Chest
Volume 137, Issue 5, May 2010, Pages 1217-1224
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POSTGRADUATE EDUCATION CORNER
CONTEMPORARY REVIEWS IN SLEEP MEDICINE
Starting a Sleep Center

https://doi.org/10.1378/chest.09-2186Get rights and content

The demand for sleep medicine services has grown tremendously during the last decade and will likely continue. To date, growth in demand has been met by growth in the number of new sleep centers. The need for more new centers will be dependent on market drivers that include increasing regulatory requirements, personnel shortages, integration of home sleep testing, changes in reimbursement, a shift in emphasis from diagnostics to treatment, and an increased consumer focus on sleep. The decision to open a new center should be based on understanding the market dynamics, completing a market analysis, and developing a business plan. The business plan should include an overview of the facility, a personnel and organizational structure, an evaluation of the business environment, a financial plan, a description of services provided, and a strategy for obtaining, managing, and extending a referral base. Implementation of the business plan and successful operation require ongoing planning and monitoring of operational parameters. The need for new sleep centers will likely continue, but the shifting market dynamics indicate a greater need for understanding the marketplace and careful planning.

Section snippets

Market Dynamics

When investigating new practice opportunities, it is critical to first understand the market dynamics affecting the profession that influence the growth or contraction of the need for sleep medicine services (Table 1). Identification of these drivers will help those considering opening a center make an educated guess about the direction the local market is heading. The key drivers are outlined in the following sections.

Does An Opportunity Exist?

Multiple factors go into the decision to open a new sleep center. Is there sufficient need for a new center? Are there other centers, and if so, how does a new center compete with them? What financial resources are required to start and maintain a new operation? Can the barriers for entry into the marketplace be overcome?

The first step is completing a market analysis to assess the current situation in the prospective catchment area. This will determine if there is sufficient need for a new

The Business Plan and Implementation

The business plan is “a selling document that conveys the excitement and promise of your business to any potential backers or stakeholders”.33 Although not everyone will need to resort to others for financial support, the concept of underlining the excitement and promise of an opportunity is integral to business planning. A business plan should help determine if the opportunity is worthy of time and resources, uncover relevant business aspects that would not otherwise have been considered, and

Subsequent Planning and Analysis

Ongoing planning is necessary to ensure the organization responds to the changing environment. This involves both strategic and tactical planning.

Strategic planning typically focuses on the big picture: where is the market going, and how do businesses respond to the market? Managers should hold meetings at all levels of the organization (eg, board, and medical, technical, and administrative staffs). Planning should consider sources of revenue growth as well as the resources required to

Conclusions

Sleep medicine is a new, independent field of medicine. New technologies, changes in the health-care system, and increased regulatory scrutiny pose challenges to continued growth of the field. However, an increase in the appreciation of the importance of good sleep to good health, an increase in the understanding and recognition of new sleep disorders, and a continued rise in the prevalence of obesity and sleep deprivation suggest a continued growth in the need for sleep medicine services and

Acknowledgments

Financial/nonfinancial disclosures: The authors have reported to CHEST the following conflicts of interest: Dr Epstein is the chief medical officer and Mr Valentine the chief executive officer of Sleep HealthCenters, a sleep medicine specialty practice group.

References (0)

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