Dan Johnson, Kjersten Skjold, Scott Holm,
Robert Whittaker, Sarah Erickson, Ricky
Morgan
Co-Ownership
• Combined 15 year experience, both certified in McKenzie
Method of Mechanical Diagnosis & treatment of the spine
• Kjersten Skjold: DPT, AAOMPT
• Chief Operations Officer
• Dan Johnson: DPT, Sports Rehabilitation Residency
• Chief Financial Officer
• LLC operating agreement with shared profit & duties
Financials
• Start up cost: $241,000
• Loan Requested: $191,000
• 7 year contract
• Construction
• Equipment
• Co-Owner contribution: $50,000
Facility
4350 S Washington Street
Grand Forks, ND 58201
(701) 335-3335
• Across from Wild Hog/Choice Health & Fitness
• 2,380 square feet
• $71,000 fit up assistance from landlord
Virtual Tour
“Designing a better moving you”
• Our focus is on promoting & preserving the health & well
being of our patients in the greater Grand Forks area who
suffer from work & sports related injuries
• We look to secure contractual agreements with local large
scale industrial companies
• We hope to become a primary provider for all sports
related injuries
• As health & wellness experts we intend to promote holistic
wellness of our patients by assisting them in preventing
future health complications
• Mission
• To provide the area with evidence based
comprehensive rehabilitation with the highest level of
clinical care available
• Vision
• To become a self-sufficient physical therapy clinic with a
stellar reputation for quality care that attracts patients
from around the region.
Services & Products
Treatment of orthopedic & neuromuscular conditions related
to work & sports injuries
• Strength &Conditioning
• Wellness consultations
• Manual therapy
• Ergonomic assessments
• McKenzie Method of the
• Pre-sports physicals
Spine
• Soft Tissue Mobilization
• Modalities for relief of
pain & inflammation
• Patient education
• Home Exercise
Programs
• Bike Fit
• Work & Wellness
Seminars
• Gait assessments
Goals
• We will secure two contractual agreements with at least two
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major companies in the Grand Forks area.
We will attend three health fairs to promote our physical
therapy services.
We plan to do twelve Work & Wellness Seminars at local
businesses in an attempt to increase clientele base & meet our
contractual agreement goals.
We are driven to achieve 95% patient satisfaction through
survey results in the first year.
Increase our daily case load from five patients per therapist to
ten & maintain this consistent case load throughout the life of
the business.
We plan to net a profit of $40,000 exceeding our anticipated
amount of approximately $31,808.
Physical Therapy Trends
• Trends
• Autonomous providers
• Prevention & wellness focused
• Treatment of preventable diseases
• Reducing long-term healthcare costs
Marketing
Primary Target
• Large industrial facilities
• LM Glassfiber
• American Crystal Sugar
• Amazon
• Cirrus Design
• Athletes
Secondary Target
• Post-operative orthopedic
patients
• Weekend Warriors
• Geriatric patients
• Law-enforcement
• GFPD
• UPD
• GF county sheriffs
• Fire department
Competition
Primary Competition
• Hospital systems
• Altru Health Systems
• Sanford Health
• Private Practice
• Rehab Authority
• Achieve Therapy & Fitness
Secondary Competition
• Grand Forks School
System
• University of North Dakota
• Massage therapists
• Chiropractors
SWOT Analysis
Strengths
• Extensive background & in
training
• Manual Therapy
• Sports Rehabilitation
• Combined 15 years of
experience
• Previous development of
population specific programs
• Nursing preventative wellness
• Student-athlete strength &
conditioning
Weaknesses
• Lack experience in
neurological rehab
• New to the market
• Limited number of
therapists
SWOT Analysis
Opportunities
• Community emphasis on
health & wellness
• Healthcare trends
changing
• Prevention based
• Large number of industrial
companies
Threats
• Lack of presence in the
market
• Altru Health Systems
• Achieve Therapy & Fitness
• Reimbursement changes
• Affordable Health Care Act
Marketing Plan
• Unique Selling Point:
• Our therapists have obtained advanced certifications &
have significant experience
• Our interventions are individualized for the specific
needs of each patient
• Our patients return to work or sport sooner than other
physical therapists
• Dan: On average, patients return to work or sport 1 week earlier
when compared to other therapists
• Kjersten: On average, patients require 3 less visits to reach their
goals
Marketing Plan Types
• Networking:
• Greater Grand Forks Young Professionals
• Grand Forks Chamber of Commerce
• Local events: Wild Hog Half Marathon & Healthy
Living Expo
• Workers Safety & Insurance of North Dakota
• Health Care Professionals Letters:
• Who, Where, & What
Marketing Plan Types
• Social Media:
• Facebook
• Twitter
• Print Marketing:
• Flyers during the first 3 months
• Grand Opening
• Little known facts about PT
• Free “mini-evaluation”
• Website:
• Developed & maintained by a professional marketing firm
• Updated regularly
Marketing Goals
• Secure a one-year or multi-year physical therapy service
contract with a major industrial business to obtain
consistent patient flow.
