A for-profit DO school is opening up in Colorado:
Tien’s grand plan, revealed in an application with state accreditors, is to have tuition revenue explode from $2.7 million this year to $25 million in 2012 as four classes of students arrive on campus. In 2012 net income is supposed to be $3 million.
Here’s another instance of an entrepreneur taking advantage of the primary care shortage. Retail clinics are another example.
As most osteopaths tend to enter primary care fields, for-profit schools can point to the fact they are simply fulfilling a need.
The problems begin if the school doesn’t meet their profit target, which will inevitably lead to cost-cutting, increases in tuition, or a decrease in staff quality.
Intriguing business plan, let’s see how it works out.