Medical Practice Doctors Case Study

Medical Practice Phase II 1.0
Prepared For:Prepared For:Prepared For:Prepared For:
Medical Practice Doctors, P.A.Medical Practice Doctors, P.A.Medical Practice Doctors, P.A.Medical Practice Doctors, P.A.
Marcus L. Welby, MD, MPHMarcus L. Welby, MD, MPHMarcus L. Welby, MD, MPHMarcus L. Welby, MD, MPH
Jane Welby,Jane Welby,Jane Welby,Jane Welby, MSN, FNP-BCMSN, FNP-BCMSN, FNP-BCMSN, FNP-BC
1485 FM 1960 Bypass Rd E, Suite 100
Humble, TX 77338
www.fpdrs.com
Of Consultation:
Robert J. McLean, CPA
4516 Katy Freeway
Houston, Texas 77007
www.texcpa.org/
Michael Soto, Regions Bank
Prepared By:
Edward Cook
Chartered Global Management Accountants and Consultants
832.244.4550
edward.cook@ec2online.com
FOR ILLUSTRATION PURPOSES ONLY
Names, locations, numbers and substantial portions of text and/or data may be/or have
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in order to preserve confidentiality and proprietary information or otherwise bear no
correlation to actual situations.

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This Mutual Non-Disclosure Agreement (the “Agreement”) is made and effective [DATE],
BETWEEN:   Medical Practice Doctors, P.A.   (the "Disclosing Party"), a corporation
organized and existing under the laws of the STATE of TEXAS, with its head office located at:
                                         , United States
AND: EC2 Business Solutions   [RECEIVING PARTY NAME] (the "Receiving Party"), an
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Nothing in this Agreement shall divest the Disclosing Party of any of its right, title or interest in
and to any Evaluation Material. Within [NUMBER] days after being so requested by the
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Both parties agree that money damages may not be a sufficient remedy for any breach of the
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subject of this Agreement, from purchasing or selling securities of such company and from
communicating such information to any other person under circumstances in which it is
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To the extent that any Evaluation Material may include materials subject to the attorney-
client privilege, work product doctrine or any other applicable privilege concerning pending
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a commonality of interest with respect to such matters and it is the desire, intention and
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acquire products without use of the other party's Evaluation Material. Further, the Receiving
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The term “residuals” means information in intangible form, which is retained in memory by
persons who have had access to the Evaluation Material, including ideas, concepts, know-
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to pay royalties for any work resulting from the use of residuals. However, this paragraph shall
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Both parties recognize and agree that, on and after the date hereof, neither party will have the
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assigns.
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appeal) that any term or provision hereof is invalid or unenforceable, (i) the remaining terms

and provisions hereof shall be unimpaired and shall remain in full force and effect and (ii) the
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and enforceable and that comes closest to expressing the intention of such invalid or
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This Agreement embodies the entire agreement and understanding of the parties hereto and
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For the convenience of the parties, any number of counterparts of this Agreement may be
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an original instrument, and all such counterparts taken together shall constitute one and the
same agreement.
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The term of this Agreement shall be [NUMBER] years from the date hereof.
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The validity and interpretation of this Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the [State/Province] of [STATE/PROVINCE]
applicable to agreements made and to be fully performed therein (excluding the conflicts of
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________________________________________
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.
                                                       [RECEIVING PARTY NAME]
Authorized Signature              Authorized Signature
SIGNATURE ON FILE
PRINT NAME AND TITLE              PRINT NAME AND TITLE

Mutual Non-Disclosure
Agreement

Table of Contents
Page 1
1.0 Executive Summary ......................................................................................................................................1
Chart: Highlights ..............................................................................................................................4
1.1 Objectives............................................................................................................................................4
1.2 Mission...............................................................................................................................................11
1.3 Keys to Success ................................................................................................................................12
1.4 Business Plan Checklist ....................................................................................................................14
1.4.1 Practice Assessment ............................................................................................................17
1.5 Business Process Assessment .........................................................................................................20
2.0 Company Summary ....................................................................................................................................21
2.1 Company Ownership ........................................................................................................................22
2.2 Company History ...............................................................................................................................23
Table: Past Performance...............................................................................................................24
Chart: Past Performance ...............................................................................................................25
2.3 Company Locations and Facilities ....................................................................................................25
2.3.1 Physician Tenants ................................................................................................................28
Table: Adjacent ....................................................................................................................29
2.3.2 Operating Lease ...................................................................................................................31
3.0 Products and Services ................................................................................................................................31
3.1 Product and Service Description .......................................................................................................31
3.2 Competitive Comparison ..................................................................................................................32
3.3 Sales Literature .................................................................................................................................32
3.4 Fulfillment ..........................................................................................................................................32
3.5 Technology ........................................................................................................................................32
3.6 Future Products and Services ...........................................................................................................32
4.0 Market Analysis Summary ..........................................................................................................................32
4.1 Market Segmentation ........................................................................................................................41
Table: Market Analysis ..................................................................................................................41
Chart: Market Analysis (Pie)..........................................................................................................42
4.2 Target Market Segment Strategy ......................................................................................................42
4.2.1 Market Needs .......................................................................................................................43
4.2.2 Market Trends ......................................................................................................................43
4.2.3 Market Growth ......................................................................................................................43
4.3 Service Business Analysis ................................................................................................................44
4.3.1 Business Participants ...........................................................................................................44
Table: West Houston Medical Practices .............................................................................54
4.3.2 Distributing a Service ...........................................................................................................61
4.3.3 Competition and Buying Patterns .........................................................................................61
4.3.4 Main Competitors .................................................................................................................62
5.0 Web Plan Summary ....................................................................................................................................63
5.1 Website Marketing Strategy ..............................................................................................................63
5.2 Development Requirements .............................................................................................................63
6.0 Strategy and Implementation Summary .....................................................................................................63
6.1 SWOT Analysis .................................................................................................................................64
6.1.1 Strengths ..............................................................................................................................64
6.1.2 Weaknesses .........................................................................................................................64
6.1.3 Opportunities ........................................................................................................................64
6.1.4 Threats ..................................................................................................................................65
6.2 Strategy Pyramid ...............................................................................................................................65
6.3 Value Proposition ..............................................................................................................................65
6.4 Competitive Edge ..............................................................................................................................65
6.5 Marketing Strategy ............................................................................................................................66
6.5.1 Positioning Statement ..........................................................................................................66
6.5.2 Pricing Strategy ....................................................................................................................66

