Moving patients from hospitals to nursing homes has never been easier
A huge opportunity in a $31 Billion Industry
Present-Day Cycle
Hospital Books Room for Patient in
Nursing Home
Nursing Home Reviews and
Accepts Patient
Hospital Stuck with
Patient
Nursing Home
Overbooks
30% of Bookings
Cancelled by Hospitals¹
1.Eugene Litvak, PhD. http://isites.harvard.edu/fs/docs/icb.topic1418162.files/Class%2011%20Slides%20-%20Part%201.pdf2.Centers for Medicare & Medicaid Services 2010. http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/Reports/downloads/costdriverstask2.pdf 3. LeadingAge.org 2011. http://www.leadingage.org/2012_Skilled_Nursing_Facility_Prospective_Payment_System_Final_Rule.aspx
Avg cost of $1,100 per avoidable stay2
Avg of 1,150 preventable stays/year/hospital3
A Focused Issue
Unable to consistently send patients to nursing homes when needed
Overbooking due to high volume of cancellations (30%)
Hos
pita
ls
Nur
sing
Hom
es
Competitor Analysis
There remains unmet needs of real-time reservations and complete coordination of patient referrals to
nursing homes.
Our B2B Solution: HandOff would be the first and only platform to address
● nursing home bed availability● overbooking
A Subscription Pricing Model REVENUE Year 1 Year 2 Year 3 Year 4 Year 5
Subscription Model ($60k/Year) 60,000 60,000 60,000 60,000 60,000
# Hospitals 3 10 30 75 150
Subscription Revenue $180,000 $600,000 $1,800,000 $4,500,000 $9,000,000
Nursing Home (FREE) 0 0 0 0 0
Advertising on Listing Page $5,000 $5,000 $15,000 $20,000 $60,000
Net Revenue $185,000 $605,000 $1,815,000 $4,520,000 $9,060,000
COSTS
Company Expenses (2 FTEs+ Equipment)
100,000 250,000 300,000 400,000 400,000 1,000,000
PROFITS/LOSSES -100,000 -65,000 305,000 1,415,000 $4,120,000 $8,060,000
Solved Pain PointsH
ospi
tals
Nur
sing
Hom
esPatient Throughput
Bundle Payment Retention
Patient Care Time
Administrative Time
Overbooking
Optimizes Patient Flow
Administrative Time
Deploying to Market and Future Expansion
1.http://kff.org/medicare/state-indicator/per-enrollee-spending-by-residence/
Nursing Homes
Acute Care
Long-Term Acute Care Hospitals
Inpatient Rehab Facilities
Assisted Living Facilities
North Texas Area (TX has 4th
highest medicare spending/capita¹)
Expand geographically across the U.S.
Helena WangComputer Science ’15
Technical
Clinical
Business
Will FengComputer Science ‘15
Allen WangMD/MPH Candidate
Dhruva ChandramohanNIH Clinical Researcher
Nichita KulkarniSenior consultant, Social Business
Consulting
Avinash MuruganBusiness Consulting,
Non-profit founder
Tiffany LeeBusiness Consulting
Our Team
A Costly ProblemMedicare’s solution:
align payments across PAC providers for select
conditions¹ → revenue decrease for
PAC providers
Medicare’s payments to more than 29,000 PAC providers totaled $59B in 2013, more than doubling since 2001¹
¹Medpac March 2015 Report.
Counterbalance decrease in revenue
by increasing efficiency
StatisticsCost to Hospitals$3.1 Billion¹ write off annually in avoidable stay costsAvg of 1,150 preventable stays/year/hospital²Avg write-off cost of $1,265,000/year/hospital²
Reimbursement TrendsMedicare reimbursement to nursing homes cut by 11.1%¹ (-$6.4 Billion)No longer fee-for-service, moving towards bundled payments
1.Eugene Litvak, PhD. http://isites.harvard.edu/fs/docs/icb.topic1418162.files/Class%2011%20Slides%20-%20Part%201.pdf2. LeadingAge.org 2011. http://www.leadingage.org/2012_Skilled_Nursing_Facility_Prospective_Payment_System_Final_Rule.aspx
Single Hospital Revenue Proposition$500 M Revenue,$16K per patient¹
(Median among US States)
1.http://www.ahd.com/state_statistics.html2.Cost Drivers for Dually Eligible Beneficiaries. Centers for Medicare & Medicaid Services. August 2010.
Our Potential Value Add:$35 Million(7% of Revenue)
Saving of $1K per patient²$535 Million Revenue,
Moving patients from hospitals to nursing homes has never been easier…
in this $31 billion nursing home industry
Profit per patient-day (Hospitals, and NH)Efficiency (% of patient-days that are non-PAD)% of # of patient days$2157 (expense per hospital patient day)¹$17K (revenue per hospital patient day)²1. http://www.ahd.com/state_statistics.html2. http://kff.org/other/state-indicator/expenses-per-inpatient-day/
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