Concierge Medicine Startup Costs: $166K CAPEX Plus $696K Cash
Concierge Medicine
Plan for $166,000 in identified startup CAPEX and a modeled $696,000 minimum cash need by Month 6 before the practice reaches breakeven The first operating year includes $36,000 of marketing, $460,000 of clinical and admin payroll, and $14,100 per month of non-payroll fixed costs, so working capital matters as much as office setup Actual concierge medical practice costs vary by state, office size, staffing model, and patient panel ramp
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Startup CAPEX Calculator
This estimates capitalized startup assets only, not ongoing operating cash needs.
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What this excludes This calculator covers startup CAPEX only. It excludes working capital, payroll runway, deposits, debt service, rent after opening, malpractice after launch, taxes, owner draw, ongoing member acquisition, and other operating expenses.
What does the CAPEX and runway view show?
This Concierge Medicine Financial Model Template screenshot shows the CAPEX tab, with startup costs, timing, amounts, and depreciation or amortization; review assumptions now.
Key model checks
$166,000 CAPEX
Month 6 breakeven
$696,000 minimum cash
$148,000 Year 1 EBITDA
15-month payback
Check fees and mix
Validate CAC, rent, malpractice
Review legal, software, supplies
Confirm staff ramp timing
Concierge Medicine Financial Model
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How do you fund a concierge medicine practice?
Fund Concierge Medicine by building the membership ramp and cash model first; don’t start with the loan. With Year 1 fees of $200 for individuals, $500 for families, and $3,000 for corporate executives, plus $36,000 in marketing and $150 CAC, the plan shows $166,000 in CAPEX but a peak funding need of $696,000 by Month 6.
Plan the cash need
Model payroll, rent, and marketing.
Set patient panel capacity first.
Use CAC at $150.
Keep runway past Month 6.
Use the fee mix
Price individuals at $200.
Price families at $500.
Price executives at $3,000.
Match funding to ramp timing.
How much money do you need to start a concierge medicine practice?
You need $696,000 in minimum cash by Month 6 to start Concierge Medicine under this model, even though setup CAPEX is only $166,000. This is budget planning, not valuation, and How Is The Patient Satisfaction Level For Concierge Medicine? should sit beside the cash plan because member retention depends on care quality.
Cash Needed
$166,000 setup CAPEX
$696,000 minimum cash by Month 6
$14,100 monthly non-payroll fixed costs
Breakeven occurs in Month 6
Main Driver
$220,000 physician payroll
$130,000 nurse practitioner payroll
$45,000 medical assistant payroll
$65,000 office manager payroll
What does it cost to convert a primary care practice to concierge medicine?
If there’s an existing primary care practice, Concierge Medicine conversion is usually cheaper than a new build, but it still needs a real launch budget. A from-scratch setup runs about $166,000 CAPEX, while an existing lease, EHR, furniture, staff, and patient panel can lower that cash need. Still plan for legal review, membership agreements, patient notices, enrollment marketing, billing and software changes, plus compliance review; Year 1 mix is often 45% individual, 40% family, and 15% corporate executive package.
From scratch
$166,000 CAPEX baseline
Legal review before launch
Membership agreements and notices
Billing, software, compliance changes
Existing practice
Existing lease can save cash
Installed EHR cuts setup work
Furniture and staff may already exist
Year 1 mix: 45%, 40%, 15%
Calculate Fuding Needs
Startup cost summary
This table summarizes startup CAPEX and excluded cash needs for a concierge medicine clinic using researched planning assumptions.
Highlighted CAPEX$166,000Base planning example
Excluded cash needs$696,000Outside CAPEX total
Funding need$862,000CAPEX + excluded cash needs
Cost Category
Base Estimate
Main Cost Driver
CAPEX Calculator
Clinic buildout and furnishings
$33,000
Office setup, furniture, and signage
Yes
Medical diagnostic equipment
$35,000
Equipment scope and device count
Yes
EHR and patient software
$53,000
EHR rollout and patient portal scope
Yes
IT and telemedicine setup
$30,000
Hardware, networking, and video setup
Yes
Security and data protection systems
$15,000
Access controls and data safeguards
Yes
Cash runway reserve
$696,000
Month 6 runway for payroll and fixed costs
No
Concierge Medicine Core Five Startup Costs
Office Lease, Buildout, and Clinical Space Setup Startup Expense
Clinic Space Cost
A concierge clinic usually starts with $6,500 monthly rent and facility cost, plus deposits, leasehold improvements, accessibility work, waiting area, consult room, exam rooms, signage, furniture, utilities, and maintenance. The base setup also includes $25,000 for clinic furniture and office setup and $8,000 for signage and branding materials.
