Home Team Therapy @ Aging2.0 Boston 9/17/2013


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  • I’M A PT PATIENT.My name is Tim Fu. I’m the CEO of Home Team Therapy.  We use doctor-designed workouts to help patients exercise at home. I have a quick question for the audience, "How many of you have done physical therapy?"  Pretty much everyone.  You know as well as I do how grueling and painful that process is.Home Team was born out of my own experiences in physical therapy. I tore my ACL playing sports and had to have reconstructive surgery. In the end, my surgeon, Dr. Anil Ranawat, performed four surgeries to repair my knee. The whole process was painful, frustrating, expensive and terrifying. I struggled with physical therapy for several months, hopping between 4 or 5 physical therapists before I went back to my surgeon and asked him for a better recommendation. I had done a lot of hard work, but was still having problems getting back to 100%. I needed someone who could give me the right information, not just some generic exercise program. That’s the difference between a personal trainer and a PT, or a good PT and a great PT. And I needed to find that PT now, because I knew if I didn’t make a full recovery in the first few months, I was going to be living with a disability for the rest of my life. I needed great instruction and I needed it right now.Finally, Anil recommended me to Ben Gelfand, my last PT.
  • PT’S ARE AWESOME!Ben was incredible. He was a great coaches, he kept me motivated, and he taught me exactly what I needed to do to get better.The only problem is that they're just too expensive to take home with you every day of the week, so you only see them once or twice a week.
  • HOME PROGRAMS SUCK.The other six days of the week look like this.  Single line drawings.  Hard to interpret and they definitely didn't keep me motivated.Unfortunately, this is typical in the physical therapy experience. Care is great when you’re in the doctor or PT’s office, but getting treatment, or even answers to your questions is impossible between visits. Moreover, the best therapists often have waiting times of 3 weeks or more. This is incredibly frustration because as a patient, you want high quality care and you want it right now. We spent the last couple of years doing the research and learning that these are the two most important customer needs. They need the best information and they want it at their fingertips.
  • OUR PRODUCT RULES.So we built web and mobile apps that help patients exercise at home and get better fast.We’re using online video to help patients exercise at home.
  • THE MARKET IS HUGE.Thankfully, there's a huge patient population that we can help with Home Team Therapy.  Half of all US adults suffer from musculoskeletal injuries.55M of those patients go and see a doctor about their ailments. A top-down look at the market reveals that the direct cost of treating these injuries is approximately $160B, $20B of which is spent on physical therapy visits.We’ve done market research to study the bottom-up market opportunity, as well. Our studies suggest the lifetime customer value is approximately $40 per patient, representing a 2.2B opportunity for Home Team Therapy. (Revenue is split with therapists, $20 for Home Team Therapy for two months, the average length of a physical therapy episode.)We’ll build back up to the general consumer market, appealing to them with exercise programs that foster good posture, improved joint strength, and fall and injury prevention. Number of Persons with Musculoskeletal Diseases: 110M in 2008Source: Burden of Musculoskeletal Diseases, Chapter 1, pg 9, Table 1.2http://www.ibisworld.com/industry/default.aspx?indid=1562Approximately $30B spent on Physical Therapy visits annuallyApproximately 300,000 Physical Therapists in the US9 Visits per Patient http://www.aaos.org/news/aaosnow/jul11/managing3.asp$90 per Patient Visithttp://www.aaos.org/news/aaosnow/jul11/managing3.asp$30B spent / 9 visits per patient / $90 per Visit = 37M Physical Therapy Patients$30B spent / 10 visits per patient / $100 per Visit = 30M Physical Therapy PatientsAverage therapist sees 100 patients every year. That goes up to 300 patients every year in places like NYC and Boston.http://www.aaos.org/news/aaosnow/jul11/managing3.aspInsert Citation for 110MInsert Citation for 55MIncremental Cost of Musculoskeletal Diseases: $1,790 per person in 2006 dollarsIncremental Cost of Musculoskeletal Diseases: $160.5B total in 2006 dollarsSource: Burden of Musculoskeletal Diseases, Chapter 9, pg 224Incremental Cost of Medicationdue to Musculoskeletal Diseases:$ per person in 2006 dollarsIncremental Cost of Medication due to Musculoskeletal Diseases: $ total in 2006 dollarsSource: Burden of Musculoskeletal Diseases, Chapter 9, Incremental Cost of Lost Wages due to Musculoskeletal Diseases:$1,696 per person in 2006 dollarsIncremental Cost of Lost Wages due to Musculoskeletal Diseases: $126.9B total in 2006 dollarsSource: Burden of Musculoskeletal Diseases, Chapter 9, pg 233
  • RevenueWe're delivering our services for a monthly subscription of $29.99, about the cost of a copay. We settled on this price after conducting a monadic pricing survey at two physical therapy offices, one in Boston and one in NYC. Of the patients surveyed, 21% were willing to pay $29.99 or more for a monthly subscription to Home Team Therapy. Willingness to pay increased as patients’ injuries became more serious, requiring surgery or longer episodes of physical therapy. ReferencesSource: http://www.aaos.org/news/aaosnow/jul11/managing3.asp9 Visits per Patient, $90 per Patient Visit
  • WE GIVE PT’S MONEY. THIS IS WHY PT’S WILL LIKE US.We're sharing this revenue with therapists, enabling them to not only treat (and get paid for) the 40 patients they see on a weekly basis, but also the 200 patients who come less frequently or who can't make it into the office. 
