Centers for Brain Health and Mental Wellness
BUSINESS EXECUTIVE SUMMARY
Daniela Addeo, MD MBA
The Company
Brain Health and Mental Wellness Centers (BHCs) constitute a start up company and for profit organization that will provide efficient, effective, non pharmacologic and safe solutions for managing brain health for a wide variety of diagnosed medical conditions (reactive approach) and solutions to maintain optimal brain function for healthy individuals of all ages (proactive approach).
BHCs will draw the experience and expertize of the International Brain Research Foundation, in collaboration with a team of expert healthcare professionals to apply active interventions to improve and maintain brain function.
Modalities offered at the BHCs include individualized combination of diagnostic and non-invasive/minimally invasive treatment procedures that reflect more than 25 years of research, scientific publications and practical experience with well proven clinical benefit.
Need for Services
Brain Health and Mental Wellness Centers will address challenging problems that burden families and communities:
There is significant and continuous rise in number of people with behavioral and degenerative brain disorders that need treatment and for which medicated regimens are costly and lengthy, of low effectiveness and with significant adverse effects. BHCs will offer complementary/alternative management approaches to improve outcomes.
General population has longer life expectancy and increased concerns with aging brain function. Surveys revealed that more than 60 % of healthy individuals are interested in pursuing modalities (such offered by BHCs) to delay or avoid brain functional deterioration.
At present time there is low availability and capacity of centers addressing these issues. Brain Health and Mental Wellness Centers will fill in the gap between increasing demand of these services and lack of availability. BHCs will bring closer to communities modalities of diagnostic and treatment that otherwise are available in selected centers, affiliated to large institutions or offered by a relatively small number of private companies with segmented services.
Competitive Advantages
One of the Company’s competitive advantage and difficult to reproduce is the proprietary algorithmic paradigm that generates personalized, effective report of management recommendations for each patient/individual.
Another competitive advantage is the company’s team of reputable scientists and well-respected healthcare professionals with years of experience and outstanding reputation who will attract patients through already existing professional networks.
Business Strategy
Through application of individualized active interventions, BHCs will improve brain health for patients with diagnosed pathological conditions as well as for healthy individuals and in the same time will generate profit.
Key elements of Company’s business strategy include:
1.Build an impeccable reputation through excellent results and professionalism.
2. Offer comprehensive services for a variety of conditions close to communities and conveniently available at each center.
Brain Health and Mental Wellness Centers will offer both diagnostic and intervention modalities.
Diagnostic studies include:
Neurophysiological initial evaluation; quantitative EEG and qualitative EEG (brain mapping), functional MRI (outsourced at this time), biomarker analysis.
Therapeutic and Wellness Interventions are applied in different combinations according to individualized plans generated through application of the proprietary algorithm. These interventions include: Trans cranial Magnetic Stimulation (TMS), Cranial electric stimulation (CES), Neuro feedback (NF), Laser photobiomodulation therapy, Hyperbaric O2 therapy, Stellate GGL block, Nutraceutical support and nutrition counseling. Some of the therapeutic modalities can be replicated at home for convenience under remote guidance and supervision of our experts and using our equipment for a fee.
Common pathologic conditions to be treated at Brain Health Centers include but are not limited to:TRAUMATIC BRAIN INJURY , POST TRAUMATIC STRESS DISORDER, ATTENTION AND CONCENTRATION DEFICITS, DEPRESSION, DEMENTIA, ANXIETY DISORDERS, SLEEP DYSREGULATION, MIGRAINE HEADACHES, PANIC ATTACKS, STROKE.
Brain Health Centers will also offer evaluations and active interventions to healthy individuals interested in maintaining and improving their brain health and function.
3. Use the Marketing Program to build and expand the referral base:
Marketing program includes
-Company brochures targeting patients with diagnosed pathological conditions and brochures targeting individuals of all ages without preexisting pathological conditions that describe services, providers and contact information will be placed in physicians’ offices, ambulatory care clinics, senior centers , fitness centers and clubs, wellness centers, etc. to increase public awareness.
-Power Point presentations by company’s experienced and knowledgeable experts will target groups of medical and non-medical professionals that are potential referral sources.
-Advertisement in magazines and newspapers,
- YouTube video presentations by company’s experienced and knowledgeable professionals
-Dedicated company web site easily accessible to search engines
-Local radio stations advertisement
-Community liaison will be hired/outsourced to promote and increase awareness of BHCs with community groups like churches, senior clubs, nursing homes.
4. Consolidate strong professional relationships with the identified sources for referrals
5. Increase Capacity. Brain Health and Mental Wellness Centers will operate 8 hours/day, 5 days/week/52 weeks per year. The Company will open 2 centers at the start: the first center is already operational as a smaller practice located in New Jersey and this will be expanded ; the second center located in New York State will be a new start up. Once the first 2 centers are up and running at full capacity (that is estimated by the end of first operational year) the Company will reassess the generated profits , the market opportunities and seek to open additional similar centers. The Company will finalize contract agreements with the Department of Defense and government agencies like Police Department, Fire Department) that will assure additional influx of patients to the brain centers and contract based revenue for services.
Financial Projections
The Company is expected to grow at a pace based upon the number of individuals evaluated and treated at the centers.
Revenue will be generated on a fee for service basis. Bundled prices will be offered for different combinations of services/procedures. Payment is out of pocket by patients/individuals. For insurance covered procedures the services will be charged with patients responsible for copayment.
The estimated break-even point is ~42 patients at a revenue/patient of $20,000 and is anticipated to be achieved in the first 6 months of operations.
Below are financial projections based on assumptions that the Company believes are reasonable in present economic and market/ healthcare industry conditions.
Numbers represent thousands of dollars YEAR 1 YEAR 2 YEAR 3 YEAR 4
Revenue from Services 1,250 2,500 3,500 4,500
Cost of Services 350 500 600 600 *starting with year 2 the Company will hire rather than outsource
General and administrative 400 500 500 500
EBITDA 500 1,500 2,400 3,400
Use of Seed Funding
The use of the seed investment amount of $1,500,000 as detailed below and represents the best estimates of allocation of funds based on current start-up plan.
Rent for year 1 (2 sites) 200,000
Marketing for year 1 150,000
Equipment for 2 sites 550,000
Computers, operational software, IT services (2 sites) 150,000
Accounting, legal services, insurance 150,000
Salaries and outsourcing (for 2 sites) 300,000
________________________________________________________________________________________
1,500,000
Exit Strategy
The most likely exit strategy is the acquisition of Brain Health and Wellness Centers by large health care systems or another health and wellness company seeking to capture the business model and the customer base.