• Receive referrals from 10% of physicians who receive our
healthcare provider marketing letter to grow our
healthcare network.
• 20 patients participate in our free screening from our flyer
marketing to increase our patient numbers.
• Lead a lunch & learn with the Greater Grand Forks Young
Professionals group to enhance our networking among
businesses in Grand Forks.
Marketing Budget
Marketing Type
Networking
Initial Cost
$380.00
Recurring
Total Cost/Year
Cost/Year
$45.00
$875.00
Professional Letters
$800
$0.00
$800.00
Social Media
$0.00
$0.00
$0.00
$2000.00
$2000.00
$1298.00
$5,000
$600.00
$5,600
$8080.00
$2645.00
$8573.00
Print Marketing
Web Site Design
Total
Projected Net Profit
• 2014
• Assuming each PT sees 5 patient’s per day
• $100 per patient
• Gross profit of $260,000
• 2015
• Assuming each PT sees 10 patient’s per day
• $100 per patient
• Gross profit of $520,000
• 2016
• Assuming each PT sees 11 patient’s per day
• $100 per patient
• Gross profit of $570,000
Major Expenses
• Mortgage – $34,034.88/year
• Advertising – $8,573/year
• Rent – $30,900/year
• WebPT – $19,400 projected first year cost
• $50/month per therapist
• 6.5% of total billing
• Benefits – $16,584/year
• Health insurance: Premium Plan = $1,072/month
• $12,864/year
Salary
• PT’s – $50,000 per year
• Office Manager – $40,000 per year
• Total salary of the employees = $140,000 per
year
Profit & Loss Projection (3 Years)
Sales
Gross Profit
Operating Expenses
Salary (Office & Overhead)
Payroll (FICA taxes etc.)
Supplies (office & therapeutic)
Repairs/ Maintenance
Marketing/Advertising
Mortgage
Accounting & Legal
Rent
Telephone
Utilities
Benefits (CEU, PTO, Health Insurance)
Professional fees (APTA) & Licensure
Web PT
Miscellaneous
Total Expenses
Net Profit Before Tax
Income Taxes (ND & Fed)
Net Profit After Tax
2014
%
$260,000 100.00%
$260,000 100.00%
$140,000
$17,360.00
$2,000
$500.00
$8,573.00
$34,034.88
$1,000.00
$4,080.00
$4,800.00
$16,584.00
$1,110.00
$19,400.00
$1,000.00
$246,202
$13,798.12
$2,800.00
$10,998.12
53.85%
6.68%
0.77%
0.19%
2.82%
13.09%
0.38%
0.00%
1.57%
1.85%
6.38%
0.43%
7.46%
0.38%
95.85%
2015
%
$520,000 100.00%
$520,000 100.00%
$140,000
$17,360.00
$2,000
$500.00
$2645.00
$34,035.00
$1,000.00
$30,900.00
$1,080.00
$4,800.00
$16,584.00
$1,110.00
$19,400.00
$1,000.00
$277,102
$247,898.00
$132,817.00
$117,081.00
26.92%
3.34%
0.38%
0.10%
1.41%
6.55%
0.19%
5.94%
0.21%
0.92%
3.19%
0.21%
3.73%
0.19%
53.29%
2016
%
$572,000 100.00%
$572,000 100.00%
$140,000
24.48%
$17,360.00
3.03%
$2,000
0.35%
$500.00
0.09%
$2645.00
1.28%
$34,035.00
5.95%
$1,000.00
0.17%
$30,900.00
5.40%
$1,080.00
0.19%
$4,800.00
0.84%
$16,584.00
2.90%
$1,110.00
0.19%
$19,400.00
3.39%
$1,000.00
0.17%
$277,102
48.44%
$301,898.00
$142,817.00
$159,081.00
3 Year Projection
Net Profit
(post tax)
2014 $10,998.12
2015 $117,081.00
2016 $159,081.00
PT Projected
Salary (post tax)
$55,499.06
$108,540.50
$129,540.50
WebPT
• All billing & documentation will be done through WebPT.
