The Runners Annex LLC1900 South Blvd Charlotte NC 28203

(704)333-8924TheRunnersAnnex@gmail.com

Core Values

The Runners Annex will provide client care which reflects compassion, maintains patient integrity, and excellence. The Runners Annex’s physical therapists will showcase attributes such as accountability, altruism, and professional duty.

Vision Statement

The vision of the runners annex is to provide the Charlotte running community with a high quality service that will allow the clientele to prevent and recover from injuries. The runners annex would like to be recognized in the Charlotte running community as a trusted and respected service which places patient care and experience above all.

Mission Statement

The mission of the runners annex is to provide consistent evidence based physical therapy treatment to help our patients prevent injuries as well as treat injuries which occur while participating in hobbies like running. Our mission is to provide our clients with the highest quality, respectful and safe physical therapy care delivered by doctoral physical therapists.

Description of Program

The Runners Annex will provide local runners that have current injuries or wish to prevent injuries that are specifically related to running a community resource to help them get back to prior running level. The runners will engage in the current physical therapy model of completing evaluation, treatment sessions, re-evaluation, and being discharged. The runners will receive evidence based physical therapy that is patient centered and focused on preventing and rehabilitating running related injuries. The Runners Annex will provide clients with injury specific or preventative therapeutic exercises along with a home exercise program. Manual therapy techniques will also be utilized along with neuromuscular re-education when the client will benefit from these services. Clients will receive physical therapy treatment which can be altered at anytime to take into account any changes in patient condition.

Marketing

Executive Summary

South End Outpatient Physical Therapy is an established, locally owned small business that has additional underutilized space within its facility that allows us the opportunity to expand our offerings to runners for the prevention and treatment of running associated injuries via creation of the Runners Annex. We believe runners represent an untapped niche group within the community that in time will increase our revenue stream and lead to greater brand recognition for our other OPPT services.

To aid in our market growth and create public awareness of our new service, we will create new signage within and without our clinic to alert current cliental and the local community of our new service. We will educate runners via speaking events about running injuries, prevention, and injury recovery. Staff will volunteer time at running and sporting events within the community to increase brand awareness and promote our services as appropriate. We will focus on building a strong web presence. Fostering an online community in which our runners can participate before, during, and after their care with us. As well as working to create a runners group that will meet weekly at our clinic for group runs and socializing with a long term goal of creating significant interest and participation to offer a charity run to benefit those in need of the surrounding community.

Environmental Data

Service Area:

The Runners Annex is being established to serve the South End community as defined by the 28203 zip code. It will be located within our current facility within the historic Tompkins Toolworx Building at 1900 South Blvd. Charlotte, NC 28203.

28203 Area

Demographics:

As of 2012, within a 5 mile radius of our clinic; we have a resident population of 156,000 with 48.92% being male and 51.08% being female, the median age is 33, total day time adult population is 379,237 with many from surrounding areas coming to work, shop, and play in this historic neighborhood, Average household income in 5 miles of our location is $73,684, with $29,432,634 being spent at health and personal care stores1. Charlotte was ranked 15th in the nation for total miles ran per week at 6.25 miles per week2. According to data pulled from RunKeeper, a GPS based running App that allows its users to make their data and their running routes public, we are located within and around some of the most frequently ran routes within Charlotte3.

RunKeeper Run Routes Logged in Charlotte, NC

Competitor Profiles

Competition within the South End neighborhood for Outpatient Physical Therapy Services is significant, with 4 independent OPPT clinics. However, we are the only clinic looking to offer PT services specifically for runners as well as the only clinic open on Saturday in our service area.

Ropers Physical Therapy

301 E. Tremont Ave. Suite BCharlotte NC 28203

Hours: 8am-6pm, M-F

Specializes in: Pain management, Myofascial Release (MFR) and Craniosacral Therapy (CST)

St. George Physical Therapy

1809 East Blvd #100, Charlotte, NC 28203

Hours: 8am-6pm, M-F

Specializes in: Orthopedic and neurological disorders, dry needling

Amy Ferrick Physical Therapy

1614 South Blvd. Charlotte, NC 28203

Hours: Not Listed

Specializes in: Not Listed

Roy Smith Physical Therapy

1408 East Blvd. Charlotte, NC 28203

Hours: Not Listed

Specializes in: Not Listed

SWOT Analysis

Strengths

Location Established clinic Direct access Reputation and relationships Client base Community presence Experience Infrastructure Evidence based practices Staff are runners

Weaknesses

Limited advertising budget Unknown demand for service Clinic not currently known for sport

specific therapy Failure of many policies to cover health

and wellness, or injury prevention

Opportunities

Untapped niche market/lack of specific competition

Can feed new clients into existing practice

Raise profile Growth/Expansion Wellness and Health promotion Get clinic name out to injury prone

group Failure of many policies to cover health

and wellness, or injury prevention

Threats

New or increased competition in service area

Health care reform uncertainty Insufficient public perception of need

for service Sport Specific OPPT Centers in Greater

Charlotte Area Podiatry practices

Marketing Strategies

Marketing for the Runners Annex will be a low budget affair and will rely on heavily on current and new staff and their patient and community interactions to help get the word out. Initially, our focus will be in establishing awareness of our new offerings through a combination of new signage, web presence, and community outreach and education. The five initial marketing strategies we will employ are:

