Dan Johnson, Kjersten Skjold , Scott Holm, Robert Whittaker, Sarah Erickson, Ricky Morgan

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

Facility4350 S Washington StreetGrand 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

• Strength &Conditioning• Manual therapy• McKenzie Method of

the Spine• Soft Tissue Mobilization• Modalities for relief of

pain & inflammation• Patient education• Home Exercise

Programs

• Wellness consultations• Ergonomic

assessments• Pre-sports physicals• Bike Fit• Work & Wellness

Seminars• Gait assessments

Treatment of orthopedic & neuromuscular conditions related to work & sports injuries

Goals• We will secure two contractual agreements with at least two 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 Initial Cost Recurring Cost/Year Total Cost/Year

Networking $380.00 $45.00 $875.00

Professional Letters $800 $0.00 $800.00

Social Media $0.00 $0.00 $0.00

Print Marketing $2000.00 $2000.00 $1298.00

Web Site Design $5,000 $600.00 $5,600

Total $8080.00 $2645.00 $8573.00

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

2014 % 2015 % 2016 %Sales $260,000 100.00% $520,000 100.00% $572,000 100.00%

Gross Profit $260,000 100.00% $520,000 100.00% $572,000 100.00%

Operating ExpensesSalary (Office & Overhead) $140,000 53.85% $140,000 26.92% $140,000 24.48%

Payroll (FICA taxes etc.) $17,360.00 6.68% $17,360.00 3.34% $17,360.00 3.03%

Supplies (office & therapeutic) $2,000 0.77% $2,000 0.38% $2,000 0.35%

Repairs/ Maintenance $500.00 0.19% $500.00 0.10% $500.00 0.09%

Marketing/Advertising $8,573.00 2.82% $2645.00 1.41% $2645.00 1.28%

Mortgage $34,034.88 13.09% $34,035.00 6.55% $34,035.00 5.95%

Accounting & Legal $1,000.00 0.38% $1,000.00 0.19% $1,000.00 0.17%

Rent 0.00% $30,900.00 5.94% $30,900.00 5.40%

Telephone $4,080.00 1.57% $1,080.00 0.21% $1,080.00 0.19%

Utilities $4,800.00 1.85% $4,800.00 0.92% $4,800.00 0.84%Benefits (CEU, PTO, Health Insurance) $16,584.00 6.38% $16,584.00 3.19% $16,584.00 2.90%Professional fees (APTA) & Licensure $1,110.00 0.43% $1,110.00 0.21% $1,110.00 0.19%

Web PT $19,400.00 7.46% $19,400.00 3.73% $19,400.00 3.39%

Miscellaneous $1,000.00 0.38% $1,000.00 0.19% $1,000.00 0.17%

Total Expenses $246,202 95.85% $277,102 53.29% $277,102 48.44%

Net Profit Before Tax $13,798.12 $247,898.00 $301,898.00

Income Taxes (ND & Fed) $2,800.00 $132,817.00 $142,817.00

Net Profit After Tax $10,998.12 $117,081.00 $159,081.00

Profit & Loss Projection (3 Years)

3 Year Projection

Net Profit (post tax)

PT Projected Salary (post tax)

2014 $10,998.12 $55,499.062015 $117,081.00 $108,540.502016 $159,081.00 $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

• 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

Quality Improvement Plan

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

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

References1. Bowers MR, Kiefe CI. Measuring health care quality: Comparing and contrasting the medical and

the marketing approaches. Am J Med Qual. 2002;17(4):136-144.2. Harp SS. The measurement of performance in a physical therapy clinical program. A ROI

approach. Health Care Manag (Frederick). 2004;23(2):110-119.3. Laskaris J, Regan K. The new break-even analysis. Health Finance Manage. 2013;67(12):88-95.4. Nosse LJ, Friberg DG. Management and supervisory principles for physical therapists. Lippincott

Williams & Wilkins; 2009. http://books.google.com/books?id=zL_2OwAACAAJ.5. Richmond T, Powers D. Business fundamentals for the rehabilitation professional. SLACK; 2009.

http://books.google.com/books?id=yIrguS7ku6IC.6. Sahlman WA. How to write a great business plan. Harv Bus Rev. 1997;75(4):98-108.7. Schafer DS. Environmental-scanning behavior among private practice physical therapy firms.

Phys Ther. 1991;71(6):482-490.8. 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. 2013 APTA year in review: http://www.apta.org/2013/ 10. Marketing and public relations for the physical therapist: http://

www.apta.org/PTinMotion/2013/12/Feature/MarketingPR/11. Equipment List/Floor Plan – Tony Erickson Altru Project Manager