1. Medical Memory Systems MMS 11/12/2003 1

2. Medical Memory Systems Project Manager Jeff McCreary Timeline/Logistics Rabia Haq Funding/Budgeting Bola Orenuga Web Designer/Budgeting Daniel Anderson Resources/Marketing/EMR Richard Strosahl Funding/Prototyping Megan Babb Support Stats/ Risk Analysis Chris Fronda 11/12/2003 2

3. Medical Memory Systems Preview Communication breakdowns in the Healthcare Industry Develop solution Evaluate solution Market Analysis Risk Marketing Resources Budget Funding Prototype Development Schedule 11/12/2003 3

4. Medical Memory Systems The Institute of Medicine (IOM) concludes that 44,000 to 98,000 patients annually die from systematic medical errors, caused by “miscommunication or a breakdown in workflow”, which resulted in patients being given the “wrong treatment or no treatment at all”. Article by Greg Gillespie, Managing Editor of Health Data Management.com 11/12/2003 4

5. Medical Memory Systems Diagnostic Radiology Clinical Physician Surgeon 11/12/2003 5

6. Medical Memory Systems Problem Statement Current means of accessing medical information are too slow, inadequate, or outdated to meet the demands for inter-facility communications. 11/12/2003 6

7. Medical Memory Systems Current Methodology Verbal Written Electronic 11/12/2003 7

8. Medical Memory Systems Diagnostic Radiology Clinical Physician Surgeon 11/12/2003 8

9. Medical Memory Systems We Propose: Wearable Medical Memory Device (MMD) 11/12/2003 9

10. Medical Memory Systems 11/12/2003 10

11. Medical Memory Systems Memory Button by MacSema Small Durable Light weight Non volatile 11/12/2003 11

12. EMR Server Backup Copy to Printer Modem Validation Server Internet Validation Upload Download System Validation Medical Memory Systems 11/12/2003 12

13. Medical Memory Systems Important Medical Information Allergies Current medications Laboratory Results Recent surgery finding History and Physical 11/12/2003 13

14. Medical Memory Systems 11/12/2003 14

15. Medical Memory Systems 11/12/2003 15

16. Medical Memory Systems 11/12/2003 16

17. Medical Memory Systems Connectivity Integration – HL7 (Health Level Seven) Our software data structure will be governed by XML. Diagram data written in XML format to encryption mech. to MacSema interface to memory device 11/12/2003 17

18. Medical Memory Systems Quality Attributes Easily updated Accurate Secure Durable Inexpensibe Wearable (must look good!) 11/12/2003 18

19. Medical Memory Systems Customers Clinical Physicians Over 600 physicians in the Tidewater region Diagnostic Facilites Over 10 Hospitals in the Tidewater region Over 5,800 Hospitals in the United States Patients Regional Population – 1,052,814 * Elderly Population – 104,089 * *Hampton Roads: Demographics (Census 2000) http://www.hreda.com/pdfs/Data_for_web_site/Demographics_2000.pdf 11/12/2003 19

20. Medical Memory Systems http://www.stanford.edu/~topham/market.htm Number of Physicians using Some form of EMR 11/12/2003 20

21. Medical Memory Systems In 3 years… Frost and Sullivan's technology survey 11/12/2003 21

22. Medical Memory Systems Testing Strategy Hospital Clinic Hospital Clinic 11/12/2003 22

23. Medical Memory Systems High Level Concerns HIPAA Record Activity Encryption System Validation 11/12/2003 23

24. Medical Memory Systems Risk Developing Customer Base Level – High Resolution – Aggressive Marketing Inconsistent Use Level – High Resolution – Patient Education and Easy-of-use Pricing Level – Medium Resolution – Aggressive Marketing leads to bulk sales and purchasing Competing Products Level – Medium Resolution – Pratical and unique product line Training Level – Low Resolution - Easy-of-use and Tutorials 11/12/2003 24

25. Medical Memory Systems Marketing Medical Facilities Proof of effectiveness Medical Representatives Conventions and Seminars General Public Standard forms of Advertisement Educational Material Medical Advise Immediate Goal – Name Recognition 11/12/2003 25

26. Medical Memory Systems Marketing Means Advertisement Promotional items Sales Promotions Special Discounts Marketing group Provides research demographics and case studies 11/12/2003 26

27. Medical Memory Systems Facilities: Direct Marketing – medical representatives Seminars Public Acceptance Talk Radio – gear to medical institutions Ads to generate public adoption Web site to explain services Medical magazines Newsletters Press release Education handouts 11/12/2003 27

28. Medical Memory Systems Marketing Budget 11/12/2003 28

29. Medical Memory Systems Organizational Budget 11/12/2003 29

30. Medical Memory Systems Personnel Budget 11/12/2003 30

31. Medical Memory Systems Medical Facility Cost 11/12/2003 31

32. Medical Memory Systems Medical Memory Device 11/12/2003 32

33. Medical Memory Systems Budget Summary Development Cost - $1.3 Million Profitability $2,500 per 3 physician license $500 annual fee Software support System Validation 11/12/2003 33

34. Medical Memory Systems Profit Expectation Software Profit Margin – $800 Hardware Profit Margin - $7 per unit Target Goal 50% of Physicians (300 license’s) $240,000 48,000 patients $336,000 11/12/2003 34

35. Medical Memory Systems Profit Summary Expected Profit - $576,000 for initial market Expected Expenditures for Phase I and II - $1.3 Million Investment Recovery – 3 markets of projected size 11/12/2003 35

36. Medical Memory Systems Prototype Development 1 MB Memory Button - $32 1 USB Button Link - $126 11/12/2003 36

37. Medical Memory Systems 11/12/2003 37 Phase 0 Summary

38. Medical Memory Systems 11/12/2003 38 Phase 1 Summary

39. Medical Memory Systems 11/12/2003 39 Phase 2 Summary

40. Medical Memory Systems 11/12/2003 40

41. Medical Memory Systems References Article by Greg Gillespie, Managing Editor of Health Data Management.com Interviews with: Dr. Bennett, Staff Radiologist with Medical Center Radiologist (MCR) MCR provides radiologist for Sentara and Bon Secour’s of Hampton Roads facilities Lori Prowant RT (R), Director of Maryview Medical Center Radiology 11/12/2003 41

42. Medical Memory Systems Diagnostic Radiology Clinical Physician Surgeon 42

43. Medical Memory Systems Solution Characteristics Complete and Historically up-to-date Easily accessible to appropriate medical organizations Information obtained from reliable sources Reliable physical components Cost effective Portable 43

44. Medical Memory Systems Interviews: Dr. Bennett, Staff Radiologist with Medical Center Radiologist (MCR) Lori Prowant RT(R), Director of Maryview Medical Center Radiology 44

45. Medical Memory Systems Due to Preventable Medical Injury Out of 180,000 annual deaths from medical injury 124,000 Death’s (69%) 45

46. Medical Memory Systems Annual cost due to medical injury- $200 Billion Due to Preventable Medical Injury $138 Billion (69%) 46

47. Medical Memory Systems in million’s EMR Expenditures 47