1. Increase Web PresenceAdditional website, Facebook, Forum, Blog

2. SignageExternal signage will be added, as well as internal signage indicating our new service

3. Speaking spots for local running groups, athletic teams/organizations, running shoe stores, in clinic events.

Staff members will do educational/promotional speaking spots on common injuries in runners, injury prevention, and rehabilitation and recovery.

4. Establish Weekly Running GroupLead Annex PT will recruit for and lead weekly runs starting and ending at our clinic suitable for novice and veteran runners.

5. Volunteer at local area school athletic events and area running eventsStaff will volunteer/participate at local running events

Marketing Action Plans

1. Increased Web Presence

We will create a standalone web site linked from our current webpage for the Runners Annex that will include a weekly Blog addressing running and runner health issues, a forum for our clients, and a section for video tutorials demonstrating HEP activities. A Facebook page will be created and maintained for the Runners Annex and the associated running group we will initiate.

Task Responsible Party Completed By AccomplishedYes/No

Design Website,forum, and blog using Square Space and link to current website

Dan Woods 4/1/14 Yes

Establish Facebook Page

Alex Korman 4/1/14 Yes

Write or post hosted weekly Blog topic on website and Facebook page

Zack Edney Ongoing/weekly In Process

Provide Moderator and site management training to Zack Edney

Dan Woods 4/29/14

Film HEP Tutorials and post online

Alex Korman and Zack Edney

4/29/14

Moderate forums Dan woods and Zack Edney

Ongoing/weekly

2. Signage

External signage will be added, as well as internal signage indicating our new service

Task Responsible Party Completed By AccomplishedYes/No

Order indoor sign from Signarama

Alex Korman 3/25/14 Yes

Order outdoor sign from rocket Banners

Alex Korman 3/25/14 Yes

Contact building Maintenance for sign mounting indoor and outdoor

Dan Woods 3/27/14 Yes

Install Signs Building Maintenance 4/01/14 Yes

3. Speaking spots for local running groups, athletic teams/organizations, running shoe stores, in clinic events.

Staff members will do educational/promotional speaking spots on common injuries in runners, injury prevention, and rehabilitation and recovery.

Task Responsible Party Completed By AccomplishedYes/No

Contact groups organizations for speaking events/spots

Zack Edney Ongoing In process

Speaking Programs Dan woods and Zack Edney

Ongoing, Minimum 1 per week for first 3 months

In process

4. Establish Weekly Running Group

Lead Annex PT will recruit for and lead weekly runs starting and ending at our clinic suitable for novice and veteran runners. Recruitment via webpage, Facebook, community calendar announcement and in clinic flyers.

Task Responsible Party Completed By AccomplishedYes/No

Advertise group formation

Dan Woods 4/01/14 Yes

Contact interested parties

Zack Edney 4/15/14

Initial run led Zack Edney 4/20/14

Lead runs and programing

Zack Edney Weekly

5. Volunteer at local area school athletic events and area running events

Staff will volunteer/participate at local running events to increase name recognition and promote services via word of mouth and free assessments when appropriate

Task Responsible Party Completed By AccomplishedYes/No

Contact area schools Alex Korman 4/29/14

Contact race organizers

Alex Korman 4/29/14

Coordinate Event volunteer scheduling

Alex Korman 5/01/14

Financials

To determine revenue and expected units in a given period we made the following assumptions:

The average revenue from each CPT code reflects a patient population of 90% private insurance and 10% Medicare

CPT Code Description Charge

Commercial Insurance (60%)

Medicare

Weighted by Pay Source 90% Priv, 10% Medicare

97001 PT Eval 123 73.8 73.25 73.745

97112

Neuro Re-ed (15 min.) 76 45.6 32.36 44.276

97140

Manual Therapy (15 min.) 62 37.2 28.98 36.378

97110 Ther Ex (15 min.) 57 34.2 31.03 33.883

Two new patients and 6 returning patients will be scheduled each day, and there will be a 15% no-show rate.

During a new patient visit, the PT will bill two units PT Eval and one unit Manual Therapy for three units total.

During a returning patient visit, the PT will bill two units Neuro Re-ed, one unit Manual Therapy, and one unit Ther Ex.

Each month consists of 20 work days.

