Internet marketing mark 468 health group - final


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Internet marketing mark 468 health group - final

  1. 1. MARK 468 Health Group Final Marketing Plan HEALTHCONNECT2012 PRODUCT LAUNCHAND MARKETING PLAN MISSION STATEMENTHEALTHCONNECT TEAM HealthConnect aims to improve healthAmarinder Matharu outcomes and reduce costs by increas-Annika Narotam ing transparency within the healthcare industry. Our company provides healthCarlo Reyes consumers with access to their medicalErika Pineda information to promote better choicesJameson Case about their health and lifestyle. We alsoJosh Hibben seek to reduce healthcare costs byKate O’Brien aggregating data into our network offer- ing healthcare providers and insurance companies better insight into patient out- Professor Evanthia Geroulis comes so they can improve the way they care for their patients. MARK 468 Winter 2010-11 Loyola University of Chicago Get Healthy, Stay Healthy. Graduate School of Business
  2. 2. EXECUTIVE “If we build increasingly interactive platforms to enrich feedback at each stage of diagnosis and care, patients and physicians can makeSUMMARY better health decisions Ronald Dixon, M.D., MA together.” Harvard Business Review “Breakthrough Ideas for 2010: The Technology That Can Revolutionize Healthcare”HealthConnect helps people get healthy and stay healthy by providing a comprehensive, interactivehealth portal, giving consumers the information needed to have more control over their health. Oursystem offers users greater access to health information by enabling them to upload their electronichealth records from various health systems using the HealthConnect API (Application ProgrammingInterface). Unique to other health portals, our system sorts data from official medical records as wellas self reported vitals into simple graphics, providing the consumer with trends, benchmarks, com-parisons, and goals. This engaging, user friendly approach gives consumers greater information andmotivation to improve their health and lifestyle.In addition to its health portal services, HealthConnect can function as an information outsourcingservice for insurance companies. Our consumers can elect to give limited profile access to their insur-ance companies who can then use the real time data and analytics to reduce risk and better reimbursepatients for medical services. Also, due to our vast data resources and tools, HealthConnect plans tomarket this information to medical researchers so care providers can improve patient outcomes.Finally, HealthConnect aims to build relationships and trust between patients and healthcare sys-tems. Our network enables health systems to create profiles and answer general questions thatpatients post about health concerns. This benefits both parties, patients get questions answered abouttheir health, while health systems build brand awareness and loyalty. Targeting the Right ChannelDiscovery To distinguish ourselves from other health portals,Unmet needs: the ability to HealthConnect will partner with health insurance companiesshare patient health records to draw in a larger consumer base. These companies will thenacross multiple platforms; promote our services to be used by health providers in theirand for patients to be able network. By encouraging providers to create their own profilesto access, read, understand and experience the benefits of our tools, they can in turn edu-and act on the information in cate our services to their patients. Through this marketing strat-those records. egy, we believe that the consumer will view us as a legitimate compass in their quest for health.The incentive for the health insurance companies will be the access that they receive through con-sumer membership. This access will enable the insurance companies to significantly reduce laborcosts due to the ability to outsource data gathering and analysis. In return, members that share andfrequently update profile information receive monthly discounts and more efficient reimbursements.Going Beyond the DebateHealthConnect has been able to use the Affordable Care Act requirements to flesh out key needs inthe digital health care space. This company has positioned itself well and remains flexible toadapt to current health care issues and grow in relevance and usefulness. 2
  3. 3. SWOTANALYSIS of HEALTHCONNECT Strengths • Partnerships • Multiple revenue streams • Marketing strategy: targeting health insurance membership by tapping Weaknesses insurers’ need for information • Privacy concerns (Please • Engagement of consumer see Appendix A for more • Legimate access to information information on healthcare • Simple data anaylsis privacy laws.) Opportunities Threats • New healthcare legislation — • Repeal of large parts of ACA Affordable Care Act (ACA) (would not damage business • Demand for lower healthcare costs model but would create • Demand for better control of health confusion) information • Resistance to change: all parties • Increasing chronic health problems • Access to information and • Large aging baby boomer role in malpractice suits • population • Health insurance companies • Trend of online sharing creating own health portal service • Culture of insurance companies (inabiility to collude)At-a-Glance Analysis of HEALTHCONNECTCompare to Competitor Analyses on page 6Products: HealthConnect online, interactive health record portal, HealthConnect mobile appService: Health data collection and analysisFeatures: User friendly interface, comprehensive health analysis, API designed to harness datafrom multiple platforms, large amount of individualized care information at lowest cost, crossplatform (web and mobile)Benefit/Strength: Targeting health insurers to push market service to membership.This marketing channel is under-used by competition.Weaknesses: Market is young, but large players (Google, Microsoft) have enteredTarget: Health insurance companies’ membershipEnd Users: Health insurers members, physicians, individualsCost Burden: Health insurance companies, individuals 3