Table of Contents
Page 2
6.5.3 Promotion Strategy ...............................................................................................................66
6.5.4 Distribution Strategy .............................................................................................................66
6.5.5 Marketing Programs .............................................................................................................66
6.6 Sales Strategy ...................................................................................................................................66
6.6.1 Sales Forecast ......................................................................................................................67
Chart: Sales Monthly ...........................................................................................................69
Chart: Sales by Year ............................................................................................................69
Table: June Procedure Code Summary ..............................................................................70
Table: Sales Forecast ..........................................................................................................71
6.6.2 Coding Changes ...................................................................................................................71
6.7 Strategic Alliances .............................................................................................................................72
6.7.1 Humble Surgical Hospital .....................................................................................................73
6.7.2 MemorialHermann North East .............................................................................................82
6.7.3 Kingwood Medical Center ....................................................................................................84
6.8 Milestones .........................................................................................................................................87
Chart: Milestones...........................................................................................................................87
Table: Milestones ..........................................................................................................................88
7.0 Management Summary ..............................................................................................................................88
7.1 Organizational Structure ...................................................................................................................89
Org. Chart: Organizational Chart ..................................................................................................89
7.2 Management Team ...........................................................................................................................89
7.3 Management Team Gaps .................................................................................................................94
7.4 Personnel Plan ..................................................................................................................................94
Table: Personnel ...........................................................................................................................94
8.0 Financial Plan ..............................................................................................................................................94
8.1 Important Assumptions .....................................................................................................................94
8.2 Key Financial Indicators ....................................................................................................................94
Chart: Benchmarks ........................................................................................................................95
8.3 Break-even Analysis..........................................................................................................................95
Table: Break-even Analysis ...........................................................................................................95
Chart: Break-even Analysis ...........................................................................................................96
8.4 Projected Profit and Loss ..................................................................................................................96
Table: Profit and Loss....................................................................................................................97
Chart: Profit Monthly ......................................................................................................................98
Chart: Profit Yearly ........................................................................................................................98
Chart: Gross Margin Monthly ........................................................................................................99
Chart: Gross Margin Yearly ...........................................................................................................99
8.5 Projected Cash Flow .........................................................................................................................99
Table: Cash Flow ........................................................................................................................100
Chart: Cash .................................................................................................................................101
8.6 Projected Balance Sheet .................................................................................................................101
Table: Balance Sheet ..................................................................................................................102
8.6.1 Construction Loan Regions Bank .......................................................................................102
Table: Debt Schedule ..................................................................................................................106
8.7 Business Ratios ...............................................................................................................................106
Table: Ratios ...............................................................................................................................107
8.8 Long-term Plan ................................................................................................................................107
8.9 The Investment Offering .................................................................................................................107
Table: Investment Offering ..........................................................................................................112
8.10 Valuation ........................................................................................................................................112
Table: Investment Analysis ..........................................................................................................114
Table: Acquistion Detail ...............................................................................................................114
8.10.1 Physician Compensation ..................................................................................................114
8.11 Use of Funds .................................................................................................................................115

Table of Contents
Page 3
Table: Use of Funds ....................................................................................................................115
8.12 Payback .........................................................................................................................................115
Table: Payback ............................................................................................................................115
Chart: Payback Period .................................................................................................................115
Table: Personal Net Worth ..........................................................................................................116

Medical Practice Doctors Case Study
6:34 AM10/5/2015 FOR DISCUSSION PURPOSES ONLY
CONFIDENTIAL NOT FOR REPRODUCTION
Page 1
1.0 Executive Summary
Phase I
The need to establish Medical Practice Doctors three years ago stemmed from the
overwhelming shortage of family practice care settings in the North Eastern part of
Texas, especially the shortage of family practitioners in Humble, east and west of
Farm to Market Road 1960. The practice is located off FM 1960 a major road and
within 3 miles of Highway 59. The practice is located at 1485 FM 1960 Bypass
Humble Texas 77338.
The practice is the first of its kind to be optimally located in 2000 square feet of
office space clearly visible to pedestrians and passing traffic. The practice is
onsite with Humble Surgical Hospital in its newly built multispecialty complex
which accomodates short stay admissions. The multispecialty complex is also home
to other specialties such as orthopaedics, plastic / cosmetic surgery, pain
management, dermatology, urology, cardiology, ear, nose, throat, and a strategically
close proximity (5 minutes) reputable full service emergency room, diagnostic
imaging center, pharmacy and lab services. The practice serves as primary care
referral of surgical patients from Humble Surgical Hospital onsite and the entire
virtual multispecialty group including the emergency room.
Phase I Completed
Therefore, the current successful medical practice provides substantive physical
and operational collateral as the business moves into Phase II, the development of
a 15,000 square foot office building on an adjacent site with space programmed for
urgent care and diagnostic / therapeutic and educational services going forward in a
comprehensive outpatient care setting that is synergistic with the current base
operations of 2,000 square feet which is being effectively utilized for primary care
through life, while also functioning as a key step down care center pre and post
discharge from Humble Surgical Hospital, a virtual multi-specialty group practice
functioning at the same location.
The proposed 4.19 acre site is under contract for $338,000 and appraised at $460,
000. See 9.3.1 Site for further treatment of the site including its five minute / 1.5
mile proximity to Memorial Hermann Northeast Hospital and critical location at the
crossroads of FM 1960.

Page 2
An effectively vacant site with a concrete paved area valued as land a 4.19 acre
tract of land at 0 FM 1960 Bypass Road E Humble, Texas, 77338
Market Growth
Houston Chronicle August 4, 2015
The northeast has been one of the healthier spots for housing in Houston, said
Metrostudy director Scott Davis, who attributes it to the relatively easy commute
along U.S. 59, a growing petrochemical sector of the area economy, much of which
is on the east side, and the schools. "We're seeing a lot of growth, particularly on
the west side of Lake Houston," he said. "Those communities seem to be
performing stronger than people may have anticipated." But the area's rapid
expansion has sparked concerns over traffic and increased congestion. Close to
260,000 people live in the Lake Houston area today, Prats said.
See Section 9.1 Economy for the "tale of two Houston economies".
The commercial real estate market, a good reflection of the larger economy, is
truly a tale of two cities, to paraphrase University of Houston economist Bill
Gilmer. The dividing line is Main Street, with collapsing oil prices
hurting office jobs on the west side while providing the fuel for an
emerging renaissance on the east side.

Page 3
Preliminary construction budget includes base cost of land plus an additional $1,750,000
building allowance pending design development drawings or roughly $116.67 per square
foot. Master site plan with parking allocation is included as is the development of tenant
finish allowances and related budgets.
See 6.7.1 under Strategic Alliances for a further deeper treatment of this multi-specialty
referral ecosystem, Humble Surgical Hospital (HSH) which relies primarily on Medical
Practice Doctors for its primary care function.
This business plan places emphasis on the current year's first six months of continued
strong operating performance and the June 30, 2015 Balance Sheet, taking in account
the full market value of the new site's current appraisal (under contract) for additional
collateral and solid leverage going into Phase II.
Current year operations are projected with seasonal adjustments for the remainder of
2015 with a conservative 8% (compound annual average) organic growth of net revenue
and related operating margins into 2016's northeast Houston robust economy to provide
debt service coverage for the construction / bridge loan, culminating in the opening of
the new comprehensive outpatient facility in the fall of 2016, with mature loan
amortization commencing in late 2016 or early 2017.
In addition to organic growth of the existing substantive practice at 1485 FM 1960 with
the support of a comprehensive referral ecosystem with the HSH multispecialty group
and a complete lineup of managed care agreements (see Section 4.1 for detailed
listing), Dr. Welby has solid physician recruitment pipelines with plans to bring on two
additional associates in Pediatrics and Family Practice simultaneously with the opening
of Phase II, therefore providing additional 'acquistion related' operating cash flow for
incorporation into 2017 to contribute to debt service coverage upon commencement of
mature construction loan amortization with added gross margins to cover fixed project
costs.
Debt service coverage based soley upon 2014 EBITDA with 40% after tax effect on
interest payments is in range based simply upon 2014 actual operating cash flow
without consideration of future organic growth (see Highlights and 6.6.1) in a
robust northeast Houston economy driven by petrochemicals, and without
consideration of future practice additions to the baseline operating model and
accelerated depreciation from the Medical Office Building coming on line in
2017, both of which will increase debt capacity further by an amount yet to be
quantified.
Additionally, these debt sensitivites do not take into account the owner's outside
sources of revenue including unrelated business investment income.
Demographics (see Section 4.0 Market Analysis Summary), external environmental
scans, SWOT analysis (6.1)has been completed on a preliminary basis for discussion,
including proximity to other comparable facilities in the immediate area, such as
Northeast Urgent Care and MedSpring under Section 4.3.3 Competition . Continued
economic momentum in east Houston based upon low oil prices for chemical processing

