HealthcareMagic - Business Model and Comparitive Analysis

April , 2015

Objective About HCM Customers Value Proposition

Scope of Activities

Value Capture Competitor Strategic

Control


Scope of Activities


Control

•HealthcareMagic is an online platform for patients and attendants to consult doctors, i.e. specialists and super specialists, and get an answer then and there without visiting the hospital or a clinic.

•It was started in 2008, in Bangalore, the IT Hub of India, and was first of its kind back then.

•Today HealthcareMagic has more than 250,000 user footfall everyday on its website and more than 15,000 specialists are associated with the organization


Scope of Activities


Control

https://www.youtube.com/watch?v=NwSTNo2GeVQ

About 75% customers are on HCM for second opinions, where they have already consulted a physician or specialist earlier. Second Opinions, in cases where ailments or diseases are of severe nature, are quite common. Patients do not want to rely on one prognosis as they outcome may not be favorable. Hence to be sure, they use HCM’s specialists who are with an impressive track record, to eliminate any doubts they may have.

Even though hospitals are at an approachable distance, customers now prefer using e-health services as its convenient and cost effective

One normal consultation in India, on an average costs 500 INR. With HCM you can consult for 5 times in 350 INR. That is just 14% of the normal fees a patient pays for one consultancy, in a normal clinic. Lavish ones are 1200 INR and above

Reports and details can be uploaded online in less than a minute. The entire process is designed in the simplest ways to enhance ease of access.

Rates vary across geographies as per the paying capacityObjective About HCM Customers Value

PropositionScope of Activities


Control

• Geographic– Location: Bengaluru– Population: Tech savvy, Professionals– Less awareness about medical facilities– Current geographies: International (predominantly US) &

other states in India• Demographic

– Age group : 22 & above, retired people, professionals– Target audience: Doctors, pathology labs, hospitals– Gender: % of women is less as there is a concern about

security and comfort level with sharing medical/healthcare issue online. They prefer primarily women doctors


Scope of Activities


Control

Psychographics• Will target audience that are generally open to technology

and new ideas

Behaviour• Needs and wants of the patients• Usage rate and corresponding service levels• User status: Determines traffic on website


Scope of Activities


Control


Scope of Activities


Control

Based on the type of ailments


Scope of Activities


Control

Technology• Higher number of specialists belong to the age group of 28-38

(approximately 65-70%) that are tech savvy• Increasing ease of technological diffusion in our lives• Increasing number of aged specialists becoming a part of HCM Network

Geographies• Higher ratio of Asian Specialists connected with its network since HCM

started its operations from India• Higher influx of doctors from USA, Europe and Africa since 2011

Specialties• Diverse pool of specialists delivering quality services 24X7• General Physicians constitute about 45% of the total doctors• 12% are super specialists (cardio, neuro, nephro)


Scope of Activities


Control

Patients

Physicians

Health Care Suppliers

Corporate Enterprises

• 24 x 7 consulting• E-Medical records• Worldwide

connectivity• Medical Insurance • Convenience

• E-Medical records• Advertising and sale

of relevant products

• Increased patient referrals

• Worldwide connectivity• Easy outreach and

appointments• Accreditation

• Discounted large scale insurance

• Customized user interface

Health CareMagic


Scope of Activities


Control


Scope of Activities


Control


Scope of Activities


Control

For Patients:• Question marks over coverage when using

online therapies

• Concerns regarding confidentiality, privacy and storage especially with the rising demand of eRecords

• Cannot be helped in crisis situations


Scope of Activities


Control

For Physicians:• eTherapy is not appropriate for people

with complicated illnesses

• Therapists cannot see facial expressions, vocal signals and retrieve

body metrics

• Doubts over legal/ethical codes


Scope of Activities


Control

• Rebalance of the public and private sectors in the financing and delivery of care• Precision based industry has shown growth• E-records : 38% in 2008 to 78% in 2013• Seamless care - Digital tools • Disruption Vs. Enhancement


Scope of Activities


Control


Scope of Activities


Control


Scope of Activities


Control

Patients

Advertisement Services

Health Care Magic

Physicians

Registration

Subscription Fees

Consultation Fees

data

credits

Consultation via HCM

Health Care SuppliersPortal Services

Corporate Healthcare schemes

Registration

Consultation via HCM


Scope of Activities


Control

Customers Currently registered Current annual Revenue (in $US)

