Growing up with a father who was always in and out of the hospital, I observed how a fragmented medical system emotionally and physically drained my family's happiness and health. I believe that this fragmentation should not exist within the medical industry and that is why I created Medspace AI Technology, a living breathing data intelligent ecosystem that is solving this issue step by step.
Barnabas Perez | Co-founder and CEO
Towards the end of my father's lifetime, he was assigned a hospice agency to take care of his physical needs. However my father was not the average patient, In fact he was diagnosed/misdiagnosed multiple times with multiple chronic illnesses, both physical and mental. Furthermore, my father was a Spanish speaker and a well educated theologist, so you can already understand that this patient will probably need someone who is experienced and tailored for such a profile.
Unfortunately, the hospice agency that was assigned to my father could not provide quality care. Due to my fathers simple differences communication, understanding, and care were not done effectively. For example, if a patient speaks Spanish, the caregiver should also speak Spanish. Very obvious patient needs, however it could not be done by the caregiver or the hospice agency. It was not the agency's or the caregiver's fault. It was the fault of the medical market's inability to adopt to a patient quality care system.
This medical market issue is similar to the taxi industry and the eventual impact of UBER’s disruption to that market. The taxi industry played this game for about 120 years. This very inefficient system by the early 2000s still existed and dominated within the market. The taxi companies that were first to market in the industry grew and provided the most taxi service throughout the span of the market life cycle. Today, these large taxi companies have a handle on rules and regulations that favored their business revenue. UBER’s technology did not improve the current market inefficiencies, it transformed how people use public transportation.
12% of the top performing agencies have more than 70% of the market share"
The Taxi Model
Similar to this taxi model, we can view the post acute health market in this way. According to market statistics, 12% of the top performing agencies have more than 70% of the market share. This means that they provide the most services and products that patients then use. The bad part about this was the similar to the taxi industry, between 1950s into early 2000, the home health market was delivery based rather than value based. In other words, the larger quality of patients you have within your agency, the higher revenues you will have. This caused a major backfire for two reasons.
The first to market obtain all physician/partner relationships within the market and generated a large influx of capital that they then re-invested into their agency's sales and marketing functions
These agencies had a hard time providing exceptional patient quality care because everything was quantity based.
To give a better understanding of how this issue is relevant, let’s create an example a old sick man named Mike. Mike just finished up surgery at the local hospital. He is calculated to not survive another month. So Mike decides to spend his last days at home with his family and he will need caregivers and post acute home care service. So Mike asks his doctor and gets a recommendation on where he thinks he should go. Unfortunately that doctor was also not given a tool to properly assess which agency is the right fit for the patient. Because of this, the Doctor’s recommendation falls back on the largest companies who were first to market, the companies that have phenomenal brand awareness and most persistent marketing techniques. The end result is Mike is matched up with an agency that doesn't actually fit his specific needs and suffers. This was not just my father's story ….this is happening to one of four elderly citizens who are going through these types of experiences.
The issue here is that the medical industry really does not have tools to facilitate the shift of quantity based care to quality based care. Currently, in order to grow an agency it is extremely expensive and is not an easy thing to do. The owner of the agency has to pay for data, analysts, field representatives and managers. Just from salaries and benefits for the marketing department, the agency needs to burn 500K annually. This is a very large expense for an agency that just started up and a huge barrier to entry for new health agencies hungry to provide quality patient care. This is why larger agencies can afford marketing investments that land partnerships with physicians/partners at the expense of providing quality care….and that is what happened with my father.matched up with an agency that doesn't actually fit his specific needs and suffers. This was not just my father's story ….this is happening to one of four elderly citizens who are going through these types of experiences.
"Drug companies spent more than $3 billion a year marketing to consumers in the U.S. BUT an estimated $24 billion marketing directly to health care professionals."
-------- Washington Post
I believe that this is unacceptable within the medical industry. I understand the the Taxi industry was similar, but it is was an acceptable model for so long because the worst that could happen to a person is that they were late to an interview. However in the medical industry if you make the wrong move repeatedly, you will affect patients and their family in many ways - patients require and demand quality care at its best.
This is why I and the Medspace AI leadership team developed our Medspace AI Solution which I believe will be what UBER was for the taxi industry. Just the way taxis were inefficient compared to UBER, the current medical market's systems and general marketing practices are inefficient compared to Medspace AI, a transformative and revolutionary technology.
Medspace AI Solution
Medspace AI is a software platform that provides agencies with an AI tool that enables a flexible autonomous sales and marketing system that dramatically enhances acquiring and retaining new physician/partner relationships. Using big data analysis, our Medspace AI Data Intelligence, along with autonomous outreach progressions field data from our Medspace Liaisons network, provide quality lead generation through our AI algorithms. Medspace AI is an adoptive platform that allows a medical agency to track and increase their ROI.
Our Medspace AI platform identifies existing and sale opportunities to grow your client base.