2. The Problem
Hospitals are
discharging
patients early
Readmission rates increase,
which leads to penalties
Readmission
rates show the
quality of care
at hospital
Readmission creates unexpected
costs for patients
Elderly are
most affected
Failure to take medication leads to
another hospital visit
3. Our Solution
Mobile Healthcare Application
• GaugeWear to measure core body temperature, blood pressure and heart rate
• Remote coaching with patients
• Incentivize with coupons/discounts
Goals
• Increase adherence by 35% for patients
• Decrease readmission rate of elderly from 26% to 10%
• Decrease penalty rates from -.61% to -0.5%
4. Market Analysis
Industry Overview
• More than 2,000 mobile health applications in the market
• Expected revenue of $26 billion by the end of 2017 for mobile health applications
• There are currently 272 medication reminder applications in the market
• Main competitors are: Medisafe, Mango Health, and Pillpack
Target Market: Elderly patients, and hospitals who face readmission penalties
• 70% of US adults over 65 have hypertension
• 26% of elderly patients are readmitted within 30 days of discharge
• As of 2016, 14% increase of readmission rates
8. Financial Analysis
•CaParkLee will generate approximately $1.5 million in profit over the first 3 years
Year 1 Year 2 Year 3 Total
Gross Income
App Subscription($1000 per year) 200,000$ 1,000,000$ 1,800,000$
Total Income 200,000$ 1,000,000$ 1,800,000$ 3,000,000$
Expenses
Advertising on Billboards 11,000$ 11,000$ 11,000$
Advertising on Health magazine 980$ 980$ 980$
Salaries for Developers 129,989$ 100,289$ 100,289$
Salaries for Marketing personnel 52,815$ 52,815$ 52,815$
Salaries for ourselves 62,780$ 313,900$ 565,020$
GaugeWear Technology($800 per year with 5% increase) 800$ 840$ 882$
Apple server and infrastructure 2,050$ 2,054$ 2,054$
Developer Licenses for Apple 99$ 99$ 99$
Total Expenses 260,513$ 481,977$ 733,139$ 1,475,629$
Net Income (60,513)$ 518,023$ 1,066,861$ 1,524,371$
9. Implementation
• Create a relationship with GaugeWear
• Hire developers to create the application
• Test the application to a few hospitals who face penalty problems
• Establish relationships with hospitals and insurance companies
• Deploy in North America
After secured funding, we will:
10. Use Cases
Glenn Dawson
• Age: 30 years old
• Interests: Rock-
climbing, Hiking,
Reading, Sleeping
• Qualities: Stubborn,
Type-A, Hardworking
Karla Kim
• Age: 75 years old
• Interests: Knitting,
Bingo, Watching
Jeopardy, Couponing
• Qualities: Forgetful,
Compassionate, Frugal
Currently there are over 2,000 mobile health applications in the market, and that expected revenue for that market will grow to $26 billion by the end of 2017.
Current there are 272 medication reminder applications in the market. Out of these 272 reminder applications our main competitors are Medisafe, Mango health, and Pill pack.
Like Tom said, our application will be used mostly by elderly patients, and hospitals that face these readmission penalties.
The reason why we target the elderly patients is because, 70% of them who are over 65 have hypertension, so if these 70% of patients are in danger of heart attacks and strokes if they do not take their medication.
26% of these patients are readmitted to the hospital within just 30 days of their discharge. As of 2016, the readmission rates have increased over 14%.
Compared to these competitors we are the only ones that can track the vitals of the patients in real time.
Read the slides
We assume over the first 3 years we will generate $1.5 million in profit. We came up with this number through, a subscription fee of $1000 for the hospitals to use the app, and for the first year we will have 200 hospitals that use the application, then for each of the other years we will gain 800 hospitals per year. This is based on 3400 hospitals that face penalty rates.
We will be renting the gauagewear technology for 800 per year with a five percent increase for each year because we will gaining more customers.
After securing funding, we will then continue to create a relationship with guagewear to further use their technology for our app.
We will then also hire developers to develop our application, and then after that we will start testing the application to hospitals that face the readmission problem.
We will also establish relationships with hospitals and insurance companies to try to give those discount coupons
After testing we will fully deploy throughout North America.
App Subscriptions: We assume in year 1: 200 hospitals will subscribe. In year 2: 1000 hospitals will subscribe. In year 3: 1800 hospitals will subscribe. In year 4: 2600 will subscribe. In year 5: 3400 will subscribe. This is based on 3400 hospitals facing readmission penalties in 2015. (This is based on 800 hospitals performing well; so starting in year one 800 hospitals will be added to subscription, until we meet the number of 3400 hospitals using this app.) Source:http://www.modernhealthcare.com/article/20150803/NEWS/150809981
Advertising on Billboards: $11,000 for four weeks per year based on price from Boston. Source:http://grasshopper.com/blog/billboards-for-small-businesses-7-reasons-to-think-twice/
Advertising on Health and Fitness magazine: $980 for a 1/2 page horizontal. Source: http://www.healthfitness.us/images/HAFM_RateSheet.pdf
Salaries for 2 mobile application developer (22.96 hourly) Year one- 840 hours of development for the app. Maintenance will only be done by one developer and they will 4368 Hours per year of maintenance(every other Friday of the Month).Source: http://www.payscale.com/research/US/Job=Mobile_Applications_Developer/Salary
Salary for marketing specialist: (31 dollars per hour) 35 hours per week = 35 hours*52 week=1820 *$31 *.0639 (tax)= 3605.23 =56420-3605.23= $52,815 Source: http://www.payscale.com/research/US/Job=Mobile_Applications_Developer/Salary
Taxes: 6.39% Source: https://beta.phila.gov/services/payments-assistance-taxes/business-taxes/business-income-receipts-tax-birt/
Salaries for ourselves: 25 percent of gross income for each year plus tax.
Guagewear 800 per year with a 5 percent increase for each year
Apple store Fee: $99 dollars Source: http://www.techrepublic.com/blog/software-engineer/app-store-fees-percentages-and-payouts-what-developers-need-to-know/
Server: $2000 for a small enterprise Source: http://www.comentum.com/mobile-app-development-cost.html
