Direct Primary Care Business Plan [Sample Template]

Pinterest Facebook

Direct primary care is a healthcare model that involves a direct financial relationship between patients and healthcare providers, typically in the form of a subscription or membership fee.

In a direct primary care business, healthcare providers, often primary care physicians, offer comprehensive primary healthcare services directly to their patients without involving insurance companies or third-party payers. Direct primary care businesses have gained popularity in recent years, as they offer an alternative approach to traditional fee-for-service healthcare models.

By prioritizing patient-provider relationships and providing accessible, comprehensive care at a predictable cost, direct primary care aims to improve the quality and affordability of primary healthcare services.

Steps to Write a Direct Primary Care Business Plan

Executive Summary

United Trust® Direct Primary Care Services, Inc. is a cutting-edge healthcare company located in San Francisco, California, dedicated to revolutionizing the primary care experience. Our mission is to provide high-quality, personalized healthcare services to individuals and families in the local community through a direct primary care model.

The current healthcare landscape is burdened by rising costs, limited access, and impersonalized care. United Trust® Direct Primary Care Services, Inc. aims to address these challenges by offering a membership-based model that puts patients at the center of their healthcare journey.

By eliminating insurance intermediaries and embracing a direct financial relationship, we empower patients to receive comprehensive primary care services at an affordable and predictable cost. Joycelyn McNamara is the founder and CEO of United Trust® Direct Primary Care Services, Inc.

Company Profile

a. Our Products and Services

We provide a wide range of primary healthcare services, including preventive care, chronic disease management, acute care, minor procedures, vaccinations, and coordination of specialist care.

Our dedicated team of highly skilled and compassionate healthcare professionals is equipped to address the diverse needs of our patients, ensuring their overall well-being. United Trust® Direct Primary Care Services, Inc. is committed to delivering exceptional patient-centered care.

We prioritize building strong doctor-patient relationships by offering longer appointment times, extended access to healthcare providers, and enhanced communication channels. This personalized approach ensures that patients receive the attention, support, and comprehensive care they deserve.

b. Nature of the Business

Our direct primary care business will operate the business-to-consumer and business-to-business model. Our business model is designed to benefit patients, healthcare providers, and the community as a whole. By aligning our goals with the principles of direct primary care, United Trust® Direct Primary Care Services, Inc. is poised to disrupt the traditional healthcare system and deliver a superior primary care experience in San Francisco.

c. The Industry

United Trust® Direct Primary Care Services, Inc. will operate in the healthcare industry.

d. Mission Statement

At United Trust® Direct Primary Care Services, Inc., our mission is to provide exceptional, personalized healthcare services to individuals and families in the San Francisco community. We are committed to revolutionizing the primary care experience by offering comprehensive, patient-centered care that is accessible, affordable, and tailored to meet the unique needs of each individual.

e. Vision Statement

Our vision at United Trust® Direct Primary Care Services, Inc. is to transform the healthcare landscape by becoming the premier provider of direct primary care services in San Francisco and beyond. We envision a future where every individual has access to high-quality primary care that emphasizes preventive medicine, fosters strong doctor-patient relationships, and embraces the power of technology to enhance healthcare delivery.

f. Our Tagline (Slogan)

United Trust® Direct Primary Care Services, Inc. – “Your Health, Our Priority!”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

United Trust® Direct Primary Care Services, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

Chief Executive Officer (Chief Medical Officer)
Medical Providers (Primary Care Physicians)
Billing Specialists
Accountants/Cashiers
Administrative Staff
Customer Care Executive

i. Ownership/Shareholder Structure and Board Members

Joycelyn McNamara (Owner and Chairman/Chief Executive Officer) 54 Percent Shares
Excel Bonaparte (Board Member) 16 Percent Shares
Ruud Gako (Board Member) 10 Percent Shares
Georgia Benny (Board Member) 10 Percent Shares
Shannel Victor (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

a. Strength

United Trust® Direct Primary Care Services, Inc. prioritizes personalized and comprehensive care, building strong doctor-patient relationships, and ensuring patient satisfaction.
The organization offers upfront and transparent pricing, eliminating confusion and surprise medical bills, which enhances trust and affordability for patients.
By removing insurance intermediaries, United Trust® Direct Primary Care Services, Inc. provides accessible and cost-effective primary care services to individuals and families.
The organization embraces technology to enhance the patient experience, improve communication, and provide convenient online access to medical records and virtual care options.
United Trust® Direct Primary Care Services, Inc. has a skilled and experienced leadership team dedicated to driving the organization’s mission and strategic direction.

