WhiteGlove could very well be the next big thing in health care. Rather than making you trek to the doctor’s office or local Urgent Care, the company sends a nurse practitioner or phlebotomist to you for primary and chronic medical care whether you’re at home or work – and they do it 365 days a year 8 a.m. to 8 p.m. They can draw blood, do exams, order prescriptions for you and arrange to have them delivered; they can even offer you up a so-called “Well-kit” that’s stocked with chicken soup, crackers, Gatorade, applesauce, cough drops, and Kleenex.

While WhiteGlove’s yet to turn a profit, the trends look good and an IPO is in the works. When shares open up for trading, here are three reasons to consider investing in WhiteGlove stock:

1) Unique business model. WhiteGlove describes its business model as “Costo”-like. Member’s pay an annual fee to the company ($420) as well as a fixed flat rate ($35) for each visit at their home, office or hotel room. Visits cover just about any ailment that would prompt you to visit your family doctor: from the flu to sinus infections, vaccines and physicals.

In some cases, health insurance covers membership costs and visit fees although WhiteGlove doesn’t file claims itself. The company touts this as a way employers can lower overall health insurance costs (since the number of doctor’s visits covered by company health insurance plans are drastically reduced).

2) High demand. As of right now, WhiteGlove has 469,000 members and counting. Enrollment has surged by triple digit percentages in each of the past three years. That growth could mushroom as WhiteGlove looks to expand across the country. Right now, they’re in just seven cities across three states, but they claim to have identified more than 250 metropolitan markets that could prove profitable – and they plan to go after them aggressively, adding five to 10 new markets every year.

3) Profits on the horizon? Revenue growth at the company has been impressive. It surged 348 percent between 2008 and 2009, and another 178 percent last year to $4.01 million. Still, it’s important to note that WhiteGlove’s not profitable yet. The company lost $3.4 million in 2009 and another $5.4 million last year.

Startup costs and debt (which will be paid down with IPO proceeds) are skewing the numbers. According to WhiteGlove’s own models, the company needs just 2,391 members in a new market to break even.

“At 20,000 Membership Service enrollments in a market, we estimate approximately $761,000 per quarter in gross profit and approximately $530,000 per quarter in operating profits,” the company writes in its SEC filing. “As the number of Membership Service enrollments increases, the gross profits and operating profits continue to increase.”

Growing health care costs could drive up WhiteGlove’s membership numbers, especially considering the fact that they set flat visit fees and consciously aims to treat chronic conditions including high blood pressure, diabetes and thyroid problems that require frequent doctors visits. With an aging population and rapidly rising health care costs, WhiteGlove might be one of the few bright spots in the health care industry.

WhiteGlove ticker symbol: NYSE:WHCH

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Tags: WHCH, WhiteGlove IPO

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