Are you a healthcare organization aiming to expand into new markets or enhance your presence in existing ones? Navigating the complexities of expansion can be daunting, but fear not—we're here to guide you through a proven process.
The Buxton team recently had an insightful conversation with David Bromfield, Senior Vice President of Growth at Upperline Health. David shared his expertise on utilizing SCOUT to assess potential clinic locations nationwide. Drawing from this conversation, we've crafted this De Novo Healthcare Process Checklist tailored specifically to healthcare platform users like you.
Step 1: Define Your Strategy
When embarking on healthcare expansion, the first crucial step is to define a comprehensive strategy. This involves not only exploring new markets but also critically assessing existing ones. Are you more interested in entering new markets or infilling existing markets?
"As a growth company operating in seven states, one of our primary objectives is to expand within our existing markets," David emphasized. "It's beneficial from many levels - established brand value, field leadership, and understanding the dynamics of the market."
When weighing investment in an existing market versus a new market, consider operational infrastructure and brand value as part of the process.
Step 2: Assess Market Viability
The second step revolves around assessing the viability of potential markets. This includes validating anecdotal information through further conversations with local experts and market analysis. Only by ensuring the accuracy and reliability of information can organizations make informed decisions on which markets to invest in and where to put new clinic locations within those markets.
David emphasized the importance of visualizing existing patient data, stating, "This is one of the most important things that we use in the diligence process. We love the fact that Buxton can take our data and we can map it. This guides us to where the next location should go."
Simultaneously, an analysis of population density and demand is key . Identifying areas with untapped potential for expansion becomes clearer through this process. Additionally, considering demographic factors ensures the chosen target market aligns with the necessary criteria for successful new clinics.
Step 3: Evaluate Competition and Cannibalization
The market viability assessment shows you pockets of untapped new patient opportunities within the markets you are considering. As the expansion strategy unfolds, evaluating the competitive landscape within those pockets of opportunity becomes crucial. This involves an analysis of relevant healthcare competition within the defined trade areas. Consideration of practitioner counts by specialty and reputation guides organizations in making strategic decisions.
Equally important is the assessment of potential overlap or cannibalization. Establishing acceptable thresholds and conducting a detailed assessment of potential clinic trade areas helps organizations navigate the delicate balance between expansion and avoiding detrimental impacts on existing operations.
As David mentioned for Upperline Health, “Cannibalization can be a good thing, but not to the extent that we're going to put a clinic 200 yards from our existing location. We anticipate a level of cannibalization. One thing we will do before we open a clinic is optimize our marketing and reinforce our sales program there. so that when we open that, we're filling in the cannibalization.”
Step 4: Collaborate and Build Referral Networks
Collaboration and the establishment of robust referral networks mark the next phase of the expansion journey. Assessing the presence of hospital systems in proximity offers opportunities for collaboration and admitting privileges when in-patient care is warranted. Simultaneously, identifying primary and additional healthcare providers is crucial for building a network that facilitates patient referrals to the new clinic.
As David highlighted, “We want to understand who's actually going to send us patients. There is a myriad of healthcare provider data in SCOUT that you can toggle on and off. We've got primary care docs, endocrinology, and other large referral sources for us. This leads to a whole other tangent where we take that information and give it to our sales team. We start thinking about who we approach here? Who's going to send us patients? Who can we develop relationships with?”
Step 5: Finalize Location and Continuously Improve
The final steps involve a meticulous evaluation of potential clinic real estate options. This includes a detailed assessment of real estate considerations, taking into account factors like natural barriers, access points, proximity to medical hubs, as well as visibility, parking and signage. For an organization like Upperline Health, assessing proximity to surgical facilities is essential for physician recruitment purposes.
David stated, “As we go through the process, we continually iterate and improve. This is an iterative process. We get a lot of input from brokers, from the field, trying to understand where people travel to and from."
Ensuring patient data sharing compliance is equally critical, emphasizing the need for secure platforms to maintain confidentiality with encryption. Establishing a routine for monthly data uploads and iteration creates a culture of continuous improvement, allowing organizations to adapt to changes in the target market and make informed decisions throughout their expansion journey.
Fortunately, data sharing with Buxton is simple. David notes that, "Facilitating automated data updates with Buxton is super easy and secure. You just drop the data in, and within a week, it's live on the platform. We follow this smooth process monthly, constantly uploading and iterating the information. I highly encourage everyone to give it a try – it's that straightforward and tremendously beneficial for your operations."
Conclusion
In the ever-evolving healthcare sector, the need for precision in expansion strategies is non-negotiable. Healthcare expansion is a multifaceted journey requiring strategic insight, data-driven decision-making, and a commitment to continuous improvement. The integration of advanced data analysis and visualization applications, such as SCOUT, provides a powerful tool for informed expansion decisions.
Ready to embark on your healthcare expansion journey? Log into SCOUT or reach out to your account manager to inquire about setting up automated patient data updates.
