Business Plan Draft - Hoobrah by Entrepreneur Dr Dominic Velasco

Hoobrah a Telehealth Company for Diabetic Patients

By: Dominic N. Velasco, MD

I.               BUSINESS CONCEPT

Hoobrah is a telehealth concept that gives consultations to patients diagnosed with insulin dependent or non-insulin dependent diabetes mellitus 24/7. A smartphone app is the line of communication between patient and healthcare provider. Patients can use a messenger app embedded in the software or interact via video call directly to the health care professional through voice over internet protocol which is also available on the app. They can also log in their blood test results and daily blood sugar monitoring for assessment. A healthcare professional - nurse, diabetologist or endocrinologist will be by their side 24/7.

Hoobrah is also an online pharmaceutical retailer of important hypoglycemic agents that is necessary for these patients. It will ensure cost effective and readily accessible anti-diabetes drugs to its customers.

<rationale for choosing this: passion, economic engine or competency>

II.              BUSINESS MODEL

<where is the innovation?>

3. EXECUTIVE SUMMARY

4. VMOKRAPI

Vision: In 2022,  grow Hoobrah into  a leading telemedicine service provider and retailer of hypoglycemic agents for diabetic patients in Central Luzon  with an annual sales of P60,000,000.

Mission: Hoobra will provide diabetic patients in the Philippines accessible and affordable telehealth care via advanced electronic communications and telecommunication technologies and medicines as a means to provide profit to its business partners.

Objectives

1. To be the Philippines' leading telemedicine service provider for diabetic patients.
1. To provide diabetic patients accessible, and cost effective diabetic care.
2. To deliver affordable hypoglycemic agents to patients.
2. To have happy customers and realize the value of Telemedicine with high quality medical consultations.
3. To make a profit for its owners.
4. To make Hoobrah's employees feel that Hoobrah is the best company to work for.

Key Result Areas / Performance Indicators

KRA	PI
	2017	2018	2022
1.a. Number of diabetic patients users nationwide.	10,824	12,989	18,714
1.b. Sales volume of medical consultations.	P19,899,792	P26,267,625	P59,876,460
1.d. Market share Nationwide.	0.10%	0.12%	0.18%
2.a. Survey ratings from customers.	2.5/5.0	3.5/5.0	4.0/5.0
2.b. Percentage of repeat customers.	35%	50%	65%
2.c. Percentage of controlled diabetes mellitus patients.	60%	80%	99%
2.d. Percentage of customer morbidity secondary to diabetes mellitus after availing of service.	19%	15%	10%
2.e. Percentage of mortality secondary to diabetes mellitus after availing of service.	25%	22%	15%
3.a. Amount of net profits for the next 5 years.	(P85,208)	P3,638,487	P23,420,928
3.b. Payback Period	3.21 years
3.c. Return on equity.	(1.42%)	60.6%	390%
3.d. Return on Investment.	(0.47%)	18.6%	88.7%
4.a. Employee turnover rate.	5 out of 20 per year	4 out of 20 per year	1 out of 20 per year
4.b. Compensation and benefits are above par.	5% above industry standard	8% above industry standard	15% above industry Standard
4.c. Number of job applicants.	10% more job applicants	20% more job applicants	30% more job applicants

5. ORGANIZATION

Hoobrah's  main proponent is Dr. Dominic N. Velasco. He is the President and CEO.  Dr. Velasco has two years experience being a consultant and in building the telemedicine service of an American company known as Askdoctorparker.com. It is an online chat medical consultation for American patients.  Dr. Velasco is currently taking his MBAH program at the Ateneo Graduate School of Business. Currently he is the Chief of Hospital of Rizal Provincial Hospital System - Antipolo Annex II, a local government unit district hospital located at Brgy. Dalig, Antipolo City. He is a diplomate of the Philippine Board of Nuclear Medicine. He is also a training officer at University of Sto. Tomas and a consultant at Cardinal Santos Medical Center.

Our secretary is Atty. Melquiades Marcus Valdez II. He is the son of University of the East's dean Amado Valdez. He currently heads his own law firm in Makati City. Atty. Valdez has represented the Philippines during the West Philippine sea arbitration which has recently heavily favored our nation's interest.

Our treasurer is Dr. Andrew S. Mercado is an internist with specialty in nephrology. He trained at the Makati Medical Center and is currently the head and manager of a dialysis unit in Health Cube in Wilson St. San Juan City.

Organizational Chart

Dominic Velasco, MD

President and CEO

Atty. Melquiades Marcus Valdez II

Secretary

Andrew S. Mercado, MD

        Treasurer Book Keeper

Chief Technology Officer (1)   Chief Marketing (1)            Endocrinologist/Specialist (3)

       Programmers (4) Medical Representatives (2)   Nurses (10)

6. EXTERNAL ENVIRONMENT: MACRO AND MICRO MARKET

Diabetes mellitus is an acquired or genetic disease that causes inappropriate secretion of the hormone insulin by the pancreas or resistance to insulin by the cells. According to the world health organization, worldwide, there is an estimated 150 million diabetic patients worldwide and is estimated to double by the year 2025. In developing countries, the World Health Organization estimates that most patients with diabetes mellitus will be 45-65 years old.

