On the average, building a birthing centre in the United States costs about $90 per square foot. If you have decided the size of your centre, all you have to do is multiply the number of square feet by $90.
However, there are many factors that will influence the exact cost of starting this business. Although this is just an average, it is advisable to consider the factors analyzed below.
4 Factors That Influence the Cost of Starting a Birthing Center
Note that where your centre will be located has an enormous effect on the cost of construction. If you choose to build a birthing centre in high-end cities like New York, you should expect to pay a lot more than average; it may cost you almost $120 per square foot.
For a birthing centre in Dallas, expect to be at the lower end of the scale – around $80 – $100 per square foot. However, the price per square foot varies for a number of reasons.
For starters, the cost of land differs from city to city. Building in Washington tends to be expensive than building in Houston.
Also note that location will also determine how much you’ll be spending on labour. For instance, construction workers in New York make an average of $43,311 per year but those in Alabama make just $28,580. The cost of materials also depends in part upon where you build.
2. Building Size
To properly estimate the cost of building a birthing centre, you also have to take size into consideration. Constructing a 2-story birthing centre is a lot more complicated than building a bungalow structure. That means the taller a building is, the higher the cost per square foot will be.
3. Type of Materials Used
One other crucial factor to consider when calculating the cost of birthing centre construction is the type of materials you plan to use. Are you planning to build a high-end birthing centre with a brick exterior and hardwood floors? Or would you prefer to lower your building costs by using vinyl siding and laminate flooring?
Coupled with your space and other factors mentioned above, you will have to budget approximately $25,000 for the following supplies to get the business started:
- General medical equipment and supplies
- Resuscitation equipment
- Birth kit
- IV equipment
- Catheterization equipment
- Cleaning solutions and equipment
- Birthing tub kit
- Marketing materials, including an educational website, business cards, and brochures
How Much Do Birthing Centers Charge?
While the cost of a birthing centre is significantly lower than a hospital birth, most insurance companies will not cover the fee. Fees are agreed upon between the birthing centre and family, with many expecting families paying out of pocket.
Owing to the cost, many birthing centre businesses accept payment plans, with the final payment due at 37 weeks. Birthing centre fees tend to vary depending upon location and specific services needed. Note that many centres report charging between $3,500 and $5,000 per birth.
However, if you assist in the birth of 3 babies a month and charge $3,500 per birth, your agency will earn $126,000 before expenses.
More and more expecting families have realized the value of a birthing centre, helping to remove the “hippie” label that was once present. Nonetheless, the industry is expected to grow by 31% by 2022, offering great opportunity for success for those considering opening a birthing centre business.