Dallas PLLC, 3 physicians, first formal budget. 4th physician hire modeled. Variance held under 2.2% all year. Break-even month 7, 2 months ahead.
01The Situation
The three physician-partners had no formal budget, every expense discussion became a negotiation, and two partners had started questioning whether money was managed fairly. A $42K equipment purchase approved without consultation was the breaking point. They hired us to build the first formal budget and create a decision framework all three could agree to.
02What We Did
We reconstructed 3 years of actual spend into a properly categorized P&L then built a zero-based budget for FY 2025 with 8 department categories and monthly phasing. The 4th physician hire was modeled explicitly. Partners chose a Q3 start. Break-even came in month 7, two months ahead of the projection.
Breakdown
| Department | Annual Budget | YTD Actual | Variance | Status |
|---|---|---|---|---|
| Physician Compensation | $1,020K | $1,015K | -$5K | |
| Clinical and Admin Staff | $540K | $548K | +$8K | |
| Rent and Occupancy | $192K | $185K | -$7K | |
| Medical Supplies | $280K | $275K | -$5K | |
| Marketing | $84K | $89K | +$5K | |
| G&A and Other | $124K | $122K | -$2K |
One partner said building the budget was the best decision the clinic had made in 6 years, not because of the numbers but because the process forced the three of them to agree on priorities for the first time. Zero partner disputes about spending in FY 2025.
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