b. Weakness

The organization primarily focuses on primary care services and may not provide specialized care or access to a wide range of specialists within their network.
United Trust® Direct Primary Care Services, Inc. operates within a specific geographic area, limiting its potential patient reach beyond the local community.
The success of the organization relies on patients’ willingness to subscribe to the membership-based model, which may be a barrier to adoption for some individuals.

c. Opportunities

The organization primarily focuses on primary care services and may not provide specialized care or access to a wide range of specialists within their network.
United Trust® Direct Primary Care Services, Inc. operates within a specific geographic area, limiting its potential patient reach beyond the local community.
The success of the organization relies on patients’ willingness to subscribe to the membership-based model, which may be a barrier to adoption for some individuals.

i. How Big is the Industry?

The direct primary care service industry in the United States has been growing steadily but is still relatively small compared to the overall healthcare industry.

ii. Is the Industry Growing or Declining?

The direct primary care service industry was experiencing growth and gaining traction within the healthcare landscape. The direct primary care service model had been steadily growing in popularity, driven by factors such as dissatisfaction with traditional fee-for-service models, increasing healthcare costs, and the desire for more personalized and accessible primary care.

But over and above, the global direct primary care market is expected to witness significant growth over the coming years, with a projected market share valuation of more than USD 30 billion by 2027.

iii. What are the Future Trends in the Industry

The desire for personalized, accessible, and cost-effective primary care is expected to drive increased interest and utilization of direct primary care services.

While direct primary care traditionally operates independently of insurance, future trends may see more collaboration and integration between direct primary care practices and insurance companies. This could involve partnerships that allow direct primary care practices to provide services within a broader healthcare network or the inclusion of direct primary care memberships as part of insurance plans.

The integration of telemedicine and digital health technologies is likely to play an increasing role in the direct primary care industry. Patients may have enhanced access to virtual visits, remote monitoring, and digital health tools that facilitate communication and improve convenience and continuity of care.

Direct primary care practices are well-positioned to prioritize preventive care and wellness initiatives. Future trends may see direct primary care practices placing even greater emphasis on preventive services, health education, and wellness programs to improve patient outcomes and reduce healthcare costs.

iv. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to direct primary care business because direct primary care is a niche idea in the healthcare industry.

v. Can You Sell a Franchise of Your Business in the Future?

United Trust® Direct Primary Care Services, Inc. intends to sell franchises in the near future, with a focus on major cities in the United States of America and Canada with a growing aging population and a burgeoning healthcare services industry.

d. Threats

Changes in healthcare regulations and policies can impact the operations and financial viability of United Trust® Direct Primary Care Services, Inc.
The organization faces competition from traditional fee-for-service models, other direct primary care providers, and emerging healthcare delivery models.
The traditional insurance industry may perceive direct primary care as a threat to their business model and may resist partnering or accommodating direct primary care practices.

i. Who are the Major Competitors?

AtlasMD
Qliance Medical Management
MedLion
Paladina Health
Iora Health
One Medical
Turntable Health
WhiteGlove Health
Nextera Healthcare
Access Healthcare Direct
Plum Health DPC
MDVIP
Direct Primary Care Journal
SignatureMD
PartnerMD
ImagineMD
Forward
SteadyMD
HealthCierge
R-Health

ii. Is There a Franchise for Direct Primary Care Business?

Yes, there are franchise opportunities for direct primary care business and some of them are;

Nextera Healthcare
AtlasMD
MedLion
Iora Health
Paladina Health
Access Healthcare Direct
SignatureMD
PartnerMD
R-Health
Direct Primary Care Journal.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Direct Primary Care Business?

Direct primary care practices in the United States operate within the framework of existing healthcare regulations and laws. While direct primary care models have gained popularity, there are certain policies, regulations, and zoning laws that may impact the establishment and operation of DPC businesses.