  4. 4. MARKET Uncertainty is plaguing the healthcare market in 2011. The biggest target of the Affordable Care Act (ACA) has been the individualANALYSIS insurance mandate.1 Fortunately, our product can adapt to get ahead of current issues in the healthcare space and only grow in relevance and usefulness. We have used ACA requirements to fleshout key needs in the digital healthcare space. Our analysis has found that there are the following un-met needs: the ability to share patient health records across multiple platforms; and for patients to beable to access, read, understand and act on the information in those records.A Requirement for Electronic Health RecordsOn October 1, 2012 a new law within the ACA will require health plans to begin adopting and imple-menting rules for the secure, confidential, electronic exchange of health information in the form ofelectronic health records (EHR).2 The law is intended to harness electronic health records to “reducepaperwork and administrative burdens, cut costs, reduce medical errors and, most importantly, im-prove the quality of care.” HealthConnect’s model relies on this mandate somewhat, but goes beyond it to connect many platforms of EHRs. The certain existenceAnecdotal of the EHRs now and in the future enables us to collect and analyze data for consumer use.Devoid of Data Sharing? HealthConnect goes one step beyond the current thinkingIn “The Hot Spotters,” by Atul and seeks out the path to seamless integration, relevance andGawande, M.D., in The New ease-of-use for a person’s health information.Yorker, Jan. 24, 2011, a youngdoctor in Camden, N.J., is A New Venture for Doctorsscouring the city for the most The ACA also provides incentives for physicians to join to-unhealthy people and finding gether to form “Accountable Care Organizations.”2 In theseways to reduce care costs. He groups, doctors can better coordinate patient care and im-is doing it with “an expanded prove the quality, help prevent disease and illness, and re-computer database that lets duce unnecessary hospital admissions. If Accountable CareCamden doctors view labora- Organizations provide high quality care and reduce costs totory results, radiology reports, the healthcare system, they can keep some of the money thatemergency-room visits, and they have helped save. Before they do that, they need patientsdischarge summaries for their to treat. Our product will allow these organizations to interactpatients from all the hospitals with patients online and build awareness of their town—and could show costpatterns, too. The absence The Market Potentialof this sort of information is a The identification of high-care/high-cost patients is impera-daily impediment to the care tive to health insurance companies, especially now. There isof patients in Boston, where I broad support to maintain the idea of the ACA’s Pre-Existingpractice.” Condition Insurance Plan. This plan “will provide new cover- age options to individuals who have been uninsured for at least six months because of a pre-existing condition.” In 2014,all discrimination against pre-existing conditions will be illegal and insurers will no longer be able todeny membership based on preexisting conditions and/or chronic diseases. Since there will be more patients on the rolls for health insurers, they will need members totake greater responsibility for their health. Just as revolutionized online accounting andpersonal financial management, we hope to break apart the idea of how people interact with theirown health information. Where can show your net worth and credit ratios, our productcan show you your cholesterol tests from the past three years (uploaded from your doctor)then cross tabbed with your physical activity over the same time (as entered into yoursmart phone or on the site). The importance of that information will be clearer. 4
  5. 5. SITE MAP for HEALTHCONNECT Main page Secure LoginInsurer Page Provider Page Individual Page Mobile App User Interface Member Upload UploadInformation Functionality Functionality Upload Analysis Patient Individual UI Tools Information Information Analysis Analysis Tools Tools Health Goals Account Dashboard HealthConnect Community FAQ Privacy Policy About Us 5
