Medical Memory Systems

Medical Memory SystemsMMS

12/8/20031

Medical Memory Systems

Project ManagerJeff McCreary

Timeline/LogisticsWBS

Rabia Haq

Web Designer/BudgetingSoftware WBS

Daniel Anderson

Resources/MarketingEMR/WBS

Richard Strosahl

Funding/PrototypingResearch PlanMegan Babb

Support Stats/Risk AnalysisChris Fronda

212/8/2003

Medical Memory SystemsPreview• Communication breakdowns in the Healthcare Industry

• Developed solution• Technical Innovations• Market Plan and Analysis• Evaluation Plan• Project Management Plan• Resource, Staffing, Schedule and Budget• Cost and Profit• Funding

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The Institute of Medicine (IOM) concludes that 44,000 to 98,000 patients annually die from systematic medical errors, caused by “miscommunication or a breakdown in workflow”, which resulted in patients being given the “wrong treatment or no treatment at all”.

Article by Greg Gillespie, Managing Editor of Health Data Management .com

412/8/2003

Medical Memory SystemsDiagnostic Radiology

Clinical Physician Surgeon

5

Dr. Bennett, Staff Radiologist with Medical Center Radiologist (MCR)

Lori Prowant RT(R), Director of Maryview Medical Center Radiology

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Problem Statement

Current means of accessing medical information are too slow, inadequate, or outdated to meet the demands for inter-facility communications.

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Goals• Save Time

• Reduced time in tracking down history

• Save Money• Decrease number of procedures done in error

• Save Lives• More complete medical history• Increase quality of service


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Current Methodology

• Verbal• Inaccurate

• Written• Illegible

• Electronic – Current Methods

• Not practical• Not cost effective

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Diagnostic Radiology

Clinical Physician Surgeon

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10

Our Solution

•MMD

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•Small

•Durable

•Light weight

•Non volatile

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Memory Button by MacSema

EMR Server

Backup Copy to Printer

Modem Validation Server

InternetValidation

Upload Download System

Validation


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Important Medical Information

• Allergies

• Current medications

• Laboratory results

• Recent surgery finding

• History and physical

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Medical Memory SystemsConnectivity

• Integration – HL7 (Health Level Seven)• EMR Communication Standard

• Our software data structure will be governed by XML.

• Dataflow• Data written in XML format• Encryption mechanism• To MacSema interface• To memory device

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Quality Attributes

• Easily updated

• Accurate

• Secure

• Durable

• Inexpensive

• Wearable

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Customers• Initial Market

• Hampton Roads, Washington DC, Raleigh Durham Research Triangle

• Clinical Physicians• Over 3,000 physicians in Hampton Roads• Over 15,000 in Initial Market

• Patients• Initial Market Population – 7.5 Million *• Elderly Population – 750,000 (10%) **

*Hampton Roads: Demographics (Census 2000)

**http://www.hreda.com/pdfs/Data_for_web_site/Demographics_2000.pdf

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The Elderly• Increased amount of medical history• Decrease memory• Decrease comprehension• Two to four times more likely for medical injury

Local Market• Hampton Roads

• Bon Secour’s• Sentara Lee

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http://www.stanford.edu/~topham/market.htm

27%

73%

Currently With

Currentlywithout

Number of Physicians using

Some form of EMR

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72%

28%

With EMR

Without EMR

In 3 years…

Frost and Sullivan's technology survey

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Evaluation Strategy

23

Clinic

Hospital

Clinic

Clinic

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Evaluation Phase• Durability

• Functionality

• Frequency

• Usability

• Impact

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Medical Memory SystemsMarketing

• Medical Facilities• Medical Representatives• Proof of effectiveness• Conventions and Seminars

• General Public• Standard forms of Advertisement• Educational Material• Medical Advise

General Goal – Name Recognition

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Project Management Plan• Management Plan

• Work Breakdown Structure

• Project Manager Responsibilities • Schedule• Budget• Quality Control

• Risk

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High Level Concerns

• HIPAA• Record Activity

• Audit’s

• Encryption• Protect patient’s health information (PHI)

• System Validation• Appropriate user’s

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Risk• Developing Customer Base

• Level – High• Resolution – Aggressive Marketing

• Inconsistent Use• Level – High• Resolution – Patient Education and Ease-of-use

• Pricing• Level – Medium• Resolution – Aggressive Marketing leads to bulk sales and purchasing

• Competing Products• Level – Medium• Resolution – Pratical and unique product line

• Training• Level – Low• Resolution - Ease-of-use and Tutorials

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0 Task Name Duration Start Finish

