Matthew Holt: Well hello again. It’s Matthew Holt at THCB and it’s time for another podcast. This one is also about technology, somewhat different than some of the technology we’ve been talking about recently. We’re now back in the world of technology to help improve health and health management, in particular connecting with health plans. Today we have David Blauer who is the CEO of Click4Care. David, how are you?
David Blauer: I’m doing well, thanks. Thanks for having us.
Matthew: Great. Let’s start off with the basics. Click4Care has been around for a few years now and has been known to some of us on some sort of inside baseball view of the world in terms of what’s going on within health plans. It’s pretty fair to say you guys have been building out your product line and building out your client base without making a lot of marketing publicity splash. You coming on this show is part of changing that. Can you give me a quick background as to what the basic business problem is that Click4Care is helping to solve and how you’re solving it?
David: Sure. Our application is built on the premise that preventive healthcare is more effective than reactive healthcare. When we formed the business, we took a look at the industry. Like everybody else, I think, we noticed that if you look at any P&L for a health plan, 85% of the costs for that plan are being driven by medical costs rather than administrative costs. People had spent a lot of time, at that point, trying to refine and skinny down administrative costs as far as they can refine them. But people haven’t found technologies to address the 85% of the cost structure that comprised medical costs. When we looked further, we saw that the sickest 1% of an insured population was driving 40-50% of all those medical costs. The sickest 5% of any insured population was driving nearly 90% of those medical costs. If you continued to drill down, you found that the people responsible for those small percentages were typically moribund, chronically ill people. It became clear to us that there needs to be a technology platform that enables people to identify those risky people driving all the costs and automate the workflows throughout the supply chain to support those people who are driving all those costs in a preventative way that prevents them from incurring those costs by staying healthy.


