I wonder how he'll lose money. He's going to have 600 patients. He's charging them $1500, of which he gets $1000, for a total of $600,000. But the coverage doesn't include standard medical treatment like physicals, so if each patient came in once a year for a physical, the insurance companies would pay him another 50 bucks per patient for that, or around 30,000 a year.
He'll probably only need one nurse becuase business is slow. Probably only needs one administrative person, because there will be few forms to fill out.
Seems that he should be able to make money. Maybe the first year he loses because it takes him that long to get up to 600 patients and he has expenses he has to unwind.
Kaiser Medical essentially does this by hiring their own doctors. Kaiser costs 1/3 of other insurance, and people I know who use them love them (I don't use them because my doctor is not part of their plan).
Yeah, I'm wondering how high his overhead must be given the simplifying circumstances, but I'll take his word on it.