Post on 25-Jul-2015
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Healthcare Experience DesignApril 11, 2011
Alex FairFounder & CEO of FairCareMD
www.FairCareMD.com (954) FAIR-CARE @FairCareMD(954)-324-7227
How to do the impossible: The creation of FairCareMD, the first
efficient market for healthcare services
1. Find your impossible problem
Notes: A. Pick the right impossible task – something big enough to scare you and inspire yourself and others to actionExamples::
• Global warming• Renewable energy• Learning to walk again• Curing a disease• Making healthcare affordable for every American …
B. Whatever it is, make sure it is something YOU are passionate about
Why is passion important?
Because no matter what I tell you, doing the impossible is not easy.It will cost you.And if you don’t care enough, There will come a moment where you will give in to the fear, pessimists, and doubt and you will quit, without the passion from a problem YOU need to solve.
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2. Define it clearly and
solve it beautifullyNotes:You need to create an elegant solution that will inspire millions to engage with itExamples:- Encyclopedias are expensive and difficult to maintain but the are merely the sum total of knowledge
of humanity --- Wikipedia- Handmade crafts are better than manufactured ones but those who make them are paid less than
factory workers – Etsy- Garages are filled with junk that other people want and will pay good money for but can’t make it to
your yard sale – eBay- Healthcare is too expensive but talking about prices with your doctor is at best difficult, at worst
taboo – FairCareMD
Appeal to a wide audience- Be Simple- Be inspiring- Be financially rewarding, preferably huge – like 9 zeros huge
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Environmental Factors
Double Digit Premium increases
Empowered Patients self-educating
Physicians Willing to Negotiate
The Rise of the High Deductible Health Plans
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… and yet, no open marketplace exists online for healthcare
It’s Not FairThat Doctors Train for 10+ years to be paid very
little to care for people
It’s Not FairThat People who Pay for care don’t
have a good way to shop
for it
Two Problems
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How it Works for Patients
SEARCH CONTRACTSELECT
…for the care they need in 60 seconds or less.
One Elegant Solution
Colon Cancer Screening
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A healthcare marketplace where people can:
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The Best Idea in the World
So what?
Most People Stop HereExecution is what Matters
3. Do Your Homework
Why wasn’t this done before?
study failure as much as success
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Provider Directories/Lead Generation
Provider Ratings
Confidential
FairCare’s Unfair AdvantagesWho We Studied
Discount Services Direct Marketplaces
4. Design the business model
Notes:business model is not the same thing as the idea or vision.
Example: The original vision of Groupons was changing the world through collective action.Now their business model is group coupon enablement – but it took them a some time to get from the inspired vision to a viable business model.
My advice is that after you do your homework, you should have a pretty clear idea of what works and what doesn’t. Not to say it won’t change, but you should at least have a plan that should be viable from the get go. Give yourself a path
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Subscriptions• Free for Patients• Low Cost for
Providers
Transactions• Pre-Authorized
Self-Pays• 6% of agreed
upon fee
Services• Employer
programs• Advertising• Care Finance
Plan Your Revenue Streams
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Potential Rev: 400 MM Potential Rev: 2.9 Billion Potential Rev: 3.1 Billion
Total Addressable Market for first three services: 6.4 Billion
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5. Get Out & Engage
talk to people it matters to
and listen!
Notes: There is No substitute for talking to your customers.
You can’t outsource it, delegating it is a bad idea. Get out and just go do it.
People talk about “stealth mode” and NDAs and protecting the IP… but the fact is, if you have such a great idea, ten other people have it too… While you are protecting, they are doing
Overcome your fear. Do what scares you most.
Whoever executes best, wins and you will not execute well if you can’t sell it
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Provider Customer ResearchStatistic Quantity RateProviders Interviewed 479 Reject Idea 25 5%Other / Undecided 33%Will Do if Successful 297 62%Early Adopters 100 21%
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Last_nameQUALIFICATION
SPECIALITY
SubSpec Address COMMENTS Notes Last Visit Notes CONTACT
Office Manager Birthday
Office Size
Last Visit or Contact by AF
Prev Visits
Office Staff Visit
Grade1-5
Physician Visit Grade
1-5
PrioritizationStrategic notes
Next Visit Date Next Action FairCareDoc
Strangelove MD Neuro 33 EAST 60 STREET Habla espanol
left note for Marce + SB card, highlighting NF WC work MARCI Marce 3 10/27 3 3
many uninsured, needs spanish version 1/22
f/u with Marce
Smith DC CHIRO 133 EAST 58TH STREET SUITE 1801 CHIROPRACTOR Don’t mention robotics
rception fluent in spanish, banter in spanish… will present info to doc, very busy office NAZAIDA Cadamina 4 1/14 5 1friends with Neuman 1/22
Bob MDSURGERY 130 EAST 73RD STREET is a muppet
0.5 1/22
Schwartz MD 330 EAST 56TH STREET ready for FCDMgood talk with doc. Loves open source, EA kimberly Rochelle 1/14 5 5 3 1/22 Y
Livingston MD 130 EAST 73RD STREET somewhat lost 0.1 1/22
Zhivago DC 515 MADISON AVE STE 1720 Makes house calls Speaks RussianInterested, come back later, not there @ time 0.1 1/22
Oz MDINTERNAL 511 MADISON AVENUE,
pay no attention to the man behind the curtain 0.5 1/22
Gupta DC Chiro 225 Broadway, eloquent large multispecialty, will introduce to team 4/8 Y
Take lots of notes and plan your research.
