Expanding Primary Care Footprint in a Complex Healthcare Environment

PROJECT SUMMARY

The decision of whether to expand Primary Care offices to additional locations is a complex issue.  Primary Care use has declined amongst insured adults in the United States (Ganguli, Shi and Orav).    The decision needs to look at both financial ramifications, as well as how this expansion can better serve the population. In addition to the decision of whether to expand to an additional location, one must look at the issue of sourcing additional Primary Care physicians to staff existing and additional locations. Sourcing Primary Care physicians (internal medicine/family medicine) in the region has become a challenge due to the limited number of candidates, as well as the existence of a very competitive and saturated market for those doctors to work in. Physician Care Network (PCN) has a need for additional physicians (and physician extenders) to meet the growing demand, reduce wait times at existing locations, and plan for additional downstream volume coming from the growing strategy of adding urgent care centers. To fund this, they will be using an internal investment of $750,000.

A major challenge with this is the determination of the best compensation model for these primary care providers. This is complex, as there are multiple factors to consider:

1)    Making the practice attractive to potential new physicians

2)    Being financially responsible to the stakeholders

3)    Using compensation methods that help encourage the most productivity from the physicians, while preserving quality/safety/patient satisfaction.

This business plan is a template for opening an additional location for PCN, and it takes into account the supply issue of providers and how they plan to be successful in a buyers’ market.