Diversify & Increase Revenue with ConvaCare | Mastermind – April 2024
Lisa Faast and guests Shane Smooth and Chris Link discussed the significant market opportunity for independent pharmacies in the respiratory medical equipment sector, particularly sleep apnea, which generates over $18 billion annually. Convocare, a franchise offering respiratory services, was highlighted as a turnkey solution for pharmacies. The franchise fee is $10,000, with a goal to recoup this within the first year through CPAP supplies, oxygen, and other services. Revenue projections suggest achieving this through around 2 oxygen setups, 3 CPAP setups, and 1 ventilator setup monthly. Convocare handles training, insurance verifications, billing, and marketing, making it easier for pharmacies to enter this market.
Action Items
Authority
- Pharmacy owner/franchisee is primary decision-maker; owner must leverage physician relationships and lead rollout.
Budget
- One-time franchise fee is $10,000.
Competition
- Large DME companies and hospital-owned DME referenced as competitors versus Convocare’s pharmacy-focused model.
Objections
- Implementation requires substantial owner work and correct physician charting, potentially slowing setups.
- Respiratory therapist hiring was previously difficult but improved recently; staffing availability could still affect start.
Need
- Independent pharmacies historically left DME market; opportunity exists but many currently overlook it.
Question
- Asked about revenue potential, first-year versus later years, franchise fee, staffing, and onboarding lead time.
Sentiment
- Overall tone positive; host enthusiastic and speakers promoted opportunity and support for independents.
Introduction and Overview of Opportunity
- Lisa Faast introduces the April monthly mastermind call and expresses excitement about the guest speakers.
- Lisa highlights the untapped market of respiratory medical equipment, particularly sleep apnea, which is a $18 billion industry annually.
- She emphasizes the importance of independent pharmacies exploring this market to enhance patient care and loyalty.
Shane Smooth’s Introduction and Convocare’s History
- Shane Smooth introduces himself as the Director of Franchise Sales for Convocare, with over 11 years of experience.
- Chris Link provides a brief history of Convocare, started by an independent pharmacist in the late 60s to offer more services beyond prescriptions.
- Convocare evolved into a franchise model to help other pharmacies offer respiratory equipment and services.
- Chris explains that Convocare provides a full range of respiratory equipment, including oxygen, CPAP, nebulizers, and durable medical equipment like walkers and wheelchairs.
Convocare’s Services and Support
- Chris details the comprehensive services provided by Convocare, including oxygen, CPAP supplies, nebulizers, and non-invasive ventilation.
- Convocare also offers durable medical equipment (DME) like walkers, wheelchairs, and INR testing for Warfarin patients.
- Lisa Faast reiterates the opportunity for independent pharmacies to diversify their revenue by offering these services.
- Shane Smooth discusses the ideal pharmacy for Convocare, emphasizing that they work with both rural and urban areas, and have long-standing partnerships with pharmacies.