  6. 6. COMPETITOR ANALYSIS Products: Suite of connectivity solutions and services Features: Cerner Network allows providers to electronically share clinical information with one another and makes it easier to stay in touch with patients. Enables physicians, nursesand other authorized users to share data, streamline process across an entire organization.Benefit/Strength: Cost saving and revenue improvements: Reduce unnecessary test, duplicate orders,transcription costs, risk of medication errors, ineligible Rx/ Procedure Combos. Saves on regulatory documenta-tion. Expand access through E-Visits. Maximize copay collection and decreases insurance costs.Weaknesses: Reliability/scalability problems as well as implementation problemsTarget: Mid-Size/Large Medical Groups, Hospitals and Integratedhealthcare organizationsEnd Users: Patients and PhysiciansCost Burden: Healthcare providers Products: Online service to store, manage, and share health information. Features: Manage health information online in a single storage location. Set and monitor personal health goals. Track progress by keeping a health diary. Share health information with family, friends, and medical professionals. Connect to third party apps and content providers.Benefit/Strength: Provides individuals with an easier way to track health records from disparate sources.Improve health by tracking progress made towards health goals or in coping with a chronic illness. Bettercoordinate care by sharing medical records. Get personalized information from content providers. Googlebrand recognition, easy to use tools for individuals, developer knowledge of existing Google APIs.Weaknesses: Privacy concerns, few industry partnersTarget: Individual consumers; doctors’ offices, hospitals, retail pharmacies, and health device makers and other application developers can partner with Google HealthEnd Users: Patients, healthcare providers, device and application makers, and content providersCost Burden: Free Products: Software for mid-size and large medical organizations. Features: MyChart gives patients controlled access to the medical records their doctors use. Patients can schedule apporintments, get test results and print growth charts. It allows true any-time/ anyplace access to patients information by allowing providers to login. Information is shared in two ways:Care everywhere, where the doctor controls the flow of data across organizations and the PHR, where patients control their own health information.Benefit/Strength: Cost Saving and Revenue improvements: Reduce unnecessary test, duplicate orders, tran-scription costs, risk of medication errors, ineligible Rx/ Procedure Combos. Saves on Regulatory Documentation.Expand access through E-Visits. Maximize Copay collection and decreases insurance costs.Weaknesses: Reliability and scalability problems as well as Implementation problemsTarget: Mid-Size and Large Medical Groups, Hospitals and Integrated healthcare organizationsEnd Users: Patients and PhysiciansCost Burden: Healthcare providers Products: Medical Management Software Features: Integrated electronic medical record and medical charting solution with full practice management including scheduling and medical billing capabilities. It provides a complete EMR capabilities (integrated scheduling, messaging, referral processing, on- line eligibility verification and patient historical charting) Physicians can utilize workflow procedure and forms to manage clinical activities, collect patients history, etc.Benefit/Strength: Manage practices efficiently, increase revenue, improve collections and cash flow and pro-vide improved customer service. Increases productivity, adherence to best practices, medical coding recom-mendations and seamless operation with billing system.Weaknesses: Only used in local hospitals, not connecting networks used among large hospitalsTarget: Mid-Size and Large Medical Groups, Hospitals, Integrated healthcare organizationsEnd Users: Patients and PhysiciansCost Burden: Healthcare providers 6
  7. 7. Products: Complete suite of products for medical office: Practice Management System, Electronic Medical Record and Appointment Scheduler Features: MPMS: is an automated practice management medical billing software, quick, ready to use and with customizable reporting capabilities. The electronic medical re- cord software: helps medical offices create the most complete medical chart electroni-cally. The appointment scheduler: is used for scheduling and managing patient appointments.Benefit/Strength: Manage practices efficiently, increase revenue, improve collections and cash flow and pro-vide improved customer service. Increases productivity, adherence to best practices, medical coding recom-mendations and seamless operation with billing system.Weaknesses: Not well known in the industry. Not a big supplier.Target: Mid-Size and Large Medical Groups, Hospitals and Integrated healthcare organizationsEnd Users: Patients and Physicians /Cost Burden: Healthcare providers Products: Online service to store, manage, and share health and wellness information. Features: Create and access personal health records. See how an individual’s health score compares to peers. Create a personalized health plan and track progress. E-mail content with relevant information to individual health issues.Benefit/Strength: Easier tracking of health information from multiple sources. Peer comparisons with anonymousdata help to incentivize individuals to set personal health goals. Online tracking of personal health goals helpsindividuals meet goals, resulting in healthier lifestyles. Brand recognition, extensive collection of health contentcan be