D&P Consulting

Table of Contents

PG#3……………………..Who is D&P4-5...………………..SWOT6-8………………….Research9…………………….Findings (Conclusion and Suggestions)

10…………………..Our Goals / Action plan11…………………..References and Appendix

D&P Consulting

Mission Statement: At D&P Consulting group we strive to provide our clients with the best

service, by helping them with marketing strategies and product development. We do

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this by offering business development plans that will help them to utilize insurance companies in their selling and advertising processes.

Who we are:At D&P Consulting we are looking to shake up the market in the medical

device world. It has become extremely difficult for new companies to gain traction in this market due to big company monopolies that produce immense quantities of inferior products. The current process of relying on distributors to sell and market your products is soon to be replaced. This is where we come in to the picture because we know that we can increase a company’s sales while at the same time cutting the majority of their spending. We accomplish this by helping select medical device companies receive in-network benefit coverage with insurance companies. We work with device companies that have the latest up and coming products that will allow the patients to receive the best quality care available. In choosing to work with select companies we will also help insurance companies save money due to less revision surgeries in turn helping to lower the cost of insurance premiums. We are dedicated to making any business that we work with become a success, and we don’t accept payment until we produce a profit.

D&P Consulting

At D&P Consulting we have considered our strengths, weaknesses, our opportunities and the threats that follow our company. We feel that our key strengths are that we pose zero to risk to our client and other parties involved due to the fact that we don’t make money until we have made them money. Also, our

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strategy is an original idea in this market. Although this concept is present in other areas of the medical world, it has never been used to help medical device companies become a success. Our business plan grants us the opportunity to be socially responsible. In choosing to work with companies that make the best product we are able to improve the lives of patients that require these medical devices. Lastly, our projected revenue will allow us to grow and create jobs at a comparatively fast rate.

We recognize that our company will have certain struggles. Although the idea has great potential it is fairly hard to market. The idea can’t be adopted by base level employees but must be embraced by top level executives that would allow us to represent their company. Once we have created a working relationship with a device company there is no guarantee that they will be willing to negotiate with an insurance company to receive in-network coverage. Also, geographic limitations would make it hard to work with some of the key insurance companies in the country.

Sense there is no way to patent our marketing strategy we will be forced to overcome possible threats. These threats include the possibility that the idea could be taken and attempted by a company that we present too. There is also a chance that an outside group or individual could take the concept to the competitors of the companies we represent.

There are many opportunities that lay ahead for our company as well as the

company’s that we choose to work with. We would be the only company offering this concept in this market in turn creating a huge potential for growth. With our company the main investment is our time. This means that the company itself will not have to operate for a long period of time before it is able to break even. Sense the company does not have to operate in the black we will be able to expand and better communicate with key insurance companies.

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StrenghtsZero risk to the client, we dont make

money unless they dooriginal idea for this market

All parties involed make /Save Money

Low over head costWe choose our client base

job SecurityNo current competitionfelxable business plan

our business plan is social responsable

Our projected revenue will allow us to creat jobs.

WeaknessIdea is hard to market

device companies are unwilling to negotiate

if business drop product prices we loose commision

hard to get into a company to present the idea

finding employeesGeographic limitations

Goverment may regulate the market monoploy

income is based on product price

ThreatsIdea could be stolenGroup that steals the idea could contract with competitor companies

OpportunitesEmployment GrowthOrganize and support charitiesStock options100% market shareRapid income increase

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D&P Consulting

(Research)

After reviewing our SWOT analysis we were able to come up with objectives that would enable our research to help us establish credibility. By accomplishing these research objectives we feel that the information will further our plans and help us achieve our financial goals. Our objectives were as follows:

1. How large is the market in Utah, and how quickly will we need to look at expanding out side of the state?2. Are there alternative types of medical devices that we could work with other than companies that make implants?3. What is the feasibility of our idea through the eyes of people who are already in the industry?

Even with certain limitations in mind we ran into challenges when it came to obtaining our research. As this is a new idea to the market we have very little secondary research to support how successful our company will be. Through further evaluation we found that our secondary research would be very subjective and must be tailored towards the individual companies that we would work with. In spite or the challenges in obtaining secondary research we feel that we were able to effectively achieve our objectives.

606

61,422

Device Companies

Device Com-panies in Utah

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10879

77

Insurance Companies

Insurance Companies in the US

Insurance companies in Utah

Replacement surgeries in the US

D&P Consulting

244,000

285,000

200,000

KneeHipSpin

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To better understand our objectives we conducted several interviews with people who are experienced in the industry. We had the opportunity to interview the insurance maintenance department for Myriad Genetic Laboratories with regard to contracting with insurance companies. They had a lot of encouraging information about how it is that insurance companies tend to follow the example of other companies. For instance, if one insurance company establishes a contract it is because they are going to benefit from it, and if one company is going to benefit from it so will most other insurance companies. They also indicated that it is a good idea to start with big company’s and then work with smaller insurance companies once you have established a reputation.

