Business Models

Business models include development, operation and management sleep medicine programs.

Relationship examples include:

Affiliation Relationship - Onsite Development

In the development of an onsite sleep center, Sleep HealthCenters would be responsible for all costs including clinical and technical staff, patient care coordination (i.e., clinic administration, scheduling), billing, collection, equipment, lab supplies, and marketing.

  • In this scenario, Sleep HealthCenters has assumed the majority of the risk and responsibility for capital investment, operation, management, personnel and other direct costs for the program, with guaranteed positive and recurring income to the hospital.

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Affiliation Relationship - Offsite Development

Similar to an onsite relationship, Sleep HealthCenters would assume responsibility for all costs associated with the development and operation of a new sleep medicine center. Sleep HealthCenters would source appropriate space in close proximity to Affiliate and would handle all upfront development and build-out costs.

  • In this case, Sleep HealthCenters has assumed all risk, with the hospital receiving positive recurring income and maintaining space availability for other hospital-based services. The hospital would have little to no overhead costs associated with the facility, but would maintain patient flow.

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Program Integration Relationship

Sleep HealthCenters would make a cash payment for the existing business performed at Partner’s sleep medicine program plus a per study fee on all studies performed over the Partner’s sleep program’s current base of business each year for five years. After the five year period, the Partner would receive an ongoing revenue stream on all studies performed at the partnership center.

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Management Relationship

In a management relationship, Sleep HealthCenters is compensated through a per study fee to include technical and management services. While it may seem contradictory, Sleep HealthCenters often maintains responsibility for payment of physician services. This allows Sleep HealthCenters to supplement services when needed. Sleep HealthCenters’ role can be limited to the technical operation and management of the program; however, Sleep HealthCenters can also bill using the hospital’s provider number and handle insurance verification and collection.

  • In this scenario, it is important to maintain a close relationship between the physician clinic, which would likely be operated and managed by the hospital, and the sleep lab. In addition, Sleep HealthCenters would establish a CPAP clinic onsite to treat sleep apnea patients.

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Acquisition/Merger

Under an acquisition Sleep HealthCenters will take complete responsibility for the existing operations of the Sleep Medicine Program, This would include taking over the operation of all of the sites including the free standing facilities, any management arrangements, research programs and all clinical and administrative staff associated with the program.

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CPAP Management Program

Sleep HealthCenters can offer this treatment program to existing patients of the established sleep medicine program. In the same clinic locations already established by program, Sleep HealthCenters would offer a CPAP management program to patients needing CPAP therapy, thus enhancing the continuity of care for patients. Sleep HealthCenters currently purchases different types of CPAP/Bi-level PAP machines and masks and would maintain supplies on hand at each of the sleep center locations. In addition, all billing and collection for CPAP services would be done by Sleep HealthCenters. The patient would benefit from more timely treatment of their sleep disorder as opposed to having to be referred out to another DME/Home care provider company that does not focus on CPAP alone.

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