Products and Services
We sell products that create a paperless medical practice and improve operational efficiencies along with traditional orthopedic screening products.
These products include:
- Electronic medical records.
- Dictation/transcription solutions using speech recognition software.
- Software for the management of scanned paper documents and digital files, (early conversion to paperless office).
- Orthopedic products.
It is anticipated that our competitors will be able to duplicate our efforts within 18-24 months. Our strategy is to license the telephony module of our electronic medical record software to our competitors. We believe this will help protect price erosion, and provide high-margin, low-maintenance revenue.
3.1 Product and Service Description
Electronic Medical Records
This product is slated for development and represents the principle need for funding.
It is our intention to develop an electronic medical record software product based on a speech recognition technology known as telephony, as the primary method of data entry (for telephony definition, see technology section).
Physicians will enter patient information into electronic medical records utilizing speech recognition software. The software will intuitively populate the database (a digital medical record) with the patient information using the telephony model of speech recognition. Telephony technology will provide the perfect accuracy that is necessary for medical records.
In real terms the software will be programmed to react to a specific word, by listening for another predictable group. This sequence will continue until the spoken word becomes the information that populates the database. In database programming, this is called a “decision tree” and is widely used.
This software will permit the physician to provide in-depth, accurate physical examinations while capturing all the pertinent information in real-time.
The benefit to the physician is that the examination will not be slowed down by the typical need to click or type information. Competing solutions, currently on the market, require the physician or staff to manually type the various fields to populate the electronic medical record.
The value proposition is a breakthrough adaptation of technology that will greatly increase the doctor’s accuracy and efficiency. Another benefit is reducing the lost productivity and revenue through rejections by government and insurance companies.
Additionally, once the physician has completed the examination, the electronic medical records software will generate the necessary referral letter for the physician.
This eliminates the need for the physician to dictate a referral letters for transcription. The added benefit to the physician is the time gained by not having to dictate referral letters at the conclusion of the day.
Current market research has shown that a popular competitive product is sold for $20,000 and each physician using the software pays an additional $7,000. There is a recurring revenue stream derived from an annual service agreement.
The price of the agreement is equal to 18% of the purchase price. (e.g., $27,000 x 18% = $4,860 annual recurring revenue) This is the pricing model we have selected to launch the voice medical record product, (see Important Assumptions section).
Note: None of the figures included in this business plan represent revenue from the sale of computer hardware. We recognize the volatility of the computer hardware market. Therefore, our business focus and core competency will remain consistent with providing software solutions using technology.
The company will provide all in-house training and software installation. We will also provide the first line of software support.
We are a value added reseller (VAR) of Dragon NaturallySpeaking software. We are offering this technology as a method of gaining a relationship with our customer group. We will provide dictation solutions for physicians.
The value proposition to the physician is decreased, or eliminated, transcription costs and improved efficiency of their staff. The product pricing will vary from $199 to $995 with additional customization fees billed or packaged at $165 per hour.
Management of Scanned Documents and Digital Files
We are a value added reseller of ScanSoft software. We will be offering this technology as a method of gaining a relationship with our customer group. We will provide an early transition to a paperless office.
The value proposition to the physician is eliminating filling space currently necessary for accounts payable. This not only provides more room, but also increases staff productivity as a result of eliminating the need for filing. The product price is $99, with additional customization fees billed or packaged at $165 per hour.
Orthopedic Screening Products
TELLER ACUITY CARDS
This product line is part of the assets of the management buyout of Vitec. Pediatric orthopedist and orthoptists utilize this product to help screen for the visual acuity and/or visual disorders of infants as young as six months of age. Product pricing ranges from $1,100 to $2,200.
CARDIFF ACUITY CARD TEST SYSTEM
The CARDIFF ACUITY CARD TEST SYSTEM is positioned for physicians and orthoptists to help screen for the visual acuity and/or visual disorders of toddlers over the age of 36 months. This product utilizes “vanishing optotypes” familiar in a toddler’s life. Thus, it is more interactive than the Teller Acuity Cards and helps keep the patient’s attention. It can also be used as a preferential looking device. The product sells for $914.
logMAR ACUITY CARDS
The logMAR ACUITY CARDS are positioned for physicians and orthoptists to help screen for visual acuity and for visual therapy training on children who have reached letter recognition capability. The product sells for $740.
3.1.1 EMR Components
Electronic medical records consist of three areas:
- Front office (front end)
- Patient medical records (examination/referral letters)
- Back office (back end).
This consists of patient demographics such as patient name, address, insurance information, employer information, telephone numbers, etc. Patient scheduling is another important part of the information captured.
