Sramana Mitra: Of the four million members, what percentage comes through these corporate accounts?
John Palumbo: We run at about a 60/40 split between sponsored population and Direct to Consumer.
Sramana Mitra: Do you remember if the hospital systems were in the sponsored program or direct to consumer?
John Palumbo: Sponsored program.
Sramana Mitra: Hospitals and corporate programs are in sponsored and the rest are direct, right?
John Palumbo: Correct.
Sramana Mitra: How do you acquire customers in the Direct to Consumer mode?
John Palumbo: We’re the only e-health company that has its own digital media capability. We have our own proprietary consumer health engagement platform and methodology. We’re able to reach, educate, profile, match, and engage consumers. We get somewhere between 3,000 and 5,000 consumers a day that fill out our health profile, and somewhere between 2,000 and 4,000 that complete it. These consumers actually come to us and are looking for some type of help.
We’re also the only e-health provider that has our own therapeutic network. There are members who are able to get serviced through a much broader continuum of care and not simply getting access to physicians. If our physicians write orders in pharmacy, labs, imaging, if that patient is a cash-paying patient, they’re able to use our network to get significant discount and save money on getting those ancillary orders built. Our nurses also do care coordination follow-up services checking compliance and adherence within 48 hours after the consult. It’s very different in remote care.
Sramana Mitra: In the Direct to Consumer, what segment is adopting your solution? Are these people with insurance? How does it all breakdown?
John Palumbo: The vast majority of our members do have some type of insurance coverage. Within insurance coverage, you have types of insurance that have significant amount of cash responsibility that’s on the consumers themselves. ObamaCare is all built on high-deductible plan. If you’re a single person, you can have a deductible as high as $6,000. You will be paying the first $6,000 at a retail rate.
If you have to pay a physician visit and the medication in a high-deductible plan, that simple office visit for a sinus infection where you need some type of antibiotic could cost you as much as $250. In our model if you are a member paying a monthly fee, you might pay only $30 or $40 for the medication. If you’re a cash-paying patient, that same experience might cost you $100 to $120.
You’re looking at saving significant dollars if you or your family use these physicians for non-critical care needs. Remote care is good for a certain type of acute episodic treatment or in some low acuity chronic diseases. It offers tremendous value for the families that really need the help.