Over the past few months, Lucro has made great strides forward. As I pause for a moment to reflect, I’ll highlight two core competencies which have given us clarity and confidence in our path ahead:
Listen: We have been remarkably fortunate to have engaged visionary advisors, influential healthcare organizations, creative vendors and experienced investors to illuminate a deep understanding industry challenges and opportunities.
Focus: Our vision to reinvent the connection between buyers and sellers of innovations for healthcare is broad, so we have refined our focus to ensure Lucro executes well in specific areas as a practical foundation from which to build.
I am pleased to share a summary with you what we have learned and how we are applying that knowledge to build a transformational company. More detail is below.
Healthcare Organizations' Top Goals for Lucro
- Accelerate discovery and improve collaboration to make faster decisions, with lower risk, regarding new innovations
- Maximize the value of investments in current solutions and scale relationships with proven vendor partners where feasible
Vendors' Top Goals for Lucro
- Ensure access and opportunity to be considered for relevant decisions
- Improve and accelerate return on sales and marketing investments
- Idea Boards are now being used by health systems to discover and collaborate
- Search capabilities enhanced with greater intelligence for more intuitive discovery
- Built a unique algorithm serving to provide a more scientific, systematic and comprehensive approach for connecting healthcare organizations and vendors
- Initial use cases focused on clarifying and advancing topics of population health, patient engagement, telemedicine and value-based care
- Experiencing early indicators a network effect in building the Lucro multi-sided platform
- Have expanded beyond our original early adopter network by inviting additional healthcare organizations that are now using Lucro
- Significant progress in vendor engagement with completing their solution cards; launching an updated user experience for vendors
- Market is validating and prioritizing premium services to be made available through Lucro
- Key senior healthcare and technology executives join Lucro leadership
Quarterly Update Details
Lucro Idea Boards: “eHarmony" for Healthcare Organizations and Vendors
Think about how different dating is today from the past and the analogous opportunity represented for healthcare. In the past, people would go to a bar or party for a limited “selection” of prospects. Perhaps mutual friends would play matchmaker across their network of contacts to help bolster odds of success.
Today, the game has changed for the lovelorn. Multi-sided platforms like Match and eHarmony apply an algorithmic approach to understanding the needs, preferences and desires of the individual, across a much broader community, to scientifically suggest connections that are a more likely fit for both parties. Privately, through a more trusted platform, each can evaluate options and control if, when and how to proceed. Results have been clear for many – a more time-efficient, cost-effective platform that better addresses the interests of all involved.
For decades, healthcare vendors have gone to the “bar” to “hit on” potential customers through telesales, bulk emails, trade show exhibits, direct mail, advertising, etc. Healthcare organizations (like the girl at the bar trying to avoid eye contact and refusing free drinks) play “defense” through convoluted, elongated processes like RFIs, RFPs, demonstrations that they navigate through an unmanageable amount of internal meetings, emails, spreadsheets, share point files, etc.
Architected by one of Silicon Valley’s most prestigious tech design firms, under the direction of leaders from the nation’s largest and most progressive healthcare organizations, Lucro has delivered a multi-sided platform to enable a paradigm shift for healthcare innovation.
Too often our industry starts with a product in search of a problem. Lucro supports a shift in that mindset, through idea boards, by allowing a healthcare leader to privately and simply:
- Identify the problem or opportunity they seek to address
- Define the objective and measures of success
- Relate the corporate strategic initiative which this idea or project is intended to support
- Pin vendors’ solution cards for multiple products and services which may offer components of a total solution
- As the idea evolves, invite trusted colleagues to privately collaborate
- Gain trusted insights through ratings and reviews from peers across the industry
- If and when appropriate, share the idea board across your own organization, to align with others possibly pursuing similar ideas, understand and comply with corporate standards, leverage existing solutions, etc.
At the same time, through their unique solution cards for each product or service they offer, vendors can clearly and concisely define the information potential buyers want to understand from them when in discovery, including:
- What does it do?
- How does it work?
- What are the benefits?
- What makes it different?
- Who are the typical clients / users?
Based on such information described above, Lucro’s algorithm starts playing matchmaker between the healthcare leaders creating idea boards and the vendors completing their solution cards. The more clear and specific you are, the more likely to find a possible match (i.e. claiming "we are a synergistic partner” doesn’t mean anything, but “we can reduce cardiac readmissions by 20%” does).
