20091207 Elements to Consider for Alternative Treatment Centers

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This workshop was presented at the World HealthCare Congress Leadership Summit in Dallas on 12/7/09. John Corpus established the content of the workshop; Ken Berndt and Bruce Shepard presented the content of the PPT. John, Ken, and Bruce contributed to the structure and content of the PPT.

Text of 20091207 Elements to Consider for Alternative Treatment Centers

  • 1. Health System Operated Retail Health Clinics Elements to Consider for Alternative Treatment Centers Work Shop Facilitator John A. Corpus, FastCare, Bellin Health Work Shop Presenters Ken Berndt, FastCare, Bellin Health Bruce Shepard, Walmart December 7, 2009
  • 2. Objectives
    • Business philosophy and strategic fit
    • Strategic assessment of the market
    • Evaluate partnership, franchise, and co-branding opportunities
    • Investment costs and timeframe
    • Marketing strategies, brand recognition, and patient education
    • Price transparency and insurance reimbursement
    • Consumer satisfaction
    • Measuring ROI
  • 3. Business Philosophy/Strategic Fit
    • Health System Perspective
    • Access point in the access platform
    • Two-way referral model
    • Maintain continuity-of-care
    • Maintain the medical home
    • Retail Host Perspective
    • Customers concern over cost of and access to the primary care health services retail clinic low cost of care
    • Convenience / one stop shop for customers
    • Healthcare spend projected to surpass retail at >$4 billion in about 2017
  • 4. Spending on healthcare in the US is going to surpass spending in retail in the US within the next decade! CAGR Healthcare = 6.7% CAGR Retail = 4.6% Why Play In Healthcare?
  • 5. Strategic Assessment of the Market: PCP Shortage
    • Health System Perspective
    • Most markets are impacted by the PCP shortage
      • Closed PCP practices
      • PCPs retiring
      • More graduates are specializing
      • Rural practices are dwindling
      • Increased utilization of mid-levels
    • Retail Host Perspective
    • Drives up cost of care creates additional demand for higher costs of care such as ED which decreases consumers discretionary income
    • Before moving forward with retails clinics, health systems should ensure buy-in of medical staff
  • 6. Strategic Assessment of the Market: Competitive Environment
    • Health System Perspective
    • Independent, no health system connection
    • Health System-based
    • Retail Host Perspective
    • Quicker time to market.
    • Effectiveness and continuity of an integrated care system with electronic connectivity
  • 7. Strategic Assessment of the Market: Regulatory Environment
    • Health System Perspective
    • Nurse practitioners
      • Limitations by state
      • Physician oversight
    • Physicians Assistants
      • Limitations by state
      • Physician oversight
    • Physicians
      • No limitations
    • Retail Host Perspective
    • Tobacco and alcohol sold on premises
    • Federal Anti-Kickback statutes / Steerage to pharmacy
    • State requirements for licensing of retail clinics
    • Some state level medical societies seeking increased supervision levels for mid-level practitioners
  • 8. Evaluating a Partnership Model
    • Health System Perspective
    • Contract
      • Length of term
      • Ease of termination
    • Pros
      • Speed/turnkey
      • Success factors
      • Costs
      • Visibility / Exposure of brand
    • Cons
      • Limitations
      • Costs
    • Retail Host Perspective
    • Pros
      • Sharing of financial risk could be good or bad
    • Cons
      • Time to market if host does not partner with a national provider
      • Complicates regulatory issues (license, physician supervision)
  • 9. Evaluating a Franchise Model
    • Health System Perspective
    • Contract
      • Length of term
      • Ease of termination
    • Pros
      • Speed/turnkey
      • Success factors
      • Costs
    • Cons
      • Limitations
      • Costs
    • Retail Host Perspective
    • Pros
      • Brand control / consistency
      • Centrality of patient data for convenience of patient and analysis
      • Economies of scale / sharing successes
    • Cons
      • Lack of electronic integration into current healthcare system electronically
      • Depending on Franchisor, possible no brand strength locally
  • 10. Evaluating a Co-Branding Model
    • Health System Perspective
    • Contract
      • Length of term
      • Ease of termination
    • Pros
      • Image
      • Brand awareness
    • Cons
      • Share marketing space
      • Co-dependent
    • Retail Host Perspective
    • Pros
      • Leverages brand of healthcare provider and host
      • Allows for consistent look and feel while maintaining integration into local healthcare system
    • Cons
      • May not require electronic integration from provider to provider
      • Host maintains brand risk if care is not top quality
  • 11. Evaluating an Employer Clinic
    • Health System Perspective
    • Contract
      • Length of term
      • Ease of termination
    • Pros
      • Convenience
      • Integration
    • Cons
      • Access
      • Menu of services
    • Retail Host Perspective
    • Improve access and lower cost
    • ERISA considerations (Employee Retirement Income Security Act of 1974)
  • 12. Investment Partnership
    • Health System Perspective
    • $$$$$s
    • Break-even
    • Return on investment
    • Risk
    • Retail Host Perspective
    • $$$$$s
      • Capital
      • Variance in rental rate
    • Break-even
    • Return on investment
    • Risk
  • 13. Investment Franchise
    • Health System Perspective
    • $$$$$s
    • Break-even
    • Return on investment
    • Risk
    • Retail Host Perspective
    • $$$$$s
    • Break-even
    • Return on investment
    • Risk
  • 14. Investment Co-Branding
    • Health System Perspective
    • $$$$$s
    • Break-even
    • Return on investment
    • Risk
    • Retail Host Perspective
    • $$$$$s
    • Break-even
    • Return on investment
    • Risk
  • 15. Investment Employer Clinic
    • Health System Perspective
    • $$$$$s
    • Break-even
    • Return on investment
    • Risk
    • Retail Host Perspective
    • $$$$$s
    • Break-even
    • Return on investment
    • Risk
  • 16. Timeline Partnership
    • Health System Perspective
    • Contracting
    • Construction
    • Recruiting
    • Marketing
    • Operations
    • Retail Host Perspective
    • Same timeline for both parties