Case study- SWAN Rehabilitation Firm: A Great Success
CASE STUDY: SWAN REHABILITATION COMPANY: A GREAT SUCCESS STORY – 2008 Philip J. Adelman and Alan M. Marks
Kay Wing by no means knew how profitable she was going to be in 1998 when she was working in a rehab facility. In early 2003, Kay determined to start out her personal enterprise, and it seems that she has accomplished every part right-she’s change into a really profitable entrepreneur, together with discovering her area of interest with a medical observe for stroke survivors primarily based on present analysis whereas utilizing an intensive remedy method. Within the mid-1990s, an elevated quantity of analysis was being accomplished on the significance of intensive remedy for neurological illnesses. Kay tried to start out a program in her facility however didn’t have administration help.
The Balanced Funds Act (BBA) of 1997 hit the health-care business and within the house of some months her facility had decreased their employees by 50 % and doubled their productiveness requirement. She was so un- comfortable concerning the high quality of affected person care that her group was being compelled to manage that Kay determined to stop. She wrote a program and introduced it to a big Phoenix health-care system, however they weren’t . Though she was reluctant to open her personal program, she believed it was her solely possibility. After she stop her job, she labored as a fill in therapist for a number of months whereas she was deciding what to do. A few months later, Kay began South West Superior Neurological Rehabilitation (SWAN Rehab) in a warehouse in Tempe, Arizona.
A vendor who was creating a chunk of apparatus for stroke rehab had house within the warehouse district and supplied it to her for gratis. Kay used their gear on her sufferers, so it was a win-win scenario. She did not borrow any cash; as a substitute, she used her personal seed cash and acquired gear when she might afford to pay for it. She took a leap of religion and began her dream observe. Kay quickly outgrew the free house and subsequently rented house in a one other warehouse, the place she and a part-time bodily therapist handled sufferers utilizing a radical, non-traditional, intensive, research-based remedy.
As her repute grew, she started to see sufferers who got here to Phoenix from all around the United States. Her web site, http://www.swanrehab.com, recommends housing, and schedules sufferers day by day throughout their time in Phoenix. As proof that there was a marketplace for this area of interest, in simply 51/2 years the observe has grown to 10 staff, and they’re shifting from a rented 2,000-square foot facility to a brand new 6,000-square foot clinic.
Kay is filling a really small area of interest as a result of there are greater than 700,000 new stroke victims yearly, most of whom don’t get correct remedy. Her enterprise is a medical observe for stroke survivors primarily based on present analysis utilizing an intensive remedy method. From her personal expertise and after doing a lot analysis, Kay deliberate a novel observe utilizing depth and repetition. Intensive coaching is outlined in her observe as Four-5 days per week, Three-6 hours per day, and one-on-one with a talented neuro therapist. The repetitions are essential to trigger neuro plastic modifications that aren’t doable in a extra conventional setting, the place sufferers are seen 2-Three instances per week for less than an hour at a time.
SWAN maintains a pleasant, feel-good ambiance. Her sufferers imagine that SWAN cares about them. When a brand new piece of apparatus or therapeutic approach is on the market, Kay makes certain that it’s primarily based on stable analysis and her employees will get educated on its use. They have been one of many first clinics to be certified to make use of a number of items of expertise (Saebo Flex, Bioness H-200 and L-300, Reo Go, and the strategy of BIG). Due to her relationships with firms that develop and promote gear, she is commonly requested to Beta check new gear. Firms know that if SWAN makes use of the product, they will use SWAN’s identify in advertising their merchandise.
SWAN has formalized caregiver sup- port; contacts sufferers and members of the family after discharge to see how issues are going; and sends get-well playing cards if somebody goes into the hospital or is sick and sympathy playing cards or flowers if there’s a demise within the household. SWAN helps extra needy sufferers who don’t have a help group with discovering rides to their facility. A number of years in the past, Kay realized that each different illness course of in the USA had a camp that was only for enjoyable, however stroke, with the biggest inhabitants of disabled individuals in the USA, didn’t.
She began a stroke camp in 2003.The primary 12 months, they’d 25 stroke survivors, caregivers, and members of the family; this 12 months (2008), it should most likely be about 150 individuals. They go to a camp in northern Arizona for five days each fall. Occupational remedy (OT) and bodily remedy (PT) faculties in addition to therapists in the neighborhood volunteer. They supply a full tenting expertise. One among their sufferers informed SWAN that his few days at camp have been probably the most enjoyable he had skilled since his stroke. This camp is not only for his or her sufferers, however for stroke help teams through- out the Phoenix metropolitan space as nicely. A number of years in the past, the neurological teacher within the PT division at Northern Arizona College and Kay began a category for PT college students referred to as the neuro clinic.
It’s an intense course the place the scholars full the category with greater than 30 hours of actual affected person care. Once they graduate and go into their medical rotations, their medical instructors are very enthusiastic as a result of their college students have had this expertise. Kay re- quires all new staff to take this class so they arrive to SWAN already educated. SWAN has no affected person van, and sufferers should discover their very own option to the clinic. Kay’s philosophy proper now’s that they are going to have one high quality clinic that’s rising. Although they’ve a wonderful employees, the clinic revolves round Kay, who’s the face be- hind the enterprise.
