EXECUTIVE SUMMARY PRESENTATION

Victor Esan

Proposal for a Vein Clinicas another service line opportunity for a cardiology practice

What is done in a Vein Clinic ?

Varicose Veins: EVLT (Endovenous Laser Treatment) and Ambulatory Phlebectomy

Spider Veins: SclerotherapyVenous Stasis Ulcers: EVLT and Ultrasound

guided Sclerotherapy

How does the vein clinic function?

Step 1. Consultation

Step 2. Physical Exam

Step 3. Vein Mapping ( Ultrasound )

Step 4. Schedule Your Procedures (Procedures to be scheduled like any other procedures as schedule permits )

Office Procedure

Local Competition

Determined by Local Market

Our Proposal

Vein Clinic to be located within a pre-existing clinic space whose cost is already allocated to the Cardiology group.

Physician has to be board certified in Phlebology.When fully established, clinic to move to the

Women’s clinic

Our Proposal Clinic hours : 1. Mondays 1pm – 4.30 pm- Office Procedures to be scheduled on PV lab days 2. PV lab days to be used for the vein clinic 9am – 1pm - Office 1.30pm – 4.30pm – procedure

NB Cath lab days will be used for PV

Procedures which have gone down considerably ,it

should be noted that the “appropriate use criteria” is

affecting our cath volumes.

Pro Forma Data

Based on one day a week physician productivity . ½ a day office & ½ a dedicated for procedures.Volume based on 40% of a pre existing vein

clinic , operating in a one day week clinic.Physician compensation based on 30% of net

revenue.

First Year Volume Breakdown

           

  1st Qtr 2nd Qtr 3rd Qtr 4th Qtr First Yr

Visit /per week 3 4 5 7  

Per Qtr 33 44 55 74 206.25

   

procedureper Visit 2.87  

Per Qtr 95 126 158 213 592.17

             

VEIN CLINIC PRO FORMA

Year 1 Year 2 Year 3 Year 4 Year 5 TotalVOLUME-

- Clinic Visits 206 297 312 327 344 1,486

- Procedures 592 853 895 940 987 4,268

REVENUES:- Clinic Visits 33,821 51,138 56,380 62,159 68,530 272,028 - Procedures 247,772 353,974 368,988 368,477 400,438 1,755,649

Gross Patient Service Revenue 281,593 405,112 425,368 446,636 468,968

2,027,677

less contractual adjustments 61% (171,772)

(247,118)

(259,474) (272,448)

(286,070)

$ (1,236,883)

NET REVENUE: $ 109,821

$ 157,994

$ 165,893

$ 174,188

$ 182,897

$ 790,794

VEIN CLINIC PRO FORMA

EXPENSES: Year 1 Year 2 Year 3 Year 4 Year 5 Total

Physician Compensation 30% of Net 32,946 47,398 49,768 52,256 54,869 237,238

Nurses Salaries 10,400 10,712 11,033 11,364 11,705 55,215Benefits 24% 2,496 2,571 2,648 2,727 2,809 13,252

Pharmaceutical Supplies 1,590 1,622 1,654 1,687 1,721 8,274

Clinical Supplies 4,018 4,099 4,181 4,264 4,350 20,912

Non Clinical Supplies 5,314 5,421 5,529 5,640 5,752 27,656

Marketing 10,000 10,000 10,000 10,000 10,000 50,000

Billing Charges 9,480 9,954 10,451 10,974 11,523 52,381

Beds ( 2) 10,000 TOTAL EXPENSES: 83,354 91,302 94,767 98,391 102,181 459,995

Contribution Margin before Depreciation 26,467 66,692 71,126 75,797 80,717 330,799

Depreciation 12,000 12,000 12,000 12,000 12,000 60,000

NET INCREMENTAL INCOME: 14,467 54,692 59,126 63,797 68,717 270,799

Capital Request

Capital Costs:    Equipment $60,000 Laser Cool touch CTEV 15 watt

35,000 

Duplex Ultrasound ( with portable laptop) 25,000    

  Total $ 60,000

The Final Analysis

Reimbursement dropping Appropriate criteria reducing cath casesPV lab volumes have fallen nationally

Need to look at other sources of revenue The Vein Clinic provides an opportunities for Vein procedures procedures could lead to Echo’s , Stress Tests, cardiac cases. The Vein clinic will bring new patients to the

practice.