CareCloud's mission is to eliminate the waste in the health careindustry, which is attributed to administrative bureaucracy andredundant care, by connecting its fragmented constituents and supplyinghighly effective information technology and other services. Our proprietary software is based on a revolutionary systems architecture that treats healthcare and its participants as an ecosystem - an integrated environment where all participants share a common commitment of reducing inefficiencies and providing excellence in healthcare.
For our premium service, CareCloud RCM, we intend to charge 3 - 10% of practice collections. A typical mom and pop medical billing company would charge a physician around the same price which rarely does not even include any software for the practice. The exact rate would vary based upon practice characteristics such as average revenue per claim and total number of doctors. Generally, we believe that we will be economically aligned with our physician practice clients because payment for our services in most cases will be dependent on the results our services achieve for our clients. As a result of this approach, the effectiveness of our revenue cycle management services would be borne out by measurable improvements in the financial performance for physician practices within a short period of time after they start using our services.
Our CareCloud Basic service would consist of providing centrally hosted software to our clients without the heavy aspects of the back-office service. Clients would be able to utilize our Practice Management system to handle their financial and administrative operations or our Electronic Medical Records system for their clinical operations. We contemplate that either system will cost $249 per month plus transaction fees for claims submission, patient statements and others. Clients would also be able to select both systems in a fully integrated suite for a very competitive price of $349 per month plus transaction fees. As part of either CareCloud RCM or CareCloud Basic, clients would enjoy a free Patient Portal that would subsequently be delivered to their patients free of charge.
CareCloud faces a number of competitors, many of which have an outdated go-to-market approach. Traditional healthcare IT companies have approached these problems in a fragmented manner by developing software products targeted at specific user-groups.
In the revenue cycle management segment, CareCloud believes that it will compete with the following: 1% - the few well-heeled competitors such as AthenaHealth or Avisena that have excellent Internet-based systems and a service offering 20% - Traditional medical billing companies who are typically mom-and-pop organizations with weak technology and informal service offerings. 79% - In-house solutions, whereby physicians purchase packaged software or SaaS software and employ full-time staff to manage their revenue cycle.
In the electronic medical records segment, CareCloud intends to compete with either fully-integrated systems such as NextGen or Misys that do not offer an option to use either their practice management or EMR. In this way, they are closed systems. The open providers such a MediNotes, have captured market share but do not provide the richness of a fully-integrated environment. Regardless, the electronic medical records market is wide open since only 20% of doctors currently utilize an EMR.
Currently a $2.4 trillion industry, U.S. healthcare is plagued withapproximately 25% wasteful spending. Much of this inefficiency can beattributed to: administrative waste caused by lack of systems andstandards; and, redundant care caused by lack of information sharing.