Pts/Day

Adjusted 15% No Show

Units/Day Revenue

Eval 2 1.7 5.1 $187.21

Treatment 6 5.1 20.4 $809.95

Units/Day 25.5 $997.16

Units/Month (20 Days) 510 $19,943.11

Service Revenue/Yr 6120 $239,317.30

One Year Break Even Analysis:

P = avg price of 1 unit = daily revenue / daily units = 997.16 / 25.5 = $39.10

FC = fixed cost for 1 year = total expenses = $113,255.73

Number of units to break even = FC / P = $113,255.73 / $39.10 =2896.26

One Year Operating Budget - Runners' Annex, LLC

30-Apr-15

Gross Revenue

Services$239,317.30

Equipment $0.00

Total Revenue $239,317.30

Expenses

Salaries $81,446.33

Benefits $20,361.58

FICA $6,230.64

Education $1,000.00

Sole Fitness R80 Treadmill $1,499.99

Dell Inspiron Small Desktop Computer 3000 Series $329.99

Oakworks Classic Clinician Stationary Table (Plinth) $865.00

Universal Medical Adjustable Rolling Stool $173.00

Custom Vinyl Banner 4x8 from Rocket Banner $49.19

Custom Lobby Sign from Signarama $300.00

Supplies $1,000.00

Rent $13,755.00

Electricity $851.88

Total Expenses $113,255.73

Net Income $126,061.57

According to loopnet.com rent for commercial space in the 28203 zip code is $18.34/sf/yr. 750 sf assumed. Salaries of 1 full-time PT and 1/3-time receptionist based on Salary.com. Electricity estimated at $70.99/month by calc.myenergy.com.

Income Statement (6 mo) - Runners' Annex, LLC

30-Sep-15

Gross Revenue

Services$119,658.65

Equipment $0.00

Total Revenue $119,658.65

Expenses

Salaries $40,723.17

Benefits $10,180.79

FICA $3,115.32

Education $500.00

Sole Fitness R80 Treadmill $1,499.99

Dell Inspiron Small Desktop Computer 3000 Series $329.99

Oakworks Classic Clinician Stationary Table (Plinth) $865.00

Universal Medical Adjustable Rolling Stool $173.00

Custom Vinyl Banner 4x8 from Rocket Banner $49.19

Custom Loby Sign from Signarama $300.00

Supplies $500.00

Rent $6,877.50

Electricity $425.94

Total Expenses $58,236.45

Net Income $61,422.20

Expenses year 1 First MonthSecond Month

Salaries$81,446.33 $6,787.19 $6,787.19

Benefits$20,361.58 $1,696.80 $1,696.80

FICA $7,788.31 $649.03 $649.03

Education $1,000.00 $83.33 $83.33

Sole Fitness R80 Treadmill $1,499.99 $1,499.99

Dell Inspiron Small Desktop Computer 3000 Series $329.99 $329.99

Oakworks Classic Clinician Stationary Table (Plinth) $865.00 $865.00

Universal Medical Adjustable Rolling Stool $173.00 $173.00

Custom Vinyl Banner 4x8 from Rocket Banner $49.19 $49.19

Custom Loby Sign from Signarama $300.00 $300.00

Supplies $1,000.00 $500.00 $83.33

Rent$13,755.00 $1,146.25 $1,146.25

Electricity $851.88 $70.99 $70.99

Total Expenses $14,150.76 $10,516.92

Units 1 mo 510 510

Cost per unit 1 mo $27.75 $20.62

Cost per unit for the first and second months was calculated by dividing total expenses for each time period by number of units billed for each time period.

Outcome Assessment

Outcome Assessment

At the Runners Annex outcomes will be assessed utilizing patient satisfaction surveys, productivity measurements of the physical therapists, and injury specific functional outcome measure. Patient satisfaction will be measured utilizing a patient satisfaction survey, which will be completed by the patient before the start of physical therapy and when the patient is discharged. The target for patient satisfaction is 95%.

Physical therapist productivity is another area that will be assessed. Physical therapist productivity will consist of number patients treated, number of patient visits, hours of patient care given, and total number of billable hours. Productivity will be assessed by the supervisor who will compile and analyze the data on a monthly basis. Productivity standards will be set at 90% or higher for a physical therapist.

The Runners Annex will also utilize injury specific functional outcome measures which will compare evaluation, re-assessment, and discharge objective data. This data will be collected by the physical therapist monthly and will be analyzed by the supervisor. The injury specific functional outcome measure will allow for the analysis of treatment technique effectiveness in specific running injury classes to allow for the most effective and efficient treatment for the clients. The results for injury specific functional outcome measures would be patient improvement in objective measures during re-assessment periods.

References

1.http://www.loopnet.com/xNet/MainSite/Listing/Profile/ListingDemographics.aspx?LID=15812181&PgCxtGuid=0bf23750-b885-4193-aafe-2a2b87f24c4b&PgCxtFLKey=&PgCxtCurFLKey=ProfileSE&PgCxtDir=Down

2. http://www.thedailybeast.com/articles/2010/11/04/new-york-marathon-ranking-which-cities-runners-run-the-longest.html

3. http://www.charlottemagazine.com/Blogs/Way-Out/February-2014/You-People-Really-Like-The-Booty-Loop/