As part of its ongoing efforts to improve access to health care in rural areas, General Medical Center is subsidizing the start-up and first year of operations of a new family medicine practice, Park Square Family Medicine. The business will be owned and managed by Dr. Nathan Detroit, MD as a sole proprietorship. He will be responsible for ensuring the general health of his patients and creating a viable and profitable business medical practice. Throughout the first year, Dr. Detroit will work closely with advisers from General Medical to get the clinic on a sound financial and operational footing.
Dr. Detroit will focus on diagnosing and treating conditions of all ages while emphasizing preventative medicine and the overall health and wellness of his patients. The clinic will utilize new equipment and a trained staff that will be able to optimize the care of each patient. He understands that there are many factors that can affect health, including exercise, diet, environment and heredity. Park Square Family Medicine will try to provide the most comprehensive medical care possible in order to optimize the care and well-being of each patient.
Dr. Detroit will also carry out minor procedures in his office, but only after both risks and benefits have been explained and understood and written consent has been obtained from the patient. Dr. Detroit will refer patients, when appropriate, to specialists and/or to hospitals for tests, further treatment and therapy.
Dr. Detroit will be assisted by two employees: a medical assistant and a receptionist. Ongoing training and support for these employees will be provided by General Medical Center throughout the first year.
The marketing strategy involves a combination of print media advertising, website development, networking, and promotional events, all aimed at residents living within 35 miles of the clinic. With only five other family practitioners in town, we project a gradually increasing patient load over the first several years, as we find out place in the community.
At first, the clinic will be dependent upon the support received from General Medical Center. They will also cover the Dr. Detroit's salary and payroll taxes for the first year of operations. As patient volume increases, we will begin supporting our expenses from revenues. At the end of the first year, the subsidies will cease, and Dr. Detroit's compensation will become one of the clinic's expenses. We expect to incur operating losses in the first three years, but have planned for a strong cash balance to keep the business running. We will begin making a small profit in the fourth year.
Dr. Detroit will use all his experience and knowledge to create a successful and profitable practice. He will leverage the years he spent in solo practice elsewhere to help model his new business. His past experience in conjunction with his progressive and diversified approach to each patient will allow him to rapidly grow a large and devoted patient base.
1.1 Objectives
The objectives for the first years of operation include:
- To create a medical practice that will exceed patients' expectations
- To provide high-quality health care to residents of the area
- To create a medical practice that helps serve the community's needs
- To form a health care practice that is able to survive off its own cash flow in 10 months or less
- To increase the number of patients by 20% per year through superior performance and word-of-mouth referrals
- To develop a comprehensive website that includes online booking capability, as well as additional information about the practice, hours, demographic information, health information and much more
- Collections of 95% or more and missed appointments under 5%
- Average visits per month of 300 to 350 patients within the first 10 months and 400+ patients by the beginning of the second year
1.2 Mission
The mission of Park Square Family Medicine is to promote the health and well-being of the local population by providing accessible, high-quality medical care for people of all ages. Park Square Family Medicine is committed to providing services that will exceed the expectations of our patients, resulting in a successful and profitable business.
1.3 Keys to Success
Patients
- Focus on patient care
- Educate patients on the importance of preventative care
- Educate patients as to the importance of yearly check-ups
- Implement an aggressive and accurate recall system in which to remind patients to have regular check ups
Staff and Office Organization
- Recognize that the office staff is as crucial, if not more crucial, than the physician(s) in the success of the business
- Create incentives by allowing the office staff to benefit from increased profits generated by the office
- Create a streamlined office system to minimize patients' waiting time
Finances
- Keep a low overhead
- Optimize the number of patients we can see in a hour while providing quality medical care
- Use the latest in electronic billing and/or utilize an outside billing company
Marketing and Sales
- Aggressively market and create a presence in the community by giving high school talks, ER calls, hospital talks and doing volunteer work, business society meetings, and much more
- Network to obtain referrals from other professionals, such ER doctors, Specialists, Hospital Admissions
- Have an office front on a busy street with accessible parking
- Locate in an area with a high patient-to-doctor ratio
- Locate in close proximity to the Medical Surgery Center with easy access to specialty care