It’s important to note that regulations can vary by state, and it’s advisable to consult legal professionals or industry experts for specific guidance.

Direct primary care physicians and healthcare providers must comply with state licensing requirements and scope of practice regulations. These regulations dictate the types of services that can be provided by specific healthcare professionals and may vary between states.

Direct primary care practices must adhere to general medical practice regulations, such as maintaining patient privacy and confidentiality, complying with medical record-keeping requirements, and following medical billing and coding guidelines.

Many states have specific laws or regulations that govern the contractual relationship between direct primary care practices and their patients. These laws often outline the requirements for a direct primary care agreement, including specific terms and provisions that must be included.

Lastly, direct primary care practices should be aware of federal and state laws related to anti-kickback and self-referral, such as the federal Stark Law and the Anti-Kickback Statute. These laws regulate financial relationships and referrals between healthcare providers, including potential restrictions on offering incentives or receiving payments for referrals.

Marketing Plan

a. Who is your Target Audience?

i. Age Range: United Trust® Direct Primary Care Services, Inc. will target individuals of various age ranges, including adults and families. However, it might be particularly appealing to individuals and families who prioritize proactive healthcare and value a strong doctor-patient relationship.

ii. Level of Education: The level of education may not be a defining factor for the target audience of direct primary care services. Our business will be beneficial for individuals with varying levels of education who seek accessible and personalized primary care.

iii. Income Level: United Trust® Direct Primary Care Services, Inc. will target individuals across different income levels.

iv. Ethnicity: Direct primary care services are not specific to any particular ethnicity. The target audience will be diverse, encompassing individuals from different ethnic backgrounds who seek comprehensive and personalized primary care.

v. Language: United Trust® Direct Primary Care Services, Inc. will cater to individuals who speak various languages.

vi. Geographical Location: The target audience for United Trust® Direct Primary Care Services, Inc. is based in San Francisco, California the geographical location where the business operates. The target audience would primarily consist of individuals residing in or near that area.

vii. Lifestyle: United Trust® Direct Primary Care Services, Inc. will target individuals with a range of lifestyles. We will cater to individuals leading busy lives who value convenience and accessibility, as well as those seeking proactive and preventive healthcare services.

b. Advertising and Promotion Strategies

Content marketing
Deliberately Brand Our Office Facility
Email marketing
Events and sponsorships
Pay-per-click (PPC) advertising
Referral marketing
Search engine optimization (SEO).

i. Traditional Marketing Strategies

Broadcast Marketing -Television & Radio Channels.
Marketing through Direct Mail.
Print Media Marketing – Newspapers & Magazines.
Out-of-home (OOH) advertising – Public transit like Buses and Trains, Billboards, Street shows, and Cabs.
Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

Affiliate Marketing
Content Marketing.
Email Marketing.
Influencer Marketing.
Mobile Marketing.
Social Media Marketing Platforms.
Search Engine Optimization (SEO) Marketing.

iii. Social Media Marketing Plan

Create a personalized experience for our customers and their families.
Create an efficient content marketing strategy.
Create a community for our target market and potential target market.
Create profiles on relevant social media channels.
Gear up our profiles with a diverse content strategy.
Start using chatbots.
Run cross-channel campaigns.
Use brand advocates.

c. Pricing Strategy

United Trust® Direct Primary Care Services, Inc.’s pricing strategy will consider factors such as the cost of value of service offering, and the level of competition in the market. We will also analyze the competition’s pricing and services to ensure the business remains competitive while maintaining profitability. Here is our pricing strategy:

Tiered Pricing
All-Inclusive Pricing
Ala Carte Pricing
Move-In Specials
Long-Term Contracts
Medicaid and Medicare Programs
Private Pay.

Sales and Distribution Plan

a. Sales Channels

United Trust® Direct Primary Care Services, Inc. can utilize various sales channels to reach and acquire customers. We will employ a direct sales approach where its representatives proactively engage with potential customers through in-person meetings, presentations, and events.

This approach allows for direct communication and relationship-building with individuals and businesses interested in direct primary care services.