1 phase 0 - Concept Phase 76 days Mon 8/25/03 Mon 12/8/032 Phase 1 - Prototype Construction and Testing 79 days Mon 1/12/04 Wed 4/28/043 Phase 2 - Prototype Development and Testing 333 days Tue 5/4/04 Thu 8/11/054 Phase 3 - Production, Testing and Evaluation 1216 days Thu 8/11/05 Fri 4/9/105 Phase 4 - Out production years 900 days Mon 4/12/10 Fri 9/20/13

2002 2004 2006 2008 2010 2012 2014

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0 Task Name Duration Start

1 phase 0 - Concept Phase 76 days Mon 8/25/031.1 Medical Memory Device 25 days Mon 8/25/031.2 Project Feasibility Phase 28 days Thu 9/11/031.3 Milestone Planning Phase 17 days Tue 10/21/031.4 Approval Phase 24 days Wed 11/5/03

1.4.1 Web Site Development continued 24 days Wed 11/5/031.4.2 SBIR Proposal 17 days Thu 11/13/031.4.3 Refinement 19 days Wed 11/5/031.4.4 SBIR submission - Deliverable 0 days Mon 12/8/031.4.5 Website Finalized - Deliverable 0 days Mon 12/8/031.4.6 Final Presentation - Deliverable 0 days Mon 12/8/03

12/8

12/8

12/8

8/17 8/31 9/14 9/28 10/12 10/26 11/9 11/23 12/7 12/21July October

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2 Phase 1 - Prototype Construction and Testing 79 days Mon 1/12/04

2.1 Updated Problem Description 6 days Mon 1/12/04

2.2 Revised Product Description 9 days Fri 1/16/04

2.3 Documentation 34 days Mon 2/16/04

2.4 Budget 13 days Mon 2/23/04

2.5 Protype Development 75 days Wed 1/14/04

2.6 Production Specification and Plan Development 20 days Thu 1/22/04

2.7 Website 79 days Mon 1/12/04

1/4 1/18 2/1 2/15 2/29 3/14 3/28 4/11 4/25 5/9January February March April May

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2.5.1 Software Development 39 days Mon 1/19/04

2.5.1.1 Build HL7-compliant EHR engine 35 days Mon 1/19/04

2.5.1.1.1 Build or integrate COTS XML parsing engine32 days Wed 1/21/04

2.5.1.1.2 Define HL7 objects 8 days Mon 1/19/04

2.5.1.1.3 File Handling 7 days Thu 2/26/04

2.5.1.1.4 Button Integration 21 days Wed 1/28/04

2.5.1.1.5 Network Integration 12 days Wed 1/28/04

2.5.1.1.6 Validation Mechanism 9 days Mon 2/16/04

2.5.1.1.7 User Interface 23 days Wed 1/28/04

2.5.1.2 Build EMR database 7 days Thu 2/19/04

2.5.1.3 Testing 25 days Fri 2/6/04

1/4 1/18 2/1 2/15 2/29 3/14 3/28 4/11 4/25January February March April

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2 Phase 1 - Prototype Construction and Testing 79 days Mon 1/12/04

2.1 Updated Problem Description 6 days Mon 1/12/04

2.2 Revised Product Description 9 days Fri 1/16/04

2.3 Documentation 34 days Mon 2/16/04

2.4 Budget 13 days Mon 2/23/04

2.4.1 Development of Budget 13 days Mon 2/23/04

2.4.2 Budget WhitePaper - Deliverable 0 days Wed 3/10/04


2.5.1 Software Development 39 days Mon 1/19/04

2.5.2 Hardware Component 16 days Wed 1/14/04

2.5.3 Integration 50 days Wed 2/18/04

2.5.4 Prototype Presentation Deliverable 0 days Thu 3/11/04

2.6 Production Specification and Plan Development 20 days Thu 1/22/04

2.7 Website 79 days Mon 1/12/04

2.7.1 Website Development 79 days Mon 1/12/04

2.7.2 Website completion - Deliverable 0 days Wed 4/28/04

3/10

3/11

4/28

1/4 1/18 2/1 2/15 2/29 3/14 3/28 4/11 4/25 5/9January February March April May

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Quantity Price/Unit $ For use of: Total price

Memory button 9 34 development and testing $306.00Scanner 3 150 development and testing $450.00

MySQL 1 free Database development

Macsema for hardware 1 3000 2 day visit $3,000.00

Miscellaneous wiring, connectors, etc $500.00

Resources Total -Phase 1 $4,256.00

software

Phase 1 Budget

Memory Button Technology

Variable needs cost

Travel

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Medical Memory SystemsQuantity Price/Unit $ For use of (days): Total price