Sell, listen, think, modify, repeat
What I Did: 100 Days, 200 miles, 2,288 Office Visits, 479 conversations with Providers, 100 early adopters, 1 viable model
My Daily Visit Sheet and record keeping
WARNING: Wear good walking shoes!
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6. Make mistakes
Only by taking risks and
failing / recovering
quickly will you arrive with the
best design (unless you are perfect)
Initial reaction to our logo and our “Expose your fairest price” model was unfavorable (to say the least.)
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6. WARNING: Obey the vision: listen and
change, but don’t lose your way.
Stay inspirational
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Adapt, but obey the vision
• Fair and Negotiable
• Park Avenue / Concierge
• Non-negotiable SPECIALS (new)
• Priceless Care / Insured Care (new)
Original Plan
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7. Insp(h)ire
Notes: People do things for love or money, but if you have to choose one, go with love.
When you talk about your impossible idea you will find people want to help you if you have inspired them. If you can’t inspire anyone to join, return to step 1.
These are the only people you want to hire at first.
The only difference between a prophet and a crazy person is how many people follow him.
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The idea is only as good as the amazing people you inspire
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Sunnie Southern, Howard Luks, MD, Simon Sikorski, MD, Mike Schwartz, Jim Rellis, Jeremy Senn, David Harlow Esq. (not shown,: Jacek Zagorski, Mike Pence, Matt Cowley, Adam Whittaker, and dozens of healthcare market makers across America)
8. Think BigStart Small
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Timeline and Goals
A new Paradigm for care that is
Fair to Patients and
Providers and based on
Quality as well as cost
Time Line
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9. Repeat as needed
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How it Works: Three Steps to Get Great Care
1. SEARCHPatients search for services using our natural language
search engine
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2.REVIEW & SELECT
Patients Choose an Offering by Reputation,
Quality, Services, and,
(optional) Price.
Price is a key factor to 1 in 3
patients.
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The patient reviews the
deal and takes it as
is or requests a change. Videos and
great descriptions help Patients
choose
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3. CONTRACT If selected and accepted* the
system generates a “DoneDeal”
-Emailed and
printable_
Put it in the Chart!-
Customizable Automated Contracting
* You decide your acceptable price, not us 24
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So… How’s it going?
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• Thousands of care searches per week• Offers in every zip code in America• Well developed NYC Network• Open Healthcare Networks blooming all
over America• People saving up to 75% on care• Physicians getting paid 25% better on
average than typical payment• Doctors signing up daily
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The Effect of an Efficient MarketSample Results: One Procedure Where Innovation has
driven down the cost of care but reimbursement rates are artificially high where innovators are rewarded
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One Procedure - All inclusive Colonoscopy with biopsy
Scenario Annual Avg Price Spent
Status Quo - Closed Market 2,000,000 (1) $ 2,250 (2) 4,500,000,000
FairCareMD – Open Market 2,000,000 $ 1,210 (3) 2,420,000,000
Potential National Savings $ 1,040 $ 2 Billion+
(1) 2004 NCBI Report
(2) Average paid amount estimate - NYC (healthcarebluebook.com)
(3) Based on data from deals on FairCareMD.com
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Now what is truly impossible?
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Man was not meant to fly
Impossible just means no one has applied themselves to addressing the issue yet
Women can’t vote
Computers can’t think
Disease can’t be cured
EMRs will never become mainstream
The cost of healthcare can’t go downThe Patient Can’t be an Expert
He will never walk again
Dream it Sell it Build it
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Changing Healthcarewith an Open Healthcare Network
Thank You!
@FairCareMD Contact:(954) FAIR-CARE alex.b.fair@faircaremd.com 28Copyright 2011 FairCare, LLC