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Issue 14 - October 2004

From 1 clinic to 17 in a decade
Dr. Scott Wilson builds his practice on fitness

By Todd Stumpf

For Dr. Scott Wilson, leisure time might be a half-marathon, but life is a full sprint. At least the pace is.

He began by working with another chiropractor, who offered Wilson a share of the practice. Within three months, Wilson owned the practice outright. In less than 10 years since then, Wilson has gone from a partner in a single-location practice to the majority shareholder in a 17-outlet chain that, in the last fiscal year, billed $7.5 million.

Success Keys
Key investor: John Cardillo of
Premier Fitness Clubs
Accounting firm: Deloitte Touche
Office technology: Colligo Workgroup Software
Diagnostics and treatment technology: Footmaxx Orthotics, MedX Spine Care, Myovision

Wilson now has his sights set on expanding to 100 clinics over the next decade, to bill $2 million annually per clinic and to go public within five years.

His success is based on a three-prong plan that involves being affiliated with a health-club chain, recruiting young graduates and recognizing his niche within the chiropractic industry.

KEY TO SUCCESS:
FITNESS AFFILIATION

The most important part of his plan was affiliating with Premier Fitness Clubs, a fitness chain with locations throughout Ontario. All 17 of Wilson’s Physiomed Health locations are within Premier outlets. That translates into thousands of potential patients — 1,300 or so of whom visit a Physiomed Health center for the first time each month.

Wilson was able to grow as quickly and expand to so many locations by employing a workforce of recent graduates and interns predominantly from Canadian Memorial Chiropractic College and National University of Health Sciences. Early in his expansion efforts, Wilson began using young graduates and even student volunteers — whom he employed as interns. Some of them have ultimately become partners.

‘Physiomed Health University’
provides ongoing training As his staff continues to grow — with 125 and climbing — staff training is an arduous process. To address the challenge, Wilson has created a training school. “Physiomed Health University” trains newcomers and keeps current staff up-to-date on day-to-day operations, practices and philosophies.

Wilson used to do all of the training at the clinic level — and he used to do it virtually by himself. As the number of clinics and personnel grew, such one-on-one training no longer was feasible. Now he cascades training: He trains his clinic directors, who train other staff members. The result: Staff members from top to bottom attend regularly scheduled training sessions, which include an evaluation process.

Wilson meets with his clinic directors twice each month — once for clinical discussions and once for business discussions. The latter involve Premier Fitness Centers and their personal training staff.

“I encourage my clinic directors to engage in rounds with the Premier staff locally,” Wilson says. His goal is to develop an understanding of how each operation affects the viability of the other. The trainers learn the importance of chiropractic in a fitness program. And, the chiropractors learn how important exercise is to a patient who has an injury, such as a torn rotator cuff. The two sides educate each other and everyone – doctor, trainer and especially patient – reap the rewards.

“So these are all people who started with me from grassroots,” Wilson says. “Getting personnel at a very young age to work with me has been very important.”

Finally, Wilson sought a niche within the scope of chiropractic and found one within health clubs, where a legion of fitness-conscious people come every day to take charge of their health.

Far more than merely operating as a chiropractor who adjusts, Wilson has built a practice around what he calls "physio fitness" and "clinical conditioning." His protocols involve fitness training as much as standard chiropractic.

Wilson’s interest in these segments stems from his own experience as both an athlete and a chiropractic patient. A former standout baseball player once invited to tryout for the Canadian National team, Wilson ultimately gave up the sport to concentrate on his education, knowing that would take him farther someday than a bat and ball. Before he gave up playing, though, a rotator cuff injury led him to seek care from a chiropractor.

“I was always intrigued by sports injury,” Wilson explains. “The whole motivation to get into chiropractic was around the fact that I was a very athletic person. My sports and athleticism played a very important role in triggering me to even go to a chiropractor. Because of that, that's where I am and where I stand. That's what got me in.”

From there his vision — and career — took off. He quickly began to recognize a niche: People needed clinical care to accompany their health fitness routines.

Wilson’s life quickly became a culture built around the fitness club industry. His existence stemmed from his passion for sports and athleticism, coupled with exuberance for treating people.

A GOOD MATCH
“It was a perfect match to do it this way,” Wilson says. “It made so much sense to start like that.”

Taking marketing for a piggyback ride

One of the greatest benefits of being affiliated with a major chain of health clubs is piggybacking on its marketing. And since Premier Fitness Clubs spends approximately $4 million annually, that piggyback ride is a good one for Wilson.

Marketing starts with Premier’s mailings to its own thousands of members and then to the community at large. Wilson’s practices are able to tie in to Premier’s offers to members as well as to prospective members.

Wilson and John Cardillo, the owner of Premier, own eight of the 17 locations outright. Cardillo ensures that members will partake in at least initial chiropractic services, a sort of trial run for new patients. “So all their members go through me,” Wilson says.

The two outfits market symbiotically, and while Wilson can create and design autonomous ads, he is also able to — and prefers to — co-market with Premier, since this allows the two busineses to keep the same branding and look.

The two firms share a graphic design team, though Wilson designs much of his own material, using the Physiomed Health brand name.

Wilson estimates that Physiomed spends $600,000 annually on marketing — around 8 percent of his gross revenues.

Wilson also advertises within the clubs, by putting up posters and other promotional material that guide club members to his practices.

Outside of the ventures with Premier, Wilson markets himself through direct mail, seminars with local MDs, educational literature, patient education seminars and other patient talks and demonstrations.

