We have been researching the feasibility of our venture since we first decided to go with this model. Two important questions to ask are "How big is our market" and "How do we make enough money".
How big is our market?
It would be easy to say that our market is anyone we drive past. However, we know that not all potential customers in our market will value to product enough to request our services. Determining the true market size allows us to identify a reasonable and attainable number, whether it be customers served or number of visits, or total reimbursements from insurers, so that we can make subsequent decisions about the venture on a sound, logical foundation. Frost & Sullivan offers lots of information on determining market size, providing several questions and examples that are helping us better quantify our market.
How do we make enough money?
Once we know who out best customers are, we have to figure out a way to make enough money to kept the business running and possibly make a profit so that we may expand our footprint or the number of services provided as time goes on. I read an article this weekend which allowed me to look at the profitability of our venture by answers several simple but important questions.
1. How much cash do you have to start your business?
We plan to use the Community Health Center Fund created by the Affordable Care Act to initially start our business, providing us with the resources to purchase all necessary equipment and hire all necessary staff to begin our endeavor. We are not sure if we can apply directly as a Community Health Center, or if we shoul partner with local community health centers and make them aware, if they aren't already, of the additional funding source and an opportunity for further outreach to their patient population.
2. How will your business make money?
We plan to bill insurers, including the government (Medicare & Medicaid), for the services provided to fund our operating costs and the salaries for the medical professionals. We would need to speak with a someone more familiar with health care finances to better understand how to go about this.
3. How will your business spend money?
Our largest expenses, besides employees, will likely be fuel and maintenance of the medical equipment in the mobile clinic. We have a list of 13 counties in Western Pennsylvania we are looking to serve, and traveling to these areas will use up a great deal of fuel. Upgrading and maintaining equipment will also require regular funds. We are planning to speak with a representative from the Mobile Health Clinics Association to answer some questions for us.
4. How will your business make up cash shortages during months with negative cash flow?
We are looking for other funding resources, which may allow us to create a safety net for difficult months, or be act as avenues to request additional funding as needed. If we partner with local community health centers, we may be able to borrow their staff to treat patients in the communities they already reach, which would allow us to save money on hiring some medical professionals and would also build relationships in the community and build our customer base.
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