1 31,000 21 $2,604.00

Web developer 1 50,000 18 $3,600.00

Software Engineer 1 51,000 77 $15,708.00Programmer Level 1 1 45,000 70 $12,600.00Programmer Level 2 2 38,000 25 $7,600.00

1 61,000 82 $20,008.00

Personnel Total -Phase 1 $62,120.00

SubTotal Phase 1 $66,376.0040% $26,550.40

TOTAL Phase 1 $92,926.40

ODU overhead

Project Manager

Software development

Website development

Electrical Technician

PERSONNEL PHASE 1

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Medical Memory Systems0 Task Name Duration Start

3 Phase 2 - Prototype Development and Testing 333 days Tue 5/4/04

3.1 Software 58 days Tue 5/4/04

3.1.1 Build HL7-compliant EHR engine 57 days Tue 5/4/04

3.1.1.1 Build or integrate COTS XML parsing engine 32 days Thu 5/6/04

3.1.1.2 Define HL7 objects 16 days Tue 5/4/04

3.1.1.3 File Handling 19 days Fri 6/11/04

3.1.1.4 Button Integration 20 days Thu 5/13/04

3.1.1.5 Network Integration 34 days Thu 5/13/04

3.1.1.6 Validation Mechanism 17 days Tue 6/1/04

3.1.1.7 EMR Integration 27 days Tue 6/15/04

3.1.1.8 User Interface 40 days Fri 5/14/04

3.1.1.9 Create Update Functionality 17 days Thu 5/27/04

3.1.2 Build EMR database 7 days Fri 6/4/04

3.1.3 Build Validation Software (Server Side) 21 days Wed 5/19/04

3.1.3.1 create authentication token code 13 days Wed 5/19/04

3.1.3.2 create lockout instructions 6 days Mon 5/31/04

3.1.3.3 create update synchronization code 4 days Fri 6/11/04

3.1.4 Testing 42 days Wed 5/26/04

3.1.4.1 Test EHR processing 19 days Mon 6/14/04

3.1.4.2 Test Button Integration 12 days Wed 5/26/04

3.1.4.3 Test MMS networking abiltiy 24 days Thu 5/27/04

3.1.4.4 Test MMS validation schemes 9 days Mon 6/14/04

3.1.4.5 Test EMR integration 25 days Fri 6/18/04

3.1.4.6 Test Update routine 14 days Mon 5/31/04

3.1.4.7 test code to self-test update 8 days Thu 6/10/04

3.1.5 Software Deliverable 0 days Thu 7/22/04

3.2 Build Support System 26 days Tue 7/20/04

3.2.1 Documentation 26 days Tue 7/20/04

3.2.2 Website 20 days Tue 7/20/04

3.2.3 Website support - Deliverable 0 days Mon 8/16/04

3.3 Develop Test Market 63 days Tue 5/17/05

7/22

8/16

May Jul Sep Nov Jan Mar May Jul Sep Nov1st Quarter 3rd Quarter 1st Quarter 3rd Quarter

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Medical Memory SystemsQuantity Price/Unit $ For use of: Total price

Mid-Range Desktop4 1700 testing $6,800.00

Low-range Desktop4 499 software development and testing $1,996.004 349 software development and testing $1,396.00

Laptop3 2,100 Field service, Buyer, Lobbyist $6,300.00

Network Laser printer 3 1249 Medical Office backup $3,747.00Dell PE server 3 6200 Medical Office application $18,600.00

Switch 1 499 development network $499.00

system securityWireless Firewall 1 $640 $640.00Wireless access point 1 389.99 $389.99

VS80 tape bundle 1 1700 data and development backup $1,700.0040GB Cartridge 2 45 backup $90.00

Hardware-Phase 2 Total $48,307.99

Wireless needs

Hardware

PHASE 2 BUDGET

Tape backup

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Quantity Price/Unit $ Total pricePromotional items variable $1,000.00Website Banners variable 10 $300.00Newspaper Ad 1/3 page 3 5100 $15,300.00Medical Magazine Ad 3 2645 $7,935.001 Ad/month for the last 6 months Radio Ad. 1 $8,000 $8,000.00

Marketing strategy cost - Phase 2 $32,535.00

Supplies paper, cartridge $14,500.00Miscellaneous Misc $500.00

Total resources -Phase 2 $95,842.99

Variable needs cost

Marketing Stategy cost

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Medical Memory SystemsQuantity Salary/yr $ # of working days Final salary

