Mental Health Clinic Startup Costs: $245K, 13 FTE

The cost to start a mental health clinic in this model begins with at least $245,000 of listed startup CAPEX before working capital That includes $150,000 for clinic build-out, $40,000 for furniture and fixtures, $30,000 for IT hardware and networking, $15,000 for telehealth equipment, and $10,000 for initial software licenses These are researched planning assumptions, not vendor quotes or guaranteed costs Total funding should also cover pre-opening costs and several months of runway because the first year plan carries $127,500 per month in payroll and $16,600 per month in fixed overhead

Calculate Fuding Needs

Startup cost summary

Startup costs for clinic build-out, equipment, and launch cash needs, split into CAPEX and excluded working capital.

Highlighted CAPEX$245,000Base planning example

Excluded cash needs$361,000Outside CAPEX total

Funding need$606,000CAPEX + excluded cash needs

Cost Category	Base Estimate	Main Cost Driver	CAPEX Calculator
Clinic Build-out & Renovation	$150,000	Leasehold work, rooms, and finish level	Yes
Office Furniture & Fixtures	$40,000	Desks, chairs, storage, and waiting area setup	Yes
IT Hardware & Network Setup	$30,000	Computers, network gear, and clinic connectivity	Yes
Telehealth Equipment	$15,000	Video equipment and remote care setup	Yes
Initial Software Licenses	$10,000	EHR and practice software start-up licenses	Yes
Working Capital Reserve	$361,000	Year 1 loss, month 13 cash trough, and payroll ramp	No

Estimate Startup Costs with Calculator

Startup CAPEX Calculator

This estimates capitalized startup assets only for a mental health clinic, not operating cash needs.

CAPEX only This calculator covers one-time capitalized startup assets only. It excludes inventory, payroll runway, deposits, debt service, working capital, post-opening rent, insurance after launch, recurring EHR subscriptions, billing fees, and revenue-based marketing.

What does the CAPEX tab show?

The Mental Health Clinic Financial Model Template CAPEX tab maps Month 1–7 build-out, furniture, IT, telehealth, licenses, depreciation. Review assumptions.

Screenshot highlights

Month 1–7 build-out
Runway follows hiring ramp
Check quotes, lease, payers

Mental Health Clinic Financial Model capex inputs showing capital expenditure categories and timelines, letting users customize equipment, facility, and setup costs for scenario-ready, fully customizable projections

Compare 3 Startup Cost Scenarios

Scenario Table

Startup costs move with room count, staff size, and buildout. Lean trims space and tech, Base matches the model, and Full adds more rooms, payer setup, and cash for a bigger opening.

Lean, Base, and Full launch cost comparison for a mental health clinic.
Scenario	Lean LaunchLowest cash need	Base LaunchModel-based launch	Full LaunchLargest buildout
Launch model	A smaller leased-office launch with phased furniture and tighter tech spend.	The model launch uses the provided clinic build-out, staffing, and overhead assumptions.	A larger staffed clinic with a heavier build-out and more working capital.
Typical setup	It uses fewer rooms, lower initial staff, and basic telehealth tools.	It runs the core team, standard rooms, and baseline systems.	It adds more rooms, stronger tech, and broader insurance payer setup.
Cost drivers	Smaller office lease phased furniture lighter tech fewer hires lower working capital	Full clinic build-out core staffing EHR and telehealth payroll ramp marketing spend	Heavier build-out more rooms stronger tech payer setup deeper cash reserve
Planning rangeCAPEX only	$150,000 - $250,000Tighter cash	$245,000 - $400,000Model case	$400,000 - $650,000Higher funding
Best fit	Best for a solo expansion or proof-of-concept site.	Best for a standard group clinic.	Best for a larger outpatient clinic with room to scale.

Planning note: These ranges are researched planning assumptions, not vendor quotes or binding bids.

How much money do you need to open a mental health clinic?

You need at least $245,000 to open a Mental Health Clinic before legal, licensing, credentialing, insurance, hiring, and launch marketing; the real cash need is higher because payroll and overhead start before cash collections catch up. Track visit demand with What Is The Current Growth Rate Of Patient Engagement At Your Mental Health Clinic? because modeled revenue is $158,840/month, but collections can lag completed visits.