leveraged from WebMD existing site. Integration with WebMD community helps to connect patientswith experts.Weaknesses: Closed system: does not appear to provide an API to allow for third parties to leverage informa-tion in the system. Does not appear to have import function from third party systems like pharmacies or labs.Target: Individuals; employees and health plan member access coming soon.End Users: Patients / Cost Burden: Free Products: Online service to store, manage, and share health and wellness information in one central place. Features: Create an account and manage personal health records or records for fam- ily or loved ones. Import data from pharmacies and lab companies. View and trackhealth info with health tools. Share information with family and caregivers. Software development kit and APIfor developers.Benefit/Strength: Provides easier tracking of health records in a central location. Save time by importing datafrom pharmacies and labs. Coordinate personal care or the care of loved ones. Microsoft brand, integrationwith health devices, ability to manage a single individual or an entire family.Weaknesses: Privacy concerns, fewer content resourcesTarget: Individuals, families, and health solution providersEnd Users: Patients, healthcare providers, and healthcare device manufacturers / Cost Burden: Free Products: Personally controlled health record that stays with a person for life. Features: Open source system with secure storage of health records and an API to access data from other sources.Benefit/Strength: Open source allows developers to extend and expand the capabilities of the platform.Weaknesses: Little brand recognition, not consumer-centric (developer focused)Target: Developers / End Users: DevelopersCost Burden: Free Products: Electronic medical record system using open standards to share data across EMR systems. Features: Open standards allow data to be transferred between systems. Ease incollecting and aggregating information through use of standard data APIs. EMR with patient-facing portal.Benefit/Strength: Ease in collecting and aggregating information through use of standard data APIs. EMR withpatient-facing portal.Weaknesses: Not currently a well-know industry playerTarget: Health providers, developersEnd Users: Health providers, developersCost Burden: Unknown 7
  8. 8. COMPETITOR ANALYSIS con’t Products: Interoperable personal EHR, modules and infrastructure solutions Features: Open-source-based software and web services, automatic and manual entries are structured in industry-standard HL7 continuity of care format (cannot be altered or de- leted) and identify the source of entryBenefit/Strength: Patients can access medical health records, or provide records to doctors with easeWeaknesses: Dependent on technology and web connectivity- doctors can access data from EHRs or directlywith web-connected devices; does not allow for patient diary or self-recorded history, only provides medicalrecords. / Target: Healthcare providers, patients, developers/ End Users: Healthcare providers, patients,developers / Cost Burden: Cost to patients, and cost to health providers Products: Personally controlled health record that stays with a person for life. Features: Create and manage a personal health record. Aggregate information from various sources. Share information with healthcare providers. Benefit/Strength: Employees become more active healthcare consumers, thereby reducing waste and saving employers money in health insurance costs. Data source network not available in other solutions, employer-sponsored service could increaseadoption among employees.Weaknesses: Privacy concerns related to employer access of data, little brand recognitionTarget: Individuals, employers, developers, and providersEnd Users: Patients, healthcare providers, employer benefits departments, and software developersCost Burden: Employer paidCatalyst Products: Software as a Service (SaaS) and Cloud Services, Rich Internet Applications, Reusable UI, Mobile, Touch and Gesture applications, instrument control applicationsResources Features: SaaS, multiple application and dashboard components, user-validated UI com- ponents, on-going implementation supportBenefit/Strength: Easy access through cloud computing (through multiple devices), saves time with built in IT li-braries, panels, tools and components, efficient-provides workflow automation, easy to use- designs and devel-ops modular, high-performance rich user interfaces (Adobe Flex, Java, Microsoft Silverlight, WPF, AJAX/HTML 5,iOS, Android, Adobe AIR)Weaknesses: Cloud computing could prove difficult with patient information rights, not for patients Target: Health providers, developers / End Users: Health providers, developers / Cost Burden: Health providers Products: Custom mobile app. design software and mgmt. tools for mobility projects Mobile Features: Has built-in mobile application development (point and click), mobile device Frame management, project administration, GPS tracking, and software integration Benefit/Strength: Easy integration to backend systems, Saves time and money through mobile solutions (finding an efficient route for mobile workforce), easy development through WYSIWYG and code-free application development, simple- only need to create mobile applicationonce, and MobileFrame