Philippine studies in 2013, shows that there are 6 to 7 people out of 100 with diabetes who are aged 20 years and older in the CALABARZON, NCR, and  Central Luzon areas. Nationwide, diabetes is estimated to inflict 5 people out of 100 aged 20 years and older.

Figure 1. Prevalence and 95% confidence interval of diabetes mellitus among adults aged 20 years and older by region: Philippines, 2013.(Image from FNRI - DOST, 2013)

Table 1. Macroenvironment Analysis

	Political	Economic	Socio-Cultural	Technological	Legal	Environmental
Strength	Strong ties with local government units in Rizal renders good public exposure to Hoobrah.	Online medical consultations provide low cost health care: lessen transportation expenses and rent. Patient does not need to go on sick leave to get an online consultation.	A shy or embarrassed patient can just go online and chat with a certified medical expert. Strong patient privacy. No waiting in doctor's offices helps with privacy.	In house programmers can solely manage the software 24/7. Secure servers can be rented. Computer codes on Github are free such as Rocket Chat thus minimizing costs and speeding up software development.	Key proponents of Hoobrah are duly licensed physicians with aid from a corporate lawyer. No known legislations or licenses to restrict Telehealth.	Rented cloud-based servers and the company's operations has minimal carbon footprint. As long as there is power, operations will continue 24/7 even during floods. Patients can seek consult at the comfort of their own homes.
Weakness	Resolutions and memorandum of agreements for private-public partnerships are long and tedious processes.	Capital for software development and salaries of professionals is in short supply.	Patients in the Philippines tend to self-medicate. Elderly may not know how to use the app.	Software is not yet built. Software development can take time with a minimum of 6 months. In-house programmers are costly.	Local medical societies may question telehealth as whether it is considered a "practice of medicine" or not as it is a new technology and it has not yet been approved by their policies.	Computer bugs, viruses, hardware malfunctions and loss of power can hinder operations.
Opportunities	In Philippine healthcare, doctors are enforcers of health regulations.	Investing in regular continuous diabetic care is expected to be less expensive for individuals and society long term.1	Philhealth and the Office of the Senior Citizen's Affair will make use of these solutions especially that the Philippines is challenged in providing access to healthcare because it is an archipelago.	Indian programmer freelancers can be utilized to lessen the cost of software development.	Development of the software, communications and treatment options are limitless as there are no laws on regulating on-line consultations.	Access to Philippine healthcare, being an archipelago is difficult. Online medical consultations bridges this gap.
Threats	The University of the Philippines General Hospital has established their own National Telehealth Department and is currently the leading Telemedicine in the PH backed by the national government. Public health systems and decentralized health systems do not promote access to diabetes care. Philhealth telemedicine coverage is non-existent.	Seeking out consultation is heavily based on a patient's household budget.	Substitute health care providers such as hilot and homeopathic doctors	UP in collaboration with DOST has built a Telemedicine device known as the RxBOX which is able to take vital signs and ECG and information is sent through the cloud readily seen by the doctors of the National Telehealth department.	Physician and patient privacy is at stake	Breach of software security is always a possibility. Attacks on patient privacy, medical records and payment records. The Philippines has one of the worst telecommunications services in the world.

<some discussion on the relevant factors?>

Microenvironment Analysis

Conventionally, patients with diabetes mellitus seek consult to doctors' clinic specializing in this disorder. These doctors are either endocrinologists or diabetologist. In the Antipolo City area, private doctors charge between P350 to P800 per consult. Patient consult lasts at least 15 minutes and a thorough physical examination together with a clear and concise explanation of home instructions is expected. Due to this, waiting lines are long and some patients are seen on a per appointment basis. Patients observed that doctors are usually late and are not seen on time even if they have an appointment.

Local government hospitals' outpatient department does not have any endocrinologist or diabetologist. Patients who cannot afford going to private clinics seek consult to the family medicine and general practitioners of these district hospitals. Consultations here are free. Feedback from patients reveal that the consultations are brief. They are seen as grumpy doctors. It is believed that this attitude problem is due to enormity of patients seen everyday. A family medicine physician or a general practitioner sees 70 patients a day. The world standard is a limit to a maximum of 20 patients every 8 hour shift. Patients are seen on a first come, first serve basis and there is no assurance that a patient will be seen on that particular day. Due to a lack of doctors, these district hospital cannot meet the demand of patients seeking free medical consults.

<location, competition (does not apply? ... more discussion coming Dr?>