Teri Campbell

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Data-informed professional healthcare entrepreneur, problem solver, and avid learner with extensive clinical healthcare experience.

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Group Consulting Project: Locating a New Physical Therapy Business in Florida

INTRODUCTION

Overview:
This collaborative group healthcare business consulting project utilized data mining and exploration of open source public datasets in order to provide data-informed recommendations to the client.


Business Problem: The client wants to open up a new physical therapy clinic in Florida. What are the top 3 locations for the client to open a new location?



Assumptions:

  1. The client wants a market in which to grow their business
  2. The client will focus on an insurance based payment model and will accept Medicare, which is a growing population.

Findings

Regions that support a greater number of physical therapists have:

Based on this analysis, a recommendation can be made to consider each of these specific locations as locations for a new physical therapy clinic with local demographic findings that match those of other regions that support higher numbers of physical therapists:



DATA

Multiple public sources of data were identified, cleaned using SQL, and combined for this analysis.

Resultant data tables utilized for this business problem:

Data sources can be found here:

Data was cleaned, filtered, and analyzed using spreadsheets, SQL, and Tableau Public



ANALYSIS

Joining the number of providers at each location with the demographic table reveals correlations associated with a higher number of providers.

Introductory exploratory analysis shows that:










Exploring the average providers in each clinic in our top performing regions reveals that the top identified regions that support the most physical therapists have an average of 1.6 to 2.67 PT’s per clinic.






As compared to an overall average provider rate of 1.66 by zip code







This reveals a successful saturation rate by city and zip. Criteria for inclusion should include regions with an average provider ratio below 1.6.



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Further exploration identifies a city population range between 3 and 1186954, a zip code population range from 30 to 75705, and a county population range from 8308 to 2549075.



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First the question of whether or not household income plays a role must be considered, which can be more easily visualized when categorized.

The range for median income falls between $32,497 and $64,876 by county:

Using these established criteria parameters gives quick view of average household income in the areas that support the greatest density of PT’s:





Average household income above $39,000 is correlated with the greatest ratio of working providers in the population, indicating another aspect of successful business/market fit.



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So far it is identified that the regions that support the greatest number of physical therapists have:

TASK: Identify regions with less than 1.66 average therapists per zip while also having > 4700 zip population, County Population >155,000, median age over 38.5, Average Household Income above $39,000, and an unemployment rate below 7.3





As a final criteria addition, a look at the total number of facilities in the upper end of the established parameters is seen here:



There is a trend for areas with larger county populations supporting a greater number of facilities. Target regions for a new clinic should have a larger population, middle-to-high income, but a lower provider to population ratio and generally a lower number of facilities.





Finally, Adding in the city population and ordering this from the lowest provider ratio we see the population specifics for underserved areas.





Further narrowing down to a city population over 19,000, the top potential regions emerge.







RESULTS & RECOMMENDATIONS

Based on this analysis, a recommendation can be made to consider each of these specific locations as locations for a new physical therapy clinic with local demographic findings that match those of other regions that support higher numbers of physical therapists:

Specifically, we can recommend these individual locations as promising locations for a new physical therapy clinic with growth potential because the regional demographics fit the following identified criteria and each is relatively under-served compared to areas that support a greater percentage of providers:



CONCLUSION & CONSIDERATIONS

Other Considerations/options to pursue deeper:

The data found in these public data sets did not include information on lease prices in each area. Looking at the client budget vs rent prices (eg. West Palm Beach seems like a good choice, but perhaps there are lower numbers of providers in that location because overhead is restrictive to profit).

Potential for further data exploration: Average square footage cost for commercial real-estate for each city.