estimate Startup Costs with Calculator

Startup CAPEX Calculator

This estimates capitalized startup assets only before opening, not ongoing operating funding.

Excludes non-CAPEX needs This tool covers capitalized startup assets only. It excludes working capital, payroll runway, rent deposits, debt service, medical supply inventory, marketing spend, credentialing lag, and other operating expenses.

Calculate Fuding Needs

Startup cost summary

This table covers main startup assets and excluded launch cash needs for a lymphedema clinic.

Highlighted CAPEX$138,000Base planning example

Excluded cash needs$865,000Outside CAPEX total

Funding need$1,003,000CAPEX + excluded cash needs

Cost Category	Base Estimate	Main Cost Driver	CAPEX Calculator
Office and reception buildout	$45,000	Leasehold improvements	Yes
Diagnostic imaging equipment	$35,000	Therapy equipment	Yes
Pneumatic compression pumps	$25,000	Compression therapy equipment	Yes
Patient exercise and gym equipment	$18,000	Rehab equipment setup	Yes
IT infrastructure and EHR setup	$15,000	Clinical technology setup	Yes
Operating reserve	$865,000	Payroll runway, fixed overhead, and excluded launch cash	No

What should the CAPEX tab show?

Open the Complete Decongestive Therapy Service Financial Model Template CAPEX tab: it should show startup costs, launch timing, amounts, and depreciation or amortization. It also tests working capital and cash pressure—$168,000 CAPEX, $865,000 Month 2 cash, and $709,000 Year 1 revenue—so review assumptions now.

Screenshot highlights

$45,000 buildout
$25,000 pumps
$15,000 IT setup
$9,550 fixed overhead

Complete Decongestive Therapy Service Financial Model capex inputs showing capital expenditure categories and customizable equipment, facility and setup cost drivers to plan investment needs and cash timing.

Compare 3 Startup Cost Scenarios

Scenario table

Room count, equipment depth, staffing, and payer setup drive launch cost here. Lean cuts the footprint; base matches the model; full adds rooms, outreach, and working capital.

Lean, base, and full launch cost comparison for a lymphedema clinic.
Scenario	Lean LaunchSmall footprint	Base LaunchModeled clinic	Full LaunchScale build
Launch model	Start with a small outpatient footprint, fewer rooms, and tight staffing to keep launch cash use down.	Use the model's outpatient setup with four clinical providers in Year 1 and the stated fixed overhead.	Open with a larger, multi-room setup, broader therapist mix, and heavier referral outreach.
Typical setup	Use fewer treatment rooms, lighter diagnostic gear, thinner compression inventory, and lighter front-desk coverage.	Run the planned clinic build with standard room count, core equipment, and full front-office support.	Add more rooms, more exercise space, deeper compression inventory, and more payer setup work.
Cost drivers	Room count diagnostic equipment compression inventory front-office staffing referral marketing	Therapist mix room count staffing capex buildout payer setup	Room count therapist mix exercise space payer setup referral outreach
Planning rangeCAPEX only	Below base cash needLower band	$865,000Base case	Above base cash needHigher band
Best fit	Best for a founder with a tight lease, simple payer mix, and low working-capital tolerance.	Best for a founder who wants the modeled outpatient scale and can fund the $865,000 cash need.	Best for a founder with room to grow, a stronger lease, and enough cash to support a larger launch.

Planning note: These ranges are researched planning assumptions, not exact quotes, and they help size launch cash needs across a lean, base, or full setup.

How do you fund a Complete Decongestive Therapy Service?

To fund a Complete Decongestive Therapy Service, don’t stop at the $168,000 CAPEX. The stack has to cover pre-opening costs, deposits, payroll runway, credentialing delay, and a $865,000 minimum cash need in Month 2, because Year 1 revenue is only modeled at $709,000. Here’s the quick math: build for a utilization ramp from 400% to 650% in Year 1, with prices from $150 to $225 and 140 to 160 treatments per provider each month.

Funding stack

$168,000 CAPEX
Pre-opening expenses
Lease and vendor deposits
Payroll runway before collections

Downside cases

Slower referral flow
Denied claims pressure cash
Delayed payer enrollment
Higher therapist hiring cost

What hidden costs come with starting a Complete Decongestive Therapy Service?