Wilson's advice: Focus marketing efforts on what people in your community want. And when you market directly to patients, focus on educating them.

Following his own advice, Wilson holds patient seminars once a month at each location. The cost: About $1,000 a month for seminars and $5,000 for grand-opening celebrations.

It continues to make even more sense when you figure in all the aspects a health club can bring to a chiropractic practice and vice-versa. Swimming pools, weights, machines and everything else found in health clubs can be applied to Wilson’s practice philosophies.

“I’m able to combine diet, exercise and obviously the clinical passive portions of lifestyle that go along with a regular chiropractic clinic that would deal with adjustments and passive-type treatments,” Wilson says. “Because we get into the passive treatment and diet components, when I prescribe care to people it’s more about an overall lifestyle change than it is rehabilitative.”

 

Wilson says that although his practices start out with mostly Premier members as patients, once they are “up and running,” they attract non-members as well. “From a business standpoint, it’s a nice spring-board to start a practice,” he says.

When he isn’t practicing, Wilson stays active. He still runs and periodically competes in half-marathons. He trains by running 40-60 kilometers a week. He also plays the guitar, camps and canoes. In other words, he tries to keep a good balance between work and play.

SOFTWARE KEEPS HIM IN TUNE
Helping him maintain a less hectic lifestyle is his business communication/patient management software system. The program not only ties his 17 clinics together, but also ties together the inner workings of each location.

Wilson says, “When I want to know what's going on at a clinic 100 miles away from me, I can see in a second.”

Wilson also keeps in commun-ication with what is happening within his clinics in the health clubs. “I've got some places where we have a place upstairs dealing with exercise and an area downstairs where all the treatment offices are. Creating the online service allows fulltime communication both intra-clinic and inter-clinic.

“Some of the clubs I’m in are greater than 50,000 square feet. We have check-in spots to keep track of patients. These communication spots keep us from getting bottlenecked. It’s an efficient service flow.”

The initial software prototype was written in about three months, but is constantly modified as Wilson’s business evolves.

“We had to go through a difficult first year, when we were using it and beta-testing it at the same time, if you can imagine that,” Wilson says with a laugh.

Smart buying keeps costs down

With 17 locations spread over eastern Canada, expenses pile up. As a good business person, Wilson monitors costs. With more than 100 employees, streamlining expenses takes some effort, but it can be done. Wilson says he does this through cross training and smart buying.

Wilson’s staff members don’t simply provide “vertical care.” They get training to do more than one thing. The cross training pays off in a better use of manpower.

Ancillary products account for a lot of revenue in the clinics, so Wilson buys “smart,” asking for bulk discounts. He always deals with the same vendors, particularly when opening new clinics. And he asks for preferred rates on everything he buys, including large pieces of equipment.

Watching cash flow is important, no matter the size of operation, says Wilson.

His advice concerning costs: “Understand the difference between fixed costs and variable costs. Once you’ve established your fixed costs, you have to know if the fixed costs are working in an intangible way … For example, does the rent makes sense for what you are getting? If you’re paying too much to be in a place that’s not generating anything, you have to see if you are getting intangible benefits.” If not, make a decision how to cut costs or improve returns.

Further expediting his handling of the scores of patients that come through daily, Wilson uses a billing system common in the health-club industry. The system allows Wilson to offer his patients pre-authorized payment plans (PAPs). This gives patients a third payment option. In addition to financing and pay-as-you-go options, PAPs enable patients to pre-buy services.

Working much like a cell phone company might, the billing system allows patients to authorize debiting their accounts monthly, based on services rendered. A course of care can then be mapped out months in advance. Using this service (termed a multiple-appointment program), a patient can pay, for example, for $1,200 worth of services and products and have his or her account debited $200 each month. Wilson says paying this way saves patients up to 20 percent.

Technology plays a large role in Wilson’s practices. Patients have access to chiropractic, massage therapy, orthotics, MDs (in some locations), x-ray facilities, stretching and rehab programs, nutrition programs, clinical fitness programs and more.

Wilson is convinced anyone can do what he has done. It’s simply a matter of taking an idea and running with it, which he says is all he really did.

“The best line that was ever given to me was, ‘If you want to compliment someone, copy what they're doing. If you want to compliment yourself, better that idea,’” he says.

And realize if you’re going to expand it, get help in the form of a financial commitment from a partner.

From there, it’s just a matter of expansion. When it’s time to do so, Wilson says, be hands-on. Go to the second one and get involved to make sure it gets off to a good start.

“Just capture an idea from someone else, see how you can make it work at a local fitness club nearby,” he says. “Anyone can do it.”

Todd Stumpf is a freelance writer from Akron, Ohio. He can be reached at TStumpf22@yahoo.com.

Vital Statistics
Physiomed Health

Dr. Scott Wilson
5100 Dixie Road
Mississauga, Ontario L4W1C9
Phone: 905-206-0059
Fax: 905-206-0927
E-mail: wilson.s@physiomedhealth.com
Web site: www.physiomedhealth.com
Office hours
Mon.-Fri. 9 a.m. to 8:30 p.m.
Sat. 10 a.m-4 p.m. (all clinics)
Team players
17 clinics
125 staff people, including
22 chiropractors,
7 physiotherapists, 3 MDs,
1 controller and
50 kinesiologists

Gross billings: $7.5 million
Gross collections: $6.5 million
New patients
Approximately 1,300
per month in 17 clinics.

 

   
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