We will collaborate with other healthcare providers, employers, insurance companies, and wellness organizations. Building partnerships allows for cross-promotion, referrals, and access to a wider customer base. These partnerships can be established through networking, industry events, and targeted outreach.

United Trust® Direct Primary Care Services, Inc. will evaluate and prioritize the most effective sales channels based on their target audience, market dynamics, and available resources.

b. Inventory Strategy

Our inventory strategy will involve managing and tracking the availability of essential medical supplies and equipment to provide primary care services. This may include items such as examination tools, diagnostic equipment, vaccines, and basic medical supplies.

The inventory strategy should involve maintaining an adequate stock of these items to ensure smooth operations and meet patient needs.

The strategy will also involve setting par levels for inventory, monitoring usage, and ordering supplies in advance to ensure that there are no shortages. We will also implement software systems to automate inventory management and improve efficiency.

Having effective inventory management will help ensure that residents receive high-quality care while reducing waste and minimizing costs for the business.

c. Payment Options for Customers

Here are the payment options that United Trust® Direct Primary Care Services, Inc. will make available to its clients;

Apple Pay and Google Wallet
Gift cards and store credit
Credit and debit cards
PayPal
Installment payments
Cash on service delivery.

d. Return Policy, Incentives, and Guarantees

Return Policy: As direct primary care services are typically provided through a membership arrangement, there may not be a traditional return policy for services rendered.

Satisfaction Guarantees: To provide assurance and build trust with members, United Trust® Direct Primary Care Services, Inc. may consider offering satisfaction guarantees. This could involve ensuring that members receive high-quality, timely, and personalized care.

If a member expresses dissatisfaction with the services provided, the company could offer resolution options such as addressing concerns, accommodating specific needs, or adjusting the membership plan as appropriate.

Incentives for Referrals: United Trust® Direct Primary Care Services, Inc. will offer incentives or rewards, such as discounted membership fees, additional services, or gift cards, to members who successfully refer new members to the practice.

e. Customer Support Strategy

Providing exceptional customer support is crucial for the success of our direct primary care business. Here are some customer support strategies that we will adopt:

Provide multiple communication channels for patients and their families
Offer personalized attention
Set clear expectations.
Maintain transparency.
Offer value-added services.

By implementing these strategies, our direct primary care business can provide excellent customer support and build long-term relationships with all our clients (patients).

Operational Plan

Our direct primary care business’s operational plan is a detailed document that defines the day-to-day operations of the business, such as staff roles, members’ care plans, facility upkeep, and financial management. Specific goals and objectives, as well as strategies for accomplishing those goals, are often included in the plan.

It will also handle risk management, emergency readiness, and regulatory and policy compliance. The operational plan is an essential component of a direct primary care organization’s overall business strategy and acts as a guide for day-to-day management.

a. What Happens During a Typical Day at a Direct Primary Care Business?

The day usually begins with healthcare providers and staff members preparing for the day ahead. This may involve reviewing schedules, checking messages, and setting up examination rooms with the necessary supplies and equipment.
Throughout the day, healthcare providers see patients for scheduled appointments. These appointments may include routine check-ups, preventive care visits, follow-ups for ongoing conditions, or addressing acute health concerns
Administrative tasks such as scheduling appointments, billing, invoicing, and managing supplies and equipment.
The business is closed for the day.

b. Production Process

There is no production process when it comes to direct primary care business.

c. Service Procedure

The services procedure for a direct primary care business revolves around clients (patients or their family members) requesting personalized services.

Generally, direct primary care practices often collaborate with specialists, hospitals, and other healthcare providers to coordinate patient care. This may involve referrals to specialists, reviewing specialist reports, coordinating follow-up care, or facilitating necessary diagnostic procedures or treatments.

d. The Supply Chain

A supply chain is not applicable to a direct primary care business.

e. Sources of Income

United Trust® Direct Primary Care Services, Inc. generates income primarily through the following sources:

Membership Fees
Additional Services and Procedures
Corporate Contracts
Telemedicine and Remote Consultations
Partnerships and Collaborations
Non-Medical Services
Insurance Reimbursements (if applicable).

