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Joshua Tree Healthcare - Subacute Care
Executive summary
Joshua Tree Healthcare has been in operation since 1990. Joshua Tree Healthcare is a family owned, for-profit subacute facility. We began the business offering only rehabilitative services, and along the years, we have added complex services. This addition came to meet the needs of the community. Since 1996, our revenues have grown approximately 45 percent compared to the first five years. Our services have been accepted not only in the Antelope Valley community but also nationally. In 1998, we received an award for excellence in rehab services from the National Subacute Care Association (NSCA).
Joshua Tree Healthcare is committed to delivering the highest standards of quality medical, nursing, and therapeutic care in a clean, secure, and safe environment. Our organization strives to meet the medical and social needs of each patient with sensitivity to the individual. Our interdisciplinary approach ensures that our patients’ needs are met with competency and compassion.
Joshua Tree is recognized nationally for rehabilitative services, including short-term rehabilitative conditions such as brain and spinal cord injuries, total hip and knee replacement, arthritis, and multiple trauma care and complex medical services such as wound care, oncology, ventilator support, and dialysis. The medical services are delivered by our experienced interdisciplinary care team.
Important focuses of the company are clinical excellence, quality of life, and lower-cost alternative. These strengths have attracted patients, stakeholders, managed care contracts, and other community partners.
Joshua Tree is recognized nationally for rehabilitative services, including short-term rehabilitative conditions such as brain and spinal cord injuries, total hip and knee replacement, arthritis, and multiple trauma care and complex medical services such as wound care, oncology, ventilator support, and dialysis. The medical services are delivered by our experienced interdisciplinary care team.
The Antelope Valley is a growing area. The job market is expanding and, therefore, this area is attracting first-time home owners. The cost of homes is considerably less than in the L.A. metropolitan area. This area has been experiencing a great migration of newcomers. Joshua Tree has contributed to this growth by providing many jobs in the area. In addition, we have introduced subacute care services in this region, and the Palmdale community has been very receptive to this service. Last year, our revenue was $2.7 million, and we forecast to grow to $13 million by 2003.
We have ongoing projects to accomplish in the meantime such as the expansion of beds, the addition of a new service, and the renovation of our physical surroundings. We have in place a strong market campaign over the next three years to achieve these organizational objectives. Our ultimate goal is to be the provider of choice in the community, and therefore, to stand alone in excellence of care.
Joshua Tree uses a wide-range of marketing and sales techniques from newspaper advertisements to JoshuaTree.com website. We have been very successful in providing accessible information that is user friendly.
We also use the following methods of attacting patients to Joshua Tree. These methods include TV commercials, radio commercials, LifeAir home equipment, brochures, a website, a health fair, and an open house.
The key factor influencing the success of our facility is the lack of competitors. Throughout the whole Antelope Valley region, there is only one subacute unit located in an acute facility, the Antelope Valley Hospital. Due to Balance Budget Act of 1997, it is no longer profitable for the Antelope Valley Hospital to have a subacute unit. Therefore, this hospital is divesting this service. There are two other acute hospitals and three skilled nursing facilities in the region, but none of these facilities are targeting the same types of customers that we target. These circumstances provide Joshua Tree with opportunities for further market penetration.
We are seeking $1.5 million in equity funding that will be used to expand our bed capacity, to market a new service, LifeAir, to improve our physical surroundings and landscaping, and for operating capital. These funds will be sufficient to take Joshua Tree to high revenues in the year 2002, but it may be wise to acquire more funding in 2003 for marketing plans in order to raise revenues.