We feel that the information received from this particular group was credible and valuable. It will defiantly attribute to how it is that we execute our business plan once we find a device company who is on board with the idea.

We also had the opportunity to sit down and spend some time with Rob Johnston (a former health and life insurance salesman for several major insurance company’s) He thought that the idea, while never really being considered, has huge potential. He said that as long as we are able to show “on paper” how the insurance company is going to save money now and in the future there is no reason why they would not want to contract or give in-network rates to a medical device company. He was very enthused about the idea and offered to help if we needed any additional information.

We were not sure how all insurance companies would feel about contracting with a device company so we put in a phone call to Select Health. (The insurance company for Intermountain Health Care) Select Health we feel would be the hardest insurance company to establish a contract with as they own their own hospitals and employ their own doctors. This was going to be difficult because it would cause the insurance company to undermine their own employees to a certain extent.

We talked with Diane in the Managed Care department and proposed the idea with hypothetical offers from an anonymous device company. Her response was what we were expecting in that they would not be able to contract with a device company in this particular situation. However, she did say that if we were to have the name of the company and a breakdown of the how this is going to benefit them, their doctors and their patients then they would be more likely to consider such a proposal.

D&P Consulting

From this research we have found the following:

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There are more device companies outside of Utah-Prothstetic replacements could be very profitable section of the market-Approximately 725,000 knee hip and spine replacements-We will be most successful if we start by contracting with large insurance companies—We will be most successful if we start by contracting with large insurance companies.  —If one insurance company establishes a contract then other companies are more willing to do the same.-        Insurance companies are going to require facts and projected figures before they will consider or understand the need for the contract.        —We will be more successful working with insurance companies if we have an actual device company and product that we can market to an insurance co.  —   The idea of device companies being able to contract with insurance companies and receive In-Network rates is possible.      — If we could figure out how to get select health to establish a contract than we should not have a problem reaching out to other insurance companies. 

From our findings we have concluded that our expansion possibilities are great. We have uncovered areas with in our market that we can expand to. One negative that we will have to over come is that some insurance companies will be reluctant to contract due to there business set up.

D&P Consulting

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After going over the different aspects of our company and reviewing our findings we have come up with the following goals that we would like to have accomplished in the next 6 to 12 months:

1. We want to be contracted with at least two device companies in the next six months.

2. We would want each of those companies to have in-network status with at least one key insurance company in the first six months of our contract with them.

3. We would like to be turning a profit with in six months and able to pay out salaries with in the first year.

These goals will be accomplished as we contact and work with medical device companies. We plan on attending medical device conventions to promote our idea to prospecting companies. Attending these conventions will also allow us to scope out which companies would be a best fit for our services. Then we will work on meeting with them and presenting our idea. Once we have partnered with a device company we will work with them to negotiate the terms of their contract with the insurance companies.

We understand that what we are offering requires a lot of effort and that it will be full of challenges, but the D&P Consulting group is committed to do what it takes to make you successful. We know that if given the chance our business will be a true benefit to not only the device and insurance companies, but also to patients across the United States.

Refrences

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Alabama- Member Directory - Healthcare Providers - Amputee Coalition. (n.d.). Amputee Coalition - Resources for amputees, amputation, limb loss, caregivers and healthcare providers. Retrieved November 27, 2012, from http://www.amputee-coalition.org/healthcare-providers/member-directory/members_us.asp?state=Alabama

Brian L Bowyer, M. (13 D). Net wellness. Retrieved from http://www.netwellness.org/healthtopics/amputation/overview.cfm

Knee replacements more than doubling in the US | Fox News. (n.d.). Fox News - Breaking News Updates | Latest News Headlines | Photos & News Videos. Retrieved November 27, 2012, from http://www.foxnews.com/health/2012/09/26/knee-replacements-more-than-doubling-in-us/

Lumbar Artificial Disc Surgery for Chronic Back Pain. (n.d.). Back Pain, Neck Pain, Lower Back Pain | Spine-Health. Retrieved November 27, 2012, from http://www.spine-health.com/treatment/artificial-disc-replacement/lumbar-artificial-disc-surgery-chronic-back-pain

Search Results for Health care providers within Utah (UT) Companies & Businesses. (n.d.). Company Profiles & Company Information on Manta. Retrieved November 27, 2012, from http://www.manta.com/mb?search=Health+care+providers+in+utah

Total Hip Replacement - OrthoInfo - AAOS. (n.d.). AAOS - OrthoInfo. Retrieved November 27, 2012, from http://orthoinfo.aaos.org/topic.cfm?topic=a00377

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Appendix

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