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How do you price a new kind of healthcare service? | Sherpaa

Pricing is much more important than product
As Tom Whitwell puts it in this exceptional piece about pricing:

Prices are interesting because they inspire such strong emotions. Responding to price is hard-wired into our brains. When we see something expensive, we know immediately — without thinking — that it isn’t for us.

Sherpaa is a fundamentally new way of communicating and problem solving between doctors and patients. I started Sherpaa because, as a doctor, I knew that 70% of people in my exam room didn’t need to be there in person. If I could only get paid for communicating with you and treating you without bringing you in to the office, your life would be easier and so would mine. So we built Sherpaa and, sure enough, 70% of all the issues our patients have can be diagnosed and treated virtually and without in-person visits. But, the federal government, and therefore, private insurers, have not created codes for asynchronous communication and problem solving when situations can last anywhere from 10 minutes for simple issues to 10 months for life-threatening, complex situations. Remember, Sherpaa’s entire reason to exist is to communicate and solve your problems as best as we possibly can and sometimes this takes multiple messages, phone calls, and videos with you per day, with labs, getting lab results back, interpreting them for you, sending you to specialists, coordinating your care with them, etc, etc, etc.. Sherpaa’s process blows up the entire concept of doctors only getting paid for communicating and problem-solving with you in their exam rooms. But codes only exist for office visits and occasional video visits (only if the situation meets a set of criteria or the service is rendered for simple things like pink eye via TelaDoc or Doctor on Demand). And getting federal approval for new codes is a 10 to 20 year process. This is one of the reasons why the federal government defining healthcare delivery in America is a massive barrier to innovation, but this is beyond the scope of this piece.

Sherpaa is a service and product that works extremely well. We’ve got those down. It’s definitely not perfect, but it’s markedly better than traditional unnecessary healthcare. I think people can get behind:

Yes, I’d like to talk with a doctor and get my problems solved without having to visit a doctor in-person when I don’t need to visit a doctor in-person and, secondly, I’m going to trust that these highly-trained, experienced doctors know what they’re doing.

So, the next, and most important step, is pricing.

Is the price right?

“An optimal price is one that is accepted but not without some initial resistance” says Ash Mauyra. And back to Tom Whitwell:

It is almost impossible to predict how a customer will react to a particular price by asking them. That’s because they don’t know how they will react.

There’s one easy way to find out what customers think about prices. By selling them things.

Read complete article here:

How do you price a new kind of healthcare service? – Sherpaa – Medium.