By Dilara Misel, Janosch Jassim, Revazi Chikviladze, Alexandr Korolchuk
Every year, hospitals in the US spend around 150$ billions on medical equipment with an average usage of only 42%.
Cohealo, a technology company founded in 2012 by Mark Slaughter, Michael Slocombe and Brett Reed, made it their mission to increase such utilisation rates and to avoid unnecessary and extremely expensive purchases and rentals.
But how does this concept work?
Cohealo has cloud-based software, combining analytics and logistics that lets hospitals exchange and share their non-emergency medical equipment. When in need of a machinery, the hospitals can look up which hospital nearby is not in need of the specific equipment at the moment and pick it up from them. So it has a method similar to Uber or Airbnb. Big Data is being used in order to share medical resources and costs. To do so, a software with an easy interface drawing on real-time data and usage analytics was created. Hospitals can register their equipment and get access to a broad centralized data base on a single technology platform on which they provide the assets to anyone who needs it. Cohealo offers a big network of hospitals that have access to more equipment than they actually have in stock.
Who are the people who had the idea?
Cohealo was founded 2012 in Boston, Massachusetts mainly by Mark Slaughter with the help of Michael Slocombe and Brett Reed. Mark Slaughter graduated from the University of Miami Business School in 2012 and has since then received several awards including: Forbes 30 under 30 Healthcare (January 2015) or Fast Company World’s Top 10 Most Innovative Companies in Healthcare (January 2015).
For everyone who is interested in getting to know the founder of Cohealo and what he has to say about his idea, can watch this interesting interview with Mark Slaughter:
What the system provides
- High quality care which is available and convenient for all patients (they do not have to drive to several hospitals in order to have a successful therapy).
- Minimize equipment related therapy delays and cancellations.
- It offers analytics to gain operational insight and more efficiently deploy assets.
- On-demand access to every asset in your system.
- Alerts when new technology was added to the system.
- Run usage reports and view predictive analysis.
On the right side you can see the customer needs before the invention of Cohealo. The left side depicts advantages and disadvantages of the product. With the help of this image you can determine whether and in what way the product is suitable to the customer needs that were already existing before. The right side shows that before Cohealo, hospitals had problems with over- and under-utilisation of their clinical assets, and therefore had unnecessary high expenses or were not able to perform certain activities due to the lack of appropriate machineries. Moreover, there was no uniform system before which gave an overview of the availability of medical devices. Through Cohealo, a cloud based software was being created, offering a central system that provides an overview for each hospital about how to invest into new devices and also which already owned devices are utilized efficiently. With this, the decision making process has become more facilitated. Furthermore, the software offers the opportunity to build up a huge network of hospitals to exchange their medical machineries with logistics already being cared about by Cohealo, so the use of those devices can be created more efficiently and costs can be shared.
To sum it all up, Cohealo offers access to clinical assets, the ability of centralized decision-making, a real-time data and usage analytics and the transport of clinical assets.
Apart from their main partners being hospitals and logistics companies, the following are the most important financial supporters of the start-up company:
“Romulus has been an incredible partner to our growth in many ways – we could not have gotten started or won the Applebee’s deal without their support. They’re a very entrepreneurial group”. – Raj Suri, Cohealo Manager
In 2005, the Romulus foundation provided 2 millions of dollars to support Cohealo financially. Romulus made a great contribution by helping the start-up company to distribute their data to local hospitals as an experiment how it will go. After a first success, Romulus has offered an equal partnership with Cohealo with the agreement of regular funding Cohealo company with the opportunity that Cohealo is going to develop the strategies how to spread the Medicine Big Data to foreign countries.
New investor Miami-based Krillion Ventures led the recently completed $9 million Series A financing that also included a number of notable individual investors. The financing was composed of both equity and convertible-note financing and builds upon seed investment from Romulus Capital. The proceeds will be used primarily for adding intellectual capital as the company looks to bring on additional engineers, sales executives and support staff, and further develop the Cohealo Platform.
Ehrenberg, M. (2016). The future of integrated facility management: A convergence of business trends is driving dynamic transformation and a new paradigm for integrated facility management in 2016. Corporate Real Estate Journal, 5(3), 238-247(10).