As the U.S. government wrangles over a solution to health care costs, private companies and the public in general are moving forward towards that solution. The U.S. is famous for solving its own issues in a free market forum, and usually ends-up with a better solution than the federal government might create. Healthcare solutions are being found without the help of the government, and they appear to be making a profit.
National Health Partners Inc., a health services company, offers health discounts on a membership basis to affiliate groups. Currently, the company has over 1 million health providers across all health disciplines providing services to members, and is seeing positive growth in this regard. Membership is also increasing at a steady pace as affiliate groups such as Chambers of Commerce, neighborhood development groups and ethnic organizations seek help for their members. In most instances, the typical member group is comprised of members that have insurance but are underserved by current insurance coverage.
The company derives a majority of its revenue from membership fees. The typical monthly fee is $39.95 per month, which is approximately 95% of the company’s business. The remainder is a combination of lesser services. Simply because of this fee structure, the company maintains consistent revenue and growth structure by retaining members once they have been converted.
Regular readers of the QualityStocks blog may remember a blog on this particular company some time ago. Since that time the company has been adding affiliate groups, most recently 65,000 members of a Polish American group, to its ranks. At the time it was mentioned, the company was moving from a marketing company sales model strategy to an affiliate sales model strategy. This strategy has been implemented and appears to be successful, as seen by recent affiliate growth.
It does appear that affiliate groups are receptive to this form of discounted fee for services program and are accepting it as a solution to how the government may or may not resolve current health care issues. In either event, the company is finding positive sales direction and is ready to capitalize.
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