By: Omowunmi Akinola
Brose McVey was the spotlight presenter at the March meeting of the Venture Club of Indiana. McVey is the CEO of Expedite, a direct primary care clinic solution in Indianapolis. During his presentation he addressed some gaps he sees in the Affordable Care Act. McVey thinks healthcare premiums will continue to increase in the next year, as much as 100% among some white collar workers. This trend, he says, is likely to cause many Americans to drop group health care and seek insurance on the ACA exchange.
Expedite Healthcare plans to target these individuals by offering a lower cost primary health care option in the form of walk-in clinics. Expedite will offer a range of products, providing services to small businesses and larger employers alike. McVey did stress that Expedite does not have an option for specialists or emergency care, therefore it won’t be a standalone insurance package.
The advantage? With clinics nearby, patients can pop in for care with reduced wait times, meaning employees won’t have to take half or full days off because of physician visits. Expedite would also drive down costs by selling prescriptions at wholesale prices. McVey used the phrase, “Cadillac care on an affordable budget.” He quoted premiums of about $60 per month, and he believes the company can be profitable within a year. Expedite’s biggest competitors are similar walk-in clinics at CVS and Walgreens.
I don’t believe this market is mature yet. It reminds me of the early dot-com era when EVERYBODY had a website, an internet business, and was going to make a million dollars. There were several losers, several small and wise winners who quickly sold to a bigger player, and a few winners who actually became BILLIONAIRES. Provided they have a good management team in place, I would take a gamble and invest in Expedite Healthcare, believing they have the chance to become a big player in the market or be acquired by a larger competitor.
While I still have my doubts about Expedite’s overall business model, I do believe that “minute clinics” will work in America’s super-expensive health care system. Once they have ironed out their kinks, of course.