Credit Suisse https://www.credit-suisse.com as part of their Healthcare Disruptive Technologies & Innovations (HCDT&I), series, hosted Dave Skibinski, President, CEO, and Co-Founder of SnapMD https://snap.md, for a virtual meeting with investors.
SnapMD is a full-service Virtual Care Management (VCM) telehealth enterprise software leader, enabling healthcare providers to engage their patients via a comprehensive, secure, HIPAA compliant, cloud-based telemedicine platform with powerful back-end systems. This makes it possible for digital healthcare to deliver telemedicine solutions to hospitals, health systems, and other providers.
SnapMD’s goal is to not only enable conversations between patient-to-provider and provider-to-provider, but to also enable a higher level of medical practice by using digital devices. By being compatible with video and audio-based diagnostic devices, the company is able to extend and improve the amount of information a provider can access during an encounter with the patient.
Under SnapMD’s SaaS model of licensure, the company generates revenue from three primary sources to include 1) one-time start-up fees, that typically range from $1,250-$5,000, but at times can reach 20K depending on the nature and intensity of the work, 2) license fees which are the company’s primary revenue stream, and 3) third-party revenue from complimentary software where SnapMD acts as a reseller.
Regarding SnapMD’s primary revenue stream (license fees), the company has two primary license models. One license model has SnapMD offering an unrestricted user license structure, meaning a provider can use the platform for an unlimited number of patient visits and still pay a flat rate of about $115 “Per Provider Per Month” (PPPM) with a minimum of five providers ($575 minimum). The company also offers a usage-based licensing model where there is a monthly access fee for the platform plus a per-encounter fee.
The company uses a variety of partnerships to supplement their internally built telemedicine infrastructure being hosted by Microsoft Azure exclusively in the cloud, Twilo for messaging, and Cloud DX & Care Innovations for integrated remote patient monitoring. SnapMD offers telemedicine staffing services, by being partnering with Encore Telemedicine, Locum Tenens USA, and Jackson & Coker.
During COVID, the company has witnessed a 7-8-fold increase in monthly encounters completed between patients and providers and at least a 4x increase in the number of providers practicing telemedicine.
Mr. Skibinski indicated that of SnapMD’s ~175 customers, 3 to 4 customers are currently using the SnapMD platform exclusively for assessment, management, or return to work initiatives related to COVID-19. However, the increased use of the platform is delivering required care on a follow-up basis and also delivering required care on a follow-up basis to non-COVID patients.
As for his thoughts on telehealth related regulations, he believes that the originating site requirement and the expansion of covered telehealth services are more important than payment parity. For as long as there is some reimbursement of services, a model can be built around that reimbursement rate.
He notes that Medicare has done an admirable job of encouraging the use of telemedicine by eliminating the originating site requirement. If restrictions continue to be lifted, 33-50% of all medical visits can be delivered via telemedicine. Further, in circumstances such as in the case of mental health, even higher adoption rates can be achieved.
For more information and to provide feedback, email Jailendra Singh at jailendra.singh@credit-suisse.com or call 212-325-8121.