Dan Johnson Kjersten Skjold Scott Holm Robert Whittaker

Dan Johnson, Kjersten Skjold, Scott Holm, Robert Whittaker, Sarah Erickson, Ricky Morgan

Co-Ownership • Combined 15 year experience, both certified in Mc. Kenzie Method of Mechanical Diagnosis & treatment of the spine • Kjersten Skjold: DPT, AAOMPT • Chief Operations Officer • Dan Johnson: DPT, Sports Rehabilitation Residency • Chief Financial Officer • LLC operating agreement with shared profit & duties

Financials • Start up cost: $241, 000 • Loan Requested: $191, 000 • 7 year contract • Construction • Equipment • Co-Owner contribution: $50, 000

Facility 4350 S Washington Street Grand Forks, ND 58201 (701) 335 -3335 • Across from Wild Hog/Choice Health & Fitness • 2, 380 square feet • $71, 000 fit up assistance from landlord

Virtual Tour

“Designing a better moving you” • Our focus is on promoting & preserving the health & well being of our patients in the greater Grand Forks area who suffer from work & sports related injuries • We look to secure contractual agreements with local large scale industrial companies • We hope to become a primary provider for all sports related injuries • As health & wellness experts we intend to promote holistic wellness of our patients by assisting them in preventing future health complications

• Mission • To provide the area with evidence based comprehensive rehabilitation with the highest level of clinical care available • Vision • To become a self-sufficient physical therapy clinic with a stellar reputation for quality care that attracts patients from around the region.

Services & Products Treatment of orthopedic & neuromuscular conditions related to work & sports injuries • Strength &Conditioning • Wellness consultations • Manual therapy • Ergonomic assessments • Mc. Kenzie Method of the • Pre-sports physicals Spine • Soft Tissue Mobilization • Modalities for relief of pain & inflammation • Patient education • Home Exercise Programs • Bike Fit • Work & Wellness Seminars • Gait assessments

Goals • We will secure two contractual agreements with at least two • • • major companies in the Grand Forks area. We will attend three health fairs to promote our physical therapy services. We plan to do twelve Work & Wellness Seminars at local businesses in an attempt to increase clientele base & meet our contractual agreement goals. We are driven to achieve 95% patient satisfaction through survey results in the first year. Increase our daily case load from five patients per therapist to ten & maintain this consistent case load throughout the life of the business. We plan to net a profit of $40, 000 exceeding our anticipated amount of approximately $31, 808.

Physical Therapy Trends • Autonomous providers • Prevention & wellness focused • Treatment of preventable diseases • Reducing long-term healthcare costs

Marketing Primary Target • Large industrial facilities • LM Glassfiber • American Crystal Sugar • Amazon • Cirrus Design • Athletes Secondary Target • Post-operative orthopedic patients • Weekend Warriors • Geriatric patients • Law-enforcement • GFPD • UPD • GF county sheriffs • Fire department

Competition Primary Competition • Hospital systems • Altru Health Systems • Sanford Health • Private Practice • Rehab Authority • Achieve Therapy & Fitness Secondary Competition • Grand Forks School System • University of North Dakota • Massage therapists • Chiropractors

SWOT Analysis Strengths • Extensive background & in training • Manual Therapy • Sports Rehabilitation • Combined 15 years of experience • Previous development of population specific programs • Nursing preventative wellness • Student-athlete strength & conditioning Weaknesses • Lack experience in neurological rehab • New to the market • Limited number of therapists

SWOT Analysis Opportunities • Community emphasis on health & wellness • Healthcare trends changing • Prevention based • Large number of industrial companies Threats • Lack of presence in the market • Altru Health Systems • Achieve Therapy & Fitness • Reimbursement changes • Affordable Health Care Act

Marketing Plan • Unique Selling Point: • Our therapists have obtained advanced certifications & have significant experience • Our interventions are individualized for the specific needs of each patient • Our patients return to work or sport sooner than other physical therapists • Dan: On average, patients return to work or sport 1 week earlier when compared to otherapists • Kjersten: On average, patients require 3 less visits to reach their goals

Marketing Plan Types • Networking: • Greater Grand Forks Young Professionals • Grand Forks Chamber of Commerce • Local events: Wild Hog Half Marathon & Healthy Living Expo • Workers Safety & Insurance of North Dakota • Health Care Professionals Letters: • Who, Where, & What

