THE MEDMIN CLINIC MODEL
Medmin was founded in 2018 in Birmingham, by one of the UK’s leading colorectal consultant surgeons. He saw a gap in the market to provide total practice management and marketing solutions to private clinics. It currently has 6 clinics as clients who between them, represent £6m of spend on private healthcare.
The business has now assembled a management team to develop its business model further and take advantage of the significant growth opportunities ahead.
Medmin partners with like-minded consultants to set up and run multi-disciplinary private clinics, with a focus on the high growth, self-pay market. It sets up clinics, promotes and builds their brands, secures patients and provides total practice management.
In addition to providing the various services, Medmin takes a minority stake in the clinics, aligning its interests with the consultants in a partnership model. It has to date formed partnerships with six clinics in Birmingham which will start trading in early Summer 2021.
Consultants are attracted to the Medmin business model as it
- opens up the more lucrative self-pay market for them;
- helps generate more profit;
- provides freedom and flexibility in their working lives;
- builds a clinic with a brand and marketing presence;
- and provides a mechanism for succession planning and value realisation.
No other business model offers consultants all these benefits.
Medmin’s senior management present a compelling mix of experience and success from private practice, the NHS, marketing, law and finance. They have a proven track record of operating in healthcare, growing businesses and creating shareholder value.
TOTAL PRACTICE MANAGEMENT
For newly qualified consultants, setting up in private practice is daunting and carries a fair degree of risk.
Surgeons bear the brunt of the eye watering medical indemnity costs that private practice requires. In addition, with the need for admin support, billing, marketing and obtaining practising rights at a private hospital, it’s not surprising that many consultants are deciding that there is too much effort/risk involved for the return - they are voting with their feet.
Private hospitals rely on attracting local surgeons to work with them, few employ surgeons directly. Medmin was created as a way of easing some of the pinch-points for surgeons in private practice - offering admin and billing services, advising on obtaining practising rights and setting up websites and marketing campaigns.
At Medmin we have evolved to offering what we call ‘Total Practice Management’.
In this model we partner with surgeons to manage every aspect of their practice, from patient acquisition to billing and all points in between. This has developed into creating groupings of surgeons and other practitioners around a common specialty.
Medmin also becomes a stakeholder in these businesses
These surgical groups are growing rapidly and involve multiple specialties, the surgeons within them are some of the best in their field and we have consciously pursued senior consultants with many years' experience in private practice.
We are mindful of succession though and therefore our thoughts have turned to how we might encourage new surgeons to enter private practice with little or no risk at the start of their careers.
One key area of concern is the rising cost of medical indemnity insurance. Medmin are taking steps to look at this anew, creating innovative group insurance products that we can introduce because of our increasing scale.
Digital marketing is the key to building an effective, successful practice. New patients start their self-pay journey by researching online.
Their experience of private healthcare will be limited but they will have certain expectations particularly as regards the quality of service. Communication with these patients requires a specific skillset and a focus on marketing.
While we can be focused on finding new patients, negotiating better rates with hospitals and facilities and effectively building a business, doctors can focus on providing high quality healthcare to their patients.
SELF PAY - THE FUTURE OF PRIVATE PRACTICE
REACHING THE 89% OF THE UK WITHOUT PRIVATE MEDICAL INSURANCE
The self-pay market for private healthcare is set to boom over the next three to five years. A huge backlog in NHS elective surgery means that for many people, non-critical surgery will be delayed or deferred.
The major hospital groups, while aware of the importance of self-pay are distracted by huge NHS procurement contracts - the first of which is £10 billion over the next three years. Coupled with a backlog of Insured patient treatment to work through, it is unlikely that they will be shifting attention towards self-pay in any meaningful way.
The sector as a whole has been poor at communicating with non-insured patients. 53% of the general public are unaware that private treatment is available without insurance.
We think that the growing trend in self-pay, coupled with the Covid health crisis has created a perfect storm for new thinking in the sector.
We are the change...