Spreadsheet to generate financial projections for 5 year projected profit and loss, cash flow, and balance sheets. Use this template for a step by step process to determining fair and sustainable rates for an ethical ABA practice.
Ever wonder:
What rates do I need with may payers?
How much can I afford to pay my staff?
How much can I spend on other expenses (vendors and other professional services, rent, etc)?
What case size should I assign to my BCBAs
How should I set my fee schedule?
How will increases in expenses impact my margins over the course of time?
What rate increases will I need to plan for in order to maintain adequate margins over time?
What revenue, profit, and profit margins will I make?
How will my cash flow be impacted?
Planning for rate changes and renegotiations
Assumptions to include:
Services to provide (https://abacodes.org/codes/)
Flat rate vs hourly services
Caseloads for BCBAs
Percent of supervision (BCBA) relative to BT (adaptive) services
Percent of caregiver/parent training by BCBA relative to BT services
Rates; we recommend you evaluate publicly available Medicaid and Tricare rates in your region, then determine a multiple for commercial and private payors
Provider expenses (we recommend you evaluate BTs and behavior analyst rates in your region)
Other expenses to consider such as marketing, hiring, rent, vendors and other professional services, and more. The template lists common categories for ABA practices.
Tax rate and benefits
Year over year changes to rates
Year over year changes to expenses
Link to free webinar on financial planning for ABA and autism service provider companies here.
Want help with the research, inputting the data, and interpreting the outputs? Purchase the support package for one time assistance, or the c-suite package for initial and ongoing support.
Follow this link to read our blog on business planning here.
More detailed instructions are being included here to familiarize prospective customers of inputs and outputs in preparing your finances with Partners Behavioral Health’s projections spreadsheet.
Detailed instructions:
Services are input by service type/code. The sheet covers input sections for all codes listed here https://abacodes.org/codes/.
To accommodate the most common funding structures, assessment and reassessment can be captured as hourly, flat rate, or a combination of both.
Users can define anticipated annual percentage changes of both hourly billable rates as well as pay rates and other non-personnel expenses.
Inputs for codes include anticipated number of clients served and month over month intakes, hourly rates, hours per code, and related percentage relations. For example, percentage of caregiver/parent training or direction of a BT relative to direct/adaptive therapy hours.
BCBAs are captured on a salaried basis, and BTs may be captured as hourly, salaried, or both.
There are several options for inputs related to non-employee expenses, and annual increases for expenses are also captured.
Billing services can be captured as both a percentage of revenue as well as based on employee salaries.
You can anticipate upfront capital expenditures, and can also identify if your financing will be via debt or equity, which impacts the overall projections as it would in practice.
The expense list is very comprehensive, and you can individualize your tax rate. You can get an idea of what expenses are included here.
There are spaces for salaried employees, and you can of course individualize those spaces to your company structure. Default position titles include: Executive Director, Clinical director, BT trainer and manager, Office manager, Manager/Person #4, BCBA(s), BT(s), which you can include as hourly and salaried, and Admin Support.
You can individualize tax rates for salaried staff. For hourly BTs, you would include tax and benefits into estimated hourly rates.
You can modify anticipated employee headcount for BTs and admins, and headcount for BCBAs is calculated based on required billables for BCBAs, which is also an input you can modify to your specific model and needs. You can also input a percent increase for salaried staff.
You can define your anticipated asset and liability turnover. In other words, anticipated days to pay bills, and anticipated days to get paid by funders/customers.
You can input the total capital needed for your startup. By adjusting the number and evaluating cash flow, you can see how much money you will need to cover your cash requirements at start up. I.e. how much money you will need to secure for your startup.
After inputting your data, there are a variety of tabs on which you can evaluate different outputs. Some of the more popular tabs include five year projections for financial summary, detailed income statement (profit and loss), balance sheet, and cash flow.
Charts will also be generated automatically, as will other more detailed data that some financial experts or lenders may be seeking.
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