Diversify & Increase Revenue with ConvaCare Easy DME

Diversify & Increase Revenue with ConvaCare Easy DME

Website: convacareservices.com
Contact Info: jsmoot@convacareservices.com

Summary:

Lisa Faast and guests Shane Smoot 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. Convicare, a franchise offering respiratory and durable medical equipment, 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 aggressive marketing and patient acquisition. Typical revenue projections include 2 oxygen setups, 3 CPAP setups, and 1 ventilator setup per month. Convicare provides extensive support, including on-site training, insurance verifications, and marketing assistance, to help pharmacies succeed.

Action Items

• Contact Shane Smoot for franchise information and applications.
• Review ConviCare services website for additional information.
• Leverage existing physician relationships to promote new DME services once onboarded.

Authority

• Lisa Faast is the host and facilitator of the meeting.
• Shane Smoot is the Director of Franchise Sales for Convicare.
• Chris Link is a representative from Convicare with 20 years of experience.
• The key decision-makers would be the independent pharmacy owners considering the franchise opportunity.

Budget

• There is a $10,000 franchise fee to join Convicare.
• The goal is for franchisees to recoup the initial $10,000 investment within the first 12 months.
• Equipment is provided on consignment, so there’s no upfront cost for inventory.
• Franchisees are paid through commission checks.

Competition

• It was noted that Convicare provides a turnkey operation compared to pharmacies trying to set up DME services on their own.

Objections

• Concern about staffing and hiring respiratory therapists was raised.
• Some areas might have hospital systems with their own DME companies, which could limit business opportunities.

Need

• Pharmacies are experiencing decreased foot traffic, especially after COVID.
• There’s a need to diversify revenue streams beyond prescription drugs.
• Pharmacies want to increase the value of each patient to their bottom line.

Questions

• What is the one-time cost to join the franchise?
• Is there a listing of what pharmacies would make for typical items?
• How many patients would be needed to recoup the $10,000 investment?
• What’s the lead time from deciding to join to having Convicare at the pharmacy for training?

Sentiment

• The overall tone of the call was positive.
• Lisa Faast expressed excitement about the opportunity for independent pharmacies.
• The speakers from Convicare were enthusiastic about their services and the potential for pharmacies.
• The discussion focused on the benefits and opportunities for pharmacies joining the franchise.

Timeline

• There is an application process that goes through Convicare’s legal department.
• The timeline from application to on-site setup is typically 6-8 weeks, sometimes up to 10 weeks.
• After approval, Convicare spends 3-4 days on-site for initial setup and training.
• A marketing blitz follows the initial setup, with timing determined by the pharmacy owner.

Outline

Introduction and Overview of Convicare

• Lisa Faast introduces the April monthly mastermind call and guest, Convicare, highlighting their presence at the pharmacy profit summit.
• Lisa emphasizes the untapped market of respiratory medical equipment, particularly sleep apnea, which generates over $18 billion annually.
• She discusses the importance of independent pharmacies leveraging back-end opportunities to increase patient loyalty and value.
• Lisa hands over to Shane Smoot, Director of Franchise Sales for Convicare, to introduce himself and provide an overview.

Shane Smoot’s Introduction and Convicare’s History

• Shane Smoot introduces himself as the Director of Franchise Sales for Convicare, with over 11 years of experience in the company.
• Chris Link, with 20 years at Convicare, provides a brief history of the company, started by independent pharmacist Wayne Robbins in the late 60s.
• Convicare initially focused on providing more services to patients, such as walkers and canes, and later expanded into respiratory equipment and sleep apnea.
• The company evolved into a franchise model, helping other pharmacies offer these services, particularly in Indiana.

Convicare’s Product and Service Offerings

• Chris Link details Convicare’s full range of respiratory equipment, including oxygen, CPAP, CPAP supplies, nebulizers, and non-invasive ventilation.
• The company also offers a full line of durable medical equipment (DME) such as walkers, wheelchairs, and INR testing for Warfarin patients.
• Convicare’s services help pharmacies attract more patients and provide comprehensive care, leading to increased revenue and patient loyalty.
• Lisa Faast reiterates the significant market opportunity for independent pharmacies in the respiratory and DME sectors.

