17 Oct 5 Companies shaping the Future of Medicine Healthcare E-commerce Industry
The U.S Healthcare system is estimated to be a $3.2 trillion market comprising of various stakeholders such as hospitals, insurance companies, medical equipment suppliers and pharmacies to name a few. The world is moving towards digitization at a fast pace, and healthcare is one industry where online services are making swift inroads, owing to their promise of convenience, transparency and cost–efficiency.
Online medical consultation is set to dominate the healthcare e-commerce segment in the coming years according to a report by adroit market research, which estimates that the Global healthcare e-commerce market will be worth over USD 435.8 billion by 2025. The growth in this sector will primarily be fuelled by an increase in geriatric population, rise in lifestyle related diseases such as diabetes, the advent of the Smartphone, the increasing internet penetration even in developing countries and efforts by governments to increase awareness and provide inclusive healthcare.
The conventional healthcare system is plagued by issues such as lack of transparency leading to high cost of treatments. The conventional approach is centred on volume based care, leading to the prescription of unnecessary testing procedures, which further escalates the cost of treatment. The Insurance providers wield undue negotiating power with hospitals and other service providers, driving the costs further up. There has also been a rise in out of pocket expenses that a patient has to shell out and growing high deductible health plans (HDHP), which makes a customer price conscious and wary of approaching treatment providers, which in turn has a negative impact on the growth of the industry.
From a Hospital or Healthcare administrator point of view, the conventional approach to medical consultation results in a high administrative cost burden, by having to establish and maintain a whole setup dedicated to processing insurance claims and follow ups. In addition, a typical claim processing and settlement takes over 27 to 90 days for hospitals and service providers and sometimes even results in bad debts. The inordinate delay in claim settlement can affect the quality of healthcare.
The emergence of online healthcare service providers has revolutionised the delivery of medical care not only for the patients but also for the hospitals and other service providers. The portals offer numerous advantages such as the ability to choose a particular healthcare provider, allow patients to compare services and prices, offer a completely transparent and upfront billing system and consolidate information and billing details in one place.
The healthcare system is now moving from a volume-based approach to a value-based treatment approach, with focus on offering customized, preventive medication to patients, all from the convenience of their homes. We take a look at some of the online healthcare service providers who are transforming the administration of healthcare with their innovative approach.
MediXall Group (OTCQB: MDXL)
Market Cap: $147.07M; Current Share Price: 1.99 USD
Data by YCharts
MediXall operates a cloud-based platform that helps patients find quality healthcare at affordable prices, from service providers in their vicinity, addressing areas such as medical, dental and wellness. The focus of the platform is to serve customers who are self-pay and high deductible, and disrupt the conventional methods of providing medical services.
The Company is replicating the ease, convenience and efficiency of online ecommerce sites which offer services like booking for hotels or flights. MediXall.com, its ecommerce platform, allows customers to search for and compare medical, dental and wellness services, and differentiate them based on criteria such as cost, location, distance, ratings and availability.
Medixall simplifies the medical consultation process considerably; a patient can simply log in to the website, search for the service, compare prices, book an appointment online and make a payment after the appointment is completed. The service is particularly useful for those with a high deductible health plan but do not want to compromise on the quality of healthcare. The costs for the service are intimated upfront so that the customer knows how much and what services he is paying for. In addition, it eliminates the need for multiple and repeated calls to insurance companies, to check for coverage, cost, and other information.
By bridging the gap between the customer and the service providers, the Company is able to offer tailor made and customized offers to the customers, based on usage history. A customer can choose a provider based on qualifications, pricing or location without having to rely on third parties for assistance. The platform offers a wide range of services covering areas such as cold, flu, eye exam, allergist, and behavioural therapy, dermatologist and gynaecologist along with screening facilities like ultrasound, MRI and IV therapy.
The platform is free to use for patients and there are no hidden charges or subscription fees, the customer only pays for the services availed. The Company has plans to extend its range of services and specialities which now encompass MRI, CT, PET, X-rays, ultrasound, mammogram scans. MediXall has unveiled a Healthcare 2020 initiative to develop a detailed analysis of healthcare plans for customers, leveraging technology to simplify access to healthcare irrespective of insurance status and creating a community of like-minded individuals who want to transform the healthcare sector.
The Company has also made forays into the global medical tourism space with the launch of MediXall global solutions, initially rolling out medical services to patients in Canada, by using the 22,000 radiology providers and facilities in the CoreChoice network, to offer affordable high-quality imaging services.
Phreesia (NYSE: PHR)
Market Cap: $997.74M; Current Share Price: 27.90 USD
Data by YCharts
The Company offers a saas-based platform to manage patient registration, revenue cycle management, clinical support and automated check-in for over 54 million patients annually. Phreesia caters to medical groups and health systems and helps them achieve operational efficiency, improve financial profitability and attain clinical goals. The platform offers comprehensive services ranging from streamlining the front office workflow to providing an integrated payment platform and electronic medical record systems.
The Company uses patient information such as medical histories and insurance benefits to provide valuable insights to healthcare providers, thereby leveraging technology to make a difference to patient’s lives. Phreesia has partnered with more than 1600 healthcare providers and processed over $1.4B in patient payments in 2019. The Company reported a 25 percent revenue growth in 2019, and clocked in more than $100 m in revenues.