• WebPT will help us:
• Increase compliance
• Increase efficiency
• Schedule patients
• Improve operational decision-making with real-time business
intelligence
• Work on the go
• WebPT is a widely used software provider for physical
therapy clinics throughout the nation.
Documentation
Scheduling
Practice Management
Billing
• Reduce Claim Errors
• Drive Profits
• Save Time
Organizational Chart
Dan Johnson,
DPT – CFO
Kjersten
Skjold, DPT –
COO
Office
Manager
Physical Therapists
• Dan Johnson CFO
• Marketing
• Public relations
• Advertising
• Financial
• Kjersten Skjold COO
• Day to day operation management
• Oversees scheduling
Staff
• Office Manager
• Welcome guests
• Scheduling appointments
• Answer phones
• Keep facility clean & tidy
• Use WebPT effectively
• Advertising (sending appointment reminders)
• Paying rent & all bills
• Organizing physician protocol information
Quality Improvement Plan
• 1 strongly disagree, 2 disagree, 3 neither agree nor disagree, 4
agree, 5 strongly agree, N/A if you do not have an opinion on
the question
• My privacy was respected during my PT care
• My PT & other staff were courteous
• The clinic scheduled appointments at convenient times
• I was satisfied with the treatment provided by my PT
• The home exercise program my PT gave me was helpful
• I was seen promptly when I arrived for treatment
• The location of the facility was convenient for me
• I would recommend this facility to family or friends
• My bills are accurate
• The cost of the PT treatment received was reasonable
• If I had to, I would pay for these PT services myself
• Overall, I was satisfied with my experience with my physical therapy
Expansion Plan
• Short term
• Hire PT &/or PTA
• Long term
• New location
• Crookston
• Fargo
• Devil’s Lake
FOCUS-PDCA
• Find – Patient no shows
• Organize – Owners & office managers
• Clarify – Unclear scheduling, etc.  Less productivity
• Understand – Measuring variation (patient satisfaction, PT
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time management, etc.)
Select – Patient scheduling, PT time management
Plan – Staff meet to discuss potential areas.
Do – Meeting to discuss how to better utilize time and use
scheduling system
Check – Meet biweekly to analyze data to find variations
Act – Implement necessary changes
Eric Giltner’s Words of Wisdom
• Loan agreement
• 5 year to a 7 year
• PT salary
• Highlight WebPT
• Less time with billing, more time with patients
• Financial Information
• Consult with a financial professional
• Highlight your unique selling point
• What makes you better?
• Clean formatting
Thank You
Questions
References
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6.
7.
8.
Bowers MR, Kiefe CI. Measuring health care quality: Comparing and contrasting the
medical and the marketing approaches. Am J Med Qual. 2002;17(4):136-144.
Harp SS. The measurement of performance in a physical therapy clinical program. A ROI
approach. Health Care Manag (Frederick). 2004;23(2):110-119.
Laskaris J, Regan K. The new break-even analysis. Health Finance Manage.
2013;67(12):88-95.
Nosse LJ, Friberg DG. Management and supervisory principles for physical therapists.
Lippincott Williams & Wilkins; 2009. http://books.google.com/books?id=zL_2OwAACAAJ.
Richmond T, Powers D. Business fundamentals for the rehabilitation professional.
SLACK; 2009. http://books.google.com/books?id=yIrguS7ku6IC.
Sahlman WA. How to write a great business plan. Harv Bus Rev. 1997;75(4):98-108.
Schafer DS. Environmental-scanning behavior among private practice physical therapy
firms. Phys Ther. 1991;71(6):482-490.
Marketing
• http://www.apta.org/PTinMotion/2009/6/Feature/PhysicalTherapyMarketing/
• http://www.apta.org/PTinMotion/2008/5/Feature/21stCenturyMarketing/
• http://www.apta.org/PTinMotion/2006/9/BoardPerspective/
9.
10.
11.
2013 APTA year in review: http://www.apta.org/2013/
Marketing and public relations for the physical therapist:
http://www.apta.org/PTinMotion/2013/12/Feature/MarketingPR/
Equipment List/Floor Plan – Tony Erickson Altru Project Manager