How to do the impossible: The creation of the FairCareMD Open Network for Healthcare

Healthcare Experience DesignApril 11, 2011

Alex FairFounder & CEO of FairCareMD

www.FairCareMD.com (954) FAIR-CARE @FairCareMD(954)-324-7227

How to do the impossible: The creation of FairCareMD, the first

efficient market for healthcare services

http://www.faircaremd.com/

1. Find your impossible problem

Notes: A. Pick the right impossible task – something big enough to scare you and inspire yourself and others to actionExamples::

• Global warming• Renewable energy• Learning to walk again• Curing a disease• Making healthcare affordable for every American …

B. Whatever it is, make sure it is something YOU are passionate about

Why is passion important?

Because no matter what I tell you, doing the impossible is not easy.It will cost you.And if you don’t care enough, There will come a moment where you will give in to the fear, pessimists, and doubt and you will quit, without the passion from a problem YOU need to solve.

2Copyright 2011 FairCare, LLC

2. Define it clearly and

solve it beautifullyNotes:You need to create an elegant solution that will inspire millions to engage with itExamples:- Encyclopedias are expensive and difficult to maintain but the are merely the sum total of knowledge

of humanity --- Wikipedia- Handmade crafts are better than manufactured ones but those who make them are paid less than

factory workers – Etsy- Garages are filled with junk that other people want and will pay good money for but can’t make it to

your yard sale – eBay- Healthcare is too expensive but talking about prices with your doctor is at best difficult, at worst

taboo – FairCareMD

Appeal to a wide audience- Be Simple- Be inspiring- Be financially rewarding, preferably huge – like 9 zeros huge


Environmental Factors

Double Digit Premium increases

Empowered Patients self-educating

Physicians Willing to Negotiate

The Rise of the High Deductible Health Plans

Copyright 2011 FairCare, LLC

… and yet, no open marketplace exists online for healthcare

It’s Not FairThat Doctors Train for 10+ years to be paid very

little to care for people

It’s Not FairThat People who Pay for care don’t

have a good way to shop

for it

Two Problems

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How it Works for Patients

SEARCH CONTRACTSELECT

…for the care they need in 60 seconds or less.

One Elegant Solution

Colon Cancer Screening

5

A healthcare marketplace where people can:


The Best Idea in the World

So what?

Most People Stop HereExecution is what Matters

3. Do Your Homework

Why wasn’t this done before?

study failure as much as success


Provider Directories/Lead Generation

Provider Ratings

Confidential

FairCare’s Unfair AdvantagesWho We Studied

Discount Services Direct Marketplaces

4. Design the business model

Notes:business model is not the same thing as the idea or vision.

Example: The original vision of Groupons was changing the world through collective action.Now their business model is group coupon enablement – but it took them a some time to get from the inspired vision to a viable business model.

My advice is that after you do your homework, you should have a pretty clear idea of what works and what doesn’t. Not to say it won’t change, but you should at least have a plan that should be viable from the get go. Give yourself a path


Subscriptions• Free for Patients• Low Cost for

Providers

Transactions• Pre-Authorized

Self-Pays• 6% of agreed

upon fee

Services• Employer

programs• Advertising• Care Finance

Plan Your Revenue Streams

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Potential Rev: 400 MM Potential Rev: 2.9 Billion Potential Rev: 3.1 Billion

Total Addressable Market for first three services: 6.4 Billion


5. Get Out & Engage

talk to people it matters to

and listen!

Notes: There is No substitute for talking to your customers.

You can’t outsource it, delegating it is a bad idea. Get out and just go do it.

People talk about “stealth mode” and NDAs and protecting the IP… but the fact is, if you have such a great idea, ten other people have it too… While you are protecting, they are doing

Overcome your fear. Do what scares you most.

Whoever executes best, wins and you will not execute well if you can’t sell it


Provider Customer ResearchStatistic Quantity RateProviders Interviewed 479 Reject Idea 25 5%Other / Undecided 33%Will Do if Successful 297 62%Early Adopters 100 21%

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Last_nameQUALIFICATION

SPECIALITY

SubSpec Address COMMENTS Notes Last Visit Notes CONTACT

Office Manager Birthday

Office Size

Last Visit or Contact by AF

Prev Visits

Office Staff Visit

Grade1-5

Physician Visit Grade

1-5

PrioritizationStrategic notes

Next Visit Date Next Action FairCareDoc

Strangelove MD Neuro 33 EAST 60 STREET Habla espanol

left note for Marce + SB card, highlighting NF WC work MARCI Marce 3 10/27 3 3

many uninsured, needs spanish version 1/22

f/u with Marce

Smith DC CHIRO 133 EAST 58TH STREET SUITE 1801 CHIROPRACTOR Don’t mention robotics

rception fluent in spanish, banter in spanish… will present info to doc, very busy office NAZAIDA Cadamina 4 1/14 5 1friends with Neuman 1/22

