The principle behind FHP is that we are creating a new business model for the provision of healthcare in the UK. At the moment a dentist that wants to have some control over their own destiny really only has the option of setting up their own business. The problem with this is that they suddenly become sole business owners which has clear advantages but also comes with enormous responsibilities and pressures to run a business.
In the past the only alternative for these dentists that have their own businesses is to either sell out to another dentist or to sell to one of the corporates. Selling to a corporate can mean relinquishing some control and being pushed to increase turnover and reduce costs in order to meet corporate returns on investment and key performance indicators (KPIs).
Any company with share holders has a responsibility to deliver financial returns to those shareholders and this is where the pressures and KPI’s come from
FHP has been set up with no shareholders and works on the principle of employee ownership, very similar to John Lewis. In reality this means that rather than profits flowing out to shareholders or to at a few people, profits are retained within the business and held in trust. This trust is then managed for the benefit of the team and the patients by the managing board.
External trustees then ensure that the trust is always managed for the benefit of the employees and patients, and the board are answerable to these trustees. Everyone in the business has an equal share and ownership of the business.
It is also in the constitution that the business can never be sold, this means that all of the employees have job security knowing that they are not going to get sold down the line to profit hungry new owners in the future.
Because all of the employees become partners and owners of the business (without any financial risk) they can make decisions together, run the business together and all for the benefit of ‘doing the right thing’ and looking after the patients.
The concept of doing the right thing often takes people a while to understand, there is no personal gain from the board that are making this happen. We believe this is a concept that can radically change healthcare and increase job satisfaction for dentists and quality of care for patients.
Any dentist that is interested in getting back to the surgery, handing over ownership to the staff and working together in a collaborative organisation for the benefit of everyone would be most welcome into FHP.
From a financial point of view we will pay a compensation fee to any practice owner which is based on a multiple of EBIT (Earning Before Interest and Tax) - this is not for the pure financial gain of the dentist, rather it is FHP compensating them and saying thank you for handing the business over to the staff. That practice owner will then continue to work in the practice on the same level of earnings as they did prior to the handover.
There are bound to be many questions buzzing around in your head, so why not give us a call or send us an e-mail…