Disruptive Healthcare Business Models in the US
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I was recently awarded the South Florida Business Journal 40 Under 40 Award given to those professionals who have made a significant impact to the healthcare industry and their communities. The day before the award, I was presenting a workshop at the prestigious FIME Show, the largest medical trade fair in the Western Hemisphere.
During the FIME workshop, I gave a presentation on Disruptive Healthcare Business Models in the US, and spoke in particular about OrthoNOW, the nation’s only franchisor of orthopedic urgent care centers. Together with Dr. Alejandro Badia and the rest of the executive team, we have engineered a successful business model for the delivery of expert and efficient orthopedic care. This business model offers significant value not only to patients, but also to those considering an investment in such a model.
If you are considering investing in a healthcare franchise location, there are some key investment characteristics that you should evaluate:
- Simple Strategy: If it is too complicated to understand, it’s probably not the right solution for you. OrthoNOW’s strategy is clean and simple; we deliver expert orthopedic care for everyday injuries that’s convenient and affordable for patients.
- Predictable, Reliable, Stable Business Model: Injuries don’t happen on a schedule, but they do happen every day. A healthcare urgent care facility allows investors to capture this activity.
- Technology Threats: There are many services that technology can replace. However, there are some services that technology can never replace. One of them is hands-on patient care. Technology certainly plays a role in OrthoNOW’s business, but it can never replace the expert orthopedic care that a compassionate healthcare clinician can deliver.
- Proven Business System: A solid franchise system should have tried and true business operations processes, advertising and marketing strategies, and general procedures for launching and managing profitable locations. Further, a solid franchise system will constantly improve these processes to adapt to its changing business environment.
- Experienced Team: Align yourself with a franchise that is led by a team comprised of proven business, medical, and franchise professionals. Doing so will ensure that you will have support through each phase of your buildout and operations. For example, OrthoNOW provides each franchisee site selection assistance, a detailed project management tool for the center’s buildout, in-person training, a comprehensive policy and procedures manual, and a set of integrated marketing materials to ensure each location is run for success.
- Understand Your Competition: A thorough understanding of your business’ competitive landscape and (sustainable) competitive advantage will maximize your chances of success. For example, OrthoNOW operates in a crowded and highly fragmented urgent care market, where there is very little orthopedic specialization. Approximately 30% of the $16 billion in annual urgent care spend is orthopedic related, yet less than 1% of the 9,000+ centers are orthopedic focused. OrthoNOW is focused on capturing that 30% of the total spend that is orthopedic related, and is the only franchise system to do so.
- Multiple Income Streams: A ripe investment opportunity will have a business model that includes multiple revenue items. In healthcare specifically, investors should look for opportunities that offer a portfolio of ancillary products and services. This will ensure that each center delivers a one-stop shopping experience for its patients.
Want to learn more about the OrthoNOW model? Watch this video.
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