Page 4
facilities along with current developments such as the FMC complex in Generation Park
will assure a robust economic environment.
Operating risks are considered minimal given the partnership with Group One Health
Source, a reputable practice management company acknowledged by the Medical
Group Management Association for the quality of their services in Electronic Health
Records and Medical Payor Performance.
Key strategic priorities for success of Phase II will depend upon effective construction
management and physician recruitment to coincide with Phase II opening in the fall of
2016, along with a robust website and related technologies, including network design
and other related state of the art 'intelligent building design'.
See 8.3.3 for Architectural Design Agreement.
1.1 Objectives
Acquire an effectively vacant site with a concrete paved area valued as land a 4.19 acre
tract of land at 0 FM 1960 Bypass Road E Humble, Texas, 77338 as depicted below
Construct a 15,000 square foot medical office building with design / construction to
commence on or about September 1, 2015
Open medical office building within nine months of design commencement.
More than adequately fund the debt service on long term loan of approximately

Page 5
$1,800,000 on amortization period of 25 years or 300 payments at
$107,128.41 interest $32,040.75 principal or total annual debt service of 139,168
with a virtual 1 times debt service coverage pre tax, tax deduction effect of
interest 42,851 after tax debt service of 96,317 or after tax debt service coverage of
1.34
This after tax coverage based soley upon 2014 EBITDA with 40% after tax effect on
interest payments is in range based simply upon 2014 actual operating cash flow
without consideration of future organic growth in a robust northeast Houston
economy driven by petrochemicals, and without consideration of future practice
additions to the baseline operating model and accelerated depreciation from the
Medical Office Building coming on line in 2017, both of which will increase debt
capacity further by an amount yet to be quantified.
Additionally, these debt sensitivites do not take into account the owner's outside
sources of revenue including unrelated business investment income.

Page 6
Kirksey Architect Annual Construction Cost Update 2013
Office Buildings & Parking Structures Market conditions in the construction economy are
constantly changing. As a service to our clients, we annually poll leading general
contractors to give an update on current conditions. The Office Building figures apply to
site, core and shell only, while the Corporate Interiors costs reference a 25,000-sf floor
plate. Using several generic building types, we have compiled our findings below. One-
Story Flex Office Buildings — $65 to $70/sf ($60 to $67/sf in 2012) One-story shell
buildings designed to accommodate uses ranging from traditional offices to light assembly,
hightechnology lab applications. Typical projects are cold, dark shell steel structures with

Page 7
tilt-up concrete skins and punched openings. Cost includes $10 to $12/sf for sitework,
assuming 5 spaces/1,000 sf in a surface parking lot.
Construction costs began to climb in 2012 and costs are expected to continue rising at a
steady pace through 2013. A combination of a higher volume of projects in a number of
sectors combined with labor and material cost increases will continue to drive up
construction costs. Energy related companies are driving the uptick in major office
projects and major interior lease deals in the Houston region.
All categories reference a 25,000-sf floor plate with 50% offices and 50% open-plan.
Building Standard Office Space — $36 to $42/sf The most basic applicable in a type A
building, but using all new components – 18-cell parabolic lights, standard 2x2 ceiling,
plastic laminate building standard doors with mortised hardware, no glass at office
fronts, minimal millwork and all plastic laminate, $25/yd broadloom carpet, standard
electrical and HVAC.
Per Letter below
With our expertise and considerable experience we will be able to complete an
itemized bid upon final permitted plans from city and all pertaining authorities The
project hard construction cost will be $1,209,600.00 (One Million Two Hundred
Nine Thousand and Six Hundred Dollars) and Interior build out is $575,400.00
( Five Hundred Seventy Five Thousand and Four Hundred Dollars) and total cost
will be $1,785,000.00 ( One Million Seven Hundred Eighty Five Thousand Dollars)
excluding . Permit fee , replatting and utility related expenses

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1.2 Mission
The goal of Medical Practice Doctors is to promote health while preventing and
managing chronic illnesses. Educational services will be provided on site and various
locations regarding the benefits of exercise, nutrition and proper balance to maintain
good health. Educational sessions will be held one on one, small groups or in large
classes on updates and trends of nutrition, diabetes, hypertension, obesity etc.
Medical Practice Doctors will focus on each patient's health care and refer as necessary to
sub specialty practices or agencies who's focus is solely to create the most well-rounded
experience for each patient in order to optimize their health. The practice will welcome all
patients regardless of ability to pay for services. We plan to operate on a open door
policy where no patient seeking care, no matter the race, sex, gender or socioeconomic
status will be turned away.

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1.3 Keys to Success
Loan Summary$2181100 for 25 years with a 5.37% interest rate
$13,225.06Monthly
Payment
$3,967,518.59Total of 300 PaymentsSep, 2040Pay-off Date
Loan Amortization Schedule
Loan Summary $2181100 for 25 years with a 5.37% interest rate (option 3 most
conservative)
$13,225.06 Monthly Payment after 9 months construction plus 12 months all interest
only This rough amount would begin in roughly June, 2017
$3,921,057.57 Total of 300 Payments Aug, 2040 Pay-off Date
Interest Only for first 9+12 21 months not yet factored in here
Interest only is $9542 Monthly Illustration below through June, 2017
When will we get an actual amortization table, preferably before closing for review,
we will schedule it out overlay-ed on our five year projections of operating cash flow
Oct, 2015 $9,760.42 $3,464.64 $2,177,635.36
Nov, 2015 $9,744.92 $3,480.14 $2,174,155.22
Dec, 2015 $9,729.34 $3,495.72 $2,170,659.50
2015 $29,234.69 $10,440.50 $2,170,659.50
Jan, 2016 $9,713.70 $3,511.36 $2,167,148.14
Feb, 2016 $9,697.99 $3,527.07 $2,163,621.06
Mar, 2016 $9,682.20 $3,542.86 $2,160,078.21
Apr, 2016 $9,666.35 $3,558.71 $2,156,519.50
May, 2016 $9,650.42 $3,574.64 $2,152,944.86
Jun, 2016 $9,634.43 $3,590.63 $2,149,354.22
Jul, 2016 $9,618.36 $3,606.70 $2,145,747.52
Aug, 2016 $9,602.22 $3,622.84 $2,142,124.68
Sep, 2016 $9,586.01 $3,639.05 $2,138,485.63
Oct, 2016 $9,569.72 $3,655.34 $2,134,830.29
Nov, 2016 $9,553.37 $3,671.70 $2,131,158.59
Dec, 2016 $9,536.93 $3,688.13 $2,127,470.46
2016 $115,511.71 $43,189.04 $2,127,470.46
Jan, 2017 $9,520.43 $3,704.63 $2,123,765.83
Feb, 2017 $9,503.85 $3,721.21 $2,120,044.62
Mar, 2017 $9,487.20 $3,737.86 $2,116,306.76
Apr, 2017 $9,470.47 $3,754.59 $2,112,552.17
May, 2017 $9,453.67 $3,771.39 $2,108,780.78
Jun, 2017 $9,436.79 $3,788.27 $2,104,992.51
Jul, 2017 $9,419.84 $3,805.22 $2,101,187.29
Original Assumptions
$200,000 capital contribution to be forthcoming ($66,000 already commited to land acquisition)
along with collateral generated by leveraging the acquisition arbitrage premium on land of
$460,00 minus $338,000 or an additional collateral contribution of $122,000.
Additional collateral contributions can come from the invested fixed capital in Phase 1 of

Page 13
approximately $150,000 in tenant improvements in a healthy ongoing business concern as
presented
Loan Amount:$1,650,000.00 Number of Payments:300 Anual Interest Rate:6.0000%
Periodic Payment:$10,630.97
Loan Date:09/01/2015 1st Payment Due:10/01/2015 Payment Frequency:Monthly
Last Payment Due:09/01/2040
Total Interest Due:$1,539,293.33 Total All Payments:$3,189,293.33 First Year Debt
Service $127,571.64 Interest $97,758.29 Principal $29,813.35
Any funding gap between loan plus captial contribution and construction cost can be
addressed by removing finish out for urgent care 2500 square feet at 38.36 per foot
or 95.900 plus and additional 2500 pending additional investment from participating
physicians or captial from operations after debt service
2500 square foot urgent care prototype

