Prefer to Believe This (1):
Re: Where's the sustainable revenue?
by: kvmiller50 12/4/00 11:37 pm
Msg: 51809 of 51811
I don't think your understanding of the business model is complete.
1. Most people would rather get their info from their MD; unfortunately, they can't really. The MD has only a few moments with the patient. Most educated patients want more info, but don't even know enough about their conditon to ask reasonable questions. They learn much more from other sources, like WebMD. No doubt while learning they will be exposed to advertising. Docs have a hard time saying no to patient's requests for a med if is appropriate. So when there are a half a dozen similar acute migrane meds, I'll write for Imiterx or Zomig or whatever if the patient has a particular request. Advert wars will be more intense in the future -- what better way to target your audiance than an ad for Imitrex on the WebMD Headache page?
2. "Nothing more than a middle man" is not a bad positon, especially when linking high cash flow operations (think other middle men like Costco, Home Depot any supermarket).
For example, the system will have an prescription service. The drug companies pay huge $ for prescribing info; in that HLTH will have the patient and MD demographics, the data will be all the more valuable than the few other vendors of this info. For a hint of the cash flow from this alone look at RX.
Labs that sign up with HLTH will have patients directed to them. I suspect that some revenue stream can be generated from this.
I am quite willing to pay a middle man to manage the "back end system using the ANSI X12 N standard" and subsequent permutations -- that after all is what middle men are for. You have simply no idea how difficult all the paperwork to insurance cos is. Between billing and approvals in my office of 4 MDs we have 2 dedicated FTEs (full time employees) and we have less than most in that as a botique practice we are not signed up with any plan (we are the out-of-plan second opinion docs). HIPAA will force compiance, but more to drive MDs to such a system than drive them away.
As ever,
Kurt Miller, MD
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