Leonid Popov Sergey Baranov Bimohit Bawa Nikhil Mane

Patients Providers

Legal &

regulations

Insurance

companies

House calls

providers

Indirect

competitors Investors Hospitals

54 30 3 6 3 6 1 7

TOTAL INTERVIEWS:

110

Improving drug compliance and patient communication to reduce readmissions.

Lessons learned

Even acknowledging that it is more convenient and saves time people are willing

to pay only a very small premium for house calls

It appears to be very hard to convince people to use house calls instead of

emergency room in not very complex cases

We we able to convince nurse practitioners to work on our system. They valued

flexibility of working hours and decrease in administrative work

Hospitals are interested in cost efficient solutions to decrease readmission levels

We have creative solutions for that

Individuals are not willing to pay more for medical house calls

People generally see house calls as an alternative to primary or

urgent care but not to emergency room

There is enough supply to support house calls business model

The supply we can organize can be used to help hospitals with

follow-ups and home care

Improving compliance with medications and discharge plan can

reduce readmissions rate

Reality Hits!

Week 2Who pays?

Week 3Supply problem?

Week 5We got supply covered! Yeah! but, Who pays?

Week 7B2B – What’s that? RESTART! CODE RED

Our Flawless Plan (Week 0/1)

B2C service! Let’s do it!

Week 8Any Hospital willing to pilot?

Week 9An Academic Hospital –

Let’s talk. Yeah!

Here’s what happened!

BMC Week 1

• Initial focus on Families with kids

• Our initial value proposition was not clear to our potential customers

BMC Week 6

Night & Day urgent medical house calls for those you care.

• NP are willing to participate on the platform (validated)

BMC Week 9

Whole New BMC!Helping Hospitals increase profit by reducing readmissions

How It Works

Improving drug compliance and patient communication to reduce readmissions.

Visual and personalized

materials

Phone, text, email

remainders

24/7 access to a nurse via phone, email

Hospital shares discharge and

medication plan

Connected “PillsPal”

bottle

Non-compliance

phone or house call

Prepaid return box

Confirmed follow-up schedule

Planned outpatient or house call

visits

No-show phone or

house call

Co

mm

un

ica

tio

nD

rug

co

mp

lia

nc

eFo

llo

w u

p

At discharge Day 1 Day 30

Process diagram

Improving drug compliance and patient communication to reduce readmissions.

Fa

mily

Regular phone and house calls

Remainders

Non compliance phone and house calls

Ph

arm

ac

y

PillsPal return

Drug usage monitoring

Programmed PillsPal with medications

Ho

spita

l

CMS Metrics

Discharge info + $ Discharge plan

Insurance

3% savings on fees

CMS Metrics

Dashboard Smart bottle Instructions

MVP

Improving drug compliance and patient communication to reduce readmissions.

• Light and voice

reminders

• Just in time dispense

• Visual instructions

• Connected (reports

medication misses)

• Voice instructions

(not in MVP)

• Discharge plan

• Risk assessment info

• Communication

• Medications intake

data

• Follow-up records

• Personalized

• Visual

• Brochures and

posters

MVP

Improving drug compliance and patient communication to reduce readmissions.

MBAs approach to electronic engineering!

http://people.ischool.berkeley.edu/~nikhilm/dashboard/

Market Size

Improving drug compliance and patient communication to reduce readmissions.

TAM

SAM

TM

$14B

$2.5B

$1B*Top three

reasons only

US discharges – 35M

X Average readmission rate – 16%

X Cost / readmission - $2.5K

+ Medicare penalties - $0.5B

US discharges – 35M

X 1 st. dev. Above national rate – 2.3%

X Cost / readmission - $2.5K

+ Medicare penalties - $0.5B

US readmission expenses

+ penalties

Above national rate

+ penalties

Caused by top three reasons

+ penalties

* Our assumption, needs additional validation

Source: http://kaiserhealthnews.org/news/medicare-readmissions-penalties-2015/

Per unit economic assumption

Improving drug compliance and patient communication to reduce readmissions.

TrueCare24 (Physical service, Existing Market)

Per unit Break even

# of hospitals 1 11

x discharges / hospital 1,400 1,400

= # of discharges 1,400 15,400

x price per discharged patient $200 $200

Gross revenue $280,000 $3,080,000

(Less) phone support (5 x $10) ($70,000) ($770,000)

(Less) house call (0.5 x $100) ($70,000) ($770,000)

(Less) PillsPal rent ($15) ($21,000) ($231,000)

= Net revenue $119,000 $1,309,000

(Less) Sales and operating costs ($1,200,000) ($1,200,000)

Cash Burn for period ($1,081,000) $109,000

Timeline

Business Model

Validation

Finalizing

platform

with pilot

customer

Run a pilot Growth

Ma

jor

Task

s

Use

of

Fu

nd

ing

• No need in

funding

• Source – customer’s

prepayment

• Product & Management

team

• Initial equipment and

trainings

• Sales team and sales

commissions

• Product & Management team

• Equipment

• Administrative

• Validate

product –

market fit

• Validate WTP

• Finalize MVP

3 months

6 months 12-18 months to breakeven

• Hire Product team

• Build Web and Mobile

apps

• Hire MD, NPs & PAs

• Purchase equipment

• Hire sales & marketing team

• Building awareness & Brand

• Sales process

• Product optimization

Improving drug compliance and patient communication to reduce readmissions.

LF MVP HF MVP

Scalable business worth pursuing?Urgent and Ubiquitous Problem

In 2014, Medicare fined 2610 out of 3500 hospitals for excess readmissions.

The fines totaled $430 million

Readmissions cost to Medicare is around $14 billion per year

Large Market

Readmissions is the first use case! SAM is 2.5 B.

Drug non-compliance is a huge issue in other functions i.e. Behavioral Health,

Addiction Psychiatry, Drug clinical trials to name a few.

Strong fit between drug compliance ( Value Proposition ) and Hospitals (

Customer Segment )

Validated by CDP interviews and clinical studies

Team

Tech savvy and data driven!

Yes!

Urgent and Ubiquitous Problem

Product-Market Fit

Large Market

Team

Will We Pursue?

Thank You!