Primary Care Centers of America (PCCA), a chain of medical practices based in Mitchellville, Md., not only is on the cutting edge of healthcare management, but is testing a novel way to launch a stock sale through a direct public offering (DPO) of $1 million in stock over the Internet.
With the stock offering ($5 a share), the company hopes to raise enough money to expand to 30 locations within five years, according to Dr. Richard Ashby, CEO and founder of PCCA.
PCCA is one of several fledgling healthcare management businesses in a growing field that helps doctors to stave costs by sharing non-medical expenses such as coding, billing and collection services and pursuit of contracts from HMOs.
Its unique market strategy helped PCCA grow into a six-location network that serves more than 20,000 patients in the Washington D.C., area.
But PCCA's real coup has been its creation of a virtual road show on the Internet. With the help of an investor relations firm, PCCA recently launched a multimedia version of the presentations that are normally given to Wall Street analysts, mutual fund managers and other potential investors.
The two doctors involved with site were able to drum up interest in their new stock issues without hiring investor relations executives to create a costly road show.
Primary Care hired Bb-NET Investor Relations, a road show start-up company based in Silver Spring, Md., to create its show, which is featured and accessible on the Bb-Net site, at http://www.bb-net.com.
For a starting price of $1,290, roughly an eighth of the cost of a road show, Bb-Net created a "virtual road show" for PCCA --the first such show the company has created --that uses video, slides, and audio narration to walk potential investors through the issuing company's vitals.
The Bb-Net site allows for RealAudio press releases, product announcements, fast loading pictures, animated slide shows, Quicktime movies/slides of products or services and financial statements.
The company set up a Web page for PCCA with an audio interview with its founder Dr. Ashby, a slide show of the company's history and operations, and access to the stock prospectus.
Primary Care was founded by two graduates of Howard University Medical School: Dr. Ashby, the CEO; and Dr. Joseph Avery, the president. The doctors have five family-practice offices and an urgent care center, employing half a dozen other doctors.
PCCA --More Than Just The Stock Offering
But Drs. Ashby and Avery want to be known for more than just an Internet stock offering. They hope to use the experience they gained as independent physician managers and with Coastal HealthCare Group, a physician-practice firm that operates throughout the South, to help other doctors run profitablepractices through PCCA.
"We've just begun marketing to physicians, and we're going to the community shortly with literature at PCCA offices, health fairs and churches," said Ron Peterson, PCCA's marketing vice president. The SEC is still developing rules on marketing securities over the Internet, but local regulators required Bb-Net to include a special disclaimer page for those reading the PCCA prospectus.
"PCCA is our prototype," said Bb-Net Marketing Director Mike Shokouhi. "This is even brand new to local regulators. Every time we sought approval for the page, we had to take baby steps."
(Bb-Net, 301/939-2415, Primary Care Centers 202/806-6270)