Hidden costs are the cash you need before the clinic is fully paid and busy: rent deposits, insurance deposits, payer credentialing lag, pre-opening payroll, training time, referral outreach, initial compression supplies, billing setup, and runway. For a Complete Decongestive Therapy Service, don’t treat these as one-time setup only; the base load is $9,550 in monthly fixed overhead plus a $219,000 annual non-therapist wage base. If you want the owner-pay view, see How Much Does Owner Make From Complete Decongestive Therapy?

Up-front cash traps

Rent and insurance deposits
Payer credentialing can lag
Pre-opening payroll burns cash
Training adds paid time

Year 1 cost load

Bandaging and supplies: 85%
Compression inventory: 55%
Billing and claims: 50%
Referral marketing: 40%

How much does it cost to start a Complete Decongestive Therapy Service?

A Complete Decongestive Therapy Service needs about $865,000 of startup funding at the modeled cash low point in Month 2, not just the $168,000 in startup CAPEX. For owner-income context after launch, see How Much Does Owner Make From Complete Decongestive Therapy?; the Year 1 plan shows $709,000 revenue and $293,000 EBITDA from 4 clinical providers.

Startup Cash Need

$168,000 startup CAPEX for physical assets
$697,000 for pre-opening and working capital
$865,000 modeled minimum cash need in Month 2
Separate buildout assets from operating runway

Revenue Math

$709,000 ÷ 4 providers = $177,250 per provider
$293,000 EBITDA equals a 41.3% margin
Revenue depends on treatments, price, and utilization
Credentialing, lease condition, hiring, and referrals move cash

Key Takeaways

Leasehold buildout drives launch cost and room capacity.
Equipment CAPEX covers therapy tables, pumps, imaging, and exercise.
Inventory timing matters: supply cash hits from Month 5.
Staffing and software set monthly operating pressure.

Complete Decongestive Therapy Service Core Five Startup Costs

Clinical Space and Leasehold Improvements Startup Expense

Buildout Base

The clinic shell for Complete Decongestive Therapy (CDT) starts at $45,000 for office and reception buildout plus $7,500 for signage and branding assets. That is $52,500 before equipment. The cost moves with square footage, lease condition, landlord delivery state, room count, privacy layout, handwashing needs, compression storage, and whether exercise space opens on day one.

Layout Inputs

Estimate the space by room count and patient flow, not by guesswork. Start with treatment rooms, reception, privacy screens, accessible paths, handwashing or clinical workflow needs, storage for compression supplies, and an exercise area. If the landlord delivers a finished shell, the buildout is lighter; if not, tenant improvements climb fast. Fixed rent is $6,500 a month from Month 1.

Count treatment rooms first.
Map accessible patient flow.
Decide on exercise space at launch.

Keep It Lean

Keep the buildout lean by phasing noncritical space, especially the exercise area, until demand justifies it. Push for a landlord allowance and clear delivery condition in the lease, since those two items can shift the cash need more than décor does. Don’t oversize reception or storage. Square footage and room count drive cost, so every extra room should earn its keep.

Negotiate landlord allowances.
Delay exercise build if needed.
Match rooms to near-term demand.

Rent Load

$6,500 in monthly rent starts in Month 1, so the clinic carries fixed occupancy cost before patient volume ramps. That makes lease start date, build speed, and opening schedule part of startup cash planning, not just operations. Rent sits on top of the $52,500 base buildout, so working capital needs should cover both.

Therapy Equipment and Clinical Assets Startup Expense

Core CDT gear

This CAPEX covers the core CDT room gear: $12,500 clinical treatment tables, $25,000 pneumatic compression pumps, $35,000 diagnostic imaging equipment, and $18,000 exercise and gym equipment. Add bolsters, stools, measurement tools, compression aids, storage, laundry or sanitation setup, and patient education materials. Keep it to durable assets only; leave consumables and resale stock out.

Build the quote

Build the estimate with units × unit price, vendor quotes, and a clean split between durable gear and consumables. The model source implies $90,500 in included equipment CAPEX before smaller support items. One line per asset helps you compare bids and keep payroll, rent, and marketing out of the equipment budget.

Count each asset separately
Keep consumables outside CAPEX
Use written quotes only
Track support items by line

Trim smart

To lower spend without hurting care, phase noncritical add-ons and ask vendors to bundle delivery, setup, and training. Buy the highest-use items first, but do not cut treatment tables, pumps, or core imaging if they are needed at launch. Savings usually come from quote competition and bundled deals, not from stripping the room bare.

