Business Models
New ideas surface every day in Healthcare IT, but not all have a clear way to generate revenue. Viable business models are not a necessity to launch an idea in the internet age. However, long-term survival depends on having one. Below is a living list of all the different ways companies reviewed are aiming to generate revenue. Note that the categorizations are not absolute, and one company may fit more than one of these. Also, business models are not something that startups publicize clearly, so there may be inherent assumptions made at times.
1. Broker
Here the idea is to bring buyers and sellers together and charge a fee to facilitate transactions. Example: AmericanWell, Healthline, Vitals, ZocDoc, MyMedLab, Senior Educators, TrialX, Vimo
2. Subscription
Charging periodic fee to have access to the service or product. Examples: FitBit, Zeo, DirectLife, BodyMedia, VisualDx, ScanAvert, RememberItNow!, MyFoodMyHealth, SugarStats, Jitterbug Health Services, Isabel Healthcare, PillPhone, Comfort Zone
3. Pay-as-you-go
Unlike subscriptions (which are a flat periodic fee), this model charges consumers based on actual usage. Examples: TruthOnCall
4. Licence
Charging a flat fee based on another criteria than just time interval, like number of active concurrent users. Examples: Archimedes Model, Corventis, Curbside.MD, GlowCaps, Within3, WellDoc, Apixio
5. Advertising
We all know this one. Here the company creates content that is offered free to consumers, and derives revenue from advertisers who want access to the consumer’s attention. Examples: CareFlash, Daily Strength, PsychCentral, Healthline, PracticeFusion, PharmaSurveyor, MedHelp, Phreesia, Alliance Health
6. Information Intermediary
Companies foster a focused community with the aim to collect data about them in an aggregate way. They sell such population-level data to third-parties who mine and discover trends relevant to their offerings. Almost all online social networks related to health would belong here. Examples: Sermo, PatientsLikeMe, Healthline, OncoCentric, Medscape Physician Connect, Alliance Health
7. One-time Sale
Companies that sell a product or good directly to consumer for a one-time charge. Examples: Axbo, FitBit, Zeo, BodyMedia, DirectLife, Withings, miCoach, Navigenics, TouchDx, EASYWAKEme, Glooko
8. Not-for-profit
Focused on greater good, generally supported by grants and voluntary contributions. Example: Child Count, Text4Baby, Qwitter, FluTrends, Healthmap
9. Free and/or Undecided
The blissful and reckless way. Examples: Ask Dr Wiki, Cure Together, DoubleCheckMD, FreeMD, MedWatcher, gDitty, HealDeal, ZeaLOG, Medpedia, MEDgle, MyDailyApple, MeYou Health, Doximity, Ben’s Friends, Docmein, Medify, HealthLoop