Phreesia simplifies operations and improves patient experience for service providers. From the patients perspective it drives high patient usage and engagement in care, while providing flexible payment options. The Company also services Life Sciences companies by offering targeted digital marketing, which results in brand conversion and adherence. In lieu of these services the Company charges providers a per provider per month subscription charges, while for customers it charges a recurring payment processing fees.
The Company’s comprehensive solutions encompasses mobile and in-office registrations, insurance verification ad POS payments, clinical support for women and children health issues, patient surveys to gauge their experiences, preventive screening, management of online appointments, reminders and self scheduling services and advanced analytics to name a few. The Company has been recognised as the 2019 category leader for patient intake management and intends to maintain its position as a leader in its category.
ZocDoc addresses the problem of quick and efficient booking of appointments online, by allowing customers to check for availability and booking preferred timings, comparing services based on reviews and offering customized reminders to keep them abreast of upcoming checkups. The patient can also fill out information online, thereby eliminating the need for paper work at the doctor’s office, all from the convenience of their home. The Company uses technology to connect doctors with patients and empowers patients to choose a healthcare provider based on criteria such as location, ratings, pricing etc.
The Company is backed by some very prominent and influential venture capital and technology investors such as Khosla ventures, Bezos expeditions, Marc Beinoff, Founders Fund, SVAngel and Goldman Sachs (NYSE: GS) to name a few. The company does not charge any subscription or processing fees from the patients for booking appointments, however healthcare providers need to pay a fee to be listed on the platform. ZocDoc has more than 60 leading hospitals and health systems on its platform, such as Mount Sinai, Medstar Health, BJC Medical Group, Memorial care, Tufts medical centre.
The search results on the site are populated based on visit reason, insurance network, location and appointment availability and the Company offers dedicated account managers to assist doctors keep the information updated. The Company also undertakes a verification process to vet doctors before they are listed on the platform on parameters such as educational qualifications, specialty, medical certifications etc. Furthermore doctors can choose to pay for sponsored results, to be listed above marketplace listings.
The Company also collects patient’s reviews through a closed-loop system that does not allow for manipulation and allows for maintaining a fair and transparent review process.
DocPlanner believes in making the healthcare experience more human, and to this end the Company provides integrated end-to-end solutions for doctors as well as patients. The Company helps doctors manage their practise more efficiently and improve their online presence. It is the world’s biggest healthcare platform, with presence in more than 20 countries, and has more than 2 million active doctors and 30 million unique patient visits every month.
The Company operates and leads the market in Poland, Turkey, Spain, Italy, Czech Republic, Mexico, Brazil, Colombia, Argentina and Chile and has offices in Warsaw, Barcelona, Istanbul, Rome, Mexico City and Curitiba. In May 2019, the Company closed an $89.8 million series E funding round led by One Peak Partners and Goldman Sachs Private Capital Investing, with contributions from Piton Capital and Enern Investments, to fund strategic areas of growth. The Company is planning to roll out a software-as-a-service (SaaS) offering in Europe and Latin America and intends to expand its marketing, sales, legal and product development team to cope with its plans to acquire cloud-based acquisition companies, following its acquisition of Doctoralia( Spain) in 2016 and Eniyihekim ( Turkey) in 2014.
The Company has managed to differentiate itself from competitors by aggressively expanding and creating a strong presence in multiple markets. DocPlanner claims to have facilitated the booking of more than 1.5 million appointments in April 2019 and has over 2.4 million patient reviews on its website.
The MDSAVE platform allows customers to search for procedures and providers and make an informed decision based on location, pricing and reviews. The Customer is given a choice to schedule and pay for the procedures as per their convenience after due diligence. The Company which claims to be the world’s first online healthcare marketplace has a robust network of over 280+ Hospitals and 1,570+ Procedures.
The Company pre-negotiates prices with service providers, as the customer is paying upfront, resulting in considerable savings for patients. The inclusions in the procedures are clearly mentioned beforehand and in case a customer needs additional services, the same can be availed at additional costs. The Company uses a proprietary algorithm to calculate national average prices for cost comparison of the selected procedures. The algorithm uses a weighted average of hospital prices, insurance-negotiated prices, and governmental payor prices to calculate the average.
The services offered by the Company include MRI, CT Scan, Ultrasound, X-ray, mammogram and other speciality services such as wellness, bariatrics, imaging and radiology to name a few.
MDSAVE also provides financing options for customers and offers the flexibility to choose from health savings or flexible savings accounts to pay for the procedures. The Company also offers a full refund in case a customer is unable to obtain a selected service or makes an incorrect purchase. It also accepts the CareCredit healthcare credit card that offers promotional financing with flexible monthly payments.
Disclosure: We have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. We has not received any fees or other compensation for preparing this article. However, we have received a one-time engagement fee from Medixall Group, Inc. for the production and broad dissemination of an in-depth research report on Medixall Group, Inc. The non-research related service cost is dependent on the company, but usually do not exceed USD 2,000. Fees are paid upfront in cash without recourse. Our analysts have not received any compensation from the featured companies or from any related party. Avise Analytics has a restrictive policy relating to personal dealing and conflicts of interest. Detailed disclosure is available upon request.