how does this business model work?

[ikibah]

Can somebody explain to me how this business model works? I.e multiple therapists working in multiple locations under one name?
http://bridgepointepsych.com/our-locations/

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[AcronymAllergy]

I just briefly glanced at the site, so I might be missing something, but I know that having multiple locations (even with the same therapists) can be beneficial just in terms of the number of clients you might reach. Also, I believe state-related services (e.g., disability evals) may need to occur within a certain distance from either a disability rating center or a person's home, so having multiple locations can increase the number of folks you'd be able to evaluate. Or something like that.

Also, I'd imagine "sharing" providers across locations could result in significant cost savings, particularly if the number of clients they'd serve at one or more sites is limited. For example, rather than hiring four separate neuropsychologists for four locations, each of whom might only end up partially-booked, you hire one or two and have them travel around. The providers are happy because their schedules are filled, and you're happy because you're probably paying less in overhead, benefits, salary, recruiting/hiring costs, etc.

And because you're rotating providers, you're likely able to offer a wider variety of services in a smaller space (e.g., DBT on Wednesdays, neuropsych on Thursdays, substance abuse counseling on Tuesdays, etc.).

 

[PsyDr]

You bill under the facility name rather than the individual provider. It creates a very slightly higher rate. Someone owns it, and likley uses multiple smart business moves to pay themselves through dividends rather than a salary (lower taxes).

 

[Therapist4Chnge]

They also develop passive income stream(s) by having people work for them and generate revenue without having to be present for those hours. Even if they net 5-10% of each pt seen, that adds up once projected out over multiple providers and thousands of patients seen each year. A hallway decent business person with a well trained biller/billing company can make a nice living in this type of setup (assuming they are the owner/partner…and not an employee).