Cash Need

Start with $245,000 listed CAPEX
Add legal and licensing quotes
Add credentialing and insurance quotes
Add hiring and launch marketing

Monthly Burn

Payroll runs $127,500/month
Year 1 payroll equals $1.53 million
Fixed overhead adds $16,600/month
Revenue models at $158,840/month

How much does it cost to build out a mental health clinic?

A Mental Health Clinic build-out usually starts around $150,000 for a facility-only base model, before rent deposits and pre-opening occupancy costs. The model also carries $10,000 per month in rent once lease costs start. The biggest swing factor is whether the space is a second-generation clinical office or a raw shell, because that changes room count, private therapy room layout, accessibility work, sound control, and landlord improvement allowances.

Main cost drivers

Count therapy rooms first
Check lease condition early
Plan private room layout
Size reception and waiting area

Budget items to separate

Budget accessibility work
Add sound control costs
Track security and signage
Separate build-out CAPEX from deposits

What hidden startup costs should a mental health clinic plan for?

For a Mental Health Clinic, the real startup drag is cash timing: payroll before stable collections, rent before full utilization, credentialing delays, billing setup, insurance premiums, staff onboarding, and background checks. Here’s the quick math: the base plan already carries $127,500 in monthly payroll plus $16,600 in fixed overhead before revenue-based fees, so runway matters more than equipment spend; see How Much Does The Owner Of A Mental Health Clinic Typically Make?. In year 1, variable costs can also run high, with marketing at 80%, telehealth usage at 20%, billing service fees at 25%, and assessment tools at 15%.

Pre-opening cash

Payroll starts before collections.
Rent hits before full utilization.
Credentialing can delay payer cash.
Insurance and onboarding need cash first.

Year 1 pressure

$127,500 monthly payroll base.
$16,600 monthly fixed overhead.
Marketing can take 80%.
Billing can take 25%.

Key Takeaways

Buildout is the biggest upfront cash need.
Furniture and fixtures add $40,000 more.
Tech setup totals $55,000 before subscriptions.
Payroll and deposits require strong opening cash.

Mental Health Clinic Core Five Startup Costs

Facility Lease, Deposits, and Buildout Startup Expense

Buildout Budget

A therapy clinic buildout is a real startup cash sink. The base model sets $150,000 for Month 1 to Month 3, or about $50,000 per month, to fund private treatment rooms, reception, waiting area, accessibility, signage, security, sound control, and landlord improvement allowance support. If you capitalize the renovation, it becomes CAPEX.

Cost Inputs

Price the buildout from contractor quotes, room count, and finish specs. The $150,000 model should cover the full scope before opening, not later fixes. Use one estimate for each room type and one draw schedule by month, so you can compare bids and avoid surprise overages.

Count treatment rooms first
Separate finish and security quotes
Tie draws to permits

Lease Cash Needs

Treat rent deposits, lease legal review, and pre-opening occupancy as separate cash needs. The recurring lease cost is $10,000 per month after opening, or $120,000 a year. If opening slips by one month, that adds another $10,000 of burn before any patient revenue lands.

Keep It Clean

Keep the lease scope tight. Ask for landlord allowances early, lock the room plan before work starts, and track CAPEX apart from rent and deposits. The cleanest model shows buildout on one line and recurring occupancy on another, so the funding gap is obvious.

Licensing, Credentialing, Insurance, Legal, and Compliance Startup Expense

Setup costs

Licensing and legal setup cover entity formation, local permits, state clinic rules, payer enrollment, malpractice coverage, general liability, compliance policies, clinical documentation standards, and advisor review. State and payer rules vary, so don’t use a national flat rate. Build the estimate from quotes, required filings, and the number of payers and jurisdictions.

Recurring fees

The model carries clinic insurance at $1,200 per month and professional development plus licenses at $500 per month. That’s the ongoing floor for a compliant clinic. Add months of coverage, policy limits, and payer rules to your budget, then separate these from one-time filing and legal fees.

