Thought Leaders in Healthcare IT: Prashant Srivastava, CEO of Evive (Part 2)

Sramana Mitra: Can you also explain how the money flows in this situation? You’re talking about employers and employees who are using these benefits.

Prashant Srivastava: We’ve been very fortunate to build a win-win-win model. The first winner is the individual who gets to know of the right benefit that is already in their package. W tell users that they have this free service and can get a second opinion for their treatment or that they can save money by switching to a generic.

The person wins by getting the right information at the right time without keeping track of all the things that’s available to them. The employer wins because they’ve invested a lot of money in their total rewards package. The individual not finding value in it is wasting that investment.

Oftentimes, the employee using the right benefit like the one I described results in the right treatment for the employee at a lower cost and returns the employee back to work in better shape. We win because we’re connecting these two value propositions at the right time and get paid for it from the employer themselves.

Sramana Mitra: Your customers are the employers?

Prashant Srivastava: That is correct.

Sramana Mitra: How does your system pick up the signal that one of the employees is using a chiropractic service or any kind of treatment so that it starts to feed that employee with in-context information?

Prashant Srivastava: All of our customers are Fortune 500 companies that are self-insured. They run a self-insured health plan. As part of running that, they pay every visit that an employee or family member would make that’s covered by that health plan. Those transactions are occurring through a third-party and we’re getting a copy of those transactions.

Sramana Mitra: That is the trigger of what’s driving the rest of the predictive analysis.

Prashant Srivastava: That same thing exists for every other service that employers bought. They’re contributing to a 401K and the employers are matching it. The 401K administrator would send us the information. If they have bought an on-site daycare center, we’re connecting the information to say, “Are you taking advantage of all the resources that we have around you?”

Sramana Mitra: How big is the adoption of your technology in Fortune 500 for example?

Prashant Srivastava: Our targets are large employers who invest a lot in their employees. We have about 50 large customers including 25 in the Fortune 500.

Sramana Mitra: What is the average deal size? Are they paying you millions of dollars for this facility?

Prashant Srivastava: Typically, employers pay $10,000 in benefits. We are a fraction of that investment that they make.

Sramana Mitra: You’re saying $10,000 per employee?

Prashant Srivastava: That’s right.

Sramana Mitra: This $10,000 is to a variety of benefits provider?

Prashant Srivastava: Yes, including paying for actual healthcare as well.

This segment is part 2 in the series : Thought Leaders in Healthcare IT: Prashant Srivastava, CEO of Evive
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