Patients 3,000,000 $3,000,000

Average consultation % paid to doctors from the premium

amount -$1,500,000

Physicians 10,000 $100,000

Corporates 50 $50,000

Advertisements 100 $1,000

Total Value $1,651,000

Conversion Rate 5.0%Average Premium per customer $20 Yearly

Average Registration per Physicians $10Average Premiums per corporate $1,000

Advertisements $10 P.AAverage consultation % paid to doctors from

the premium amount 50.0% Consultation fee

Approximately


Scope of Activities


Control

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

0

2

4

6

8

10

12

Revenue Rise (In Millions USD) 2010 to 2014


Scope of Activities


Control

Pharmaceutical Distribution Business

Home healthcare business

Non emergency medical transportation services

Medical supply business

Medical equipment sales

Medical related app


Scope of Activities


Control

Partner with medical equipment suppliers

Advertise over web/mobile apps

Consultations for corporates via customized UI

Health awareness campaigns for outreach/PR


Scope of Activities


Control

Source: Company Websites & Blogs

Online Traffic Number of specialists


Scope of Activities


Control

Consumer Base

eVaidya

Practo

SCIO HA

MedStar Health

HealthCare Magic

3 MM4.5 MM

1.5 MM

250K/D 120K/D

80K/D35K

15K

8K

Sep 21, 2007

#18,139

June 3, 2010

#8,889

Aug 14, 2011

#237,934

Dec 28, 2012

#160,873

Launch Date

Popular Website Ranking

s


Scope of Activities


Control

Source :http://www.statshow.com/ accessed 11-Apr-2015 5.27pm

HealthCare Magic Lybrate Practo DoctorSpring0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

1736610

195780

3543720

132420

789360

88980

1610760

60180

Viewership / Visitor Comparison ChartMonthly Pageviews Monthly Visitors

Scope of activitiesManage billing to customers

Supports a variety of medical advisory

Public Forum for medical advisory

"live" interaction with doctors online

Managing appointment booking through smartphone app or online portal for patients

Manage appointments, medical records, accounting billings for the doctors

Android mobile support

share medical records with other doctors easily

Find doctors near their location

Free service - digitally store and manage their records on smartphone

Fee-based consultation for patients

On-click emergency support system

search tool for nearby ambulance services


Scope of Activities


Control

Free

Service offered Recognized as core competency


Scope of Activities


Control

First mover advantage•Established and recognized with a market leader•Focus on medical advisory with “Online interaction” with doctors•Wide variety of medical field•Ease of use•Tiered-based fee consultation

Similar business model to HCM•Follower with fewer features offered

Different business model from HCM•Focus on customer relationship software for doctors and clinics•Manages search for doctors, booking and appointment scheduling

Late mover advantage•Offered all the services from HCM and Practo combined – For Free•Additional innovative features such•one-click emergency support service•search tool for nearby ambulance services

User BaseUniqueness

Beginner’s AdvantageCollaborations

Cost of OperationHigh Scope of Activity

Ease of AccessPricing

Refund Policy (100%)

Low Entry BarriersDiverse Legal Constraints

No Serious AilmentsDependency on Internet

Technical BarriersAvailability BarriersDifficulty in Claims

Go MultidimensionalRate PractitionersBetter Incentives

Targeted CollaborationsEducation Sector

Government RegulationsLitigations

Risk of Casualty If DelayedLimits while PrescribingEasy To Copy Concept


Scope of Activities


Control

Patients DoctorsHealthCare Magic

More patients attracts more Doctors

More doctors attract more patients

Advantage of being the first company to establish foothold and the largest player in thedomain


Scope of Activities


Control

• Acquired by EBIX – Provides an avenue for e2e solutions

• Allows building of an eco-system around HealthCare Magic

EBIX

HealthRisk Assessment

Smart Care

HCM

SmartEngage

Smart SitesA.D.A.M on Demand

Health Centers

Patient Journeys

Medication Management


Scope of Activities


Control

• Restrictive Practices– Strengthen and establish ‘exclusive’

relationships with hospitals

• Vertical Integration– Being part of EBIX’s wider ecosystem offers

better control of the market

• Cost advantages independent of scale– Proprietary technology, know-how; learning

curve cost advantages


Scope of Activities


Control


Scope of Activities


Control

HealthcareMagic - Business Model and Comparitive Analysis

Education

website objective

women doctors objective

paying capacity objective

super specialists

hcms specialists

normal clinic

professionals target

india demographic age