Marketing Plan Types • Social Media: • Facebook • Twitter • Print Marketing: • Flyers during the first 3 months • Grand Opening • Little known facts about PT • Free “mini-evaluation” • Website: • Developed & maintained by a professional marketing firm • Updated regularly

Marketing Goals • Secure a one-year or multi-year physical therapy service contract with a major industrial business to obtain consistent patient flow. • Receive referrals from 10% of physicians who receive our healthcare provider marketing letter to grow our healthcare network. • 20 patients participate in our free screening from our flyer marketing to increase our patient numbers. • Lead a lunch & learn with the Greater Grand Forks Young Professionals group to enhance our networking among businesses in Grand Forks.

Marketing Budget Marketing Type $380. 00 $45. 00 Total Cost/Year $875. 00 Professional Letters $800 $0. 00 $800. 00 Social Media $0. 00 $2000. 00 $1298. 00 $5, 000 $600. 00 $5, 600 $8080. 00 $2645. 00 $8573. 00 Networking Print Marketing Web Site Design Total Initial Cost Recurring Cost/Year

Projected Net Profit • 2014 • Assuming each PT sees 5 patient’s per day • $100 per patient • Gross profit of $260, 000 • 2015 • Assuming each PT sees 10 patient’s per day • $100 per patient • Gross profit of $520, 000 • 2016 • Assuming each PT sees 11 patient’s per day • $100 per patient • Gross profit of $570, 000

Major Expenses • Mortgage – $34, 034. 88/year • Advertising – $8, 573/year • Rent – $30, 900/year • Web. PT – $19, 400 projected first year cost • $50/month per therapist • 6. 5% of total billing • Benefits – $16, 584/year • Health insurance: Premium Plan = $1, 072/month • $12, 864/year

Salary • PT’s – $50, 000 per year • Office Manager – $40, 000 per year • Total salary of the employees = $140, 000 per year

Profit & Loss Projection (3 Years) Sales Gross Profit Operating Expenses Salary (Office & Overhead) Payroll (FICA taxes etc. ) Supplies (office & therapeutic) Repairs/ Maintenance Marketing/Advertising Mortgage Accounting & Legal Rent Telephone Utilities Benefits (CEU, PTO, Health Insurance) Professional fees (APTA) & Licensure Web PT Miscellaneous Total Expenses Net Profit Before Tax Income Taxes (ND & Fed) Net Profit After Tax 2014 % $260, 000 100. 00% $140, 000 $17, 360. 00 $2, 000 $500. 00 $8, 573. 00 $34, 034. 88 $1, 000. 00 $4, 080. 00 $4, 800. 00 $16, 584. 00 $1, 110. 00 $19, 400. 00 $1, 000. 00 $246, 202 $13, 798. 12 $2, 800. 00 $10, 998. 12 53. 85% 6. 68% 0. 77% 0. 19% 2. 82% 13. 09% 0. 38% 0. 00% 1. 57% 1. 85% 6. 38% 0. 43% 7. 46% 0. 38% 95. 85% 2015 % $520, 000 100. 00% $140, 000 $17, 360. 00 $2, 000 $500. 00 $2645. 00 $34, 035. 00 $1, 000. 00 $30, 900. 00 $1, 080. 00 $4, 800. 00 $16, 584. 00 $1, 110. 00 $19, 400. 00 $1, 000. 00 $277, 102 $247, 898. 00 $132, 817. 00 $117, 081. 00 26. 92% 3. 34% 0. 38% 0. 10% 1. 41% 6. 55% 0. 19% 5. 94% 0. 21% 0. 92% 3. 19% 0. 21% 3. 73% 0. 19% 53. 29% 2016 % $572, 000 100. 00% $140, 000 24. 48% $17, 360. 00 3. 03% $2, 000 0. 35% $500. 00 0. 09% $2645. 00 1. 28% $34, 035. 00 5. 95% $1, 000. 00 0. 17% $30, 900. 00 5. 40% $1, 080. 00 0. 19% $4, 800. 00 0. 84% $16, 584. 00 2. 90% $1, 110. 00 0. 19% $19, 400. 00 3. 39% $1, 000. 00 0. 17% $277, 102 48. 44% $301, 898. 00 $142, 817. 00 $159, 081. 00

3 Year Projection Net Profit (post tax) 2014 $10, 998. 12 2015 $117, 081. 00 2016 $159, 081. 00 PT Projected Salary (post tax) $55, 499. 06 $108, 540. 50 $129, 540. 50

Web. PT • All billing & documentation will be done through Web. PT. • Web. PT will help us: • Increase compliance • Increase efficiency • Schedule patients • Improve operational decision-making with real-time business intelligence • Work on the go • Web. PT is a widely used software provider for physical therapy clinics throughout the nation.

