How should QuickMedx grow?

The core philosophy for QuickMedx is to provide Quick service to customers with
simple illnesses. The broad criteria would be that the tests were rapid and be
black and white conclusive and CLIA waived and that NPs could administer it
effectively to a patient.
In light of the above vision, blindly increasing the number of conditions treated
should not be undertaken because there would be problems with maintaining the
current levels of service given the time it would take to diagnose many ailments
which, perhaps could destroy its competitive advantage rapid service. This
implies growth by replicating the same model elsewhere without adding to the
number of conditions treated at each clinic.
One of the critical aspects for a company that thinks of expanding is location.
Currently, QuickMedx has a very well thought of location: a high traffic retail
shopping environment. This gives it the required visibility, and sometimes helps
a waiting customer to attend to other shopping activities before he can be
diagnosed at the clinic. Therefore this should be one of the criteria when
choosing locations for expansion. Perhaps entering into contracts with large
retailers who can lend out a little space near their store and who have multiple
stores in a particular city would be a good idea for expansion.
When it comes to relationship with insurers, we recommend that QuickMedx
enter into these relationships similar to an arrangement such as Blue Cross Blue
Shield (BCBS). Care should be taken to avoid contracts where QuickMedx
themselves have to submit the claims as this would violate the business model
of co-payment or payment by cash up front. Violation of this model could lead to
increased overhead burden (insurance claims procedure), fees and float in
addition to delaying their cash flow.
In case of QuickMedx, we recommend growth by franchising. This model has the
following advantages
1. Franchising creates a steady source of income for QuickMedx, through
payment of franchise fees
2. Reduced operating and advertising costs as these would be carried out by
the franchisee locally. This helps in having a decentralized organisation
which would reduce overhead of managing distributed locations.
3. In terms of strategic risks, QuickMedx can spread out their risks of
financial commitment because franchisees invest in capital and setting up
of the clinic in their own areas making them stakeholders in running the
business.
The standard operating procedures in administering treatment have been
codified. This know-how can be passed on to franchisee locations with very
minimal overhead. Hence considering all the advantages listed above , this way of
growth seems to be the fastest, effective and less costly way for QuickMedx.