2017 0424 ZOCDOC Executive Summary FINAL

ZOCDOC EXECUTIVE SUMMARY

WHAT’S THE STORY ZocDoc is an online find-a-doctor company that provides an Uber-like service for consumers to quickly find and book doctor’s appointments. Through its proprietary scheduling system that manages provider appointments, schedule changes, cancellations, and “no shows” in real time, ZocDoc lets consumers tap a “hidden supply” of last-minute open appointment slots, find doctors and other providers covered by their health plans, and book appointments online or by mobile apps. Appointments are typically made within 24 to 72 hours. A Spanish version of ZocDoc is also available. In addition, ZocDoc Check-In allows patients to complete their paperwork online in advance of appointment times. ZocDoc helps more than 6 million patients schedule appointments each month, serves more than 60% of the U.S. population in over 2,000 cities nationwide, and plans to continue its growth nationwide. Following explosive growth in the consumer sector, in 2014 the company launched ZocDoc for Business, a premium version of its scheduling solution that is tailored to employers’ health plans, the doctors who accept those plans, and the appointment times most likely to work with their employees’ schedules. Using the platform, employees access enhanced ZocDoc features including premium access to weekend and evening appointments as well as wellness treatments.

HOW IT WORKS For consumers, ZocDoc is free. They create a ZocDoc account, and when they wish to see a doctor they log-in, choose the type of doctor they want to see, their location, and their insurance plan. ZocDoc lists multiple doctors who match their needs. Consumers can instantly view a provider’s profile – including available times, education, office photographs, and patient reviews – and then book an appointment in less than a minute. Doctors or health systems pay a flat monthly fee (estimated at about $3,000 per doctor, per year) to use the ZocDoc scheduling platform and

list open appointments. ZocDoc does not manage doctors’ billing practices; it simply provides an appointment connection between consumers and healthcare providers. For providers, ZocDoc provides a solution to address the estimated 25% of cancellations and no-shows in a given practice setting, helping to reduce lost revenues and improve operational efficiency. ZocDoc for Business customers pay ZocDoc on a monthly basis, per employee. The service helps to lower costs for employers by reducing employee selection of out-of-network providers and increasing access to primary care doctors, thereby reducing the need for employees to use more costly urgent care and emergency room services.

HOW THE IDEA, COMPANY, AND MODEL OF CARE ARE EVOLVING ZocDoc was founded in 2007 by CEO Cyrus Massoumi with a mission to improve access to healthcare. Massoumi is joined by co-founders Oliver Kharraz (COO of the company and a doctor) and Nick Ganju. Today, the company has more than 550 employees with headquarters in both New York City and Phoenix, Arizona. The company has grown rapidly, is quickly building to cover the entire nation, and believes that ZocDoc provides a solution for ObamaCare and the many previously uninsured individuals who are gaining medical coverage and seeking primary care. ZocDoc has attracted the attention of traditional healthcare companies, including Aetna which reportedly offered to acquire the company for $300 million in 2013. The company is currently valued at more than $1.8 billion following a round of funding lead by Atomico that generated $130 million on top of prior funding led by some of the tech world’s most respective investors including DST Global, Goldman Sachs, Founders Fund, Khosla Ventures, Jeff Bezos, Marc Benioff and Ron Conway. In June 2015, Methodist Healthcare of Memphis, Tennessee adopted ZocDoc’s online scheduling system to increase their population’s access to care. ZocDoc and another disruptive startup, Oscar Health, joined forces in December 2015 to help push the initiative of Healthcare.gov signups forward. In January 2016, ZocDoc announced a partnership with the EHR platform drchrono. This partnership gives doctor’s working with ZocDoc the ability to sync the information contained in their EHRs and calendars with ZocDocs platform. In February 2016, the company revealed a complete branding refresh. This included a new logo that they call “Zee” that was developed to take a more “friendly, simple, and, most of all, reflective of patients and real life.” The logo comes in 10 different ways, each displaying a different emotion. In addition to the logo transformation, both the website and the app were redesigned with a new, modern, color scheme, and images. In March 2016, ZocDoc laid off 5% of their staff citing “the strategic direction of [their] business and the evolution of the healthcare industry” as their main reason for doing so. In April 2016, Holy Name Medical Center in New Jersey announced that they would use ZocDoc’s services to be the first in their geographic region to provide their patients with a website that gives them access to online scheduling for primary care visits and many specialty visits. In May 2016, the company announced new updates to their system which included a more streamlined experience for healthcare facilities working with the same patients across the healthcare spectrum.

In June 2016, the company announced a partnership with the Mayor of New York City that marked the integration of ZocDoc’s platform into the WorkWell NYC initiative, whose aim is to support the health of the city’s employees and their families. Also in June 2016, MediTouch and ZocDoc announced a partnership that would fuse their services together. Through this collaboration, MediTouch provides ZocDoc with exposure to new users while ZocDoc’s technology fills the gaps in MediTouch’s platform such as “cancellations, time changes” and no-shows. In July 2016, Geisinger Health System announced that they would begin using ZocDoc’s platform to offer their patients online appointment booking services as well as doctor reviews. In September 2016, Summa Health announced their use of ZocDoc’s platform to allow their patients to make appointments with primary and specialty care providers, check future availability of those providers and leave reviews of their experiences. In October 2016, ZocDoc announced that they, along with some of their partners, would begin offering their employees an “unsick day.” This day will give employees the opportunity to take preventative measures in protecting their health such as check-ups with their doctor, regular dentist appointments, and other important screenings they may need to have. In November 2016, Edward-Elmhurst announced that they would integrate ZocDoc’s patient scheduling and review system into their existing platform for users. In March 2017, ZocDoc announced the launch of a new, more sophisticated and personable search function. Using advanced “machine learning and natural language processing” the system takes out the complication in searching for the right doctor by removing the need to know exact terms, conditions or spelling and rather the Patient Powered Search function responds to more common, natural language usage. Development was based on gathered data from the last 10 years.