Case Analysis: Quickmedx
1) What is the QuickMedx business model?
QuickMedx’s business model is to provide fast and convenient testing centers in high-traffic, retail environments that are close to pharmacies (McDonald’s of simple health-care services). For a payment of $35 per visit, patients are provided rapid testing, diagnosis, and prescriptions for 11 common illnesses by a certified nurse practitioner. This service provides an alternative (although not a replacement) to visiting the primary care physician's office or emergency room for simple cases.
2) Is the QuickMedx business model viable?
Yes, the QuickMedx business model is viable for the following reasons:
1. The company pioneered a unique concept; at the time of the case, there appears to be no competitor in its niche.
2. Many common illnesses are easy and quick to diagnose. Patients familiar with these common illnesses (e.g., strep throat) know the symptoms, prognosis, and likely treatment and just want confirmation and the right prescription to get their loved one on the road to recovery with as little wasted time as possible.
3. Early sales indicate the concept appeals to the targeted market segment (busy middle- and upper-income families), and produces even stronger financial results in lower-economic demographic regions, where many blue-collar workers did not have insurance coverage and simply want an inexpensive alternative for basic illnesses.
4. QuickMedx wisely chose to keep cash flow as simple as possible, by dealing only with retail customers and avoiding the morass of filing insurance claims for its patients. This helped the company avoid the administrative and float costs involved in insurance claims.
5. The business is modeled on the concept made famous by McDonald’s: a limited menu that enables the business to serve customers quickly and affordably.
6. QuickMedx and its host client (Cub Foods) focused on risk management. Together they developed refinements and releases that
QuickMedx’s business model is to provide fast and convenient testing centers in high-traffic, retail environments that are close to pharmacies (McDonald’s of simple health-care services). For a payment of $35 per visit, patients are provided rapid testing, diagnosis, and prescriptions for 11 common illnesses by a certified nurse practitioner. This service provides an alternative (although not a replacement) to visiting the primary care physician's office or emergency room for simple cases.
2) Is the QuickMedx business model viable?
Yes, the QuickMedx business model is viable for the following reasons:
1. The company pioneered a unique concept; at the time of the case, there appears to be no competitor in its niche.
2. Many common illnesses are easy and quick to diagnose. Patients familiar with these common illnesses (e.g., strep throat) know the symptoms, prognosis, and likely treatment and just want confirmation and the right prescription to get their loved one on the road to recovery with as little wasted time as possible.
3. Early sales indicate the concept appeals to the targeted market segment (busy middle- and upper-income families), and produces even stronger financial results in lower-economic demographic regions, where many blue-collar workers did not have insurance coverage and simply want an inexpensive alternative for basic illnesses.
4. QuickMedx wisely chose to keep cash flow as simple as possible, by dealing only with retail customers and avoiding the morass of filing insurance claims for its patients. This helped the company avoid the administrative and float costs involved in insurance claims.
5. The business is modeled on the concept made famous by McDonald’s: a limited menu that enables the business to serve customers quickly and affordably.
6. QuickMedx and its host client (Cub Foods) focused on risk management. Together they developed refinements and releases that