handles screen rendering complexities.Weaknesses: Can be used for patient care, but not available for patients. Unknown where patient data isstored. / Target: Health providers, healthcare administrators / End Users: Healthcare providers (home health,and hospital-patient care) / Cost Burden: Cost to the health providers Products: Web design-content development, usability testing, content management, SEO, online recruitment, hospital social media, healthcare mobile applications Features: Benchmark process to meet objectives and analysis of competitor applica- tions, uses goal mapping processes to prioritize user requirements, product based on stakeholder information/interviewsBenefit/Strength: Multiple offerings through one company; makes processes and recruitment easierWeaknesses: Limited functionality for patients: ER/ED wait times, pre-registration, finding a physician, news and events, health libraries, and videosTarget: Health providers, healthcare administrators, developersEnd Users: Healthcare providers, patients, developersCost Burden: Cost to the health providers 8
  9. 9. OBJECTIVES Market Share: HealthConnect is a B2B venture and our target market is primarily health insurance companies. Although this service will be available to every individual who has a medicalrecord, for simplicity reasons our initial target market is the healthcare insured population. Accord-ing to latest US Census Bureau data on Health Insurance Coverage there are presently 253.6 millionpeople insured. HealthConnect’s long term goal is to bring all 253.6 million insured people plus 45.6million uninsured people on our network.3 Initially, we will rely on insurance company’s to marketour services to their members. In our first year of operations we hope to tie up with at least two big names in the healthcareindustry, such as United Health Group and Well Point. In our first year of operations we hope tobring in at least 300,000 patient records on our network. As stated earlier, by 2012 the healthcare lawwill require health professionals to document patient records electronically. It is during this periodthat we feel our sales will grow dramatically as the data will be easily retrieved from a network. Weexpect to have 800,000 patient records by 2012, 1 million in third year, 2 million in fourth year and 4million records in year 5.Costs: We will need to constantly upgrade our servers to handle high user traffic. Our initial invest-ment in technology (servers) should be more than enough to handle 300,000 users traffic. We foundan online calculator that can calculate the data/bandwidth usage based on the traffic. Based on theaverage cost of data usage (based on number of user traffic) we were able to come with a cost. Costfor securing a web-based high security system to ensure patient privacy is also included. Our primary investmentin technology will be in the de-velopment of API (ApplicationProgramming Interface) for which Revenue Streams • Insurance companies pay $3/ year per user profilewe will be hiring two software • Health systems pay us for brand marketingengineers (full-time), one of them (Health systems experts pay us to engage with users bywill be in-house programmer. Cost answering their general health concerns)of securing a server and data stor- • Sales of aggregate dataage is directly proportional to the • Ad revenuesales. These costs will increase aswe start adding more features toour web page, such as access to MRI images, etc. which require huge amount of bandwidth and datastorage. This API will be the core of our business; it is through this interface that all the encrypted pa-tient records in local hospitals will be uploaded to a network accessible by patients and other doctorsand insurance providers, with a user-friendly interface. Average salary for the software engineer is around 90K/annum. Investment in technology willbe a continuous process and will be directly proportional to sales. Initially our sales forces will in-clude five people with base salary plus commission. We expect to hire a sales manager with a reason-able amount of sales experience in the Healthcare industry (Average salary is 80k/annum plus com-mission). The cost structure mentioned above is assumed to be in direct proportion with sales hencepercent of sales method is applied to estimate earnings.Projected sales: Our primary source of revenue will be charging the insurance companies $3/yearfor access to each patient record therefore our projected sales in dollars will be directly proportionalto the number of users we bring on the network. Our secondary source of revenue will be sellingonline ad space to healthcare insurance companies. Ad revenue will play a key role only after five-sixyears in operation. We expect this to be a profitable venture within the first year, and due to the nature of theindustry the sales are projected to increase exponentially. 9
  10. 10. OBJECTIVES CON’T 10
