Medical Memory Systems

1. Medical Memory Systems MMS 1 12/8/2003

2. Medical Memory Systems Project Manager Jeff McCreary Resources/Marketing EMR/WBS Richard Strosahl Web Designer/Budgeting Software WBS Daniel Anderson Funding/Prototyping Research Plan Megan Babb Timeline/Logistics WBS Rabia Haq Support Stats/ Risk Analysis Chris Fronda 2 12/8/2003

3. Medical Memory Systems Preview • Communication breakdowns in the Healthcare Industry • Developed solution • Technical Innovations • Market Plan and Analysis • Evaluation Plan • Project Management Plan • Resource, Staffing, Schedule and Budget • Cost and Profit • Funding 3 12/8/2003

4. Medical Memory Systems The Institute of Medicine (IOM) concludes that 44,000 to 98,000 patients annually die from systematic medical errors, caused by “miscommunication or a breakdown in workflow”, which resulted in patients being given the “wrong treatment or no treatment at all”. Article by Greg Gillespie, Managing Editor of Health Data Management .com 4 12/8/2003

5. Medical Memory Systems Diagnostic Radiology Clinical Physician Surgeon Dr. Bennett, Staff Radiologist with Medical Center Radiologist (MCR) Lori Prowant RT(R), Director of Maryview Medical Center Radiology 5 12/8/2003

6. Medical Memory Systems Problem Statement Current means of accessing medical information are too slow, inadequate, or outdated to meet the demands for inter-facility communications. 6 12/8/2003

7. Medical Memory Systems Goals • Save Time • Reduced time in tracking down history • Save Money • Decrease number of procedures done in error • Save Lives • More complete medical history • Increase quality of service 7 12/8/2003

8. Medical Memory Systems Current Methodology • Verbal • Inaccurate • Written • Illegible • Electronic – Current Methods • Not practical • Not cost effective 8 12/8/2003

9. Medical Memory Systems Diagnostic Radiology MMD Clinical Physician Surgeon 9 12/8/2003

10. Medical Memory Systems • Our Solution • MMD 10 12/8/2003

11. Medical Memory Systems • Small • Durable • Light weight • Non volatile Memory Button by MacSema 11 12/8/2003

12. Medical Memory Systems Modem EMR Server Backup Copy to Printer Validation Upload Download Internet System Validation Validation Server 12 12/8/2003

13. Medical Memory Systems Important Medical Information • Allergies • Current medications • Laboratory results • Recent surgery finding • History and physical 13 12/8/2003

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17. Medical Memory Systems Connectivity • Integration – HL7 (Health Level Seven) • EMR Communication Standard • Our software data structure will be governed by XML. • Dataflow • Data written in XML format • Encryption mechanism • To MacSema interface • To memory device 17 12/8/2003

18. Medical Memory Systems Quality Attributes • Easily updated • Accurate • Secure • Durable • Inexpensive • Wearable 18 12/8/2003

19. Medical Memory Systems Customers • Initial Market • Hampton Roads, Washington DC, Raleigh Durham Research Triangle • Clinical Physicians • Over 3,000 physicians in Hampton Roads • Over 15,000 in Initial Market • Patients • Initial Market Population – 7.5 Million * • Elderly Population – 750,000 (10%) ** *Hampton Roads: Demographics (Census 2000) **http://www.hreda.com/pdfs/Data_for_web_site/Demographics_2000.pdf 19 12/8/2003

20. Medical Memory Systems The Elderly • Increased amount of medical history • Decrease memory • Decrease comprehension • Two to four times more likely for medical injury Local Market • Hampton Roads • Bon Secour’s • Sentara Lee 20 12/8/2003

21. Medical Memory Systems Number of Physicians using Some form of EMR http://www.stanford.edu/~topham/market.htm 21 12/8/2003

22. Medical Memory Systems In 3 years… Frost and Sullivan's technology survey 22 12/8/2003

23. Medical Memory Systems Clinic Clinic Clinic Hospital Evaluation Strategy 23 12/8/2003

24. Medical Memory Systems Evaluation Phase • Durability • Functionality • Frequency • Usability • Impact 24 12/8/2003

25. Medical Memory Systems Marketing • Medical Facilities • Medical Representatives • Proof of effectiveness • Conventions and Seminars • General Public • Standard forms of Advertisement • Educational Material • Medical Advise General Goal – Name Recognition 25 12/8/2003

26. Medical Memory Systems Project Management Plan • Management Plan • Work Breakdown Structure • Project Manager Responsibilities • Schedule • Budget • Quality Control • Risk 26 12/8/2003

27. Medical Memory Systems High Level Concerns • HIPAA • Record Activity • Audit’s • Encryption • Protect patient’s health information (PHI) • System Validation • Appropriate user’s 27 12/8/2003

28. Medical Memory Systems Risk • Developing Customer Base • Level – High • Resolution – Aggressive Marketing • Inconsistent Use • Level – High • Resolution – Patient Education and Ease-of-use • Pricing • Level – Medium • Resolution – Aggressive Marketing leads to bulk sales and purchasing • Competing Products • Level – Medium • Resolution – Pratical and unique product line • Training • Level – Low • Resolution - Ease-of-use and Tutorials 28 12/8/2003

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40. Medical Memory Systems Additional Personnel 40 12/8/2003

41. Medical Memory Systems • Total Cost for Phase I and II - $609760 41 12/8/2003

42. Medical Memory Systems MMD Cost • Less than $50 for 8 MB • 20$ to $60 range for jewelry casing Full EMR Installments - $12,000 42 12/8/2003

43. Medical Memory Systems • Profitability • Licensing - $2500 (3 physicians) • Annual fee - $500 • System support • Validation services • Goals • Phase I and II total - $609,760 • Breakeven target - $900,000 (breakeven target) • 3 Metropolitan’s - Populations • Hampton Road’s • Washington DC • Raleigh Durham Research Triangle 43 12/8/2003

44. Medical Memory Systems • Total population – 7.5 million people • 200 doctors to 100,000 people in metropolitan area’s* • Total physicians – 15,000 • Average licensing fee per physician - $833 • To reach break-even target of $900,000 • 1081 single licenses (360 3-user license) • Capture 7.2% of market • Does not include annual support fee *www.bna.com 44 12/8/2003

45. Medical Memory Systems MMD profits • 7.2% of population – 540,000 people • 10% of that – 54,000 (represents elderly population) • 10% profit margin - $5 per unit sold • .7% of patient market yields - $270,000 45 12/8/2003

46. Medical Memory Systems Funding • SBIR • Year 1 – $359,229.79 • Year 2 – $250,530.40 46 12/8/2003

47. Medical Memory Systems Conclusion 47 12/8/2003

48. Medical Memory Systems References Article by Greg Gillespie, Managing Editor of Health Data Management .com Interviews with: • Dr. Bennett, Staff Radiologist with Medical Center Radiologist (MCR) • MCR provides radiologist for Sentara and Bon Secour’s of Hampton Roads facilities • Lori Prowant RT (R), Director of Maryview Medical Center Radiology • Hampton Roads: Demographics (Census 2000) • http://www.hreda.com/pdfs/Data_for_web_site/Demographics_2000.pdf • http://www.stanford.edu/~topham/market.htm • www.bna.com 48 12/8/2003

49. Medical Memory Systems Solution Characteristics • Complete and Historically up-to-date • Easily accessible to appropriate medical organizations • Information obtained from reliable sources • Reliable physical components • Cost effective • Portable 49 12/8/2003

50. Medical Memory Systems Out of 180,000 annual deaths from medical injury Due to Preventable Medical Injury 124,000 Death’s (69%) 50 12/8/2003