October 2014
Winning
Ingredient
For ASC’s
1
OrthoNOW™ The Opportunity
•
Forbes Magazine July 21, 2014 Issue: “Drive Thru
Healthcare, How McDonald’s Inspired an Urgent Care Gold
Rush”
•
“10,000 urgent care clinics across the US handling 160,000,000
patient visits a year”
•
81% of urgent care clinics offer basic orthopedic services
•
“The Franchise Model Fits Urgent Care Well”
•
“The Long Term Trends are undeniable, this market is going to
shift toward a handful of large players”
Outline
1.
OrthoNOW Background
2.
Business Model
3.
Orthopedic Urgent Value Proposition
4.
Franchise Ownership Options
5.
Why OrthoNOW Franchise Model Option?
6.
Marketing Collaterals
7.
Steps to Secure an Exclusive Franchise Geography
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OrthoNOW Background
OrthoNOW™ Corporate
Corporate Background:
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Headquartered in Doral, Florida (greater
Miami area)
Privately funded
Management team hired- Dec. ‘13
-Combined 130+ years orthopedic
industry experience
Only Ortho Urgent Care Franchise Business
Franchise commercialization - Jan. ’14
10 Franchises sold, 30-40 deals in pipeline
covering 13 states
OrthoNOW™ Flagship Clinic- Doral, FL
 -
 Opened Urgent Care Model- May 2013
 Free Standing Orthopedic Urgent Care Center
 Profitable Month 5
 Compounded Monthly Patient Census Growth Rate (May 13 – May 14)- 8%
 ARPwave Introduced in Jan. 14 – Doubles Monthly Patient Census By Month 4
 Strategic Partnerships: ARPwave, Esaote, Concussion Mgmt, Quantus Solutions,
DME
Business Model Overview
Business Model Overview
Stand-alone urgent care model vs. extended hours clinic
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Orthopedic sub-specialties included:
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Upper Extremity
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Foot & Ankle
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Orthopedic Trauma
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Sports Medicine
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Spine
Utilizes orthopedically trained PA’s as initial patient contact
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2,000 - 2,500 square feet requirement
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Hours of operation (varies by location)
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M & W: 10a - 10p
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T, Th, F: 10a - 7p
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S: 9a - 2p
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OrthoNOW™ Preferred Staffing Model
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Medical Director – Orthopedic Surgeon (1 PT)
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Physician Extenders - Ortho PA-C (1 FTE 1PT)
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Medical Assistant/Xray Tech (1 FTE 1 PT)
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Office Manager/Business Development (1 FTE)
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Front Desk (1 FTE 1 PT)
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Check-Out (1 FTE, 1 PT)
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Collections/Billing (1 FTE)
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Urgent Care Alternative:
Extended Hours Clinic
Pros:
Cons:
• Vertical Integration, Utilize
Existing space, Equipment,
and Employees
• Feeds off existing patient base
• Less Costly
• Cannot Bill at Urgent Care
Rates
• Quicker to Market
• Feeder Source for Integrated
Network-Downstream Revenue
• Not a practice growth model
• Less profitable
OrthoNOW Model- Pros & Cons
Pros:
• Captures Competitive Practice
Patients - Practice Grower
• Most Profitable Business
Alternative
• Feeder Source for Integrated
Network–Captures Significant
Downstream Revenue- ASC,
Rehab, Imaging
Cons:
• Added Cost of Build Out
• Longer Time to Open
• Higher Upfront Business
Investment
Value Proposition
Why Is OrthoNOW™ A Good Investment?
Patient Benefits:
-Convenience
-Economical
-Quality Care
Ortho Group Practice:
-Patient Expansion
New Patients
-Competitive Tool
-Feeder Source- Integrated
Network
-Revenue Source
Insurance Co’s:
-Economics
-Patient Satisfaction
-One Stop Shopping
Orthopedic Urgent Care is Here to Stay
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OrthoNOW™ Cost VS ER/OCC Med for
“Maximum Medical Improvement”
Strategic Importance to Orthopedic
Group Practice
1.
Patient Magnet- Vehicle to Capture Competitive
Patients
2.
