Based on a medical sector 'churn rate' of 30%, i.e. patient retention of 70%, there is scope for significant gains.
A mere 5% increase in patient retention results in a 25%-95% increase in bottom line.
Using the the median of this range (60%), and assuming that installing Hoolux will retain an additional 2% of patients, that equates to 2/5 * 60% = 24% increase in bottom line.
Based on your specialties' average income of $, the industry median of 87 patients seen per week (latest statistics 2014) and the number patients seen per week by each of you, the result is an additional $ per year for your practice.
(This figure already factors in the capital cost of $ for buying the HLX-1 unit at the beginning of the 5-year term.)
SOURCES
1. Patient Turnover In ACOs Destroys Accountability
2. Customer Acquisition vs. Retention
3. Medscape Physician Compensation Report 2015
3. Average US Physician Salaries by Specialty
4. Primary Care Physicians, Patient Visit Statistics (2014)
At patients per week and clinic weeks per year, below is a breakdown of the most important business metrics:
Estimated value added per patient by Hoolux: $
Estimated net profit from HLX-1 by year:
Year 1: $22
Year 2: $22
Year 3: $22
Year 4: $22
Year 5: $22
Estimated total 5-year profit: $
Rationale, assumptions and disclaimer
This beta calculator is based on speculative research done by Hoolux on medical reimbursements. It makes use of the following publicly-available datasets: Physician Fee Schedule (CMS), HPCPS Level I code ranges (AMA), HPCPS Level II categories (CMS), and Provider Specialty Codes (CMS). It makes the following main assumptions: a) national rates seldom differ significantly from region-specific ones; b) all procedures are equally likely (but see compensating factor below); c) at any one time, 25% of the people in view of the HLX-1 are engaging with it; d) a conversion rate of 2% applies, i.e. 1 in 50 people watching a targeted ad for an important elective procedure will go on to have the procedure; and e) the Hoolux library will contain instructional features on each of the reimbursable procedures on which the calculations are made. To compensate
for possible overestimates due to the coarse granularity of the current calculator, totals for reimbursable procedures per specialty are reduced a) by a factor of 10 to account for irrelevant procedures (those that are not in fact in the purview of the specialty in question), b) by a factor of 5 to account for less likely procecures tending to have higher reimbursement amounts, and c) by a factor of 2 to account for procedures that the doctor would have suggested anyway. Furthermore, the least of the four reimbursement figures (facility, non-facility, facility limiting charge, non-facility limiting charge) is used to avoid overestimation. Finally, only the top 125 procedures per specialty returned from the Physician Fee Schedule are taken into account.
At patients per week and clinic weeks per year, below is a breakdown of the most important business metrics:
Estimated value added per patient by Hoolux: $
Estimated net profit from HLX-1 by year:
Year 1: $22
Year 2: $22
Year 3: $22
Year 4: $22
Year 5: $22
Estimated total 5-year profit: $
Rationale, assumptions and disclaimer
This beta calculator is based on speculative research done by Hoolux on medical reimbursements. It makes use of the following publicly-available datasets: Physician Fee Schedule (CMS), HPCPS Level I code ranges (AMA), HPCPS Level II categories (CMS), and Provider Specialty Codes (CMS). It makes the following main assumptions: a) national rates seldom differ significantly from region-specific ones; b) all procedures are equally likely (but see compensating factor below); c) at any one time, 25% of the people in view of the HLX-1 are engaging with it; d) a conversion rate of 2% applies, i.e. 1 in 50 people watching a targeted ad for an important elective procedure will go on to have the procedure; and e) the Hoolux library will contain instructional features on each of the reimbursable procedures on which the calculations are made. To compensate
for possible overestimates due to the coarse granularity of the current calculator, totals for reimbursable procedures per specialty are reduced a) by a factor of 10 to account for irrelevant procedures (those that are not in fact in the purview of the specialty in question), b) by a factor of 5 to account for less likely procecures tending to have higher reimbursement amounts, and c) by a factor of 2 to account for procedures that the doctor would have suggested anyway. Furthermore, the least of the four reimbursement figures (facility, non-facility, facility limiting charge, non-facility limiting charge) is used to avoid overestimation. Finally, only the top 125 procedures per specialty returned from the Physician Fee Schedule are taken into account.
At patients per week and clinic weeks per year, below is a breakdown of the most important business metrics:
Estimated value added per patient by Hoolux: $
Estimated net profit from HLX-1 by year:
Year 1: $22
Year 2: $22
Year 3: $22
Year 4: $22
Year 5: $22
Estimated total 5-year profit: $
Rationale, assumptions and disclaimer
This beta calculator is based on speculative research done by Hoolux on medical reimbursements. It makes use of the following publicly-available datasets: Physician Fee Schedule (CMS), HPCPS Level I code ranges (AMA), HPCPS Level II categories (CMS), and Provider Specialty Codes (CMS). It makes the following main assumptions: a) national rates seldom differ significantly from region-specific ones; b) all procedures are equally likely (but see compensating factor below); c) at any one time, 25% of the people in view of the HLX-1 are engaging with it; d) a conversion rate of 2% applies, i.e. 1 in 50 people watching a targeted ad for an important elective procedure will go on to have the procedure; and e) the Hoolux library will contain instructional features on each of the reimbursable procedures on which the calculations are made. To compensate
for possible overestimates due to the coarse granularity of the current calculator, totals for reimbursable procedures per specialty are reduced a) by a factor of 10 to account for irrelevant procedures (those that are not in fact in the purview of the specialty in question), b) by a factor of 5 to account for less likely procecures tending to have higher reimbursement amounts, and c) by a factor of 2 to account for procedures that the doctor would have suggested anyway. Furthermore, the least of the four reimbursement figures (facility, non-facility, facility limiting charge, non-facility limiting charge) is used to avoid overestimation. Finally, only the top 125 procedures per specialty returned from the Physician Fee Schedule are taken into account.
In 2014 (most recent available statistics), $422m was paid out to ACOs for efficiency improvements. (Note that based on year-on-year trends, this quantity is likely to increase significantly in future.)
There are currently approx. 250,000 doctors in ACOs in the United States, equating to an average payout of $1,688 per doctor.
The Hoolux system significantly improves scores in 45% of the 33 ACO measures, meaning an additional $ per year in ACO payments based on the data you supplied.
SOURCES
1. CMS ACO Fact Sheet 2015
2. BHR ACO Statistics
3. Report on the Ability of the Hoolux System to Assist Physicians in Achieving the 33 ACO Measures Required For Shared Savings
Total clinic patients per week:
Ad view unit cost $1; views per year
Total outgoing: $ per year.
Assumed average cost per value-added service: $200
Assumed conversion rate: 5%
Total incoming: $200 x 0.5 x = $
NET TOTAL: $ per year
SOURCES
1. Eye-opening video marketing statistics
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