Page 14
1.4 Business Plan Checklist
The Market

Page 15
Describe the Opportunity
· What stage is your business in - e.g. concept, development, later stages?
· What is the market's total size?
· Annual growth rate?
· What are the market segments?
Professional Services: Engineering, Legal, Accounting, Medical,
Managed Service Provider, Business Process Management, Workflow, Managed
Workflow Solutions
Customers
Who Are They and What's in it for Them?
· Why do customers need your product or service?
Legal needs to streamline workflow, e.g., Dragon Dictation
· Why will they change their present buying habits to use your product or service?
Increased efficiency and productivity
· What is the value proposition of your product or service to your customers?
Guaranteed improvement in profitability
· How will you retain your customers and encourage repeat and multiple purchases?
Continued exceeding of expectations
· What is your plan for Customer Service?
Implementation of Trusted Business Advisor Program per playbook
Competition
Companies and Regulatory Issues
· Who are your competitors?
Performance Improvement Technology graduates
· Describe your competitive advantages.
An existing portfolio of existing products and services with a track record, visibility and
credibility

Page 16
· Do you have first mover advantage?
Yes, in the small business market
· Are the regulatory issues affecting your business?
This is still a relatively unregulated area of products and services that is rapidly
evolving, i.e. managed service providers and business channel solutions
· Are there international trade and globalization considerations?
Yes, but probably not for the initial target markets
Management Team
Leaders, Managers, Workers
· Who is on the Management Team? Brian McKenzie and company
· Describe their experience, successes and failures in the industry
· How much equity does Management have invested in the company?
· Does Management display motivated and enthusiastic leadership?
· What degree of confidence do you, as CEO, have that the business will be
successful?
· How will you communicate that confidence to investors, employees, stakeholders
and the media?
Intellectual Property
Unique Assets
· Are there patents awarded or pending?
· Are these patents defensible?
· Are competitors infringing on your patent rights?
· Does your company have breakthrough technology that could change your
industry or create a new one?
Financial Plan - First Five Years
Revenue Outlook
· Optimistic & Conservative scenarios
· Can it be a big company? yes but not initially
· What are the limiting factors to your company's growth?
Acquiring first round of new customers who will then serve as references

Page 17
· Show the margin analysis, including:
° EBITDA
Minimal operating costs, revenues on a cash basis as contracts are signed
° Gross margin
° Operating Cash Flow Projections
· Explain the use of proceeds showing complete financial projections and
milestones.
Financing
· How has the business been financed until now?
· Who are the investors in the company?
· How much equity do the investors and managers have?
· How much money are you seeking in this round?
Cost Management
· Is the business capital intensive?
· What are the main capital expenditures over the next 5 years?
· What systems will be used to track and control costs, e.g. IT systems & services,
Internet tools, ASPs, etc.?
Staffing and Alliances
· Describe the Organizational plan
· How many people will be needed?
· Show ramp-up over 5 years.
Milestones
· What are the measurable benchmarks for success in
° Revenue growth
° Customer growth
° Expense reduction
° Organizational expansion
1.4.1 Practice Assessment
Practice Assement
There are two primary tasks: placing a value on your practice and finding a suitable successor.
Before you can realistically address these tasks, you have to review the goals, procedures, and
characteristics of your practice.

Page 18
Practice Analysis
An analysis of your firm may influence the type of practice continuation agreement you choose. A
careful review prepares you to sit down with prospective successors and compare your respective
practice philosophies, clients, marketing techniques, and personnel policies. You must be ready
to bare your soul regarding your practice and promote its virtues.
The following questions can help you evaluate your practice. Consider each one carefully to
determine how it could affect your assessment of your firm and your negotiations with a
successor. Be as objective as you can. Remember, the most effective agreement is one that
complements your overall business objectives.
• Reputation. How good is your practice's reputation for service and technical expertise? How
visible is it in the community? How is your practice distinguished from the competition? Are you
known to offer innovative solutions to clients' tax problems? What has been the major cause of
any client dissatisfaction or client losses?
• Specialties. What are your specialties? Have you been expanding your range of services? Do
you specialize in growing fields? Will your successor need to have the same specialties to
survive?
• Rates. What are your hourly or per diem rates? Are they far above or below the market rate?
How do they compare with the rates of your successor? Do you use value billing? Are you
honest and realistic with your rates and write-downs? What is your realization per charge hour of
fees net of write-downs or write-ups based on your billings?
• Efficiency. How do your chargeable and nonchargeable hours compare with those of other
firms? What accounts for the nonchargeable hours? What accounts for extra chargeable hours
on certain engagements? How well do you control your engagements? What is your staff
charge hour utilization percentage based on 2,080 hours each year? Do you exceed 1,600 hours?
• Profitability. What have your gross fees, net income, and salary been on an accrual basis over
the past five years? How do your write-ups and write-downs compare with those of your
competition? What has your cash collection experience been over the past five years compared to
your gross fees billed?
• Location. Where is your practice located? Is the local economy sound? Is your practice area
highly competitive? What are the lease terms of your office space? Is your rent above or below
the market rate?
• Staff. How high is the morale of your staff? How well does your staff relate to clients? How
many employees are certified? Is the staff likely to remain at the practice or to leave? Have
staff members signed noncompetition agreements? Are salaries and benefits competitive?
In addition to the overall evaluation, there are some significant control statistics that indicate the
financial health of a practice. Make them available at the time of the negotiations to facilitate
comparison of practices and their operations. Significant control statistics include:
1. Gross fees per total personnel, including partners
2. Number of partners and gross fees per partner
3. Number of professional staff and gross fees per professional staff
4. Number of support staff and gross fees per support staff
5. Gross fees net of write-ups and write-downs per total personnel
6. Gross fees net of write-ups and write-downs per partner
7. Gross fees net of write-ups and write-downs per chargeable hour
8. Average chargeable hours per total personnel compared to total hours
9. Average chargeable hours per partner compared to total hours
10. Average chargeable hours per professional staff compared to total hours
11. Average chargeable hours per support staff compared to total hours
12. Average billing rate per chargeable hour per total personnel
13. Average billing rate per chargeable hour per partner
14. Average billing rate per chargeable hour per professional staff
15. Average billing rate per chargeable hour per support staff
16. Salary and net income per partner
17. Salary and net income per partner as percentage of gross revenue

Page 19
18. Salaries for professional staff per chargeable hour
19. Salaries for total personnel per chargeable hour
20. Direct expenses per chargeable hour
21. Indirect expenses per chargeable hour
22. Ratio of capital to net income
23. Average collection period
24. Receivables and WIP as a percentage of gross revenue
25. Percentage write-up (write-down) from standard billing rate
26. Dollar value of write-downs, net of write-ups from standard billing rate
27. Percent growth over previous year
Review your firm's accrual- and cash-basis financial statements for the past five years before
beginning negotiations with the successor firm. Trends must be documented and analyses made
that support your claims. Remember that you are selling your firm's attributes and that
financial statements offer empirical evidence regarding the success of its operations.
In addition to understanding your own firm, it is important to understand your potential
successor's practice as well. The evaluation questions and control statistics that you used to
evaluate your own practice also apply to your successor's. Do not underestimate the ill effects
that different practice philosophies and policies may have on your clients. For example, some
CPAs are more flexible than others. Some demand retainers while others bill only for services
rendered. Such differences may seem irrelevant in the initial discussions, but they can be a
major stumbling block and should be resolved as early as possible. The more you and your
successor think alike on how to run a practice, the more likely it is that you will reach an
agreement on what the practice is worth. The point is to try to see your firm through your
potential successor's eyes.
Client Information
You may have a good sense of what your practice is worth, but you cannot negotiate on that
basis. It is essential that you keep good records to provide facts regarding the value of your
practice and fine-tune your operations to enhance its value. Therefore, a most critical step in
preparing for practice continuation discussions is to summarize basic data about each client.
The importance of good client data cannot be overemphasized. It is crucial in the negotiations
that follow.
Time and billing software programs can summarize, cumulatively or for defined periods of time,
such information as collections for each client, each client's type of business and years with
your firm, and billings by type of services rendered (for example, audit, tax, or management
advisory services) as a percentage of gross fees. This information can provide an overall
picture of chargeable hours, amount of work done by due date, collection delays, cash-flow
fluctuations, the size and number of paying clients, and the seasonality of the practice.
This information, in turn, can be used to project the practice's operations and cash flow for
several years. Such a projection is of critical interest to the potential successor and may facilitate
negotiations.
Client profiles may also include an assessment of client personalities, business philosophies,
and goals. You may want to segregate financial and nonfinancial information, with one-page
summaries for each client. This information may already be available in your client history files.
Client profiles should provide, in columnar schedule form, the following data:
1. Name and legal form of the individual or company and the name and legal status of any
affiliated company
2. Public or private status of the company
3. Client's business
4. Client's location
5. Names and ages of principals and their equity percentages
6. Company structure and vulnerability to loss of a key executive
7. Period of time as a client
8. How client was obtained
9. Type and frequency of services rendered

