HealthcareMagic - Business Model Analysis

By Amrit Ravi and Team

1. April , 2015

2. 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

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

4. 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 capacity

5. 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

6. 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

7. Based on the type of ailments

8. 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)

9. 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 Care Magic

10. 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

11. 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

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

13. Patients Advertisement Services Health Care Magic Physicians Registration Subscription Fees Consultation Fees data credits Consultation via HCM Health Care Suppliers Portal Services Corporate Healthcare schemes Registration Consultation via HCM

14. 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 $10 Average Premiums per corporate $1,000 Advertisements $10 P.A Average consultation % paid to doctors from the premium amount 50.0% Consultation fee Approximately

15. Partner with medical equipment suppliers Advertise over web/mobile apps Consultations for corporates via customized UI Health awareness campaigns for outreach/PR

16. Source: Company Websites & Blogs 4.5 MM 1.5 MM 250K/D 120K/D 80K/D 35K 15K 8K

17. Launch Date Popular Website Rankings Source :http://www.statshow.com/ accessed 11-Apr-2015 5.27pm

18. Scope of activities Manage billing to customers Supports a v ariety 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 Free Service offered Recognized as core competency

19. User Base Uniqueness Beginner’s Advantage Collaborations Cost of Operation High Scope of Activity Ease of Access Pricing Refund Policy (100%) Low Entry Barriers Diverse Legal Constraints No Serious Ailments Dependency on Internet Technical Barriers Availability Barriers Difficulty in Claims Go Multidimensional Rate Practitioners Better Incentives Targeted Collaborations Education Sector Government Regulations Litigations Risk of Casualty If Delayed Limits while Prescribing Easy To Copy Concept

20. Patients Doctors HealthCare 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 the domain

21. Acquired by EBIX – Provides an avenue for e2e solutions Allows building of an eco-system around HealthCare Magic

22. 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