  11. 11. MARKET ENTRY We are targeting with insurance companies because they have a large consumer base that we can tap into. Also we realize the need to be legitimate and goingSTRATEGIES through well established health care organizations will help us to create an official brand. Our product rolloutwould require a mix of inside and outside sales staff to approach health insurance companies andpresent the benefits of the comprehensive health record portal. In the interest of overall cost savings,the insurance companies will then encourage providers to educate their patients on the benefits ofour services and tools. All service agreements are between patientand HealthConnect (the insurer who may introducethe product to a member is not liable for service is-sues).Additional service agreements apply if a patientwishes to allow an insurance company access to theportal to offer targeted discounts and otherqualifying benefits. 3 PHASE ROLLOUTWe have laid out in detail the 12 month plan Health Care Community: Allow healthcarefor the development and launch of our prod- systems such as hospitals to build profiles withinuct in the timeline within the Implementation the network to interact with patients, marketsection. Broadly, we see the product creation services and build brand loyaltyin three phases. Phase threePhase one Anonymous data packages aggregated forEstablish main site medical research.• This extracts and houses a person’s health information in a simple and well orga- nized way• Data and analysis outsourcing services to health insurance companiesBuilding key relationships:• Insurance companies• Health care organizations• Research groupsPhase twoHealthConnect Mobile app: This contributesto the depth and utility of the main site whileadding its own, more immediate access toanalysis of and interaction with day-to-dayhealth data. 11
  12. 12. MARKET ENTRY CON’TSTRATEGIESMore on the Mobile App.While mobile is a key part of our product’s design, we are staging the rollout in Phase 2 so that theapp will be immediately useful because it will tap into the fully-realized main site. That means con-centrating on developing the main site software now. Once we launch the HealthConnect mobile app (targeting month 12) we will use market dataon some core questions to deliver a fully realized product. We interviewed Sutha Kamal,the CEO of the startup MassiveHealth (, to deter-mine what the key questions are for amobile health app to answer in 2011.He suggested that we determine:• Overlap of Facebook and Twitter to the various demographics of chronic diseases• Percentage of individuals inter- ested in fitness/use fitness apps• Percentage of individuals that care about Google Health/Microsoft Vault• Percentage of individuals (and in what demographics) that use smart phones now• Market size/consumer willingness to pay for each of the above• Advertising spend in those industries• Breakdown by medical device vendors, pharmaceutical At-a-Glance Market Entry for HEALTHCONNECT This initial cost of entry will be significant but will gradually ease as adoption takes hold: • Sales force lands key accounts with insurers • Insurers push product to membership • Healthcare systems are offered the opportunity to access the service to drive business and encourage referrals • Eventually, the sales force will migrate to untapped markets. The service is largely turnkey, but will require significant IT interface and some account management. 12
  13. 13. MARKETINGMIX HealthConnect is a network that enables a pa- tient to compile a comprehensive health portal which includes electronic medical records andself-reported data. In the best interest of that individual’s health, this information can be shared withwhomever the patients selects. The HealthConnect portal can be securely accessed through websiteand mobile devices anywhere with Internet access. To communicate these benefits and connect with the consumer, emphasis will be placed onuser-friendly data graphics, personalized analysis and progress, and interactivity. These featuressimultaneously benefit patient users, healthcare providers and insurance companies.Benefits to Communicate to Patients (User Features to Highlight in Marketing Materials)Access:• Upload health records from care provider’s EHR directly into portal.• Enter and track self reported data: drug side effects, daily symptoms, glucose levels, weight, etc.Analysis:• Algorithms will offer health analysis and scoring based on comprehensive individual data. Progress reports and stated goals• Alerts: Health reminders and alerts, based on life stage (e.g.: mammogram reminders after age 40 for women• Aimed to maximize patients preventative care to save costs from major illnessAppearance and Extras• User friendly, simple interface HEALTHCONNECT• Data presented in charts and graphics for quick, easy review• Fun incentives to encourage users to update info frequently such as points, levels, status awards• promotions and discounts from insurance companies to encourage updatesPrivacy• Secured website,password protected• Health provider access with permission and/ or emergency situationBenefits to Communicate to Healthcare ProvidersEfficiency and cost reduction due to:• Cross platform access to patient data, regardless of individual health system EHR format• Comprehensive look at patient data: formal medical records as well as frequently updated self reported data (ex: daily glucose levels for diabetics)• Medical Research: Access to aggregate data over time of health outcomes• Platform for Accountable Health Organizations and other health systems to market cost effective servicesBenefits to Communicate for Insurance CompaniesEfficiency and cost reduction due to:• Collection of Aggregate Data on subscribers• Health patterns and trends analysis• Predictive Modeling• Ability to determine more appropriate pricing structures 13