Page 20
10. Function and number of employees needed to handle the account
11. Extent of client's computer and software capability
12. Average fees paid in the past three to five years for regular and special services
13. Number of company and personal tax returns prepared for principals and others
14. Potential for a fee increase
15. Direct costs of servicing the client
16. Adequacy of client Medical Records and records
17. Method of setting fees
18. Unusual service problems
19. Problems with integration of staff and client
20. Any other desirable data in the individual case
With this information, it should be comparatively easy to develop statistics on your practice by
industry, fee size, engagement type, profitability range, manpower requirements, specialized
services, and other factors.1
It is also important to analyze client groupings. Is any one group more likely to switch to another
CPA? Is there a concentration of clients in one particular industry? Are one or two clients
responsible for most of your gross fees? Have any of the clients been serviced by a potential
successor? The answers to these questions could affect the assessment of your practice's value.
1.5 Business Process Assessment
Best Practices for Client Engagement Process and Staffing the Outsourced Accounting
Virtual CFO Practice
Our clients and prospects WANT us on their team, providing them with the ongoing
Outsourced Controller, CFO, transaction processing and back-office support services they need to
not only compete but win in today's challenging business environment. As Client Accounting
Service (CAS) providers, EC2 has access to web-based accounting and integrated technology
solutions that give you the unprecedented ability to provide clients with these services in a real-
time, collaborative environment. So how do we approach this in a way that will create a
winning formula for success for your company? The following are just a few of the things we
will want to address as we build your CAS ongoing engagement:
Client Needs Assessment
A Client Needs Assessment can be the key to building highly successful client engagements.
This Assessment follows the initial prospect qualification process, and is ideally structured as a
short-term, required project that is completed before a firm agrees to provide long term Client
Accounting Services (CAS). Using a standardized series of questions and analytics, we will gather
information about the current pain points the client has and their existing processes and
procedures. This becomes the "before" section of your report. We will then create the "after"
section of your report, showing the client how the integrated technology solutions, workflows and
best practices you provide can help them increase efficiencies, save money, and gain access to
their most critical business information in a streamlined "dashboard" environment, from
anywhere. As importantly, we will have the granular information needed about to determine
the appropriate long term scope and pricing model for the engagement, so that we avoid
jumping in with limited knowledge and encountering potentially unwelcome surprises.
Engagement Letter
Providing ongoing accounting services to clients means that our team is working "in the
trenches" with our clients every day. It also means that we will be providing you with financial
reports and other documents needed to make informed business decisions, interact with 3rd
parties such as banks, insurance companies, attorneys, etc., and measure their business
performance. How can we ensure that you are compliant with the most recent SOC report
requirements, that we both have a clear and documented understanding of the scope and
limitations of our relationship? A well-documented Engagement Letter is critical to
accomplishing this and much more. When combined with a Service Level Agreement that gives

Page 21
our client a clear understanding of how the engagement will be staffed, scheduled and what
will be needed by the client to provide on an ongoing basis to ensure successful collaboration and
communication, we are laying the best foundation for a successful long-term relationship.
Staffing
Successfully "fulfilling the promise" requires the most important asset of all - top performing
staff. In today's market the most qualified and motivated hires expect to be compensated for
performance; they want to have clear opportunities for development and advancement;
flexible work arrangements are increasingly important; and they want to be both inspired and
appreciated by their managers. Ensuring that our firm is an "employer of choice" for top talent
will most often mean the difference between a thriving, profitable firm and one that struggles
to succeed.
2.0 Company Summary
Medical Practice Doctors works to prevent health problems in Humble Ask Dr. Lawrence
Welby and his wife, nurse practitioner Milady MortimerWelby, and they will tell you that the
best way to ensure good health is prevention. Their enthusiasm for serving the families
of Humble is clear from the moment you meet them. Dr. Welby was a strong voice in
leading the HSH community health fair last summer, where he was delighted to educate
residents about the steps they could take to prevent diabetes and lower their cholesterol,
as well as making sure local schoolchildren got the immunizations they need. The
Welbys opened Medical Practice Doctors, located in the Medical Office Building next to
Humble Surgical Hospital, with the goal of promoting better health in the community.
They were happy to talk about their approach to care:
WHAT IS THE PHILOSOPHY BEHIND YOUR PRACTICE? Our philosophy is to provide
the best possible patient-centered care for our families. We believe that optimal health is a
team approach where patient, family and healthcare provider are communicating
effectively. Our desire to see a healthy and thriving community drives our care.
WHAT SHOULD PATIENTS KNOW ABOUT FAMILY PRACTICE DOCTORS? The care
is unsurpassed. Our providers are caring, patient and listen to each patient’s concerns.
Our staff is top notch. We pride ourselves in providing a full range of services, as well as
continuous inpatient and outpatient care. We are board-certified in Family Medicine. We
pride ourselves on having a short waiting period, so that patients spend the majority of
their time with our providers and not in the waiting room.
We spend much of our time teaching about illness and ways to help prevent disease. We
safeguard patient information, yet make records accessible to them when needed via our
patient portal. We offer an array of services, including adult health care, well-woman,
DOT physicals and camp physicals. We offer adult and childhood immunization and TB
screening.
WHAT KIND OF ATMOSPHERE SHOULD A PATIENT EXPECT? It sounds cliché, but
“when you are here, you are family.” Most importantly, patients can expect a provider
who will listen to their concerns and work with them to help address the issues.
WHAT IS YOUR NEXT GOAL? We want to increase health and prevention awareness
through community events and educational seminars

Page 22
The need to establish Medical Practice Doctors stemmed from the overwhelming
shortage of family practice care settings in the North Eastern part of Texas,
especially the shortage of family practitioners in Humble, east and west of Farm to
Market Road 1960. The practice is located off FM 1960 a major road and within 3
miles of Highway 59. The practice is located at 1485 FM 1960 Bypass Humble
Texas 77338.
The practice is the first of its kind to be optimally located in 2000 square feet of
office space clearly visible to pedestrians and passing traffic. The practice is
onsite with Humble Surgical Hospital in its newly built multispecialty complex.
The multispecialty complex is also home to other specialties such as dermatology,
urology, cardiology, ear, nose and throat, an emergency room, diagnostic imaging
center, pharmacy and lab services. The practice will serve as primary care referral of
surgical patients from Humble Surgical Hospital and the entire multispecialty group
including the emergency room.
There is onsite parking available to over 50 or more vehicles. The practice provides
comprehensive health care services for all ages in the community.
The practice optimizes the services of well trained medical staff with continued costumer
service training, state of the art medical equipment, efficient referral system.
Medical Practice Doctors works to prevent health problems in Humble
2.1 Company Ownership
Medical Practice Doctors, P.A.
Marcus L. Welby, MD, MPH
Jane Welby
1485 FM 1960 Bypass Rd E
Suite 100
Humble, TX 77338
Medical Practice Doctors is a corporation and registered DBA by the officers Dr. Marcus
Welby, Chief Executive Officer (CEO) and Jane Welby as Vice President (VP). Dr.
Welby will be actively involved in daily patients care in collaboration with spouse Jane
Welby, Family Practice Nurse Practitioner. This company will work in collaboration with
advisors from Humble Surgical Hospital, Robert McLean as CPA., EC2 Business Solutions
and GroupOneHealth Source to thrive and excel to achieve its goals.