This consists of all the notes that a technician or physician would have previously written. When captured in an Electronic medical records package there are no handwritten entries. Information is either typed or entered with a mouse and drop down toolbars.
This consists of billing the insurance companies, accounts receivable, accounts payable, and payroll.
Physicians purchase electronic medical records software for two reasons:
- Insurance companies and the government have started requiring electronic billing. A billing package (back office) is often the first component a physician has computerized.
- The second component being patient scheduling (front office).
3.2 Competitive Comparison
Electronic Medical Records
Our Electronic medical records will be the first to successfully interface telephony as the primary means of inputting data. Current conventional wisdom of the competition is to offer speech recognition as a “bolt-on” product. (This refers to adding it to their existing product and making it work the best they can, as opposed to being the driving force on how information is input.) While this will offer the physician the speech recognition software for dictation, it does not answer the primary market needs to reduce “labor intensive” input. From a competitive view point, the physician gains nothing. A successful software package should eliminate the need for the physician to spend hours after work dictating referral letters and/or patient records. A “bolt-on” solution does not eliminate that dictation, it only offers speech recognition as a tool to facilitate that “after hours” dictation.
Our primary market, orthopedics, cannot take the time to view a monitor to see if information is being delivered into the proper field or to move from field to field. They are constantly looking into the patient’s orthopedic(s.) Therefore, any electronic medical records software that can provide a voice activated solution that does not require constant viewing of a monitor will have a significant competitive advantage. “Bolt-on” products that utilize speech to navigate and continue to require the orthopedist to view a monitor will not have a competitive advantage, even if offered with a significantly lower price.
We differentiate our speech recognition/dictation solution offerings by offering our experience and knowledge of our customer’s individual needs while our competitors sell only the products themselves.
Orthopedic Screening Products
VCI orthopedic products are all considered the first of their kind to enter the marketplace. Therefore, we have captured the minds of the scientific community as being the market leaders. As a result of this positioning our products are often the first to be used in subsequent research and frequently named in published studies.
The products have become “brand names” known to the end-user and asked for by name.
VCI assembles its own products using local vendors for materials.
Our speech recognition software is manufactured by Dragon Systems, Inc. Dragon Systems is recognized as a speech industry leader, well known for its technology breakthroughs and award winning dictation products.
On November 28, 2001 ScanSoft, Inc., Peabody, MA announced the purchase of L&H speech recognition assets, including Dragon Systems. They have announced that there are no plans to alter the current distribution of speech recognition software.
NOTE: The development of our Voice Control, Inc. software IS NOT dependent on Dragon NaturallySpeaking software. We are utilizing a telephony model of speech recognition, known as Nuance, as our speech engine in our electronic medical records software.
We also offer miscellaneous handheld recorders and headsets. These miscellaneous items, along with our software, are purchased from 1450 in Florida. An alternative source has already been arranged and is located in Minneapolis, MN.
The key component to our orthopedic products is the high quality that must be maintained in the printing process. This process is done exclusively by Hammer Graphics in Piqua, Ohio.
Speech recognition software is comprised of two distinctive offerings. They are “Telephony” and “Continuous Speech.”
Telephony is the more accurate of the two methods. The other key benefit to telephony is that it does not require any training by the user. It is highly utilized by call-in centers, airline ticketing/reservation centers, and Wall Street brokers. The accuracy is based on reducing the number of words the software listens for versus continuous speech software widely used for dictation. Telephony searches through predetermined word groups. For example, a credit card activation call center has the system listening for only 10 words. Zero though nine. It stores this information into a temporary database and then reads them back to the caller. The system then asks the caller if this is correct. Now the system is listening for two words, “yes” or “no.” This limited word search is what drives the accuracy so high in the telephony model.
Continuous speech recognition technology searches through 130,000, or more, words for each utterance it hears. The user must also perform training before the software can be used. Then, the software must develop a “vocabulary” for that user. A vocabulary is the predictability of what words “typically” follow each other in the users speech habits. This is developed over time, and is what eventually provides accuracy for current continuous speech recognition software.
Our orthopedics screening product, “Teller Acuity Cards®” is a registered trademark. Vitec has the exclusive rights to the name and manufacturing process to this product worldwide.
3.5 Future Products and Services
It is our goal to vertically penetrate other medical markets with our electronic medical records software. Through the relationships we gain in our regional dictation and paper management sales, we will choose and enter strategic markets. Our goal is to secure these relationships through 2007.
The successful integration of the orthopedic market will provide us the knowledge we need to begin vertical integration into multiple markets in 2007 and beyond.