  14. 14. MARKETING MIX CON’TPromotionHealthConnect is distinct from other online health portal providers such as Google Health. They tar-get and benefit mainly individual health consumers. This method results in limited patient participa-tion due to lack of interactivity and adequate incentives. Since HealthConnect’s success depends on a largenetwork of users, the company will target health insurancecompanies. HealthConnect will offer insurance companiesaccess to a multitude of valuable health informatics andmodeling based on aggregate user data. As a result, it wouldbe in the insurance company’s best interest to offer discountsto customers who participate in HealthConnect’s portal. Inaddition, the insurance companies can encourage healthcareproviders in their network to motivate patients to participatein the portal. Patient participation will benefit the patients,health providers, and insurance companies. Our companyexpects that this approach will be successful in attracting alarge base of HealthConnect users. In addition to targeting users through their insurancecompanies and healthcare providers, we will educate peopleof our services through online marketing initiatives such asGoogle and Facebook Ads. Facebook will be an important place to attract users because people whoare already comfortable displaying a personal profile, may be more willing to participate.PartnershipsIntegration is at the heart of HealthConnect’s business model. As we work with health insurers toencourage their membership to centralize their health information, we then move to the next step of partnering with healthcare organizations. The access to a cohort of people who are interested in im- proving their health would give the healthcare organizations many marketing opportunities. The trade-off is simple: For a certain amount of interaction with the health consumers on our site, the healthcare organizations will pay an access fee. There is a baseline level of interaction required from the health experts (five health questions answered or commented on per week). But there is no limit to how much information they can share. This could be a direct link to referrals for doctors through the online interaction space. Smart hospital systems would see our service as a niche social media platform that they could use to build brand awareness and get an edge on the communication compe- tition that any business faces, but that the medical community is only now confronting. As HealthConnect grows, we would have the opportunity to create partnerships with brands that wanted to have a captiveaudience and a trusted portal through which to share information. The key to the portal is that thehealth insurer is front-facing. Although research shows a low level of appeal for the healthcareindustry as a whole (New England Journal of Medicine, vol. 358, no. 18, pp. 1881–1883),information delivered by the insurance providers is taken at face value. 14
  15. 15. MARKETING MIX CON’TDistributionHealthConnect will own all the data that users upload. For privacy purposes, the website will anony-mously aggregate the data when selling for research purposes. The company will sell user profileaccess to health insurance companies as determined by the user. When selling research we will offerdigital research packages or the option to mail hard copies.PricingHealthConnect will have a two-tiered revenue stream of the up-front licensing fee with and addition-al per member usage charge. This will be very adaptable as we work toward profitability. That two-tiered system allows for a great deal of pricing flexibility:• For a large health insurer (250,00 members or more), the initial license fee will be substantial with a modest per member fee.• For a smaller insurer, we would take the opposite tack: a smaller upfront fee that would be aug- mented by a higher per member usage fee.That pricing structure ties into our approach as a unifier of the niches, not an across-the-board solu-tion. Our service is adaptable for any kind of member, regardless of health and so it appeals to anyhealth plan.Additional PricingAdd pricing for other revenue streams referenced in Objectives:• Health systems interaction with users would be based on a subscription fee: $50,000/year subscription (based on ShareCare pricing)• Ad Revenue: Bid Based Rate PPC to be determined by auction• Research packages: starting at $1000 the new way HEALTHCONNECT the old way 15