Financial Plan

a. Amount Needed to Start Your Direct Primary Care Business?

United Trust® Direct Primary Care Services, Inc. would need an estimate of $150,000 to successfully set up our direct primary care business in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

Business Registration Fees – $750.
Legal expenses for obtaining licenses and permits – $1,300.
Marketing, Branding, and Promotions – $1,000.
Business Consultant Fee – $2,500.
Insurance – $5,400.
Rent/Lease – $70,000.
Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
Operational Cost (salaries of employees, payments of bills et al) – $30,000
Start-up Inventory – $25,000
Store Equipment (cash register, security, ventilation, signage) – $4,750
Furnishing and Equipping – $35,000
Website: $600
Opening party: $4,000
Miscellaneous: $5,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

United Trust® Direct Primary Care Services, Inc. will not build a new facility for our direct primary care business; we intend to start with a long-term lease and after 10 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses of Running a Direct Primary Care Business?

Staffing costs (salaries, benefits, and training for physicians, and administrative staff)
Facility expenses (rent, utilities, property taxes, maintenance, and insurance)
Medical Supplies and Equipment such as examination tools, diagnostic equipment, vaccines, and basic medical supplies.
Marketing and advertising
Administrative expenses (office supplies, legal fees, accounting services, and software or technology systems)
The cost of purchasing pharmaceuticals and maintaining an inventory of commonly prescribed medications.
Taxes
Compliance and Regulatory Costs.

e. What is the Average Salary of your Staff?

Chief Executive Officer (Chief Medical Officer) – $72,000 Per Annum
Medical Providers (Primary Care Physicians) – $62,000 Per Annum
Billing Specialists – $42,000 Per Annum
Accountants / Cashiers – $38,000 Per Annum
Administrative Staff – $35,000 Per Annum
Customer Care Executive – $32,000 Per Annum

f. How Do You Get Funding to Start a Direct Primary Care Business?

Raising money from personal savings and sale of personal stocks and properties
Raising money from investors and business partners
Sell shares to interested investors
Applying for a loan from your bank/banks
Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
Source for soft loans from your family members and friends.

Financial Projection

a. How Much Should You Charge for Your Product/Service?

United Trust® Direct Primary Care Services, Inc. will charge based on what is obtainable in the United States. Our average membership fees can range from $50 to $200 per month per individual, with variations based on the level of care provided and the geographic region.

We may offer different tiers of membership, with varying levels of access and services, which can affect the pricing structure.

b. Sales Forecast?

First Fiscal Year (FY1): $350,000
Second Fiscal Year (FY2): $460,000
Third Fiscal Year (FY3): $580,000

c. Estimated Profit You Will Make a Year?

First Fiscal Year (FY1) (Profit After Tax): 25%
Second Fiscal Year (FY2) (Profit After Tax): 30%
Third Fiscal Year (FY3) (Profit After Tax): 35%

d. Profit Margin of a Direct primary care Business

The ideal profit margin we hope to make at United Trust® Direct Primary Care Services, Inc. will be between 20 and 35 percent on each job carried out irrespective of the distance covered.

Growth Plan

a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?

United Trust® Direct Primary Care Services, Inc. will grow our direct primary care business by first opening our offices in key cities in the United States of America within the first five years of establishing the business and then starting a franchise in the nearest future.

b. Where do you intend to expand to and why?

United Trust® Direct Primary Care Services, Inc. plan to expand to;

Minneapolis, Minnesota
Nashville, Tennessee
Phoenix, Arizona
Portland, Oregon
San Diego, California
Atlanta, Georgia
Charlotte, North Carolina
Dallas, Texas
Denver, Colorado
Tampa, Florida.

The cities listed above have a growing aged population and a significant demand for direct primary care services, making them potentially viable markets for direct primary care enterprises, which is why we want to expand to these locations.

Exit Plan

The founder of United Trust® Direct Primary Care Services, Inc. aims to exit the company through a merger and acquisition. We wish to merge with a global direct primary care firm so that when the founder retires, the company’s management can be placed in trusted hands.

The purpose of merging two or more international direct primary care firms is to achieve synergy, in which the total (the new company) is greater than the sum of its parts (the former two distinct entities).