Ideal Pharmacy for Convicare and Market Opportunities

• Lisa Faast asks about the ideal pharmacy for Convicare, and Chris Link explains that Convicare works with pharmacies of all sizes and locations, including rural areas.
• Chris highlights the importance of internal medicine physicians and general practitioners in diagnosing and managing respiratory conditions.
• Convicare’s services are beneficial for both small and large pharmacies, with many locations having long-term partnerships with the company.
• Lisa Faast emphasizes the shift back to independent pharmacies as the main point of contact for comprehensive patient care.

Convicare’s Franchise Responsibilities and Support

• Shane Smoot outlines Convicare’s responsibilities, including on-site training, accreditation through CHAP, and equipment provided on consignment.
• Convicare handles insurance verifications, billing, and collections, ensuring pharmacies do not have to manage these complex processes.
• The company provides sales support, including marketing blitzes to introduce new services to doctors and the community.
• Convicare also hires and manages respiratory therapists, handles competitive bid processes, and offers a call queue center for CPAP resupply.

Franchisee Responsibilities and Continuing Education

• Shane Smoot explains that franchisees are responsible for accepting referrals, gathering patient information, and setting up equipment.
• Convicare prefers to get patients into the pharmacy for setups to build foot traffic and increase patient engagement.
• Franchisees maintain patient care, including delivering oxygen tanks and nebulizer supplies, and participate in monthly continuing education sessions.
• Chris Link emphasizes the importance of franchisees actively promoting their services and building relationships with doctors and patients.

Revenue Generation and Patient Acquisition

• Lisa Faast inquires about the typical revenue generation potential for Convicare franchises.
• Chris Link explains that the goal is to recoup the $10,000 franchise fee within the first 12 months through aggressive marketing and patient acquisition.
• Average CPAP reimbursement is around $55 per month, with typical CPAP supply patients ordering between $100 and $150 per month.
• Convicare’s services can generate significant revenue, with some locations earning over $3 million annually.

Staffing and Hiring Challenges

• Lisa Faast raises concerns about staffing and hiring challenges, particularly in finding respiratory therapists.
• Chris Link explains that the situation has improved over the past two to three years, with more candidates available due to the public health emergency.
• Convicare hires PRN respiratory therapists and RNs, providing comprehensive training to ensure they can perform their roles effectively.
• The company also leverages relationships with hospitals to find qualified candidates, ensuring franchisees have the necessary staff to operate successfully.

Marketing Analysis and Revenue Projections

• Shane Smoot demonstrates how Convicare conducts marketing analyses and revenue projections for potential franchise locations.
• The company uses data to identify high-referring doctors and analyze competitor utilization, ensuring the business is viable in the area.
• Convicare provides detailed revenue projections based on Medicare pricing and local market conditions, helping franchisees set realistic goals.
• The marketing analysis and projections ensure franchisees have a clear understanding of the potential revenue and patient volume required to succeed.

Application Process and Timeline

• Chris Link outlines the application process for becoming a Convicare franchise, which includes a legal review and franchise agreement.
• The typical timeline from application to on-site training is between six to eight weeks, depending on the complexity of the setup.
• Convicare provides ongoing support, including marketing blitzes and community engagement activities, to help franchisees build their reputation and patient base.
• The company ensures franchisees have exclusive territories, preventing competition from other Convicare locations.

Contact Information and Closing Remarks

• Shane Smoot provides his contact information for potential franchisees, including his email and phone number.
• Chris Link highlights the comprehensive website, commoncareservices.com, which contains detailed information about Convicare’s services and history.
• Lisa Faast thanks Shane and Chris for their presentation and emphasizes the value of Convicare’s services for independent pharmacies.
• The meeting concludes with Lisa encouraging pharmacy owners to reach out to Convicare for more information and to explore the opportunity to diversify their revenue streams.