Phsi Basic Web Final 2 090501

Hearing Aid Dispensing Program for Ophthalmologists

Goals For Today

The Basic Message The Essential Facts The PHSI Program and Why It Works The Natural Fit in Ophthalmology How It Works The Value Proposition – What’s In It For You? Next Steps

The Message

Eyes and Ears – Vision and Hearing– These are your two most important senses.– Together, they create your “internal GPS”.– Both are fundamental to your awareness and functionality.– Both fail at the same time.– We treat both.

“Vision and Hearing are so important together that we now include a complete hearing evaluation as part of the package of care we provide.”

This philosophical embrace is critical.

Essential Facts

50%+ of the over-60 population has “significant measurable hearing loss”.– Defined as hearing loss of >35dB in both ears

80%+ have never been tested or treated. 90% of all cases of hearing loss are irreversible

and irreparable.– The hair cells in the cochlea are simply dying from age

and a lifetime of noise exposure.– No applicable medical/surgical intervention.– Hearing aids are the only effective treatment.

Arthritis, hypertension and hearing loss are the three most common chronic medical conditions in the world.

Essential Facts

Untreated hearing loss is definitively linked to:– Clinical depression– Acceleration of the onset of dementia and Alzheimer’s

symptoms– Social withdrawal and isolation, fear and various

phobias– Anger management and numerous psychosocial and

relationship difficulties– Employability and earning power– “A profoundly negative effect on virtually every aspect

of physical, cognitive, behavioral and social functioning” From “The Consequences of Untreated Hearing Loss in Older Persons” National Council on Aging (NCOA) – December 1999

Essential Facts

From Johns Hopkins – 2008– >55 million Americans with hearing loss

(This is nearly double the estimate of 30MM less than a decade ago.)

– An epidemic of hearing loss– High occurrences in the 20-year old, 30-year old

and baby boomer age brackets Translation:

– The problem is pervasive.– It is debilitating.– The population is inexhaustible.

Why Ophthalmology?

The patient populations are identical. 25 years of research determined that :

PATIENTS WANT TO BE EVALUATED AND TREATED FOR HEARING LOSS IN THEIR PHYSICIAN’S OFFICE.

There is a graphic disconnect between what patients WANT and what they GET.– 95% of hearing aids are dispensed in a retail

storefront setting with no physician participating in the process.

Why Ophthalmology?

Primary Care?– Too many, too fragmented, too broadly focused.

ENT?– Too few, surgically oriented, perpetually at war with

audiology.– Most importantly, there is NO natural flow of senior patients

to ENT.

Ophthalmology?– High-concentration site for older patients.– The Vision-Hearing link ---Parallel deficits, parallel treatment.– Unique orientation to retail.

The PHSI Program

Equipment Personnel Full hearing aid product line Complete pre-launch guidance Initial training for physicians and all staff Unlimited ongoing consultation “Best Practices” and “Benchmarking” Expertise – We know how to do this 100% practice ownership and control

How It Works

4 Simple Words– Market– Screen– Refer – Fit

How It Works

Market – Management Role– Patients must know you have a hearing program

via wall media, electronic media, print media --- the message must be there --- it must permeate.

Screen – Staff Role– Simple methods for identifying patients with

classic symptoms of presbyacusis.– Hearing questionnaire (to identify universally

accepted symptoms) and hand-held screener to provide objective PASS/FAIL report.

How It Works

Refer – Physician Role– A 15-second interaction between physician

and patient is the magic of the program.– You will not sell hearing aids.– You will not practice otology.– You will refer patients to see the Director of

the Hearing Program for a complete evaluation.

– The MD/OD handoff is critical.

How It Works

Fit – Hearing Professional Role– Testing– Counseling– Fitting– Selling– Providing continuing care– Referring as necessary– Repairing– Complete program management

The Value Proposition

Proven expertise. An “out-of-the-box” program. Zero management or consulting fees.

– PHSI’s success is tied directly to your success.– Long term supplier contract for hearing aids.

Substantial revenue and profit potential. A broader clinical base for your patients. Improved patient care and loyalty. Complete practice flexibility.

What’s in it for you?

Number of Tests per Day 5Total Test/Year 1,225Conversion Rate (Tested Patients to Sold) 35%Patients Sold 429Hearing Aids 772Average Sales Price per Hearing Aid $1,850Gross Revenue $1,428,200Refunds ($142,820)Net Revenue $1,285,380Direct Costs - COGS ($449,883)Net Revenue $835,497Operating ExpensesConsumable Expense per Test $12,250Marketing Expense $10,000Personnel & Benefits Expense $57,500Sales Incentives - HIS $89,977Total Operating Expenses $169,727 Net Income $665,770

Start-Up Costs

Testing Equipment $19,000 Recruiting Fee 7,500 Supplies 3,000 Marketing Materials 5,000 Dispenser Travel 1,000

TOTAL $35,500 Initial Inventory $6000 - $12,000

Space Requirement

One room = average exam lane One countertop workspace for cleaning

and minor servicing of hearing aids

Next Steps

Sign a contract Engage the recruitment process Develop forms, workflow, space Purchase testing equipment and supplies Strategic planning session - accountability Orient the hearing professional Train the physicians and staff Go!

Summary

PHSI works with the most progressive ophthalmology practices in the nation, both large and small.

The patients are there. They have the problem. The linkage between Vision and Hearing is real.

We know how to do it. – Our background in the concept of hearing care

in the MD practice setting is unparalleled.