Page 23
2.2 Company History
The Company founders Dr. Welby and his wife Jane Welby manage day-to-day operation of the
business with four office assistants.
Jane Welby has assumed patient care working in collaboration with Dr., Welby until such time
that patient base grows beyond the existing providers . All members will work collaboratively
to ensure this business venture is a success.
It is estimated that the start-up expenses were approximately $150,000 which was financed
through a bank loan. Greater then 75% of $150,000 was used to complete 2,000 square feet of
office construction from planning, designing, plumbing, heating/AC, flooring etc. The remaining
25% of this amount has been used for purchase of office furniture, copier/printers, medical
equipment and supplies etc.
Therefore, the current successful medical practice provides substantive physical and operational
collateral as the business moves into Phase II, the development of a 15,000 square foot office
building on an adjacent site with space programmed for urgent care and diagnostic /
therapeutic and educational services going forward in a comprehensive outpatient care setting
that is synergistic with the current base operations of 2,000 square feet which is being effectively
utilized for primary care through life, while also functioning as a key step down care center pre
and post discharge from Humble Surgical Hosptial, a virtual multi-specialty group practice
functioning at the same location.
See 6.7.1 under Strategic Alliances for a further deeper treatment of this multi-specialty
referral ecosystem, Humble Surgical Hospital (HSH) which relies primarily on Medical Practice
Doctors for its primary care function.
Personal funds of $40,000 are kept on reserve as back up cash flow.
The following Past Performance schedule still needs further population after discussion of
2013 and 2014 financials with owner and CPA, while the emphasis will be placed on the
current year's first six months of operating performance and the June 330, 2015 Balance
Sheet, taking in acount the full market value of the new site's current appraisal (under
contract) for additional collateral and solid leverage going into Phase II.

Page 24
Table: Past Performance
Past Performance
2012 2013 2014
Sales $0 $415,486 $686,282
Gross Margin $0 $0 $0
Gross Margin % 0.00% 0.00% 0.00%
Operating Expenses $0 $209,904 $563,247
Balance Sheet
2012 2013 2014
Current Assets
Cash $0 $0 $0
Other Current Assets $0 $0 $0
Total Current Assets $0 $0 $0
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $0 $0 $0
Current Liabilities
Current Borrowing $0 $0 $0
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $0 $0 $0
Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $0
Paid-in Capital $0 $0 $0
Retained Earnings $0 $0 $0
Earnings $0 $0 $0
Total Capital $0 $0 $0
Total Capital and Liabilities $0 $0 $0

Page 25
2.3 Company Locations and Facilities
Medical Practice Doctors, P.A.
Marcus L. Welby, MD, MPH
1485 FM 1960 Bypass Rd E
Suite 100
Humble, TX 77338
The practice is strategically located in a new state of the art three-story medical office building
off a highly commercial road FM 1960, where over 10,000 vehicles travel daily and over 5,000
vehicles cross Townsend Road where practice is highly visible. The practice is located onsite
with Humble Surgical Hospital in their multispecialty complex with accessible onsite parking.
The practice serves as primary care referral of surgical patients from Humble Surgical Hospital
and the entire multispecialty group including the emergency room. The practice plans to
operate late evenings and weekend hours to allow patients flexible access care after work and on
off hours where most other offices are closed. In addition the practice will welcome walk-ins
Humble Medical Plaza

Page 26

Page 27

Page 28
2.3.1 Physician Tenants

Page 29
Table: Adjacent
COMPANY NAME LOCATION
ADDRESS
LOCATI
ON
ADDRES
S CITY
LO
CA
TI
ON
AD
DR
ES
S
ST
AT
E
LOCATIO
N
ADDRESS
ZIP
PHONE
NUMBER
LAST
NAME
FIRST
NAME
CONTAC
T TITLE
EMP SALES
Adult Strabismus Ctr 909 Frostwood Dr #
334
Houston TX 77024-
2301
7134674448 Murray Martha OFFICE
MANAG
ER
9 1644000
Houston Headache
Institute
909 Frostwood Dr #
205
Houston TX 77024-
2301
7134674082 Salinas Irma OFFICE
MANAG
ER
6 1096000
Texas Oncology-
Houston Meml Ci
909 Frostwood Dr #
221
Houston TX 77024-
2301
7134671704 Snyder Laurie OFFICE
MANAG
ER
10 1826000
Memorial Hermann 909 Frostwood Dr # 2 Houston TX 77024-
2307
7138277012 Trevino Ileana CEO 34 5042000
Larry L Likover PA 902 Frostwood Dr #
269
Houston TX 77024-
2388
7134650696 Spence Gayle OFFICE
MANAG
ER
9 1644000
Houston Vein Institute 902 Frostwood Dr #
144
Houston TX 77024-
2401
7139326251 Hutto Lorie OFFICE
MANAG
ER
5 913000
Medical Chest Assoc 902 Frostwood Dr #
172
Houston TX 77024-
2402
8327063767 Sheehan Yvonne OFFICE
MANAG
ER
11 2009000
Allergy Center PA 902 Frostwood Dr #
201
Houston TX 77024-
2402
2818900263 Zelaya Marlon OFFICE
MANAG
ER
6 1096000
Memorial Pediatric
Assoc
902 Frostwood Dr #
227
Houston TX 77024-
2417
7134674434 Smith Shavon OFFICE
MANAG
ER
22 4018000
Texas Family &
Geriatric Clnc
902 Frostwood Dr #
246
Houston TX 77024-
2418
7134682358 Akhtar Mohammed OFFICE
MANAG
ER
5 913000
Deayala Obgyn Assoc
Of Houston
902 Frostwood Dr #
108
Houston TX 77024-
2421
8327670752 Deayala Rafael E OWNER 5 913000
Minh Vuong Dr Ho 902 Frostwood Dr #
110
Houston TX 77024-
2421
7134674382 Ho Minh OWNER 8 1461000
Retina Consultants 902 Frostwood Dr #
280
Houston TX 77024-
2423
8323589306 Shay Don ADMINIS
TRATOR
100 1826700
0
Houston Ear Nose &
Throat
902 Frostwood Dr #
304
Houston TX 77024-
2424
7134612626 Sustaita Cynthia OFFICE
MANAG
ER
24 4384000
Neurology & Sleep
Speclsts Pa
902 Frostwood Dr #
210
Houston TX 77024-
2426
2108449235 Canaway Miangela OFFICE
MANAG
ER
25 4566000
Houston Metro
Cardiology Assoc
902 Frostwood Dr #
215
Houston TX 77024-
2426
7138021300 Lopez Oralee OFFICE
MANAG
ER
27 4932000
Southwest Asthma &
Allergy
902 Frostwood Dr #
302
Houston TX 77024-
2428
7139730051 Woodson Gary OFFICE
MANAG
ER
17 3105000
Hermann Memorial 920 Frostwood Dr # 7 Houston TX 77024-
2443
7139323040 Milton Charlie MANAG
ER
8 1461000
Oncology Consultants
PA
920 Frostwood Dr #
780
Houston TX 77024-
2448
7138277062 Woidyla Sandy HR
EXECUT
IVE
65 1187300
0
Dermatology Center
Of Memorial
902 Frostwood Dr #
153
Houston TX 77024-
2449
7134679671 Lane Dee OFFICE
MANAG
ER
5 913000