Credentialing lag

Credentialing can slow cash collection, so it belongs in working capital. If payroll starts before reimbursement, you need extra cash to cover staff, rent, and insurance while payer enrollment clears. The right question is not just cost, but how many months you can fund before the first reimbursed claims land.

Risk control

Cut risk by getting a state-specific review before launch, then map every required filing, policy, and payer form to an owner and due date. Don’t skip documentation standards or malpractice limits to save money. A small upfront legal review is cheaper than fixing denied claims, lapsed coverage, or a blocked launch.

Furniture, Fixtures, and Patient Comfort Startup Expense

Clinic Setup Cost

This line covers $40,000 for office furniture and fixtures spread across Month 2 to Month 4. It should include therapist chairs, client seating, desks, waiting room pieces, reception workstations, locked filing storage, lamps, rugs, and basic office gear. Keep it to durable items that support care, not medical equipment the service model does not need.

Size the Layout

Build the budget from 13 Year 1 clinical staff and the number of rooms used at one time. Here’s the quick math: count seats, desks, and storage by room, then price each unit with quotes. One room may need only one therapist chair and one client chair, while shared spaces need reception and waiting furniture.

Keep It Lean

Split durable assets from recurring office supplies, which are modeled at $700 per month with maintenance. Don’t overbuy before utilization is clear. A staged order plan helps protect cash, and modular pieces make room changes easier. The main mistake is blending one-time furniture with monthly consumables, which hides true startup spend.

Cash Timing

Plan purchases across Month 2 to Month 4 so the clinic opens with the right patient comfort level but avoids idle assets. What this estimate hides: freight, assembly, and replacement wear can push the real cash need above the sticker price, so get vendor quotes and keep a small buffer.

Recruiting, Onboarding, and Launch Payroll Startup Expense

Launch Team

Year 1 starts with a 17-person team: 3 clinical psychologists, 4 licensed counselors, 3 social workers, 1 psychiatrist, and 2 specialty therapists, plus 1 clinical director, 1 office manager, 1 billing specialist, and 1 client care coordinator. Modeled payroll is $127,500 per month, with the plan also listing $153 million per year.

Startup Cash

This cost covers recruiting, onboarding, background checks, training, scheduling setup, billing workflows, and payroll before collections. Estimate it with headcount × monthly pay × months before reimbursement, plus hiring and setup quotes. It belongs in startup cash needs, not buildout, because staff costs start before client revenue does.

Recruiting and posting fees
Checks and credential review
Training and workflow setup

Lean Hiring

Hire in phases so payroll starts with the first booked visits, not the full plan. Bring on billing and client care early, since they cut payment delays. One clean rule: if you cannot fund the first 60 to 90 days of payroll, slow the launch instead of stretching cash.

Runway First

Keep ongoing payroll runway separate from CAPEX. Salaries, taxes, and benefits are working capital, not fixed assets. Fund the monthly payroll base of $127,500 before opening so the clinic can absorb recruiting lag, onboarding time, and reimbursement delay without missing pay cycles.

Technology, EHR, Telehealth, and Billing Startup Expense

Tech setup

The one-time base model for technology setup is $55,000: $30,000 for IT hardware and network setup, $15,000 for telehealth equipment, and $10,000 for initial software licenses. That covers computers, networking, secure phones, encrypted email, cybersecurity basics, billing tools, and teletherapy equipment. Keep this separate from monthly software and usage fees.

EHR fee

The recurring electronic health record (EHR) subscription is $1,500 per month, or $18,000 per year. Book it as an operating cost, not startup setup. Here’s the quick math: if launch is delayed, every extra month adds another $1,500 before the clinic sees steady volume.

Usage fees

Telehealth platform usage fees are modeled at 20% of revenue, and billing service fees at 25% of revenue. Together, that is 45% of revenue before rent, payroll, and other fixed costs. So for every $10,000 collected, $4,500 goes to these two services.

Cost control

Separate one-time setup from recurring costs so the opening budget stays clean. The fixed tech launch total is $55,000, plus $1,500 a month for EHR. The variable fees scale with collections, so check the contract math before signing. One line item can look small, but at 45% combined, it moves margin fast.