Buildout Inputs
Here’s the quick math: use monthly rent of $6,500, then add one-time leasehold improvements, deposits, and room buildout. Count the spaces you need, then price each item by quote. Keep leased improvements separate from buying property, since this startup cost is for fit-out, not real estate ownership.
Price each room by quote
Track deposits separately
Do not mix in land purchase
Monthly Run Rate
Budget $1,200 per month for utilities and maintenance on top of rent. That puts base space carrying cost near $7,700 a month before payroll, software, and supplies. If the lease is in a high-cost area, keep that extra real estate burden outside the base CAPEX so you do not distort launch math.
Rent and facility: $6,500
Utilities and maintenance: $1,200
Exclude unusually high rent
Keep the Setup Tight
Use the $25,000 furniture and office setup budget for essentials only, then layer in the $8,000 signage and branding line after the lease is secure. The main savings come from right-sizing the waiting area and exam room finishes, while still meeting accessibility needs and keeping the space patient-ready.
Clinical Equipment and Initial Medical Supplies Startup Expense
Clinical Gear Budget
This covers the one-time clinical setup: exam tables, diagnostic tools, vitals equipment, minor procedure supplies, and vaccine or lab storage if you need it. Start with $35,000 of diagnostic equipment CAPEX, then size by exam room count and service scope. More procedures mean more gear, more PPE, and more consumables.
How to Size It
Separate one-time equipment from recurring medical supplies. Use 80% of Year 1 revenue as the medical supplies and diagnostic equipment expense target, then adjust for the number of exam rooms, the refill cycle, and whether you offer vaccines or in-office procedures.
Count rooms first.
Quote each device.
Set stock months.
Keep It Tight
Keep the launch lean by buying only what each room needs and delaying specialty gear until volume proves it out. The fastest way to overspend is stocking for procedures you do not yet book. Ask for quotes, tie purchases to room count, and set reorder levels for PPE and consumables.
Scope Drives Cost
A basic primary care room set costs far less than a clinic built for injections, minor procedures, or lab handling. If you add specialty services, this budget climbs fast because each new service needs more equipment, storage, and consumables. Match the spend to your clinical scope, not just your headcount.
EHR, Telehealth, Patient Portal, and Billing Software Startup Expense
Launch Stack
Your one-time software build is $98,000: $45,000 for EHR implementation, $12,000 for telemedicine and video, $8,000 for the patient portal and scheduling, $18,000 for IT infrastructure, and $15,000 for security and data protection. Price each line with vendor quotes, user counts, and setup scope.
What It Covers
This stack covers secure messaging, recurring membership billing, phone systems, cybersecurity, and IT onboarding. Estimate it from licenses, seats, and months of service, then keep it separate from the one-time install fee. One clean rule: setup is a startup cost, while SaaS is monthly operating spend.
Count active users and admins
Quote onboarding separately
Track monthly licenses
Year 1 Run Rate
Use 90% of Year 1 revenue for Electronic Health Records and software licenses. That is a heavy operating load, so build the model around membership growth and cash timing. What this estimate hides is vendor terms, seat count, and how much of the workflow sits inside one platform.
Budget Test
If onboarding takes longer, software spend climbs fast because the recurring stack follows daily use. Keep the first purchase list tight, then add tools only after the clinic workflow is live and the monthly billing, messaging, and scheduling flow works cleanly.
Legal, Licensing, Credentialing, Compliance, and Insurance Startup Expense
What it covers
This budget covers entity formation, a healthcare attorney review, membership agreement setup, state medical board compliance, and, if needed, DEA registration and a CLIA waiver. It also includes HIPAA policies, credentialing, and malpractice coverage. A working monthly base starts at $2,500 for professional liability insurance plus $1,500 for legal and accounting support.
How to price it
Price this by state, payer participation, corporate practice rules, and whether the practice bills insurance. If you bill payers, credentialing and contract work usually rise. The clean split is one-time setup for formation and policies, then recurring monthly support for insurance, compliance, and accounting.
Watch the scope
The hidden driver is how much of the practice touches insurance. A cash-pay model can be simpler, but payer enrollment adds work fast. Ask counsel for a fixed scope on formation, agreements, and policy review, then keep the monthly retainer tied to actual compliance and credentialing load.
Budget guardrails
What this estimate hides is state filing fees, board rules, and the size of the credentialing stack. Split the budget into one-time legal setup and ongoing compliance, then update the quote after the practice model is set and the insurer path is clear.
