Texas Care Center Franchise FAQ
Will franchise opportunities always be limited to Texas?
For now, all franchises will be in Texas and branded as Texas Care Center. The demand is significant, and the amount Medicaid pays per billable hour in Texas creates a great profit margin to do well with this business model. Future expansion outside of Texas may be evaluated in the future.
Are all franchises branded as Texas Care Center?
Yes, each clinic requires a DBA that follows the naming structure of: Texas Care [location, area, neighborhood]
What involvement is expected from the investor / franchisee?
– day to day operations
– licensing / credentialing
Regarding day to day operations, billing is simple and taken care of by your hired administrator who is trained by Texas Care Director of Admin. The expected involvement of the franchisee is to keep in good communication with your administrator. All credentialing is done by the Texas Care team for the franchisee. They will give the franchisee a list of tasks that need to be completed to get started and guide the franchisee on completion of them. Once the franchise fee is paid, Texas Care onboarding team will immediately reach out to gather all the information. If the franchisee needs to set up TX LLC, they can assist with that.
What you need to get started:
Signed FDD receipt
TXLLC, C or S Corp
TX DBA
EIN
SOS documents
Corporate Operating agreement - Any partner 5% or higher
DL front and back
SSN
Background check on partners included in operating agreement
These are the first steps to start with the accreditation process. The corporate liaison will facilitate the background check/s. The franchisee can anticipate 6 to 9 months to get accredited with Texas Medicaid.
The franchisee will need to set up a business Bank account. The Texas Care executive team has made a connection with Chase, they can help handle all that. They will need SOS docs, EIN doc and Operating agreement. Once a manager is assigned, partners can go to any Chase location to sign.
What is the clinical supervisor fee? What does this cover?
$2000/month
Leveraging corporate’s license so the franchisee’s clinic can operate with lower expenses as launching and opening for operations.
The clinical supervisor is a Licensed Clinical Practitioner and is also referred to as a Clinical Director.
The clinical supervisor will do all of the initial assessments for the children to become clients. They will also oversee QMHPs and do client evaluations every 3 months. They will be the direct clinical supervisor of all QMHPs. QMHPs cannot meet with clients without clinical supervision. The clinical supervisors also assess QMHP case notes prior to Medicaid submission.
They ensure quality of care and that all Medicaid submissions are done accurately.
What is the estimate of the ongoing LCP (Licensed Clinical Practitioner, otherwise referred to as Clinical Supervisor) salary expense?
The LCP annual salary is initially covered by shared corporate LCP staff until the franchisees clinic reaches greater than 30 clients. Their salary ranges from $80K to $120K annually. Corporate will facilitate the hiring and training of the franchisees clinic’s LCP.
Additionally, Elevation Guild will also support LCP staffing as we scale up.
Aside from operational efficiencies, what are some ways that a franchisee can improve revenue and profitability?
The direct strategy to increase revenue is adding and maintaining more clients, as well as assuring quality and continuum of care. Texas Care Corporate is committed to facilitating and supporting staff hiring and training. Corporate also facilitates ongoing marketing & outreach, for a monthly fee.
Elevation Guild will also be providing an additional layer of support to grow and scale your franchise/s.
As a franchisee, you can add your own additional outreach/marketing to increase awareness and add more clients. Hosting events is a great way to do this. Modeling what is working now for Corporate and other operating clinics will always be possible with the ongoing communication and outreach content sharing.
What does Elevation Guild envision in terms of additional layers of support?
Elevation Guild will be a liaison between Texas Care Corporate for all franchisees through discovery to onboarding and throughout clinic operations.
Elevation Guild is also planning to coordinate with Corporate in setting up regional offices in areas where we have 5 or more clinics.
Elevation Guild is preparing supportive resources for Outreach, shared administrators and clinical supervisors to reduce operating expenses & increase revenue for franchisees.
If an employee or contractor can’t make it in, who is contacted?
The Corporate administrator Director will assist if your clinic’s administrator is ill or off work.To mitigate the risk of lack of coverage or QMHP staff leaving, each client has 2 QMHPs assigned. This creates a situation where each client has 2 QMHPs familiar with them and their case file and also allows some flexibility with scheduling and last-minute adaptations in scheduling.
Of the Core Services, what percentage is expected to be paid by Medicaid funded programs & other behavioral health services?– What percentage do patients pay out of pocket?
Medicaid pays 100% and there is no co-pay for the clients.
On the P&L, the total expense for Salaries & Subcontractors is $108,289– Who on the staff is typically paid as a subcontractor?
– What is the staff mix for this business during 2023?
The staff typically paid as subcontractors is the QMHPs and your LCP (once you hire directly).
The staff mix for the business shared on the P&L is: One Clinical Director, Administrative/Office Personnel, and a team of 4-7 Bachelor's level Qualified Mental Health Professionals (QMHP)
Based on the P&L, the Salaries & Subcontractor expense is 22% of gross revenue. This seems like quite a low ratio. What is the reason for this?
During the time period of the 2023 P&L, the salary paid was closer to $21/hour rather than $25-35/hour being paid now.
The example P&L attached to the Summary of Texas Care Center and the P&L for THE OFFICE OF BEHAVIORAL MEDICINE INC seem to be from the same business (both show total gross revenue of $502,455.06), but show different expenses and net income. What is the reason for this?
This is to demonstrate a franchise owned clinic, on the summary. The Office Of Behavioral Medicine Inc is owned/operated by Charlie & Arienne
Is there anything that would prevent the investor from transferring or selling their franchise?
No
What is the risk of Medicaid funding interruption or cessation in Texas? Since Medicaid reimbursement is the source of revenue, how secure is this funding?
Medicaid funding in Texas is highly robust, especially for essential mental health services. Texas Medicaid is funded through a combination of federal and state funds, and the program is dedicated to supporting critical needs, particularly for children and low-income families. Given the essential nature of these services, it’s highly unlikely that funding would be reduced or removed, as it would impact vulnerable populations that rely on Medicaid for their mental health care. Historically, state and federal governments prioritize these services, ensuring ongoing support. The Texas legislature has also shown consistent commitment to protecting and funding these programs, making this a dependable revenue stream for franchisees.