Like many small companies, Kay shouldn’t be in a position to supply good medical insurance, however provides every worker a month-to-month insurance coverage allotment. A number of different clinics that declare to be “similar to SWAN Rehab” have opened, growing Kay’s competitors, and insurance coverage firms have diminished the advantages sufferers get for long-term remedy. Enterprise experience was wanted to Help the clinic develop. Kay had been division head of bodily remedy, occupational remedy, and speech remedy in a number of giant hospital programs, and subsequently had expertise with budgeting, buying of apparatus, designing and implementing new programming, and supervising of staff. This expertise ready her for a lot of points of a non-public observe. How- ever, she acquired to the purpose the place her enterprise data was insufficient and wanted im mediate professional recommendation.
She researched and retained the providers of a reliable group of consultants the place she might get ongoing Help with efficient billing and reimbursement practices, advertising, setting short- and long-term objectives, dealing with payroll and taxes, constructing an internet web page, and setting and reaching monetary objectives.
In an interview with Kay, I requested her to categorise her enterprise with respect to its diploma of contact with the general public. She is a lady who is really an professional in her area. She has taught programs to bodily and occupational therapists on therapeutic intervention, speaks on the Arizona Bodily Remedy affiliation, and has submitted and had proposals accepted at nationwide conventions. She is lively within the skilled associations and shall be a speaker on the nationwide conference in June 2009.
She is the president of the Arizona Bodily Remedy Affiliation. The Bio-Engineering Division and the Industrial Design part of the Architectural Faculty at Arizona State College use her clinic for his or her college students once they have tasks that contain stroke survivors. SWAN administers remedy to individuals who suffered a stroke or head harm, have Parkinson’s illness, have a number of sclerosis, in addition to providing occupational and bodily remedy.
Every affected person is seen by a PT or OT each minute they’re in her clinic. SWAN does free trials on sure items of apparatus so sufferers know whether it is helpful earlier than they begin remedy or purchase the gear. They do free re-fittings on gear if vital, even years after the gear was bought. Relations and caregivers are inspired to ask questions and obtain info.
They carry out affected person and household training, each formally within the construction of night seminars (free) and informally throughout remedy. Kay believes it’s essential for sufferers to know why laborious work is essential, the way it reorganizes the mind, how remedy have to be supported at residence to be most profitable, and what forms of gear and provides are helpful. She maintains a lending library of books about stroke, mind accidents, and different neurological illnesses for sufferers and affected person households.
High quality affected person care and work output is anticipated of all employees and staff, who’re anticipated to be specialists in the usage of all gear. SWAN gives the persevering with training wanted by staff, and there’s ample persevering with training funding. SWAN positions their service within the thoughts of the buyer as a frontrunner in state-of- the-art neurological rehab.
As well as, they’re specialists who’re artistic and work laborious on behalf of the client to get them providers. Pricing methods utilized by SWAN embrace a survey of the group to maintain their pricing construction inside group requirements and dealing with their accountant to verify they’re being fiscally prudent. As a result of SWAN is shifting into a brand new facility, Kay’s start-up prices shall be a cellphone system, $Four,000; constructing upgrades, $5,000; community pc, $Four,000; capital gear, $40,000; new community pc, $Four,000; workplace gear, $50,000; and a lease improve from $Four,500 to $12,500 per 30 days. SWAN’s gross revenues from inception have been: 2003, $7,000; 2004, $370,000; 2005, $426,800; 2006, $670,000 and 2007, 887,500. The corporate has a constructive money move and earns a revenue. Kay’s private objectives are to proceed rising over the subsequent 5 years and procure grants for medical analysis.
She hopes to get her work week all the way down to 40-50 hours and to have the ability to take an extended trip and a few quick holidays yearly. Her 10-year objectives embrace promoting the enterprise whereas persevering with to show and seek the advice of. She expects that when she sells the enterprise, she is going to keep on for a few years to make sure a clean transition. SWAN Rehab is a hit.
Many entrepreneurs are sensible, however not profitable. Kay Wing is aware of that the one factor that made a distinction between being sensible sufficient and being profitable is her drive. It’s apparent that her degree of aspiration has additionally elevated because of her many successes. SWAN provides the individuals what they need, and most undoubtedly can function a constructive mannequin to the remainder of the enterprise group.
Learn the case beginning upon web page 328, entitled SWAN Rehabilitation Firm: A Great Success Story.
Write a Three-5 web page paper (800-1500 or extra phrases) in APA format in response to questions:
a. Consider two unfavourable and two constructive issues SWAN would face when buying a bigger facility. Dedicate one paragraph to every consideration and supply the perception vital for a sound CAPEX choice.
b. Given the character of the corporate, would you recommend rising over time it or promoting it as quickly as doable? Why?
Answered:-