Lucro also becomes smarter over time based on the power of our community. Our algorithm learns across our rapidly expanding network of healthcare users, gaining broad insights by role, system type and other meta-data to inform and refine future searches.
In the coming weeks, healthcare leaders will be able to publish their ideas boards (de-itentified as to the name of the organization) to the Lucro Marketplace as a way to invite the broader vendor community to “knock”, with algorithmic guidance, for consideration of inclusion in an active idea board for which the best products and services are to be discovered.
To accelerate and “de-risk” discovery at the same time requires a new type of collaboration across buyers, sellers and trusted third party organizations (such as industry associations, GPOs, consulting firms, investors, analysts, etc). Lucro synthesizes and provides context to those disparate insights.
Additionally, when a healthcare organization conducts a search, the Lucro algorithm can be enhanced by sort and filtering options to give the decision-maker control to discover solutions based on the criteria most valuable to them. A health system can enhance this capability further by populating their private “MyMarketplace” filter, providing internal insight into currently deployed and corporate standard products to drive enterprise-wide alignment.
Initial Use Cases
To bring focus regarding where to best begin, we listened to our early adopting heath systems to understand their common priorities:
- Population Health
- Patient Engagement
- Value-Based Care
While most had identified the same areas of need, their specific definition varied widely, unique to each health system. More, a growing array of vendors in these areas market themselves with the similar high-level messaging, but have very different (and in many cases complementary) offerings.
Lucro has been focused on ensuring all the vendors with products or services in support of these four initiatives are completing the content of their solution cards. At the same time, our early adopting health systems are actively creating idea boards to begin the discovery process and inviting peers to collaborate to help make better purchase decisions.
If you are a buyer or seller of solutions to support these four specific initial use cases, we encourage you to engage in Lucro now to be part of this community. More use cases will be prioritized in the coming months, but we are now focused on more clearly defining what buyers and sellers individually mean when they say population health, patient engagement, telemedicine and value-based care.
Network Effect Expanding the Lucro Community
We are proud to have recently invited additional healthcare organizations into Lucro, now participating alongside our initial group of early adopters. Most commonly, our partnership is led by the Chief Innovation / Strategy Officer, Chief Information Officer or head of Supply Chain. In parallel to selectively expanding the buyer side, we now have hundreds of vendors that have directly engaged to complete their information across our expanding database of thousands of solution cards.
Still early in this journey, we are now seeing the beginning of the network effect we anticipated.
Buyers Engaging More Sellers
Major health systems serving as our early adopters have instructed their current IT vendors to complete their solution cards (at no cost), which enables their use of “MyMarketplace” filters. Others are redirecting traditional vendor outreach via cold calls and unsolicited emails to instead have them add facts about their offering into Lucro, which allows healthcare leaders to discover those products in the context of the challenges they have prioritized for decision making. Once a vendor joins Lucro at the request of one, their information is immediately available for discovery for all.
Sellers Engaging More Buyers
Once a vendor claims their solution card, they are given a link to share with their current customers to offer a rating and review (even if that health system in not yet a Lucro user). A more effective way to leverage references, this process has created a current waitlist of dozens more hospitals which will subsequently be invited to also use Lucro (at not cost) for discovery and idea board collaboration within their own organizations.
We appreciate the word-of-mouth based growth Lucro is experiencing from buyers telling other buyers and sellers telling other sellers about Lucro! We will continue to focus on delivering a robust multi-sided platform and sincerely value your continued support in inviting healthcare organizations and vendors to participate with us now.
I am pleased to share that healthcare IT veteran Miriam Paramore has joined Lucro as Chief Operating Officer. Miriam brings a wealth of experience and leadership to Lucro, recently serving as Executive Vice President at Emdeon (now Change Healthcare), where she helped lead the development of the largest healthcare financial and administrative network in the United States while also serving on the Board of Directors at HIMSS.
Our company is further benefitting from two recent additions to our Board of Directors, with David McClellan (Heritage Group) and Will Morrow (HCA) now serving alongside Charlie Martin, Phil Roe, Frank Coliano, Devin Carty and George Lazenby.
Finally, look for our new website to be launched in a few weeks at lucro.com to provide the broader market the more current view into the company, including much of the information I have previewed for you in this quarterly update.
Thank you again for your ongoing support and encouragement.