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Medical Transcription Business Plan

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Elite Medical Transcription

Market Analysis Summary

The medical transcription market in Eugene is spread out. On one hand you have two groups of doctors that regularly need a medical transcription service. These are physicians and psychologists who practice alone. Both of these groups have the need for transcribers because they are typically too small to warrant their own in-house employee.

On the other hand you have hospitals, clinics, and other doctors who have an in-house solution, who at times are in need of supplemental services. These service requests are sporadic in nature and often will require EMT’s express service.

4.1 Market Segmentation

EMT will focus on two distinct groups that use medical transcription services:

  1. Doctors- these physicians typically practice solo or are with one or two other physicians. Because of the small office, they often do not have an in-house transcriber. The advantages of not having an in-house person is reduced labor costs and reduced overhead in terms of the equipment.
  2. Psychologists- these doctors are very similar to the above market segment. They practice alone or in a small group and typically do not have an in-house transcriber. Although psychologists are medical doctors, their vocabulary of terms requires expertise in the field of psychology to be able to offer transcription services to them.
Medical transcription business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Doctors 9% 215 234 255 278 303 8.96%
Psychologists 8% 165 178 192 207 224 7.94%
Other 0% 0 0 0 0 0 0.00%
Total 8.52% 380 412 447 485 527 8.52%

4.2 Target Market Segment Strategy

EMT intends to target the two groups that have the most need for medical transcription services. These groups have the greatest need because they are most likely not going to have an in-house transcriber. This set up is ideal for EMT because it typically means a long-term, active, service relationship. 

EMT will also serve the rest of the medical community as the need arises. There are occassions when a hospital, or larger office, may be short staffed and they need a transcriber to fulfill an immediate need. EMT will pick-up the random transcriber call from the larger clinic and hospitals that have an immediate need that they cannot service with their own personnel.

4.3 Service Business Analysis

The medical transcription business is a growing industry that is struggling to fulfill the demand created by physicians. The value of a skilled transcriber is that there will be far fewer errors which typically takes place when the transcriber is unfamiliar with the term that the doctor is using.

In doing market research, EMT interviewed current medical transcribers in Portland and Seattle. Although they have competition, they were not concerned with it because of how much work they had.

The growth of the medical transcription field has been spurred due to insurance company requirements for legible notes prompting a great deal of demand for qualified medical transcribers.

4.3.1 Competition and Buying Patterns

The competition takes two general forms:

  1. General transcription service- these are transcription services that offer medical services in addition to general service offerings. These firms typically have someone who has been trained in medical transcription, but does not do medical exclusively.
  2. Specialized medical transcription- there is currently one company that is a true direct competitor with EMT, serving only the medical community. The market looks promising as this firm does not have enough staff to meet demand. Additionally, this firm does not provide specialized service to psychologists.

The buying patterns for medical transcribers are typically based on the type of relationship the physician has with the transcriber. If the physician does not have an in-house solution then they ideally will have a long-term relationship with a service provider. If the physician or hospital has in-house transcribers, then their relationships with the transcriber services are based on sporadic service calls, filling a need when their service provider is unable.

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