  16. 16. IMPLEMENTATION For the initial phase of the network, we will only need a few professionals (see Objectives). Once the network is ready to launch, other personnelwill be required full time. Below are the professionals needed after the network is created and fully launched.President/CEO: To align the company, internally and externally, with strategic vision. Will facilitate businessoutside of the company while guiding employees and other executive officers towards a central objectiveVP Marketing: Responsible for the strategy, tactics and programs to create interest, demand and recognitionfor the Network through the use of PR, Product Marketing, Creative Services, Advertising, Strategic Relation-ships, Direct and Online Marketing.Marketing Manager: Full time professional respon-sible to create the logo, marketing materials, andwebsite design. And responsible for influencing thelevel, timing, and composition of customer demandaccepted.VP Finance: Responsible of analyzing the key areasof the business, including product profitability andprepare annual budget, monthly forecasts, and otherfinancial reports. As well as, to forecast revenuebased on current sales and future estimatesProgrammer: Full time professional in charge ofwriting the software necessary for the network.Engineer: Full Time professional concerned withapplying scientific knowledge, mathematics and in-genuity to develop solutions for technical problemsthat may come forward.Web Designer: Responsible for creating the look and feel of web page for a HealthConnect’s Web site. Thisinvolves developing a graphic design that effectively communicates the ideas being promoted by the Web siteand must collect the text documents and images that will appear on the page and convert them into a form inwhich they can be viewed.Product Manager: Full time professional responsible of investigating, selecting, and developing the networkby considering factors such as intended demographic, the products offered by the competition, and how wellthe product fits with the company’s business model.Nursing Informatics: a part-time professional which will assist the hospital management and nursing teamsby converting patient data into computer programs.Training Specialist: Full time professional who plans, organizes, and directs a wide range of training activi-ties. Trainers conduct orientation sessions and arrange on-the-job training for hospital and member involvedin the usage of the network.Sales Manager: Full time professional responsible for the implementation of the sales plan.Sales Team: Full time employees who responsible for selling the product.Customer Service: Area responsible of service to customer before, during and after the imple-mentation of the network. Capable of providing the best service by answering any questionsor concerns a client might have, in the most appropriate and professional way. 16
  17. 17. TIMELINE 17
  18. 18. APPENDIX AHealthcare and Privacy LawsHIPAA, shortened for the Health Insurance Portability and Accountability Act of 1996, is the federallegislation that protects and provides patient rights. There are two parts to HIPAA: The Privacy Rule,and the Security Rule. The Privacy Rule pertains to individuals health information be it electronic, written, or oral.The Privacy Rule sets rules and limits on who can look at and receive health information. The Security Rule pertains to information doctors, nurses and other health care providers putinto patient medical records, conversations doctors have about patient care or treatment with nursesand others, information about health insurers’ computer system, billing information about patientat patient clinic, and most other health information about patients held by health plans and healthcare clearinghouses. The Security Rule requires that all electronic health information be protectedand secured. This rule applies to health insurance companies, HMOs, company health plans, govern-ment plans like Medicare and Medicaid, health care providers including those that conduct businesselectronically like electronic billing, doctors, clinics, hospitals, psychologists, chiropractors, nursinghomes, pharmacies, dentists, and those that process nonstandard health information received fromanother entity into a standard electronic format or data content or vice versa. The information is protected by safeguards, such as encryption tools, restricted access, use anddisclose patient health information properly and appropriately, and implement training programs foremployees about how to protect patient health information. If contracted, entities must have contracts in place with their contractors and others ensuringpatient health information is safeguarded, and entities must have procedures in place to limit whocan view and access patient health information.Patient health information can be used and shared:• For treatment and care coordination• To pay doctors and hospitals for health care and to help run their businesses• With patient family, relatives, friends, or others identified who are involved with patient health care or patient health care bills (unless patient objects)• To make sure doctors give good care and nursing homes are clean and safe• To protect the public’s health, such as by reporting when the flue is in a specific area• To make required reports to the police, such as reporting gunshot woundsPatient health cannot be shared without written permission unless the Privacy Rule allows it.Examples of unauthorized use of health information, a provider generally cannot:• Give patient information to employers• Use or share health information for marketing or advertising purposes• Share private notes about patient health careAPPENDIX BEndnotes1. Domenech, B. (2011, 1 31). Retrieved from Health Care News: US Government. (2010). Provisions of the Affordable Care Act, By Year. Retrieved from Health- US Census Bureau. (2010). Health Insurance Historical Tables. Retrieved from US Census Bureau: 18
  19. 19. 19APPENDIX C
  20. 20. Get Healthy, Stay Healthy. 20