Tuesday, July 31, 2018

29A - Venture Concept No. 2




Opportunity: According to the National Alliance on Mental Illness, 1 in 5 Americans suffer from mental illness. Currently, there aren’t enough resources to solve the mental crisis in America.

Forces: Several forces that have created this opportunity, is the lack of Psychiatrists and Psychologists in the industry. As a result, many primary care doctors are carrying the “burden” of attempting to treat illnesses outside of their expertise or discipline and failing. In addition, with the economic crisis and a lot of individuals unemployed, there are many uninsured patients that are unable to afford the out-of-pocket expenses for services. Lastly, insurances are becoming extremely restrictive with the services or medications they approve which in turn limits the care or services the patient receives.

      Market demographics: Individuals (ages 7+) who need mental health services that can either not afford services due to lack of insurance or are limited to the services they can receive through their insurance. Also, I will monitor the need in wealthier areas for the need of my services to make sure I am providing more private care for professionals who fear judgement or the loss of a position due to them seeking help.


      Customers: Currently, patients with insurance are seeing specialists in their network of coverage. For uninsured patients however, many of them are most likely going to hospitals and being Baker-Acted for services; this only provides a temporary solution, not maintenance.

      This opportunity is huge considering the recent suicides of wealthy individuals who unfortunately, struggled with mental illness and could not receive help.

      The window of opportunity will always be open as long as patients need a mental health institution where they can be treated.

Innovation:

      My organization will be multifaceted in that it will offer services to pediatric patients, as well as, adults. In addition, I will also have a drug and alcohol rehabilitation facility within the practice. Most mental health institutions don’t combine the use of both practices, but I believe these services go hand-in-hand for a successful recovery.

o   Self-Pay/Underinsured patients will be placed on the sliding scale and will have a copay ranging from $20-$100 depending on where they fall on the sliding scale fee.
o   Providers/Hospitals will be able to refer their patients. In order to build relationships with both the providers and hospitals, I will offer the first visit free to every new patient.
o   Insured patients will be required to pay their copays. If there is a service that is not covered by their insurance, they can apply for the sliding scale and pay for the service at a discounted rate.

Venture Concept:

·         Patients are willing to go anywhere necessary to receive proper care and attention. If they are     currently at an organization that is providing these services, they will go elsewhere. Even if patients don’t completely abandon their current services, they might still benefit from services offered in my organization.

·         For my organization, the competitors will most likely be non-profit organizations that also offer sliding-scale discounts to their uninsured/underinsured patients. One of the weaknesses I can easily note is that such organizations will most likely have longer waiting periods, which will direct patients to my organization. Also, if their poverty guidelines are different, they may not be offering affordable copays which again, will send more patients my way.

Location:

      My organization will be placed in low-income communities in order to meet the need for the underprivileged. Also, it’ll have to be stationed in an area with local bus routes for those who don’t have transportation.
§  Fundraise or generate funds to supply patients with free bus passes for appointments.
§  Conducting research on possible partnerships with Uber or Lyft to provide transportation services to patients who don’t have access to local bus stations.

Price points:  

The average office visit for patients range from $110-$220 depending on diagnosis and services offered at the time of the visit. My organization will offer a sliding-scale fee for uninsured/underinsured patients which will allow patients to pay for services at a discounted rate based on the household income. In order for patients to qualify for the sliding scale fee discount, they must be at a poverty scale of 100%-200%. The slides will be projected as follows:

Household Size
Annual Household Income
Slide Fee
$20 Copay
$40 Copay
$55 Copay
$70 Copay
$100 Copay
1
$0 - $   12,140
$12,141 - $16,146
$16,147 - $20,152
$20,153 - $24,280
$24,281
and up
2
$0 - $   16,460
$16,461 - $21,892
$21,893 - $27,324
$27,325 - $32,920
 $32,291 and up
3
$0 - $   20,780
$20,781 - $27,637
$27,638 - $34,495
$34,496 - $41,560
$41,561
and up
4
$0 - $   25,100
$25,101 - $33,383
$33,384 -$41,666
$41,667 - $50,200
$50,201
and up
5
$0 - $   29,420
$29,421 - $39,129
$39,130 - $48,837
$48,838 - $58,840
$58,841
and up
6
$0 - $   33,740
$33,741 - $44,874
$44,875 - $56,008
$56,009 - $67,480
 $67,481 and up
7
$0 - $   38,060
$38,061 - $50,620
$50,621 - $63,180
$63,181 - $76,120
$76,121
and up
8
$0 - $   42,380
$42,381 - $56,365
$56,366 - $70,351
$70,352 - $84,760
 $84,761 and up
 Customer Service:
                  Patient care coordinators will be assigned to each patient to monitor patient progress and ensure everything is running smoothly for the patient. Patient care coordinators also follow up and maintain contact with patient once they leave the office and schedule them as needed.

Employees:

          Clinical/Medical
o   Psychiatrists
o   Psychologists
o   Registered Nurse/Licensed Practical Nurse
o   Medical Assistant
         Clerical
o   Patient Service Representative
o   Patient Care Coordinator
o   Billing
o   Case Workers I removed the position of a case worker, because the patient care coordinator will be responsible for the same duties and it is an unnecessary expense.
         Executive
o   Medical Director
o   Executive Director
o   Human Resources Director
§  Compliance Officer
§  Operations Director
o   Accountant I removed this position because I hope to be the CPA of my own business.
o   IT

Unfair Advantage: As mentioned previously, my unfair advantage is my social capital because I have a lot of people I can easily contact for information or referrals. Also, I am well-versed in how the business operates and how to apply for government funding to secure the funding I need to maintain operations.

What’s next: After operating for five years, I am hoping to expand my business. This will require me to start a budget, seek new opportunities and conduct research on prospective areas I’d like to target. With my expansion throughout Florida, I would also like to begin to offering in-patient services.

For me: I hope that after my successful expansion, I can partner up with a coffee shop or deli so that I can generate revenue without solely depending on government funding. This would also allow in-patient visits to have access to food while receiving treatment.

Unfortunately, I did not receive much feedback from my peers as to what to change or other developments. Most of my peers stated that they enjoyed the idea from the, “What’s Next,” assignment to offer in-patient services. I did not go into detail, as that would come eventually assuming my business was successful but I did make minor changes to the services I would like to offer and the number of employees I will hire. Above, I mentioned that I would like to be located in areas where there are many bus stations for patients that struggle with transportation. One of my ideas is to generate funds to provide patients with free bus passes for their appointments. The other idea for patients that live in more rural areas to have access to an Uber or Lyft, by a paid partnership. In addition, I removed the accounting and case worker position. Because I plan on receiving my masters in accounting and becoming a certified public accountant, I wouldn’t need another accountant. Instead, I will just have to hire accounting associates for accounts receivables and accounts payables which is a part of the billing department above. I decided to remove the case worker position because their duties are the same as that of a patient care coordinator, so I didn’t see it fit to invest additional money into that position. Please feel free to provide any feedback!

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