Entrepreneurial screening company with a charitable twist seeks radiologist, hospital partners.
From left, Eric Brooks, CEO, Brooks Properties, Ken Carpenter, CEO, Body Profiles, and Linda Peluso, controller.
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Before New England real-estate developer Harold Brooks lost his
wife Mary Jo to cancer in October 2001, she urged him to remember
her by making a difference in the world. Brooks' first step in
doing so was to found the M.J. Brooks Foundation in her name,
dedicating the charitable organization to cancer patients with
limited funds. When Brooks began looking for his next project, the
concept of full-body CT screening caught his eye. Not only did
retail centers providing this service make sense from an investment
standpoint, they also reflected Brooks' belief that early detection
is one of the primary weapons in the fight against cancer.
Brooks' mission to make a difference coalesced in the form of
Body Profiles, Salem, NH, a chain of full-body CT scanning centers
that he plans to open across the United States over the next few
years. The M.J. Brooks Foundation will receive a portion of the
profits from all Body Profiles centers, which Brooks and his CEO
Ken Carpenter believe represents a departure in terms of business
strategy. Unlike other full-body screening centers, Body Profiles
will use existing resources, creating immediate access to skilled
technologists and radiologists while also keeping costs in
check.
"For these types of ventures to survive, they need to have
strong physician and medical-facility partners," Carpenter says.
Body Profiles' marketing is based on "preventive health care
through full-body scanning," and Carpenter describes its business
strategy as simple. "We partner with a leading radiologist or a
company that has a direct relationship with a hospital," he says.
"By building this relationship, we have immediate access to
administrative infrastructure, trained technologists, and a staff
of radiologists. All this accelerates our growth and dramatically
lowers costs, and we can ramp up the project quickly because our
supporting entities are already in place. "We do not plan to be in
the referral or diagnosis business," Carpenter continues. "We are
in the information business."
CUTTING COSTS, NOT CORNERS
The cost of deploying this latest development in the information
business is not low. For each location, Carpenter projects a price
tag of $2 million, which will cover securing a location, buying
equipment, and conducting the proper sales and marketing
activities. In some locations, however, that cost will be cut
because Brooks already owns several high-visibility buildings in
New England. In fact, the first clinic will be located in a
building that Brooks owns that is located on a major highway in
Methuen, Mass. "We have an inherent audience there because tens of
thousands of cars go by daily," Carpenter says. "Our visibility
value in that location is enormous."
The target date for opening the flagship center in Methuen is
December 1, 2002, with a second center in the Boston area expected
to open in February 2003. Body Profiles plans to open multiple
centers in the next 2 to 2.5 years, with all of them to be driven
by strong hospital and physician partners. In New England, Salem
Radiology, Salem, NH, is Body Profiles' operational partner; the
head of the CT-scanning company will be Robert Hannon, MD, chief of
radiology at Methuen's Holy Family Hospital. In other areas of the
United States, Carpenter reports, Body Profiles is negotiating with
several organizations similar to Salem Radiology, and it
anticipates announcing those new relationships soon. The
relationship is attractive to other facilities because Body
Profiles plans to refer clients who need medical care (but lack
specialists) to their hospital sponsors. "The primary interest of
hospitals is providing care for patients, and our sponsoring
hospitals will have competent physicians covering every medical
discipline," Carpenter says.
The expansion of Body Profiles nationwide will be based on
demographic studies; Carpenter notes that these describe the
typical full-body CT screening client as someone who believes in
preventive health care and has the discretionary income necessary
to afford $1,000 to 1,500 for a screening. "There is a lot of
dissatisfaction with managed health care today," Carpenter says in
explaining the level of client interest in this expensive form of
preventive health screening. "I am personally unhappy because I
want to know everything, and I have a right to that information. If
I am a candidate for a heart attack, I want to control that
information. Our research shows that more than 20% of clients
scanned will have abnormalities significant enough to require
medical attention."
MAKING MARKETING A PRIORITY
Marketing is the key to this business, according to Carpenter,
who says that he and Brooks are determined to make Body Profiles
anything but "just another scanning company. There are a lot of
smart people in this field who have done a lot of good things, but
I feel that you have to take a programmatic approach to full-body
CT scanning," he says. "Many places advertise from the buy one, get
one free' angle, or employ scare tactics to motivate clients. I
object to that. It is shortsighted, and scare tactics do not work
in business or advertising. That is not the way that we are
choosing to go."
Instead, the approach used will position the company in terms of
its long-term value in preventive health care. "We will have a
decided focus on empowering people with knowledge about their own
health," Carpenter says. "Since one of the greatest difficulties in
marketing is transmitting the message, Body Profiles is planning to
use numerous sources to do that. We will be creating an interactive
web site, doing direct mail, and advertising on the radio and in
upscale magazines. "In addition, we will be creating a lengthy
infomercial that will allow us time to tell our story," Carpenter
continues. "We plan to focus on a testimonial perspective, and the
amount of time that we'll have in that format will give us ample
opportunity to show why our Siemens technology is better for
full-body CT screening."
THE SIEMENS ADVANTAGE
The decision to use Siemens' Somatom Sensation 16, an ultra-fast
full-body scanner, was made early in the planning process. "Siemens
is currently the only company that makes a 16-slice CT scanner,
which produces the most accurate images, more quickly, while
delivering less radiation to the person who is undergoing the
scan," Carpenter says. "From a feature and functionality
standpoint, Siemens offers the single-best equipment on the market
today. In fact, I cannot imagine a better technological partner to
have in this venture. Their technology is ahead of the nearest
competitor's by 18 months, minimum." The technology also fits in
with Body Images' desire to reach operational status quickly, as it
only takes a few weeks from the time the equipment is delivered to
get it ready and to train the staff. That can be done either at a
Siemens center or on-site.
Siemens is also well positioned to support Body Profiles' future
business plans, which include taking all the client
informationincluding that generated by optional, comprehensive
blood analysisand placing it on a secure web site.
"Siemens has sophisticated software that will implement all
this, so that we can post a client's scan information,
blood-analysis results, and entire medical history," Carpenter
says. "That way, our clients can access their histories at any
time, anywhere."
Siemens offered more than its competitors, Carpenter notes: a
high level of service and support from the sales staff, a complete
warranty for the first year, the ability to monitor all the
equipment remotely, equipment and software upgrades that are part
of the service/maintenance contract, and an interest in how its
buyers would be marketing their new venture. "If this were less
easy than Siemens makes it, we would not be so eager to roll out 20
to 30 of these systems," Carpenter says. "Siemens is interested in
seeing its buyers succeed, and has provided support on everything
from the facility design to the engineering documents to the
marketing collateral."
Having a successful full-body CT-screening business, Carpenter
adds, involves finding a whole solution rather than putting
disparate pieces together. He says, "It is simple to throw together
equipment and people, but getting it all to merge can be a
challenge that can sink even the best radiologist-based practice.
If anything, Siemens has gone overboard in helping us make the
difference and fulfill the Brooks' dream, which is ultimately the
motivation for this business."
Elizabeth Finch is a contributing writer for Decisions in Imaging Economics.