Budget fit

This sits in startup CAPEX, so it changes the cash needed before the first paid visit. Quick math: core equipment totals $90,500, and that is separate from payroll runway and marketing. What this estimate hides is replacement timing and any state-specific equipment rules, so keep the asset list tight and documented.

Licensing Credentialing Compliance and Insurance Startup Expense

Startup compliance costs

A lymphedema clinic needs state therapy licensing, business formation, payer credentialing, NPI setup, billing setup, privacy compliance, and legal review before first claims go out. Treat these as planning buckets, not legal advice. The model’s fixed monthly insurance and dues run $1,750: $1,200 malpractice, $250 general liability, and $300 licensing and dues.

What to budget

This cost covers the setup needed to treat and bill safely: state practice requirements, payer enrollment, NPI, billing workflows, professional liability, general liability, workers’ compensation, privacy compliance, and legal review. Estimate it by counting required filings, payer contracts, and months of coverage. The key budget line is the recurring $1,750 per month in the model.

Check state therapy rules first
Confirm payer credentialing steps
Separate legal from insurance costs

How to keep it tight

Use one advisor to handle formation, credentialing, and billing setup so you do not pay twice for the same work. Ask for quotes on malpractice and general liability before launch, and avoid buying extra coverage you do not need. The savings come from clean paperwork and fewer rework cycles, not from skipping required compliance.

Bundle legal reviews when possible
Update licenses before payer filing
Keep worker coverage active on day one

Monthly fixed load

On the model, compliance and insurance add $1,750 per month in fixed cost. That is $21,000 over 12 months, before any state fees, payer delays, or one-time legal work. If credentialing slips, cash gets tight fast because these costs start before full reimbursement does.

Compression Supplies and Bandaging Inventory Startup Expense

Inventory Timing

Build in $10,000 of initial medical supply inventory as CAPEX, timed from Month 5 to Month 12. This stock covers care used during CDT, not just shelf fill. The cash need depends on how fast treatments ramp, because bandaging items turn over with visits and garment stock may sit until the right size sells.

What To Stock

Budget for short-stretch bandages, padding, foam, liners, wraps, measuring supplies, hygiene consumables, and sample garments. Treat bandages, padding, foam, liners, measuring tools, and hygiene items as treatment consumables. Treat wraps that are billed through to patients as pass-through supply. Treat sample garments and patient-sized compression garments as retail inventory.

Bandages: treatment consumable
Wraps: pass-through supply
Garments: retail inventory

Year 1 Cost Rate

Use the model’s Year 1 cost assumptions: 85% of revenue for medical bandaging and clinical supplies, and 55% for compression garment inventory. That means the clinic needs tight tracking on what is used in treatment versus what is sold later. One clean rule helps: separate patient-care stock from resale stock on day one.

Track use by service line
Separate resale from care stock
Reorder by turnover, not fear

Cash Flow Control

This cost stays safer when you buy in small lots, match orders to booked visits, and keep garments in the sizes patients actually need. The timing matters: consumables hit cash before use, while retail inventory ties up cash until sale. What this estimate hides is size mix, replacement pace, and how much stock the clinic keeps on hand.

Staffing Software and Launch Operations Startup Expense

Staffing mix

Year 1 staffing is the main launch cost. Plan for 1 senior certified lymphedema therapist specialist, 1 staff physical therapist, 1 occupational therapist, and 1 massage therapist certified in lymphedema care, plus $115,000 for the clinic director, $42,000 for front desk, $24,000 for half-time billing, and $38,000 for the clinical assistant.

Software setup

Use $450 per month for EHR and practice management, or $5,400 a year, plus $15,000 in IT infrastructure and EHR setup CAPEX. Estimate it from user seats, implementation quotes, and go-live months. Keep software out of payroll so the startup budget stays easy to read.

Launch spend

Set referral launch activity at 40% of Year 1 revenue, then tie spend to referral outreach, provider education, and payer setup. This keeps marketing from drifting into fixed overhead. If patient volume misses plan, trim weak channels first and protect therapist time for billable visits.

Cost control

Hire in step with patient flow, not ahead of it. In this model, the cleanest control points are staffing ramp, one-time EHR setup, and referral spend, because those three items move fastest when launch timing slips.