1 61,000 393 $95,892.00

Marketing Manager 1 60,000 30 $7,200.00Market Research Analyst 1 40,000 15 $2,400.00Medical Sales Representative 1 35,000 15 $2,100.00

Lobbyist 1 57,000 36 $8,208.00Medical Attorney 1 54,000 30 $6,480.00

Accountant 1 36,000 110 $15,840.00Technical Writer 1 41,000 48 $7,872.00General Clerk 1 22,000 39 $3,432.00

Electronic Engineer 1 70,000 30 $8,400.00Jewelry Designer 1 50,000 30 $6,000.00CAD Engineer 1 40,000 45 $7,200.00

Professional Buyer 1 38,000 21 $3,192.00

Total Personnel cost $273,324.00Sub Total Phase 2 $369,166.99

40% $147,666.80TOTAL Phase 2 $516,833.79

Clerical Staff

Legal

ODU overhead

Supply

Hardware development

MarketingProject ManagerPHASE 2 PERSONNEL

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4 Phase 3 - Production, Testing and Evaluation 1216 days Thu 8/11/05

4.1 Organize patient test group 31 days Thu 8/11/05

4.2 Purchasing 8 days Tue 8/16/05

4.3 Production of MMD 155 days Tue 8/16/05

4.4 Installation 40 days Mon 4/24/06

4.5 Testing Evaluation 1 357 days Fri 7/28/06

4.6 Testing Evaluation 2 301 days Mon 11/19/07

4.7 Testing Evaluation 3 325 days Fri 1/9/09

7/3 12/4 5/7 10/8 3/11 8/12 1/13 6/15 11/16 4/19 9/20 2/21February January December November October September

Customer ServiceField service Engineer Level 1 2Customer Service representative 2

Additional Personnel

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5 Phase 4 - Out production years 900 days Mon 4/12/10

5.1 Sales 900 days Mon 4/12/10

5.2 Production 900 days Mon 4/12/10

5.3 Hardware Support 900 days Mon 4/12/10

5.4 Software Support 900 days Mon 4/12/10

5.5 System Hotline 900 days Mon 4/12/10

5.6 Technical Support 900 days Mon 4/12/10

2/21 7/25 12/26 5/29 10/30 4/1 9/2 2/3 7/7 12/8 5/11 10/12September August July June May April

•Total Cost for Phase I and II - $609760


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MMD Cost• Less than $50 for 8 MB• 20$ to $60 range for jewelry casing

Full EMR Installments - $12,000

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Medical Memory SystemsProfitability

•Licensing - $2500 (3 physicians)

•Annual fee - $500•System support•Validation services

•Goals

•Phase I and II total - $609,760 •Breakeven target - $900,000 (breakeven target)

•3 Metropolitan’s - Populations•Hampton Road’s•Washington DC•Raleigh Durham Research Triangle

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•Total population – 7.5 million people

•200 doctors to 100,000 people in metropolitan area’s*

•Total physicians – 15,000

•Average licensing fee per physician - $833

•To reach break-even target of $900,000

•1081 single licenses (360 3-user license)

•Capture 7.2% of market

•Does not include annual support fee

44*www.bna.com12/8/2003


MMD profits

• 7.2% of population – 540,000 people

• 10% of that – 54,000 (represents elderly population)

• 10% profit margin - $5 per unit sold

• .7% of patient market yields - $270,000

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Funding

• SBIR

• Year 1 – $359,229.79

• Year 2 – $250,530.40

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References

Article by Greg Gillespie, Managing Editor of Health Data Management .com

Interviews with:• Dr. Bennett, Staff Radiologist with Medical Center Radiologist (MCR)

• MCR provides radiologist for Sentara and Bon Secour’s of Hampton Roads facilities

• Lori Prowant RT (R), Director of Maryview Medical Center Radiology

• Hampton Roads: Demographics (Census 2000)

• http://www.hreda.com/pdfs/Data_for_web_site/Demographics_2000.pdf

• http://www.stanford.edu/~topham/market.htm

• www.bna.com

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Solution Characteristics

• Complete and Historically up-to-date• Easily accessible to appropriate medical organizations• Information obtained from reliable sources• Reliable physical components• Cost effective• Portable

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Due toPreventableMedical Injury

Out of 180,000 annual deaths from medical injury

124,000 Death’s

(69%)

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Annual cost due to medical injury- $200 Billion

Due toPreventableMedical Injury

$138 Billion

(69%)

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$534 $748

$0

$100

$200

$300

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$600

$700

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2000 2004

EMR

in million’s

EMR Expenditures

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Documents

Medical Memory Systems