Healthcare Magic - Biz Model

April , 2015

PUNEET RAJENDRA KALE - A0132976WAMRIT RAVI - A0136421RLOKE KAH YEONG JEREMY - A0098545NMAHENDRAN PERUMAL - A0110178NRAMAN RAVI RAMAN - A0008484ASANJAYKRISHNAN KUMAR - A0120543WMANAS SHUKLA - A0120560X

Business models for other technologies can be found here:http://www.slideshare.net/Funk97/presentations

Objective About HCM CustomersValue

PropositionScope of Activities

Value Capture

CompetitorStrategic Control



Value Capture


•HealthcareMagic is an online platform for patients and

attendants to consult doctors, i.e. specialists and super

specialists, and get an answer then and there without visiting the

hospital or a clinic.

•It was started in 2008, in Bangalore, the IT Hub of India, and was

first of its kind back then.

•Today HealthcareMagic has more than 250,000 user footfall

everyday on its website and more than 15,000 specialists are

associated with the organization



Value Capture


https://www.youtube.com/watch?v=NwSTNo2GeVQ

About 75% customers are on HCM for second opinions, where they have alreadyconsulted a physician or specialist earlier. Second Opinions, in cases where

ailments or diseases are of severe nature, are quite common. Patients do not want

to rely on one prognosis as they outcome may not be favorable. Hence to be sure,

they use HCM’s specialists who are with an impressive track record, to eliminate

any doubts they may have.

Even though hospitals are at an approachable distance, customers now prefer

using e-health services as its convenient and cost effective

One normal consultation in India, on an average costs 500 INR. With HCM you can

consult for 5 times in 350 INR. That is just 14% of the normal fees a patient pays for

one consultancy, in a normal clinic. Lavish ones are 1200 INR and above

Reports and details can be uploaded online in less than a minute. The entireprocess is designed in the simplest ways to enhance ease of access.

Rates vary across geographies as per the paying capacity



Value Capture


• Geographic

– Location: Bengaluru

– Population: Tech savvy, Professionals

– Less awareness about medical facilities

– Current geographies: International (predominantly US) & other states in India

• Demographic

– Age group : 22 & above, retired people, professionals

– Target audience: Doctors, pathology labs, hospitals

– Gender: % of women is less as they is a concern about security and comfort level with sharing medical/healthcare issue online. They prefer primarily women doctors



Value Capture


Psychographics

• Will target audience that are generally open to technology

and new ideas

Behaviour

• Needs and wants of the patients

• Usage rate and corresponding service levels

• User status: Determines traffic on website



Value Capture




Value Capture


Based on the type of ailments



Value Capture


Technology

• Higher number of specialists belong to the age group of 28-38

(approximately 65-70%) that are tech savvy

• Increasing ease of technological diffusion in our lives

• Increasing number of aged specialists becoming a part of HCM Network

Geographies

• Higher ratio of Asian Specialists connected with its network since HCM

started its operations from India

• Higher influx of doctors from USA, Europe and Africa since 2011

Specialties

• Diverse pool of specialists delivering quality services 24X7

• General Physicians constitute about 45% of the total doctors

• 12% are super specialists (cardio, neuro, nephro)



Value Capture


Patients

Physicians

Health Care

Suppliers

Corporate

Enterprises

• 24 x 7 consulting

• E-Medical records

• Worldwide

connectivity

• Medical Insurance

• Convenience

• E-Medical records

• Advertising and sale

of relevant products

• Increased patient referrals

• Worldwide connectivity

• Easy outreach and

appointments

• Accreditation

• Discounted large scale

insurance

• Customized user interface

Health Care

Magic



Value Capture


For Patients:

• Question marks over coverage when using

online therapies

• Concerns regarding confidentiality, privacy

and storage especially with the rising

demand of eRecords

• Cannot be helped in crisis situations



Value Capture


For Physicians:

• eTherapy is not appropriate for people with

complicated illnesses

• Therapists cannot see facial expressions,

vocal signals and retrieve

body metrics

• Doubts over legal/ethical codes



Value Capture


• Rebalance of the public and private sectors in

the financing and delivery of care

• Precision based industry has shown growth

• E-records : 38% in 2008 to 78% in 2013

• Seamless care - Digital tools

• Disruption Vs. Enhancement



Value Capture




Value Capture


Patients

Advertisement Services

Health Care Magic

Physicians

Registration

Subscription

Fees

Consultatio

n Fees

data

credits

Consultatio

n via HCM

Health Care

SuppliersPortal Services

Corporate

Healthcare

schemes

Registration

Consultatio

n via HCM



Value Capture


Customers Currently registeredCurrent annual Revenue (in

$US)

