THE MEDMIN CLINIC MODEL
Medmin is based in Birmingham. It was founded in 2018 by Simon Radley, one of the UK’s leading colorectal surgeons.
Its original core offering was to provide practice management and marketing services to private clinics. The current consultants and clinics we look after generate up to £2,000,000 in fees accounting for around £6,000,000 of total healthcare spend.
The scale and potential of the market opportunity became clear in the early months of the pandemic, so a team has now been assembled to build on the previous success.
A group structure was created in early 2021 to support this strategy. Medmin Group LTD is the holding company Medmin Services LTD provides the Total Practice Management and marketing services to the clinics. The various clinics are limited liability partnerships (LLPs), jointly owned with the consultants, who typically hold 80% (with MGL the balance).
The structure allows us to control all commercial aspects of the member clinics and by doing so, coordinate activities in a way that complies with competition law. As the clinic model expands, it will allow us to represent the interests of all member clinicians as we seek to ensure that their practices benefit from this aggregated model.
Medmin partners with like-minded consultants to set up and run successful multi-disciplinary private clinics, with a particular focus on the self-pay market.
The business offers consultants a turn-key solution, including:
Set up: the legal formation and operational onboarding of clinics. This includes assisting clinicians in getting admission rights with local private hospitals and negotiating fees with providers.
Promotion & Brand Building: building and hosting a mobile first website for every clinic, that is rich in content and optimised for search engines.
Patient Acquisition: Medmin promotes clinics, building self-pay streams using both online and offline marketing. Experienced, trained medical administration staff, convert enquiries into appointments and process them for the consultants.
Practice Management: Medmin runs the day-to-day operations including patient appointments and liaison, patient records, hospital and room bookings, all administration, invoicing and cash collection.
Reporting & Governance: Medmin can also provide accounts, KPIs and clinical governance support to consultants.
OUR PARTNERSHIP MODEL
The vast majority of clinicians in private practice operate as sole practitioners. A few have banded together in practice groups, commonly within a partnership. However even these tend to operate in commercial isolation from other clinicians. This independence has come at a price, with private medical insurers and private hospital groups taking advantage of clinicians’ lack of market power to squeeze surgical fees and to impose ways of working with impunity.
Medmin offer their clinicians the opportunity to operate as joint owners of a limited liability partnership. Each clinic is focused on clinical specialties in a specific geographical area of the UK. Clinic management is provided by Medmin, leaving the clinician to focus on delivering services to patients.
This model has the potential to be a powerful force in driving up service levels and in securing a better deal for our clinics when negotiating with suppliers of services, funders, facilities and other healthcare providers. Over time this will help level the playing field which, over the last 20 years, has been heavily tilted away from clinicians.
Medmin respects clinicians’ desire to operate flexibly, choosing when and where to work and which patients to treat; under our structure they are completely free to do so. If they wish to leave, for whatever reason, they can, giving just 30 days notice, with no financial penalty and without future restrictions.
SELF PAY - THE FUTURE OF PRIVATE PRACTICE
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...