Pre-Opening Staffing, Training, and Launch Marketing Startup Expense
Pre-Opening Payroll
Treat this as pre-opening working capital, not equipment CAPEX. Year 1 payroll totals $460,000: physician $220,000, nurse practitioner $130,000, medical assistant $45,000, and office manager and billing specialist $65,000. Spread evenly, monthly payroll is about $38,333 before taxes and benefits. Add $36,000 for recruiting, onboarding, training, scripts, scheduling workflows, and member acquisition.
Budget It Right
Keep this in the operating budget because the cash lands before member fees do. Use hiring dates, onboarding time, and launch date to stage spend. The clean benchmark is $150 CAC; $36,000 in launch marketing supports about 240 member starts if performance holds.
Hire to the launch date.
Track monthly payroll burn.
Separate training from equipment.
Launch Cash Need
This spend needs cash on day one because payroll starts before members pay. One month of staffing burn is about $38,333 before taxes and benefits, and year-one launch marketing is $36,000. If CAC stays at $150, that budget buys about 240 new members.
Working Capital First
Build this cost as cash runway, not a one-time asset. The main risk is starting payroll and marketing too early, before appointment flow is live. Keep the spend tied to launch dates, onboarding milestones, and the $150 CAC target so the first months of membership growth cover the run rate.
Compare 3 Startup Cost Scenarios
Startup cost scenarios
Clinic size, staffing, and launch spend move the cash need fast in this model. Lean, base, and full launches show how much funding changes with service scope.
Lean, base, and full launch cost bands
Scenario
Lean LaunchSmall footprint
Base LaunchStandard clinic
Full LaunchPremium scope
Launch model
Lean launch keeps the footprint small with fewer rooms, lighter staffing, and a simpler buildout.
Base launch uses the model's $166,000 capex, $14,100 monthly non-payroll fixed costs, $460,000 Year 1 payroll, and $36,000 Year 1 marketing, with minimum cash of $696,000 at Month 6.
Full launch adds more exam rooms, richer technology, heavier marketing, and broader service scope.
Typical setup
Solo physician model with limited support staff, basic telehealth, and only essential equipment.
One physician-led clinic with standard exam rooms, core EHR, and a compact support team.
Multi-provider clinic with stronger admin support, more patient capacity, and deeper digital tools.
Cost drivers
Smaller buildout
lower payroll
basic tech
lean marketing
lower rent
Buildout and equipment
payroll
rent and admin
software and supplies
marketing
Larger buildout
higher payroll
heavier marketing
more software
more rooms
Planning rangeCAPEX only
$450,000 - $600,000Lowest funding
$650,000 - $750,000Base funding
$800,000 - $1,100,000Highest funding
Best fit
Best for founders testing demand or opening a first clinic with tight capital.
Best for founders who want a conventional clinic footprint and can fund the full opening ramp.
Best for founders targeting affluent markets and ready to fund growth from day one.
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Planning note: These ranges are researched planning assumptions from the model, not exact vendor quotes or fixed bids.
Budget $166,000 for identified one-time CAPEX, then plan for a much larger cash cushion In this model, minimum cash reaches $696,000 by Month 6, when breakeven occurs The opening spend includes $45,000 for EHR implementation, $35,000 for diagnostic equipment, and $25,000 for furniture and office setup
This model reaches breakeven in Month 6, but that depends on membership ramp and staffing choices The practice carries about $38,333 of monthly payroll from Year 1 salaries before taxes and benefits, plus $14,100 of monthly non-payroll fixed costs If member signups lag, the cash runway must cover more months
You may need credentialing if the practice bills insurers or uses a hybrid reimbursement model A pure membership model may reduce payer admin, but it does not remove licensing, compliance, malpractice, or billing setup costs The model includes $1,800 per month for billing and administrative services and $2,500 per month for professional liability insurance
Start with the actual price ladder in the plan, then stress test it This model uses Year 1 monthly fees of $200 for individual membership, $500 for family membership, and $3,000 for corporate executive packages The Year 1 mix is 45 percent individual, 40 percent family, and 15 percent corporate
It can lower office-related spend, but it does not erase the operating budget Avoiding a clinic may reduce the $6,500 monthly facility cost and some furniture setup, but you still need medical equipment, EHR, telehealth, malpractice, scheduling, cybersecurity, and working capital Travel time can also cap patient capacity and slow membership ramp
About the author
Adam Fletcher
Small Business Writer
Adam Fletcher is a small business writer at Financial Models Lab who researches how small businesses launch, operate, and earn money. He focuses on business affordability analysis and helps readers evaluate business ideas with a practical eye, especially when planning a business with limited capital. His work connects new ventures to realistic startup budgets in a clear, plain-spoken way for people starting out with less money.
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