Pro Forma for Your Addiction Treatment Center
Receive detailed financial projections to promote program success.
Pro Forma: Your Financial Forecast
Navigate the next steps in your addiction treatment center with data-driven financial projections. Similar to a traditional financial statement, a pro forma is a document that describes your company's performance within a specific time frame, typically one year into the future.
With this document, however, you're creating forecasts of future revenues and expenses to determine your course of action. Discover how you can receive a detailed financial forecast from The Drug Rehab Agency to promote a successful business launch.
Purposes of a Pro Forma
A pro forma is an extremely useful resource in several drug and alcohol rehab center situations. Here are a few reasons to consider putting together this powerful document for your business:
Complete the line item budget as part of the Initial Provider Application when starting a drug and alcohol treatment center.
Assemble an investor package with detailed financial projections.
Guide your next major business decisions with digestible data.
Any one of these purposes is worth the investment of creating a pro forma, but many addiction rehab centers will use this document for all of the above purposes as they take steps toward future success.
Structure of Your Addiction Treatment Center Pro Forma
At The Drug Rehab Agency, we tailor your pro forma to your treatment center's unique financial and operational structure. While the specifics may change, most financial projections are broken down into a year-based system with monthly increments. Be sure to work out accurate predictions for every month to better prepare for anticipated seasons of increased or decreased residents and/or program participants. Consider scheduling a one-on-one consultation with The Drug Rehab Agency for a detailed discussion of these personalized financial projection alterations.
For most addiction treatment centers, financial forecasts are broken down into three key categories:
Overview
Expenses
Analysis
These categories provide crucial insights and also make it easy to create a line-item budget to share with investors, banks, and key professionals.
Overview of Anticipated Revenues and Expenses
The goal of this section is to provide a quick reference to anticipated revenues, expenses, and net income. Typically, your overview section will include the following projections:
Patient admissions: Estimates of the number of participants and/or residents in your program over time.
Revenue by month: A monthly breakdown of the anticipated revenue for your addiction treatment center.
Expenses by month: A related breakdown detailing the forecasted expenses.
Two-year profit and loss statement: Review this expanded timeline for a detailed picture of the coming years.
Cash flow projections: The probable cash flow, including inflows and outflows, throughout the period.
Expenses of Monthly Financial Outlays
The largest section of this document covers monthly financial outlays for the specified period. After a thorough review of your addiction treatment center business plan, we create the following projections to determine your upcoming expenses:
Staffing headcount: This includes your existing staff and expected additional staff requirements as your center grows.
Staffing costs: Salaries, benefits, payroll taxes, and other requirements are all accounted for in this section.
Advertising and marketing: Expenses in this category include your ongoing marketing campaigns and marketing consulting investment.
Operational expenses: Your building, dues, subscriptions, legal fees, electronic health records, food service, equipment rentals, insurance, and other costs are all included in this category. We organize these expenses into separate line items for a detailed forecast.
Some expenses are easy to identify, and the next year's projections are unlikely to change from current rates. These include rent, accounting expenses, and legal expenses. You can find other projections by reaching out to relevant parties, such as your insurance provider or marketing team. Finally, our experts can help you fill in unknown future expenses.
Analysis of Monthly and Annual Information
A quality pro forma concludes with key analyses and action-based projections. Promote addiction treatment center growth and financial success by identifying:
Daily costs per patient/resident: It's easy to get lost in business-wide expenses. Dive into the precise cost for each patient and each day or visit to assess the viability of your current treatment center plan.
Net revenue per patient/treatment day: Once you have a projection of the daily costs per patient or resident, you can compare it with the net revenue before making key financial decisions.
Net income/loss percentage: Your document allows you to compare these percentages monthly and annually for unique insights.
Program assumptions for monthly rates: Easily calculate expected monthly rate assumptions thanks to this helpful analysis.
Total treatment program revenue: Finally, you'll receive a two-year projection of total program revenue based on all of the above analyses and data points.
Our team of experts can help you navigate this document to get the most value out of these points. Thanks to more than 10 years of experience in the industry, our team can help you create, edit, and analyze your financial projections as you take the next steps toward addiction center success.
Additional Support by The Drug Rehab Agency
Your pro forma works hand-in-hand with your business plan. The Drug Rehab Agency commonly pairs business plan research and creation with our services. Together, these documents form a firm foundation as you prepare to open a drug and alcohol treatment center.
We also perform feasibility studies to assess the current and global market. Thanks to this personalized study, you can review recommendations on target clients, price points, staffing, and your project timeline.
Cost of Your Pro Forma
Our team performs critical research into your current or proposed treatment center. This careful analysis and pro forma creation costs $5,000 and typically takes 2-4 weeks to complete. With this investment, you'll receive the support of our experienced consultants as they craft a personalized financial projection with the above categories and line items.
Prepare To Launch Your Addiction Treatment Center
Get ready to impress banks and investors with a refined pro forma that's carefully tuned to your addiction treatment center. Take the first step today by contacting our team and discussing your financial projection needs with an experienced consultant.