Page 30
Memorial Vein Ctr 902 Frostwood Dr #
163
Houston TX 77024-
2449
7132283467 Black Cindy OFFICE
MANAG
ER
5 913000
Face Facial Ctr For
Plastic
902 Frostwood Dr #
168
Houston TX 77024-
2449
8323583223 Norris Violet OFFICE
MANAG
ER
5 913000
Memorial Hermann
Memorial City
921 Gessner Rd Houston TX 77024-
2501
7132423000 Alexande
r
Keith CEO 1600 0
Davis Clinic 929 Gessner Rd #
B106
Houston TX 77024-
2515
7134646000 Taylor Kimberly OFFICE
MANAG
ER
8 1461000
Digestive Associates 915 Gessner Rd # 650 Houston TX 77024-
2523
7134682030 Ramesh Gowrappala OWNER 8 1461000
Memorial Urology Assoc 915 Gessner Rd # 720 Houston TX 77024-
2530
7138309100 Anhalt Melvyn A OWNER 26 4749000
Advanced Obgyn 915 Gessner Rd # 800 Houston TX 77024-
2531
7134655966 Fogiel Barbara OWNER 14 2557000
Colon & Rectal Clinic 915 Gessner Rd # 600 Houston TX 77024-
2532
7134641758 Gil Odie OFFICE
MANAG
ER
6 1096000
West Houston Plastic
Surgery
915 Gessner Rd # 825 Houston TX 77024-
2533
7134685200 Berrera Alfonso OWNER 6 1096000
Houston Eye Assoc 915 Gessner Rd # 250 Houston TX 77024-
2534
7134675660 Arrondon
do
Connie OFFICE
MANAG
ER
22 3192000
Skin Surgery Ctr Of
Houston
2538
7139840010 Donald Wendy MANAG
ER
8 801000
Hematology Oncology
Assoc
2546
7134671630 Sherman Marc OFFICE
MANAG
ER
16 2922000
Cardiology Associates-
Houston
2547
7134670605 Benskin Jerry OFFICE
MANAG
ER
30 5480000
Houston Cardiac
Clinic P A
2550
7134617923 Gunawan Yani OFFICE
MANAG
ER
8 1461000
Comprehensive Heart
Care
2553
7134653535 Beckman Dianna OFFICE
MANAG
ER
16 2922000
Digestive & Liver
Specialist
2556
7134611026 Nietman Beth OFFICE
MANAG
ER
25 4566000
Memorial City
Cardiology Assoc
2578
7134642928 Schmitz Neil MANAG
ER
15 2740000
Houston Total
Orthopedics
2580
7134646784 Williams Hazel OFFICE
MANAG
ER
6 1096000
Layton Aesthestic
Plastic Surg
929 Gessner Rd #
2200
Houston TX 77024-
2583
7133375277 Layton Heather G OFFICE
MANAG
ER
5 913000
M Elizabeth
Hienaman Dr
929 Gessner Rd #
2225
Houston TX 77024-
2584
7133652900 Holt Byron B OWNER 5 913000
Dr Wolf 929 Gessner Rd #
2240
Houston TX 77024-
2584
7134634494 Walls Cooper PRINCIP
AL
6 1096000
Houston IVF 929 Gessner Rd #
2300
Houston TX 77024-
2585
7134651211 Davis Sara OFFICE
MANAG
ER
30 5480000
Primecare Medical
Group
929 Gessner Rd #
2450
Houston TX 77024-
2593
7134649939 Murphy Cheryl OFFICE
MANAG
ER
30 5480000
Oncology Consultants 925 Gessner Rd # 600 Houston TX 77024-
2645
7138279525 Garza Rosa OFFICE
MANAG
ER
100 1826700
0
Pain & Health
Management
2663
7139320770 Reyes Hector ADMINIS
TRATOR
12 2192000
Texas Dermatology
Speclsts
929 Gessner Rd #
2205
Houston TX 77024-
2664
7137711100 Sedrak Joseph F OWNER 8 1461000
Texas Oncology PA 925 Gessner Rd # 550 Houston TX 77024-
2843
7134671722 Miller Sybil OFFICE
MANAG
ER
25 4566000
Aesthetic Center-Plastic
Surg
12727 Kimberley Ln
# 300
Houston TX 77024-
4050
7137999999 Husman
n
Karen ADMINIS
TRATOR
50 5008000

Page 31
Plastic Surgery Info Line 12727 Kimberley Ln
# 300
Houston TX 77024-
4050
7137780001 Bailey Charles PARTNE
R
5 913000
Allergy & Asthma Assoc 650 W Bough Ln #
164
Houston TX 77024-
4099
7134616711 Barrnet Karen OFFICE
MANAG
ER
20 3653000
Memorial Psychiatry 820 Gessner Rd # 750 Houston TX 77024-
4272
7134675600 Duffy Donna MANAG
ER
10 1826000
2.3.2 Operating Lease
3.0 Products and Services
Medical Practice Doctors will be managed under the supervision of Dr. Welby in treating
patients from birth and beyond. Emphasizing preventative services, managing acute and
chronic illnesses with provision for end of life care as patient desires. The practice will optimize
all comprehensive medical services possible to provide care that promotes life and well-being.
Medical Practice Doctors will provide health care for all ages and will have a diagnostic center
for laboratory testing onsite as practice grows.
3.1 Product and Service Description
Medical Practice Doctors will provide the following services among many others:
Adult Medicine
Physicals Hypertension Screening
Diabetic testing and monitoring
Acute care evaluations and management
Chronic disease management
Sexually transmitted disease clinics
Travel healthy medicine
Nutrition and dietary services (RD)
Obesity care and exercise counseling
Diagnostic tools:
Bladder scan
EKG
Pulmonary function testing
carotid Doppler
Lab testing
Pediatric Medicine
Newborn care including circumcision
Well child physicals
Pediatric care acute and chronic
Immunizations
Gynecology
Well woman exam
Sexually transmitted disease testing and treatment
Immunization
Contraception/family planning (Oral, injectable, IUDs, Implanon, Essure procedure)
Acute Gynecology problems

Page 32
Colposcopy and Endocervical Curettage (future procedures)
Minor Surgical Procedures
Removal of minor skin lesions (epidermal cyst, skin tags, warts and moles)
Biopsy of suspicious lesions
Repairs of lacerations
Wound care
Joint injections, trigger point injections
Foreign body removal from skin, nose ears etc.
3.2 Competitive Comparison
3.3 Sales Literature
3.4 Fulfillment
3.5 Technology
3.6 Future Products and Services
4.0 Market Analysis Summary
The business-friendly Lake Houston Area is strategically located in one of the most vibrant
markets in North America, just 20 miles North of downtown Houston along Highway 59. The Lake
Houston area and our communities can be counted on to have the same pro-business outlook
and culture that Texas is famous for.
The Lake Houston Area is not just one community. It is comprised of several cities and
communities including; Atascocita, Fall Creek, Humble, Kingwood, Summerwood and parts of
Spring. While experiencing the area in person would be ideal, the next best thing is to access the
community profiles available here on our website. We provide a comprehensive look at the
Lake Houston Area. Each individual community is profiled in order to get a sense of both the area
as a whole and what makes each individual community unique. In our area and individual
community profiles, information is available on such topics as existing industries, major
employers, state and local tax information, roads and other infrastructure, education, housing
and climate.
The demographics of the Lake Houston Area speak for themselves: A low unemployment rate
coupled with an educated and skilled workforce makes this an area where industries can make

