In total agreement that the last 4C was simply the initial signal and that subsequent 4Cs could potentially be the game changer in raising investor appetite for the new Alcidion.
Another thing to note is that Kate will get better at selling the company as she gets more familiar with the Alcidion side of ther combined entity. Also, running an listed entity is a different game to running a private entity.
Over time, additional key selling points such as interoperability would be stressed because Miya sits above all the individual legacy platforms used at hospitals and can pull data from any source and combine to allow a single EMR from all sources following the patient through the hospital and delivers clinical intel to the patient care team via mobile tablets.
More importantly, nurses and etc can have complete access to patient records (including information that previously went unsighted), creating efficiency and effectiveness in record access.
My notes from a presso that Ray gave many years ago stated that care team specialists currently have a ratio of 30% direct patient care time versus 70% in an admin type capacity spent accessing records, chasing reports and further testing. There is therefore a massive opportunity for increasing efficiencies across hospitals with significant cost and time saving.
The simply business proposition that Alcidion is offering is that even with a conservative 5% shift in efficiency, it can equate to a massive cost saving across the hospital. Important to note that Alcidion is targeting an efficiency target of more than 5%.
Using the conservative 5% efficiency target on a 30%-70% time split between direct patient care and admin and etc duties as an example:
- it would shift the split from 30-70 to 35-65
- time spent on direct patient care would rise by approximately 16%
- time spent on admin and etc duties would drop by approximately 7%
- Ray quoted that an average hospital could save approximately $25 million.
Obviously, the proof is in the pudding and hence my personal view of the importance of the ACT and MidCentral contracts as reference sites. If Alcidion can convincingly demonstrate the efficiency gains and improved patient outcomes by comparing pre-implementation outcomes versus post-implementation outcomes, it could potentially be a total game changer.
Using the example below, a $25 million cost saving plus improved patient outcomes is not something to sneezed at!
