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Dec 02
2009
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As insurance complexity rises while reimbursements fall, many family practice physicians are looking for alternatives to working eve more hours. The "Concierge" model of healthcare practice is an evolving model, that allows a physician to focus on a core group of 600 to 800 patients - instead of the 2,000+ that a small practice requires under an insurance reimbursement model.
My assignment was to develop a business plan to explore the potential for conversion of an existing practice into a membership or concierge model. There are a number of franchise companies that sell a pre-configured business model, but I found the fees to be quite steep i.e. almost a third of revenue.
I did a great deal of desk research to understand what works, and how the business model should be structured. This included asking questions on the mechanics of a practice, developing a simple input driven business model to explore scenarios. Once we had developed a working model, I orchestrated the development of a complete business plan package for funding. This included sections on sales, marketing and demographics as well as competitive factors, legal and regulatory implications, and, of course, a complete set of financial projections with a complex underlying model that enabled us to rapidly investigate alternative scenarios for growth.
David Kirkup - B2b CFO Partner - 404 348 0326 - dkirkup@b2bcfo.com