  • This results in as much as a 10% bump in PT revenue, just for doing things that they already do - home exercise programs, messaging, and scheduling.
  • ACTUALLY, EVERYONE LIKES US.So we're helping patients recover faster.  We're helping therapists see more patients.  And we're helping payers (insurance companies) save money by providing more efficient care and better outcomes.
  • OLD INDUSTRY, POOR SOLUTIONS.This market was born in the 1980’s with VHI and BioEx Systems. Each delivered paper based instruction to physical therapy patients. They’ve been doing so ever since. By virtue of being the oldest market players, they gained a good amount of market share, distributing their products to several thousand PT practices, doctors offices, and fitness locations. Thankfully, there are more than 100,000 physical therapy practices in the country, so there’s plenty of market share to be had.Problems with this group:Perfect Fit Pro is the only one to build a decent product and gain traction. But they’re growing slowly because they’re employing a direct sales force as opposed to traditional web/social media tools.The physical therapy instruction market began growing again recently, with Force Therapeutics, Reflexion Health and Perfect Fit Pro. Each of these companies, like Home Team Therapy, began to embrace the power of data and adherence to deliver better care. They also began embracing new platforms – Reflexion Health has gone straight for the Kinect market, while Force Therapeutics has tried to distribute via the Apple app store with little success. Similar to our competitors, we are embracing adherence data to improve physical therapy. We’re also utilizing new technology, like the Microsoft Kinect and the Leap Motion sensor. But we also recognize the risks in this market. All of our competitors, especially the struggled to gain significant market share, employing a direct sales force as their main distribution method. This struggle, and the fact that the two biggest players have taken decades to grow to their current size tells us that customer acquisition is a real challenge in this marketplace.
  • We’re doing a few big things to get ahead:DistributionBuild for platforms where patients want to be reached. Web and mobile.Use social media and capital efficient marketing techniques, distribute teaser workouts on pinterest and facebook.Therapist AdoptionCreate a service platform that really helps patients get the info they need.Incentivize therapists to use our platform by sharing revenue
  • OUR TEAM IS FREAKING AWESOME.One more place where we really stand apart from our competition is our world class team. I’m a professional engineer and MBA. I spent some time at OPOWER and was inspired to use behavioral science to help physical therapy patients. Pam and HT are our product dev team.  They have more than 50 combine years of experience in product development and management.  Kyric is our designer, and has put a professional polish on all of our applications.  We've also got the best possible clinical experts on our side. Dr. Anil Ranawat works at the Hospital for Special Surgery, recently ranked the top orthopedic hospital in the country.  And Ben Gelfand was Director of PT at Lenox Hill Hospital before opening his own outpatient facility in NYC, 12 years ago.We’ll grow our technical and sales teams later this year, adding Jake, Derek and Andrew. Jake is a classmate of mine from MIT Sloan and has experience in sales management at Surefoot, a custom orthotics company. Derek recently worked for Arcadia Solutions, a healthcare consulting firm focused on EMR implementation. And Andrew works for Nuance Communications, the company responsible for the Dragon speech recognition software, commonly used by doctors to record medical notes.Our team is THE team to build this company into a market leader. We have great experience in the healthcare IT sector.We’ve already got great chemistry working together.And all of our future hires are true believers and are ready to join the team.
  • TractionWe’ve been hard at work since our inception, researching, building product, and iterating with feedback from our beta testers. Last summer, we participated in Rock Health's acceleratorprogram, which gave us access to a huge network of physicians and health IT advisors in the Boston Area.  Welaunched private beta testing at STAR and at Ascension health, with great feedback from each.  We’re growing our beta program in advance of our public launch later this fall.Our product is nearly ready for public release and we’ve got some great forward momentum. We’ve been approached by a large managed care organization (9M patients) and a consumer-focused group (38M members), both looking to work with us as a strategic partner. Our future is bright and we’re excited about revolutionizing the way patients exercise at home.
  • Home Team Therapy @ Aging2.0 Boston 9/17/2013

    1. 1. Doctor-designed workouts just for you.
    2. 2. Patients
    3. 3. Product
    4. 4. $161B Treatment 110M Musculoskeletal Injuries $127B Lost Wages 37M Physical Therapy Patients Market $287B Total Cost
    5. 5. PremiumFree Photos Self - Free Videos Peers Yes $29.99 Exercise Programs Progress Tracking Messaging Subscription Revenue
    6. 6. Therapists
    7. 7. Therapists +10% Revenue
    8. 8. Patients Therapists Payers Faster recovery More patients Better outcomes Value
    9. 9. Competition BioEx Systems VHI Force Therapeutics Reflexion Health Perfect Fit Pro
    10. 10. Competition BioEx Systems VHI Force Therapeutics Reflexion Health Perfect Fit Pro
    11. 11. Derek Jake Tim Kyric Dr. Ben GelfandAndrew Dr. Anil Ranawat Team TECH DESIGNBIZ Mike CLINICAL Home Team - Aging 2.0 - 2013-09-17Home Team - Aging 2.0 - 2013-09-17
    12. 12. Traction
    13. 13. tim@hometeamtherapy.com
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