Documentation

Scheduling

Practice Management

Billing • Reduce Claim Errors • Drive Profits • Save Time

Organizational Chart Dan Johnson, DPT – CFO Kjersten Skjold, DPT – COO Office Manager

Physical Therapists • Dan Johnson CFO • Marketing • Public relations • Advertising • Financial • Kjersten Skjold COO • Day to day operation management • Oversees scheduling

Staff • Office Manager • Welcome guests • Scheduling appointments • Answer phones • Keep facility clean & tidy • Use Web. PT effectively • Advertising (sending appointment reminders) • Paying rent & all bills • Organizing physician protocol information

Quality Improvement Plan • 1 strongly disagree, 2 disagree, 3 neither agree nor disagree, 4 agree, 5 strongly agree, N/A if you do not have an opinion on the question • My privacy was respected during my PT care • My PT & other staff were courteous • The clinic scheduled appointments at convenient times • I was satisfied with the treatment provided by my PT • The home exercise program my PT gave me was helpful • I was seen promptly when I arrived for treatment • The location of the facility was convenient for me • I would recommend this facility to family or friends • My bills are accurate • The cost of the PT treatment received was reasonable • If I had to, I would pay for these PT services myself • Overall, I was satisfied with my experience with my physical therapy

Expansion Plan • Short term • Hire PT &/or PTA • Long term • New location • Crookston • Fargo • Devil’s Lake

FOCUS-PDCA • Find – Patient no shows • Organize – Owners & office managers • Clarify – Unclear scheduling, etc. Less productivity • Understand – Measuring variation (patient satisfaction, PT time management, etc. ) • Select – Patient scheduling, PT time management • Plan – Staff meet to discuss potential areas. • Do – Meeting to discuss how to better utilize time and use scheduling system • Check – Meet biweekly to analyze data to find variations • Act – Implement necessary changes

Eric Giltner’s Words of Wisdom • Loan agreement • 5 year to a 7 year • PT salary • Highlight Web. PT • Less time with billing, more time with patients • Financial Information • Consult with a financial professional • Highlight your unique selling point • What makes you better? • Clean formatting

Thank You

Questions

References 1. 2. 3. 4. 5. 6. 7. 8. Bowers MR, Kiefe CI. Measuring health care quality: Comparing and contrasting the medical and the marketing approaches. Am J Med Qual. 2002; 17(4): 136 -144. Harp SS. The measurement of performance in a physical therapy clinical program. A ROI approach. Health Care Manag (Frederick). 2004; 23(2): 110 -119. Laskaris J, Regan K. The new break-even analysis. Health Finance Manage. 2013; 67(12): 88 -95. Nosse LJ, Friberg DG. Management and supervisory principles for physical therapists. Lippincott Williams & Wilkins; 2009. http: //books. google. com/books? id=z. L_2 Ow. AACAAJ. Richmond T, Powers D. Business fundamentals for the rehabilitation professional. SLACK; 2009. http: //books. google. com/books? id=y. Irgu. S 7 ku 6 IC. Sahlman WA. How to write a great business plan. Harv Bus Rev. 1997; 75(4): 98 -108. Schafer DS. Environmental-scanning behavior among private practice physical therapy firms. Phys Ther. 1991; 71(6): 482 -490. Marketing • http: //www. apta. org/PTin. Motion/2009/6/Feature/Physical. Therapy. Marketing/ • http: //www. apta. org/PTin. Motion/2008/5/Feature/21 st. Century. Marketing/ • http: //www. apta. org/PTin. Motion/2006/9/Board. Perspective/ 9. 10. 11. 2013 APTA year in review: http: //www. apta. org/2013/ Marketing and public relations for the physical therapist: http: //www. apta. org/PTin. Motion/2013/12/Feature/Marketing. PR/ Equipment List/Floor Plan – Tony Erickson Altru Project Manager