healthcaremagic - business model analysis
TRANSCRIPT
April , 2015
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
•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
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
https://www.youtube.com/watch?v=NwSTNo2GeVQ
About 75% customers are on HCM for second opinions, where they have already consulted 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 entire process is designed in the simplest ways to enhance ease of access.
Rates vary across geographies as per the paying capacityObjective About HCM Customers Value
PropositionScope of Activities
Value Capture Competitor Strategic
Control
• 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 there is a concern about
security and comfort level with sharing medical/healthcare issue online. They prefer primarily women doctors
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
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
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Based on the type of ailments
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
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)
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
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 CareMagic
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
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
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
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
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
• 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
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Patients
Advertisement Services
Health Care Magic
Physicians
Registration
Subscription Fees
Consultation Fees
data
credits
Consultation via HCM
Health Care SuppliersPortal Services
Corporate Healthcare schemes
Registration
Consultation via HCM
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Customers Currently registered Current 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 $10Average Premiums per corporate $1,000
Advertisements $10 P.AAverage consultation % paid to doctors from
the premium amount 50.0% Consultation fee
Approximately
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0
2
4
6
8
10
12
Revenue Rise (In Millions USD) 2010 to 2014
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Pharmaceutical Distribution Business
Home healthcare business
Non emergency medical transportation services
Medical supply business
Medical equipment sales
Medical related app
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Partner with medical equipment suppliers
Advertise over web/mobile apps
Consultations for corporates via customized UI
Health awareness campaigns for outreach/PR
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Source: Company Websites & Blogs
Online Traffic Number of specialists
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Consumer Base
eVaidya
Practo
SCIO HA
MedStar Health
HealthCare Magic
3 MM4.5 MM
1.5 MM
250K/D 120K/D
80K/D35K
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
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Source :http://www.statshow.com/ accessed 11-Apr-2015 5.27pm
HealthCare Magic Lybrate Practo DoctorSpring0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
1736610
195780
3543720
132420
789360
88980
1610760
60180
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
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Free
Service offered Recognized as core competency
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
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
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
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
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
• Acquired by EBIX – Provides an avenue for e2e solutions
• Allows building of an eco-system around HealthCare Magic
EBIX
HealthRisk Assessment
Smart Care
HCM
SmartEngage
Smart SitesA.D.A.M on Demand
Health Centers
Patient Journeys
Medication Management
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
• 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
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control
Objective About HCM Customers Value Proposition
Scope of Activities
Value Capture Competitor Strategic
Control