Page 33
a home and businesses grow and prosper. Low taxes, a great climate, quality residential
communities, ample outdoor and athletic recreation, and a cost of living that is 7.8% below the
U.S. average, make for a quality of life which is unmatched.
Demographic information can also be accessed on this site. We provide a demographic
overview of the Lake Houston Area. Site visitors may also view the individual demographics of
the communities of Kingwood, Humble, Atascocita, Fall Creek, Summer Creek and portions of
Spring. Accessing the population demographic data in addition to the broader community
profile will bring together the human resources with the regional resources and allow a
comprehensive view of the region to emerge.
Corporate Headquarters in the Lake Houston Area
FMC Technologies
Insperity
Tacki-Mac/Avon Grips
Lawler Foods
Pentagon Freight
DeLorean Motor Company
Royal Purple
Q Air, Inc.
Koch Specialty Plant Services, Inc.
Jetco
Industry Clusters
Advanced Manufacturing
Healthcare
Biotechnology and Life Sciences
Aerospace and Aviation
Distribution, Warehousing and Logistics
Energy
Corporate Campuses and Headquarters
Top 10 Lake Houston Area Employers
2015 Company & Employment
1. Humble ISD 5,000
2. Insperity 1,900
3. Kingwood Medical Center 1,300
4. Memorial Hermann Northeast Hospital 1,000
5. Bush IAH Airport 750
6. APAC Customer Service 563
7. GE Oil and Gas 458
8. CDI Energy Products 370
9. Lawler Foods 360
10. Panalpina 300

Page 34
Site Plans For New Industrial & Commercial Development
Generation Park

Page 35
·
· Townsen Landing
· Air 59 Commerce Center

Page 36
·
IAH Industrial/Business
Park

Page 37
·
70 Acre Southwest Corner at Hwy 59 and Northpark
Dr.
Available Retail Sites
· Kingwood Parc City Center
· Fall Creek Plaza
· Village at Northpark

Page 38
·
·
·
· Kings Creek

Page 39
Data for All Businesses in the Lake Houston Area
2015
Total Establishments: 7,497
Total Employees: 85,569
Total Residential Population: 245,000
Employee/Residential Population Ratio: 0.24
Labor Force 16+: 120,990
Employed Civilian Population 16+: 112,996

Page 40
Unemployed Population 16+: 7,721
2015 Unemployment Rate: 3.8%
Top 10 Employers
2015 Company & Employment
1. Humble ISD 5,000
2. Insperity 1,900
3. Kingwood Medical Center 1,300
4. Memorial Hermann NE Hospital 1,150
5. APAC Customer Services Inc 563
6. Panalpina 382
7. CDI Energy Products 370
8. Lawler Foods 360
9. Union Tank Car Co. 300
10. Weatherford 200
Industry Data by NAICAS Code
By Industry Number Percent
Agriculture, Forestry, Fishing & Hunting 22 0.33%
Mining 24 0.36%
Utilities 13 0.20%
Construction 521 7.84%
Manufacturing 225 3.38%
Wholesale Trade 273 4.11%
Retail Trade 992 14.92%
Transportation & Warehousing 272 4.09%
Information 106 1.59%
Finance & Insurance 485 7.29%
Real Estate, Rental & Leasing 402 6.05%
Professional, Scientific & Tech Services 592 8.90%
Management of Companies & Enterprises 4 0.06%
Administrative & Support & Waste Management & Remediation Services 244 3.67%
Educational Services 161 2.42%
Health Care & Social Assistance 764 11.50%
Arts, Entertainment & Recreation 123 1.85%
Accommodation & Food Services 525 3.2%
Other Services (except Public Administration) 1,426 7.9%
Public Administration 87 0.4%
TOTALS 6,649 100%
Source: Copyright 2014 Dun & Bradstreet, Inc.
72211 Full Service Restaurants 3,660 4,277
62211 General Medical and Surgical Hospitals 3,245 3,735
72221 Limited Service Eating Places 4,158 4,647
93000 Local government 2,573 2,907
62111 Offices of Physicians 1,573 1,881
45291 Warehouse Clubs and Supercenters 1,841 2,113
62441 Child Day Care Services 1,829 2,092
56141 Document Preparation Services 1,046 1,261
81411 Private Households 1,001 1,165
44511 Supermarkets and Other Grocery (except Convenience) Stores 1,859 1,994
Source: EMSI Complete Employment - 2011.4

Page 41
4.1 Market Segmentation
Market Segmentation by Payor Source
Alternate Takes can be made by Patient Origin, ICD-10 / CPT and Psychographics such
as baby boomers, millenials, etc.
Table: Market Analysis
Market Analysis
2015 2016 2017 2018 2019
Potential Customers Growth CAGR
ACS 0% 1,434 1,434 1,434 1,434 1,434 0.00%
AMEX 0% 139 139 139 139 139 0.00%
Aetna 0% 7,009 7,009 7,009 7,009 7,009 0.00%
Alliance Recruiting 0% 9,590 9,590 9,590 9,590 9,590 0.00%
Amerigroup 0% 7,278 7,278 7,278 7,278 7,278 0.00%
BOA Merchant 0% 181 181 181 181 181 0.00%
BOA Merchant 2 0% 12,173 12,173 12,173 12,173 12,173 0.00%
Cigna 0% 2,249 2,249 2,249 2,249 2,249 0.00%
Cleveland 0% 43,038 43,038 43,038 43,038 43,038 0.00%
Community Health Choice 0% 2,508 2,508 2,508 2,508 2,508 0.00%
Concord Medical 0% 13,474 13,474 13,474 13,474 13,474 0.00%
Genesis Healthcare 0% 36,859 36,859 36,859 36,859 36,859 0.00%
Health Care Services 0% 17,640 17,640 17,640 17,640 17,640 0.00%
Mini Medical Physician 0% 14,560 14,560 14,560 14,560 14,560 0.00%
Novitas Solutions 0% 5,095 5,095 5,095 5,095 5,095 0.00%
Outreach Diagnostics 0% 15,280 15,280 15,280 15,280 15,280 0.00%
Physician Resource 0% 9,033 9,033 9,033 9,033 9,033 0.00%
PracticeMatch 0% 5,200 5,200 5,200 5,200 5,200 0.00%
Raemcare 0% 20,202 20,202 20,202 20,202 20,202 0.00%
Spring Klein 0% 64,724 64,724 64,724 64,724 64,724 0.00%
Take Care Health 0% 24,325 24,325 24,325 24,325 24,325 0.00%
Texas Children's Health Plan 0% 941 941 941 941 941 0.00%
Tricare Hospice 0% 8,000 8,000 8,000 8,000 8,000 0.00%
United Healthcare 0% 6,944 6,944 6,944 6,944 6,944 0.00%
Cash 0% 87,602 87,602 87,602 87,602 87,602 0.00%
Other 0% 8 8 8 8 8 0.00%
Total 0.00% 415,486 415,486 415,486 415,486 415,486 0.00%

Page 42
4.2 Target Market Segment Strategy
Demographic and Income Profile Report from the U.S. census bureau estimates that
approximately 54,000 people reside in the Humble area of Texas and this population will
exceed 60,000 by the ear 2016. There has also been a projected increase in demand for quality
health care in this population.
The age distribution within the population ranges from zero to greater than 85 years of age.
The largest age group ranges from 25-64 years old with greater then 60% being average income
earners of 50,000-150,000 dollars annually. These statistics prove to be promising for a new
practice to build a significantly large patient panel that would support at least 25 new patients
per week or more for the first 3 months.
Medical Practice Doctors would focus on attracting patients from the multispecialty group and the
local area, and from surrounding communities.
The practice's location and being part of a multispecialty setting onsite with Humble Surgical
Hospital provides tremendous leverage for direct in-house referrals above other practices in the
area.
Medical Practice Doctors strategically located in proximity to two major hospitals in the area
will have a competitive edge over other local practices. The practice being part of a
subspecialty clinic will create direct referrals and more awareness of the practice within the
community.
The practice plans to provide onsite services that are not offered by other providers such as
onsite labs and diagnostic imaging. Additionally the practice will increase its access to care by
offering extended hours weekdays as well as weekends. The expanded hours will allow patients
greater flexibility and greater compliance in accessing care after work and on weekends when
necessary.
The clinic is general Medical Practice and will treat all patients regardless of income, gender, race
ethnicity. The practice plans to appeal to all.
The rapid growth in population makes this Humble area ideal for the practice location.

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