Feeder Source for Integrated Network of ASCs, Rehab
Centers, Imaging Centers, Pain Management
But Not All Orthopedic
Urgent Care Centers Are Created Equally
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OrthoNOW™-Patient Flow Model
“Feeding the Integrated Network”
16%
Referred
to ASC
3% - 5%
Referred
to Pain
MGT
17%
Referred
to Imaging
Center
25%
Referred
to Rehab
Center
OrthoNOW™ Average Surgical Referrals by Type
Data covers 7 month period
180
161
135
141
90
87
59
45
0
Sports Medicine
Foot & Ankle
Upper Extremity
Spine
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Assumed Incremental Revenue to ASC
OrthoNOW™ volume (average)
Average 400 patients / month
Surgical cases referred from OrthoNOW™
% referred to ASC
65 case / month
16%
Average reimbursement per ortho surgical case
in ASC
Monthly incremental cases
$3,000
65
Monthly incremental net revenue
$195,000
Annual incremental net revenue
$2,340,000
Monthly profit @ 45% - 60% profit margin
$87,750 - $117,000
Annual profit @ 45% - 60% profit margin
$1,053,000 - $1,404,000
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OrthoNOW Franchise
Ownership Options
Franchise Ownership Options
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Single Franchise
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Exclusive territory given based on population density
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Best for one-off locations that don’t mind owners of other
OrthoNOW™ centers in their market
Area Development Agreement
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Best option to draw from larger patient population
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OrthoNOW™ gives franchisee exclusive territory rights
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Commitment required to open multiple sites in geographical location
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OrthoNOW™ vs Go It Alone
Category
Franchise Cost
Go It Alone Year One
Franchise Fee
$45,000
$0
Trademarks
Included
$2,000
Legal Contracts
Included
$6,000
Branding - Advertising
Included
$18,000
Purchasing Discounts
Included
$10,000
Multi – Location Reporting
Included
$2,500
Insurance Agreements
Included
$6,000
Staff Training
Included
$15,000
Operations – P & P Manual
Included
$10,000
Marketing Collaterals
Included
$12,000
OrthoNOW™ vs Go It Alone
Con’t.
Category
Franchise Cost
Go It Alone Year One
i-Phone Patient App
Included
$40,000
Business Mentoring
Included
$7,000
PR/Press Releases
Included
$6,500
Web Site Design - Maintenance
Included
$6,000
Social Media Presence
Included
$3,000
Ongoing Support
Included
$10,000
Refresher Training
Included
$7,500
Quarterly BP Meetings
Included
TBD
Total
$45,000
$161,500
$116.5k Savings
Why the OrthoNOW
Franchise Model?
OrthoNOW™ vs Go It Alone
Enter At Your Own Risk
Detailed Preparation Prior to the Launch of the Franchise
Strategic
Alliances
Ongoing
Support
ONBoarding
Launch
Policy &
Procedures
Manual
Strategic
Alliances
Ongoing
Support
ONBoarding
Launch
Every Aspect of the New Business is Detailed and Planned
Policy &
Procedures
Manual
• Training
• HR
• IT
• Credentialing
• Billing
• Operations
• Marketing
…and more!
OrthoNOW™ Franchise Services-Pre Opening
Staff
Training
Staffing
Guidance
Site
Selection
Market
Analysis
Ops/P&P
Manual
Grand
Opening
OrthoNOW™ Franchise ServicesPost Grand Opening
Revenue Stream
Portfolio Management
Comprehensive
Negotiating Array of Mktg
Centralized
National/Local Collaterals
Billing & Data
Insurance-ACOWorker’s Comp
Collection
Contracts
Feeder Source for
Integrated Network
Quarterly
Business
Reviews
Ongoing Staff
Training
OrthoNOW
Brand
Building
National PR
Quality
Systems
Best Practices
Marketing
National
Supply
Discounts
Additional
Revenue
Streams
Outcomes
Marketing
Develop Strong Alternative
Revenue Streams
OrthoNOW™
Entrepreneur Magazine’s hottest
franchises for 2014:
OrthoNOW™
Recognized in the December 2013 - Top 10 Franchise Categories
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Conclusion- The Winning Formula
Pain
Management
OrthoNOW
Rehab
Imaging
ASC
26% Patient Referral to Family and Friends
16% of Patients Referred to for Surgery
21% for Imaging
25% to Rahab
Thank You
More information @ www.orthonowcare.com/franchise
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Tom Ferro- President:
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(732) 865-5983
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tom@orthonowcare.com
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Mike Carr- VP Sales & Marketing:
(828) 553-1245
mike@orthonowcare.com
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Ortho Urgent Care- Mkt Perspective
New York Times - “Race Is On To Profit From Rise Of
Urgent Care”
• 07-09-14 – “Once derided as “Doc in a Box” medicine, urgent
care has mushroomed into an estimated $14.5 billion business”
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“Insurance Giant Humana paid $800 million in 2010 to buy
Concentra with over 300 clinics”