Hans Apostel, Co-founder
The Healthcare IT sector has been one of the strongest growing sectors given increasing migration to digital applications, notably following the COVID-19 event. As compared with distinct healthcare segments such as imaging and diagnostics, clinical Research or data management for EHR, virtual Care and telemedicine, Brazil-based MedPass’ sweet spot, has by far outperformed its peers. With equities in this segment having doubled in value over the last year; notable stocks as Teladoc had a 10x race behind it over the last 4 years, Livongo was up more than 5x in a few weeks following the merger announcement with Teladoc. Even Zoom’s 4x stock performance after the February crash, benefited with its Telehealth app, although not its natural core business. Growth is projected to be superior of any other Healthcare segment, but the red flag is that the EBITDA margins are becoming increasingly thin and competitive. Additionally, IT barriers are becoming visibly lower given cheaper costs and reduced investments in cloud based apps. As a result, physicians are available for additional consultations and show enhanced flexibility with respect to the remuneration for their Tele-consultations.
MedPass, since its foundation in 2016, placed its bet on a very unique business model envisioning integrated patient data and a proprietary health risk assessment centered on the patient. This has enabled the company to become the leading digital solution for individual healthcare monitoring and orientation, offering an intelligent journey through an otherwise complex and expensive healthcare system. Whenever the user has a doubt or concern and contacts MedPass’ orientation center, he is immediately recognized based on his health records, permitting individualized orientation. Following this, the patient is directed to one of our family doctors for a more qualified evaluation. And once strict protocols are established, the necessity to consult with a specialist, a tele-consultation or a face-to-face consultation is scheduled.
More recently, MedPass, which currently targets corporate employees, has unveiled a substantially enhanced version of its HealthTech platform, 4.0, as it reports additional strong investor backing: After earlier securing $8 million in seed funding since 2016, it now has commitments from investors for another funding round of $6 million to finance the company’s continuing growth.
In Brazil’s highly fragmented healthcare startup market, with over 500 registered companies listed on Crunchbase, just 30 firms have received more than $1 million in seed funding, and a mere 10 have been funded above $5 million, and MedPass is one of them.
Unique features of the MedPass version 4.0 include a virtual assistant “Ben,” equipped with over 120 medical algorithms applied individually to the risk profile and medical records of the user, allowing specific screening and meaningful medical help.
Employees of MedPass clients begin their journey using MedPass by filling out digital assessments, within the MedPass application itself, of their health conditions, habits and behaviors. The results obtained generate managerial dashboards updated through integrated digital medical records, with assessments of quality of life and health, which guide population management policies of the clients. Messaging resources have also been created to allow clients’ HR staffs to transmit important communications with specific employees or companywide.
This business model has helped certain clients to avoid over 70% emergency room and medical visits, encouraging an ever-growing number of employees to opt for this digital healthcare avenue providing not only substantial cost reductions but also increasing motivation of the employees to take care of their own health. In fact, MedPass is approached by a number of innovative marketing and customer relationship managers to help them in applying similar loyalty models for their clients who represent recurring billings. This form of engagement is not only cheaper than marketing campaigns with gigantic budgets but provides an attractive benefit for both sides in our new everyday digital world where health concerns are inreasingly relevant.