Starting a diagnostic center

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Uncle Tony

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Sep 15, 2008
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The equipment costs about $2 million (MRI, CT machine and lab). Real estate and other initial expenses: another $2 million max.

Considering that a scan costs $100 and bloodwork on average $50, with no overheads except for staff salaries (and some lab supplies)...it's a great business.

In Mumbai, a successful center easily rakes in $10k/day pure profit. There are hordes of people queuing up like rats to get their scan done or blood drawn. Average wait time is two hours.

Assuming 3 scans an hour per machine, $600x12 = $7200 just of the machines every day with zero overhead but paying two technicians and a doctor to be on site.

I am sure I can make this work. This is one day job I would enjoy. I am good at bribing people, doctors in this case to refer their patients.

But I don't have 4 million dollars. Do you think I should pay some MBA consultant to draft a business plan and then go beg for money from a bank?
 


I actually looked into this, since the local hospital has wait list for scheduled MRIs. It's expensive as shit and you need to have a special building to house the machine, it's not just a normal big ass room. Also remember that electricity to power such a massive device *is not cheap*, especially if you're talking 2T magnets. On top of that, malpractice insurance, etc.
 
papajohn56 said:
I actually looked into this, since the local hospital has wait list for scheduled MRIs. It's expensive as shit and you need to have a special building to house the machine, it's not just a normal big ass room. Also remember that electricity to power such a massive device *is not cheap*, especially if you're talking 2T magnets. On top of that, malpractice insurance, etc.
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Malpractice lawsuits aren't a big deal in India. My mother is a doctor and she doesn't even have malpractice insurance. Also insurance (for patients) is the exception than the norm here (though growing popular). The average patient will just pay with a roll of cash. Which makes it even better when it comes to accounting and taxes.

Edit: There is a mandatory malpractice insurance required by the medical council but the premium is just about $200/year so it's a nonissue.
 
If you can put it in a large complex of medical condos you may have a win. Especially if near a high density of medical.

We were going to buy an 80,000 sq ft single story building between 2 hospitals and break it into medical condo's and put the machine in the back. Home Depot would not release the lease so the deal fell through but the pro-forma was very lucrative on the machine.

If you need the money doing a Syndication and getting doctors to subscribe, even ones in an identified building, shouldn't be too hard. In other words, getting the money should be easy once you run the numbers.
 
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Andrew Scherer said:
What else do you know about this space besides this?
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Nothing technical, I admit. But I know several doctors (more than 10) who will send their patients to me and can make a lot more do the same.

I also have a cousin who is in college now training to become a bio-medical equipment technician. I could make him run the place once it takes off.

If you need the money doing a Syndication and getting doctors to subscribe, even ones in an identified building, shouldn't be too hard.
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+repped thanks.
 
Dude, if you have 10 doctors that are willing to send you their patients, go get them to sign contracts. Since they probably aren't legally allowed to own the biz (because of all the stupid rules Doctors have imposed on their ability to profit from their business), you might consider getting all 10 doctors to front part of the cost. It's 400k each. Tell them you'll pay them back a flat 20% interest over the next 10 years or something. That way, you own your biz, and your loans are no-risk. Also, your clients will have a vested interest in sending you their patients since they want their money back.

It's a good way to discover how confident other people are that you'll be able to run the business too. If none of the doctors will give you money, it's probably not the biz for you.
 
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