What are the recommended business models for chiropractors who wish to work collaboratively with complementary health service providers?
My client who is a chiropractor, is considering partnering with other health service providers in order to provide a full range of services to her patients. She would like to remain in control of her business but would like to explore alternative solutions.
Do not be a partner! Do not refer to yourselves as partners. Doing so is a legal landmine. Partners are 100% liable for each other's debts and obligations. If you merely say, "John and I are partners in this venture," well, you are, and you can be sued for John's misdeeds and unpaid bills.
I have jointly leased facilities with other professionals, and I've had quite a few clients who have done this. We were all independent businesses, either sole practitioner DBA or S corp. We were jointly responsible for the lease and utilities and cable service, but not for anything else. One company agreed to handle the bill paying for all, for a small monthly fee. In my case, I did this, because I had a regular bookkeeper. The others paid me, then we paid the landlord et al.
This worked well, because we carefully vetted each other beforehand.
Other clients of mine--a physical therapist, a beautician, a bakery owner--leased space then sublet it to other complementary businesses--pilates, nails, and pastry chef, respectively. They remained legally separate, but to shared customers they looked almost like one entity. The clinic shared the cost of a receptionist.
Make sure you get a lawyer to draw up this working agreement.
Hi Peter, I agree with the others experts.
I would like to add this key notes:
1- The chiropractors must rent or be the owners of the place. (Initial investment in the rent if they don't have it)
2- The chiropractors need to identify partners who can make use of their patients and / or parners who can bringing patiens related to their field of activity. I mean you must try to make rotate the patients in all specialities and, not only with a related illness but also of the ages, for example I prefer a cardiologist then a pediatritian.
3 - The chiropractors must charge at partner a XX% of theirs incomes plus a fixed cost for the use of campus facilities and common services. (this is the best way, in return the Chiropractors will provide patients, the place, marketing, secretary and others (internet, phone, electricity, air conditioning, etc.).
I think this three points will be thge core strategy.
With more information maybe my answer could change.
Feel free to contact me.
Sounds like she wants to remain independent yet get referrals from other health providers. If this is her goal, consider a viral offer kiosk solution where each provider places an offer on a kiosk in other providers' waiting rooms. The Kiosk attracts attention and in order for patients to participate in the offers they are required to share their experience with their friends on Facebook. The system creates a viral affect for the service providers. And all health service providers remain totally independent.
I hope this helps.
I have a friend in Australia who is a Chiro, there are many government restrictions for her, I can't help much more other than to say, check any local legislation requirements first. You don't want to be in breach...! sorry I can't offer more.
There are many models avaialable -- all could work and all could fail. The first thing to do is to work out a term sheet for the "joint venture' (no pun intended -- but it is a good one) -- and then she will know. If you need more information -- contact me.
Hi Peter ~
As Michael notes, there are numerous business models, regardless of field. One idea is to rent office space to a complementary practitioner, which could potentially increase business for you both. The chiropractor I see rents out his spare office room to a massage therapist a few days a week.
He also wanted to expand his health care offerings to be a full-service provider for patients. So more recently, he began partnering with a local holistic blood screening company that recommends supplements in lieu of medications. The chiropractor has also become a distributor for a line of nutritional products he has researched and feels are the highest quality available. So, through these creative alliances he has expanded his business model to provide a more complete range of services to clients/patients, all while retaining control of his business.
Hope this is useful!
There are probably an infinite number of business models that will work. However, as you are developing key partners please be aware that not everyone shares your core values. I suggest completing a Key Partner Worksheet to understand their value proposition, your value proposition and how your core values mesh with theirs. After all - you will have to trust that they deliver to your customer's expectations even when you aren't around.
Solid contracts are helpful, but a share set of values is essential BEFORE the contract is drafted. You don't want to risk your reputation as you spend lots of money enforcing a set of contract terms.
Just my two cents. I provide my clients a free copy of this worksheet so that they can find the best fit. You can get your copy after you register online at http://startupbusinesscatalyst.com.
As both Michael and Amara have mentioned there are various ways that could work - Amara mentioned some of the retail products venues - the first thing is to scope out what other CAM therapies she has to work with in her local area and create a "joint venture" as Michael suggested.
To expand on what Amara recommended - there are also manufacturing companies that will not sell directly to consumers and only want to work through professionals- so that when the chiropractor registers with them, they are sent referrals of customers that are wanting to buy their products and of course the chiropractor has very warm leads to connect with.
I've seen few Chiropractor + acupuncture combo before (mainly in South Bay area in California) and it seems like the two practices have a great synergy. They seem to draw in business from motor accident victims, which was the case for me.
I am speaking from a customer point of view, by the way, so I do not know the details of how to structure the business.
To start with, cloud service providers are better option than investing more on the stand-lone premise based applications
Whichever model you choose, it should be one which provides comprehensive patient care, security and transparency.
GREAT question! My wife is a D.O. physician and I can tell you that she has no time to do OMM, but she certainly sees the value. I see no reason why your client could not create a business relationship as a supporting arm much like physical therapists are doing inside physician offices.
If you want to talk more, shoot me a private email...I am happy to help!
Hello Peter , As I know in this field , She should go for it with health services providers in an way by signing contracts , She can determine & describe the work in points in order to reserve her rights by documenting the procedure of work , Plus she knows how to treat her patients ,with out giving the Ideal way of treatment , others will know the procedure only but not the way of treatment . with her experience she is the only party who can do the work , others will help her only as I think so .thanks
She should begin with the Provider she wants to partner with and this will amount to a "contractual" agreement between the two plus....how the different insurances that they accept will work together or not...this amounts to good old networking and contacting provider networks and asking what is their criteria for adding chiropractors to their networks...it will also depend on how well known and credible the chiropractor...
As far as a business model I would check with the local SBA (SCORE) in her area...they provide a wide range of mentors from all sectors....I would also suggest that they connect with The American Chiropractic Association http://www.acatoday.org... they offer a full range of opportunities and resources that they can access....