741: Exited for $15m, Now Tackling Healthcare Patient Doctor Relationships

Todd Johnson, a serial healthcare information technology entrepreneur committed to building great products, teams and companies. Todd has a track record of cultivating great ideas and great business that offer incredible company cultures and attention-grabbing brands. Before his current company, HealthLoop, Todd was the founder and CEO of Salar, a Baltimore, MD-based provider of acute care physician charge capture and documentation solutions. 

Famous Five:

• Favorite Book? – The E-Myth Revisited
• What CEO do you follow? – Donald Trump and Elon Musk
• Favorite online tool? — Gmail, Boomerang and Inbox
• How many hours of sleep do you get?— 7
• If you could let your 20-year old self, know one thing, what would it be? – Todd wished he could have took things less seriously

Time Stamped Show Notes:

• 01:59 – Everyone needs healthcare at some point in their life
• 02:30 – Salar was able to replace paper processes at hospitals
  • 03:08 – Salar was sold to the country’s second largest medical transcription company
  • 03:16 – It was a $15M exit
• 03:40 – Todd lives in Silicon Valley
  • 03:57 – Todd has a couple of reasons why he chose to rent rather than to buy a property
• 04:37 – HealthLoop was initiated in 2009 and was an idea for over a year
• 04:51 – Todd joined HealthLoop in 2013
• 04:49 – The founder is a doctor from San Francisco
  • 05:50 – He’s still part of the board
• 06:28 – HealthLoop is a platform that automatically pushes notifications before and after a diagnosis or surgery
  • 06:40 – It connects patients and doctors
• 07:00 – 5 years ago, there’s no model around improving the quality of care
• 07:38 – Multiple parties benefit from an improvement in health care
• 08:28 – In order to retain the trust of the patients, you have to gain the doctor’s trust as well
• 08:46 – HealthLoop has an enterprise subscription model
  • 09:03 – Average contract is $120K to $150K that can escalate year over year
  • 09:21 – They pre-pay the cases that they might have in a year
• 10:28 – HealthLoop’s customers are very targeted
• 10:35 – The expansion per area depends on how the incentive shakes out
• 10:50 – HealthLoop is currently working with 70 groups and 20 hospitals
• 11:13 – HealthLoop has an older subscription model which some of their existing clients have
• 11:30 – HealthLoop has raised $21M
  • 11:44 – HealthLoop is in an attractive space for competition
  • 12:20 – They have 90% annual retention
• 12:43 – The institutional mindset
• 13:08 – Team size is 40
  • 13:18 – 8 are in the sales team
• 13:53 – HealthLoop’s current enterprise sales cycle is around 6-7 months on a 120 ACV
• 14:16 – CAC is quite high
  • 14:55 – There are many competing organizations in the market
• 15:34 – LTV will depend per organization
• 16:07 – Todd is seeing a 150% growth from last year in terms of ARR
• 16:38 – There’s so much unpredictability in the space which can be a bad thing
• 17:31 – Hospitals need to be thoughtful about spending cash
• 17:49 – HealthLoop will spend more on adapting to a new management
• 18:17 – HealthLoop’s gross margin is around 70%
• 20:33 – The Famous Five

3 Key Points:

1. There’s not enough consumer tech that is solely dedicated to healthcare.
2. At least once in our lifetime, we will need healthcare, and the ability to have a quick, back-and-forth communication with your health provider is powerful.
3. Because of the aging baby boomer population, healthcare is an incredibly attractive space for investors right now.

Resources Mentioned:

• The Top Inbox – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
• GetLatka - Database of all B2B SaaS companies who have been on my show including their revenue, CAC, churn, ARPU and more
• Klipfolio – Track your business performance across all departments for FREE
• Hotjar – Nathan uses Hotjar to track what you’re doing on this site. He gets a video of each user visit like where they clicked and scrolled to make the site a better experience
• Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
• Host Gator– The site Nathan uses to buy his domain names and hosting for the cheapest price possible
• Audible– Nathan uses Audible when he’s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books

Show Notes provided by Mallard Creatives