Splash 4 Partners- Online Health Communities

Online Health Communities:The Patient Directed EMR

What are online health communities (“OHCs”)?

Why patients use OHCs?

How do OHCs generate revenue?

What broader trends exist in aggregating patient data?

Contact Us:

Jacob Grosshandler [email protected] Grosshandler [email protected]

Copyright © 2015 – 2016 Splash 4 Partners, LLC

Online Health Communities: The Patient Directed EMR

Splash 4 Partners (“S4P”) was engaged by ahealthcare focused investment fund to helpdiligence the patient directed electronicmedical record industry. The following is ahigh-level summary from S4P’s competitiveanalysis of the online health community space.

Contact S4P to leverage our principals’ years ofexperience in private equity, lending, andmanagement consulting to enhance yourdiligence findings and improve your business.


What are online health communities?Online Health Communities (“OHCs”) are increasing in popularity and use in recent years. S4P examined 12 of thelargest and most well funded OHCs. There is considerable overlap of represented disease communities and userfunctionality of the examined OHCs. The primary differentiation comes in the partnerships these firms havedeveloped within the broader healthcare space.

Company FoundedRegistered

Users# of

CommunitiesBen's Friends 2008 50,000 35Crohnology 2011 8,187 2CureTogether 2008 50,000 637Diabetes Hands Foundation 2008 1,300,000 2HealtheTreatment 2010 - -HealthKeep 2013 - -Inspire 2005 500,000 -MDJunction 2006 - 800MedHelp 1994 12,000,000 294MyHealthTeams 2010 350,000 15PatientsLikeMe 2004 380,000 2,500Smart Patients 2013 - 76

Source: Splash 4 Partners Research & Analysis; Company websites.


Why patients use OHCs?Patients and caregivers register and use OHCs for the following primary reasons:

Information acquisition on disease management, physicians, and treatment efficacy.– Patients are in control of what information they collect and share. Patients are also accessing information from the privacy

of their home with varying degrees of anonymity.

Community support from patients and families with the same chronic illness.– Patients and caregivers receive not just actionable information but also emotional support from others going through

similar stressful health related situations.

Patient controlled electronic health record.– For many patients, these sites are an easy to use way to generate a patient timeline of symptoms that are easily tracked

and viewed separate from the information sinkhole that electronic health records managed by medical providers often are.


How do OHCs generate revenue?OHCs generate revenue through advertising sales and providing market research services for pharmaceuticaland medical device companies. Market research services have the ability to generate higher revenue off ofa smaller user base; whereas, advertising depends on selling access to a broad base of users.

Of the 12 examined OHCs, only half publiclydisclose the use of advertising as a revenuesource.

7 out of 12 examined OHCs sell marketresearch services to pharmaceuticalcompanies, academic institutions, andmedical device firms.

Source: Splash 4 Partners Analysis & Research; Company websites.

Company Advertising Market ResearchBen's FriendsCrohnology XCureTogether XDiabetes Hands Foundation XHealtheTreatment X XHealthKeepInspire X XMDJunction XMedHelp XMyHealthTeams X XPatientsLikeMe XSmart Patients X


What broader trends exist in aggregating patient data?Google and Facebook have both made efforts to build out business units to data aggregate patientinformation and develop products and services in the healthcare space. For various reasons ranging fromprivacy to regulatory concerns and beyond, the two technology leaders have not made any meaningfulpenetration into the market. Their relatively nominal market presence in healthcare coupled with thequality of human capital they cultivate has turned them into a variant of a health 2.0 accelerator.

Vida, founded in 2014 by former Googler Stephanie Tilenius, provides a platform that connects healthexperts to those with chronic conditions for remote coaching via the Vida app.

Lyra Health, launched in 2015, is headed by Facebook’s former CFO. The company connects those seekingbehavioral health treatment to practitioners directly through the company’s technology platform.

Health IQ (“Hi Q”), founded in 2012 by former Googler Munjal Shah, is an app that quizzes users on varioushealth topics and links them to health content to improve their knowledge on important health issues.

GoodRx, founded in 2011 by two former early Facebook employees, is the largest prescription drug pricetransparency platform for consumers in the U.S.


Alternative Patient Data Aggregation: Treato Company Profile

Business Description: Treato is an Israel-based marketresearch firm that leverages the existing online data, reviews,and patient comments about pharmaceuticals, OTCs, and self-reported symptoms, side effects, and efficacy of treatments.The company data aggregates using natural program languagefrom blogs, social media, health websites, and onlinecommunities to provide pharmaceutical companies andhospitals with comprehensive data. Patients can also use thesite to help discover alternative pharmaceutical treatments.

One article described Treato at being a mash up of WebMDand Facebook. The firm does not allow advertising on its site.

Another form of online patient/treatment-centered market research is being built around data aggregationacross the web. Apple, Facebook, and Google all have dabbled in patient data aggregation. Treato is profiledbelow to demonstrate another competitive model to OHCs without “owning” the patient relationship.

Source: Splash 4 Partners Analysis & Research; LinkedIn; Company website; Crunchbase; andhttps://gigaom.com/2013/04/24/facebook-meets-webmd-how-treato-mines-social-data-to-uncover-health-insights/.

Founded: October 2008.

Capital Raised: $14.5 mm series B in 2015.

Investors: New Leaf Venture Partners, OrbiMedAdvisors, Reed Elsevier Ventures, Shumel Cabilly,Western Technology Investment.

Growth: The $14.5 series B capital raise wascompleted to help with market entry into the UnitedStates.

Employees: 11-50.


About Splash 4 PartnersSplash 4 Partners supports middle market businesses and financialsponsors by accelerating growth and increasing profits. We provideactionable insights and data driven solutions to executives andinvestors in the health, wellness, education, and informationtechnology industries that:

Identify new strategies to capture market share

Expand existing relationships with current customers

Explore evolving competitive dynamics of a market, and

Align the firm’s capital structure with its long term objectives

Contact Us:Jacob Grosshandler [email protected] Grosshandler [email protected]


Splash 4 Partners- Online Health Communities

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