Bob MDSURGERY 130 EAST 73RD STREET is a muppet

0.5 1/22

Schwartz MD 330 EAST 56TH STREET ready for FCDMgood talk with doc. Loves open source, EA kimberly Rochelle 1/14 5 5 3 1/22 Y

Livingston MD 130 EAST 73RD STREET somewhat lost 0.1 1/22

Zhivago DC 515 MADISON AVE STE 1720 Makes house calls Speaks RussianInterested, come back later, not there @ time 0.1 1/22

Oz MDINTERNAL 511 MADISON AVENUE,

pay no attention to the man behind the curtain 0.5 1/22

Gupta DC Chiro 225 Broadway, eloquent large multispecialty, will introduce to team 4/8 Y

Take lots of notes and plan your research.

Sell, listen, think, modify, repeat

What I Did: 100 Days, 200 miles, 2,288 Office Visits, 479 conversations with Providers, 100 early adopters, 1 viable model

My Daily Visit Sheet and record keeping

WARNING: Wear good walking shoes!


6. Make mistakes

Only by taking risks and

failing / recovering

quickly will you arrive with the

best design (unless you are perfect)

Initial reaction to our logo and our “Expose your fairest price” model was unfavorable (to say the least.)


6. WARNING: Obey the vision: listen and

change, but don’t lose your way.

Stay inspirational


Adapt, but obey the vision

• Fair and Negotiable

• Park Avenue / Concierge

• Non-negotiable SPECIALS (new)

• Priceless Care / Insured Care (new)

Original Plan

15Copyright 2011 FairCare, LLC \\

7. Insp(h)ire

Notes: People do things for love or money, but if you have to choose one, go with love.

When you talk about your impossible idea you will find people want to help you if you have inspired them. If you can’t inspire anyone to join, return to step 1.

These are the only people you want to hire at first.

The only difference between a prophet and a crazy person is how many people follow him.


The idea is only as good as the amazing people you inspire

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Sunnie Southern, Howard Luks, MD, Simon Sikorski, MD, Mike Schwartz, Jim Rellis, Jeremy Senn, David Harlow Esq. (not shown,: Jacek Zagorski, Mike Pence, Matt Cowley, Adam Whittaker, and dozens of healthcare market makers across America)

8. Think BigStart Small


Timeline and Goals

A new Paradigm for care that is

Fair to Patients and

Providers and based on

Quality as well as cost

Time Line

19 19Copyright 2011 FairCare, LLC

9. Repeat as needed


How it Works: Three Steps to Get Great Care

1. SEARCHPatients search for services using our natural language

search engine

Copyright 2011, FairCare, 21

Copyright 2011, FairCare, LLC

2.REVIEW & SELECT

Patients Choose an Offering by Reputation,

Quality, Services, and,

(optional) Price.

Price is a key factor to 1 in 3

patients.

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The patient reviews the

deal and takes it as

is or requests a change. Videos and

great descriptions help Patients

choose

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3. CONTRACT If selected and accepted* the

system generates a “DoneDeal”

-Emailed and

printable_

Put it in the Chart!-

Customizable Automated Contracting

* You decide your acceptable price, not us 24


So… How’s it going?

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• Thousands of care searches per week• Offers in every zip code in America• Well developed NYC Network• Open Healthcare Networks blooming all

over America• People saving up to 75% on care• Physicians getting paid 25% better on

average than typical payment• Doctors signing up daily


The Effect of an Efficient MarketSample Results: One Procedure Where Innovation has

driven down the cost of care but reimbursement rates are artificially high where innovators are rewarded

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One Procedure - All inclusive Colonoscopy with biopsy

Scenario Annual Avg Price Spent

Status Quo - Closed Market 2,000,000 (1) $ 2,250 (2) 4,500,000,000

FairCareMD – Open Market 2,000,000 $ 1,210 (3) 2,420,000,000

Potential National Savings $ 1,040 $ 2 Billion+

(1) 2004 NCBI Report

(2) Average paid amount estimate - NYC (healthcarebluebook.com)

(3) Based on data from deals on FairCareMD.com


Now what is truly impossible?

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Man was not meant to fly

Impossible just means no one has applied themselves to addressing the issue yet

Women can’t vote

Computers can’t think

Disease can’t be cured

EMRs will never become mainstream

The cost of healthcare can’t go downThe Patient Can’t be an Expert

He will never walk again

Dream it Sell it Build it


Changing Healthcarewith an Open Healthcare Network

Thank You!

@FairCareMD Contact:(954) FAIR-CARE [email protected] 28Copyright 2011 FairCare, LLC

Health & Medicine

How to do the impossible: The creation of the FairCareMD Open Network for Healthcare