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Revenue Streams

Medical Connections has several principal streams for generating revenue. Traditional Revenue Streams

Permanent Placement Hires:
This activity includes the hiring of allied health professionals, nurses, physicians, pharmacists and other medical personnel to be employed in healthcare or research facilities. Under this arrangement, Medical Connections receives a placement fee ranging from 20% to 30% of the employee’s initial annual salary, or a negotiated fee, which is pre-determined, and based upon medical specialty. As part of all Medical Connections revenue, this stream will account for 25% the Company’s revenue.

Contract Appointments:
Contract appointments are temporary hires (typically,13 week contracts) made by healthcare facilities to economically cover staffing shortages during periods of high seasonal activity, vacations, leaves of absence, etc. This also includes contracts for what is commonly known as “travel positions”, for allied health professionals, nurses or physicians who are willing to take temporary assignments outside their home region. Under this arrangement, Medical Connections is the employer of record for the healthcare professional and the healthcare facility remits a fee to the Company that includes all employment overhead as well as a surcharge for the service. The revenue from this activity comes from the commission and surcharge for the service. This activity is forecasted to represent 54.5% of all revenue for the Company with a potential growth to 75%, following the dynamics of the medical staffing industry.

Contract to Permanent Model

The “Choices” Program:
This program is a shorter version of the contract appointments, which might switch to permanent placement hires, if the healthcare professional and the hiring entity so desire. It is the most flexible solution, and it is used in the marketplace only by the most advanced healthcare staffing and recruiting companies.

International Recruitment:
Part of the activities ensuring a high revenue margin in permanent placement hires and long-term temporary appointments come from international recruitment. Medical Connections has retained and will continue to retain and source experienced, established consultants who can recruit overseas healthcare professionals using job fairs and other methods to source and deliver those candidates right to Medical Connections’ door with little or no risk and effort for the Company. These Medical Connections’ partners will provide direct access to markets in Brazil, Puerto Rico, India, the Philippines, Russia, and China. Under this arrangement, Medical Connections receives a negotiated fee for each successfully hired candidate. This includes a surcharge sufficient to defray the costs incurred in paying for the services of those specialized companies. International recruitment is forecasted to provide 10.7% of the total revenue of the Company for the second year of operations. This percentage will increase over the next 3 to 4 years.

Additional Revenue Streams

Acquisitions: By following a smart and focused acquisition policy, Medical Connections will increase its revenue by acquiring established and revenue-stable companies. This will save money and internal resources, while allowing the Company to expand its market position and profitability.

Medical Connections has proved that recruiting allied health specialists is a very profitable field where the Company already has established a leading role. This is the basis from which it aims to acquire a successful allied health travel company that would consist of multiple allied health travel professionals.

This key acquisition will increase the traditional revenue streams from the placement of highly qualified allied health specialists for contract assignments, and will increase the candidate pool for the Choices Program.

Medical Connections has already invested a significant amount of effort to stay on the leading edge of technology in the medical recruiting field.

In addition to having access to proprietary software for advanced recruiting solutions, Medical Connections will create revenue by streamlining the recruiting process and by staying ahead of its competitors in the speed and quality of sourcing and placing qualified candidates.

Web-Based Medical Job Board:

In addition to the already existing web-based software for candidate data sourcing, evaluation and employee-candidate matching, Medical Connections is planning to acquire a niche web-based job board that specializes in specific medical area such as allied health recruiting, pharmacy and radiology. The target for this type of acquisition will be job boards with established web presence and a steady traffic of candidates looking for healthcare positions and career advancement. This will increase not only the candidate pool for Medical Connections, but also the direct revenue from posting jobs and monthly fees for employers. Moreover, the Company will increase its potential for additional revenue by offering their web-based solutions to other recruiters, allowing them to pay for access to these Medical Connections web-based job boards.

Web-Based Community Service for Medical Professionals: Medical Connections is launching a free registration based community for medical professionals. Medical Connections will increase revenues indirectly through the use of this service, as those users visiting the web hub will become aware of the Company’s other services.

Social Networking Recruiting:

Medical Connections will continue to be a leader in using new technologies as recruiting platform. Linkedin.com, Facebook.com and MySpace.com have proven to be cost-efficient and content-rich sources for qualified candidates, especially for executive nursing, or new graduates.