Patients 3,000,000 $3,000,000

Average consultation % paid to doctors from the premium

amount-$1,500,000

Physicians 10,000 $100,000

Corporates 50 $50,000

Advertisements 100 $1,000

Total Value $1,651,000

Conversion Rate 5.0%

Average Premium per customer $20 Yearly

Average Registration per Physicians $10

Average Premiums per corporate $1,000

Advertisements $10 P.A

Average consultation % paid to doctors from the premium amount

50.0% Consultation fee

Approximately



Value Capture


0

2

4

6

8

10

12

Revenue Rise (In Millions USD) 2010 to 2014



Value Capture


Pharmaceutical Distribution Business

Home healthcare business

Non emergency medical transportation services

Medical supply business

Medical equipment sales

Medical related app



Value Capture


Partner with medical equipment suppliers

Advertise over web/mobile apps

Consultations for corporates via customized UI

Health awareness campaigns for outreach/PR



Value Capture


Source: Company Websites & Blogs

Online Traffic Number of specialists



Value Capture


Consumer Base

eVaidya

Practo

SCIO HA

MedStar Health

HealthCare Magic

3 MM4.5 MM

1.5 MM

250K/D 120K/D

80K/D

35K

15K

8K

Sep 21, 2007

#18,139

June 3, 2010

#8,889

Aug 14, 2011

#237,934

Dec 28, 2012

#160,873

Launch

Date

Popular

Website

Ranking

s



Value Capture


Source :http://www.statshow.com/ accessed 11-Apr-2015 5.27pm

1736610

195780

3543720

132420

789360

88980

1610760

60180

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

HealthCare Magic Lybrate Practo DoctorSpring

Viewership / Visitor Comparison ChartMonthly Pageviews Monthly Visitors

Scope of activitiesManage billing to customers

Supports a variety of medical advisory

Public Forum for medical advisory

"live" interaction with doctors online

Managing appointment booking through smartphone app or online portal for patients

Manage appointments, medical records, accounting billings for the doctors

Android mobile support

share medical records with other doctors easily

Find doctors near their location

Free service - digitally store and manage their records on smartphone

Fee-based consultation for patients

On-click emergency support system

search tool for nearby ambulance services



Value Capture


Free

Service offered Recognized as core competency



Value Capture


First mover advantage

•Established and recognized with a market leader

•Focus on medical advisory with “Online interaction” with doctors

•Wide variety of medical field

•Ease of use

•Tiered-based fee consultation

Similar business model to HCM

•Follower with fewer features offered

Different business model from HCM

•Focus on customer relationship software for doctors and clinics

•Manages search for doctors, booking and appointment scheduling

Late mover advantage

•Offered all the services from HCM and Practo combined – For Free

•Additional innovative features such

•one-click emergency support service

•search tool for nearby ambulance services

User BaseUniqueness

Beginner’s AdvantageCollaborations

Cost of OperationHigh Scope of Activity

Ease of AccessPricing

Refund Policy (100%)

Low Entry BarriersDiverse Legal Constraints

No Serious AilmentsDependency on Internet

Technical BarriersAvailability BarriersDifficulty in Claims

Go MultidimensionalRate PractitionersBetter Incentives

Targeted CollaborationsEducation Sector

Government RegulationsLitigations

Risk of Casualty If DelayedLimits while PrescribingEasy To Copy Concept



Value Capture


Patients DoctorsHealthCare Magic

More patients attracts more Doctors

More doctors attract more patients

Advantage of being the first company to establish foothold and the largest player in thedomain



Value Capture


• Acquired by EBIX – Provides an avenue for e2e

solutions

• Allows building of an eco-system around

HealthCare Magic

EBIX

HealthRisk Assessme

ntSmart Care

HCM

SmartEngage

Smart Sites

A.D.A.M on

Demand

Health Centers

Patient Journeys

Medication

Management



Value Capture


• Restrictive Practices

– Strengthen and establish ‘exclusive’ relationships

with hospitals

• Vertical Integration

– Being part of EBIX’s wider ecosystem offers better

control of the market

• Cost advantages independent of scale

– Proprietary technology, know-how; learning

curve cost advantages



Value Capture




Value Capture


Healthcare Magic - Biz Model

Business

Transcript of Healthcare Magic - Biz Model