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QEC Business Plan 25 October 2013

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Table of Contents

I. Executive Summary

II. Mission

III. Relevant Objectives

IV. The Product

V. Market Analysis

VI. Marketing Strategy by Market Segment

VII. Competitor Analysis

VIII. SWOT Analysis

IX. Financial Forecast

X. Management Team

XI. Appendices

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I. Executive Summary

AEGLI Inc. is a healthcare IT solution venture based in Kingston, Ontario, offering browser-

based technology that allows healthcare providers to create and customize electronic

forms for information collection from patients. AEGLI forms solve a number of problems

present in patient care today, by reducing the amount of human errors and thereby the

costs of maintaining an efficient healthcare practice. Initially, AEGLI will sell to medical

researchers, general practitioners, and specialists to build out the required platform for

accurate patient information collection. AEGLI will then move towards more risk-averse

markets of walk-in clinics and hospitals. With low start-up costs and a dedicated team,

AEGLI anticipates achieving positive cash flow immediately.

The Problem

The majority of mistakes that occur in clinical settings are caused by human error and

delivery inconsistencies. These mistakes are costly in terms of losing patient capacity,

correcting errors, and insurance and regulation fees. These human errors are made by both

patients, doctors, and the miscommunication between the two. With the transition between

paper to electronic forms, doctors are finding it difficult to bring patient data online. By

striving to standardize quality of care, AEGLI is also helping to reduce long wait times

experienced by patients, empower patient-centric care, and improve clinical efficiencies.

The Product

AEGLI empowers clinicians and medical researchers to design and customize electronic

structured information gathering tools that meet their specific needs. The platform's

specialized healthcare context allows for providing easy access to more advanced domain-

specific form elements not offered by other general questionnaire creation services. While

sophisticated patient questionnaires can easily be created from scratch, the platform also

offers a Form Bank that encourages users to browse, use, modify, and re-share

questionnaires with others. This allows care providers to quickly create or gain access to

highly context- and patient- specific follow-up tools, and enables specialists to download or

design forms uniquely suited for their area of expertise.

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Current Customer Traction

AEGLI has recently partnered with LIBERATE, a start-up that works to ensure that what

the doctor has communicated is understood by the patient. Together, AEGLI and LIBERATE

completes a full circle of patient and doctor communications. LIBERATE anticipates a

launch in over 500 offices within the next 4 months, taking AEGLI into these doctor offices

as well.

AEGLI has been validated by a number of healthcare professionals and industry specialists.

We have interest from a full range of healthcare practitioners waiting to trial our product

from the SVP, Easter Health who runs the hospital system of Newfoundland and Labrador

to MD of Cancer Care Specialist. AEGLI is currently trialling and customizing the follow-up

form system for a Rheumatologist practicing in Kingston Ontario.

Business Model

AEGLI’s business model will be to operate on a subscription based model based model.

Revenues will be acquired through the option of an all-inclusive monthly or annual fee or a

pay-per-form method. Our direct start-up costs only include server hosting.

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II. Mission

At AEGLI we develop systems to enable more open and efficient patient-clinician

communications, harnessing emerging technologies while prioritizing simple integration

with existing healthcare IT solutions. The value that AEGLI delivers to the healthcare

market is the ability to dramatically improve the accuracy, sensitivity, and timeliness of

patient information and the quality of patient-centric care. AEGLI technology enables easier

integration into online patient records that will meet the increasing demand of remote care.

We are committed to providing software solutions for an advancing industry to help

healthcare providers to what they do best, provide better care to more patients worldwide.

III. Relevant Objectives

1. Increase the adoption of EMR systems by making it easier to collect patient

information online

2. Become the leading technology for both healthcare providers and researchers to

collect information from patients

3. Reach 3000 healthcare practitioners and hit revenues of $2M by the year end 2015

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IV. The Product

We are all patients and have all experienced at some point, either first hand or through a

loved one, the hours spent waiting in line at the doctor’s office or the frustration of being

unable to express your medical condition or history. The majority of mistakes that occur in

clinical settings are caused by human error and delivery inconsistencies. In solving this

problem, AEGLI satisfies the needs of three important stakeholders:

I. The Patient: Patients experience what is known as “White-Coat Syndrome” that

cause patients to get confused and forget their own symptoms, illnesses, purpose

when put on the spot in front of the doctor. Patients, especially elderly patients,

come unprepared to appointments, for example, without medication lists. AEGLI

helps empower patients to strive for better outcomes through improved point of

care condition and treatment by answering the doctor’s questions on AEGLI

forms before the appointment. Patients will also be able to receive better remote

care with AEGLI’s follow-up forms.

II. The Physician: Not only providing a user-friendly interface for healthcare

practitioners and researchers to collect and sort through patient information,

AEGLI also solves the three major problems that all healthcare providers

experience.

Time: AEGLI helps reduce time spent on interviewing and documentation that

can be done before the appointment and collect follow-up information, such as

wound management, so that a second appointment will only be made if

necessary.

Quality of Care: Through timely and accurate collection of information, AEGLI

helps providers focus on treatment and care.

Consistency of Care: In clinical setting, AEGLI ensures that the same questions

are being asked by each provider for each patient and there are no variations in

quality of care between different doctors or nurses.

III. Healthcare of Canada: AEGLI offers a simple solution that allows healthcare

institutions to transition easily into patient-centric care. Healthcare institutions

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are undergoing the difficult task of transitioning all patient records online and

each institution has different rates when adopting new software. AEGLI is

compatible with any EMR system. With a user-friendly interface, AEGLI focuses

on data collection and analysis and having this information easily accessible to

doctors and for doctors to export to whatever software or EMR system they are

currently comfortable with using. We have the ability to grow and change with

the technology in a doctor's office as healthcare industry begins to take on

patient-centric methods of healthcare.

Specific Features

Form Creation and deployment

Upon creating a new form, users can choose between starting from a blank slate, and

downloading an existing template from the platform's Form Bank repository of AEGLI-

supplied or user-generated content. An intuitive point/click/drag interface allows users to

add, rearrange, and remove a wide range of form elements as required, customizing the

digital form to their own needs. Forms can easily be edited after creation as well.

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Practitioner Editing View

To share the form with a patient, the user can post a public link to the questionnaire (for

example, in a waiting room or on a clinic web site). Alternatively, they can send the form to

any patient for whom they have created a profile on the platform. In that case, the patient

receives an email containing a customized link. Following this link and completing the form

automatically associates the patient's response with their profile in the system, allowing

the clinician to easily find the response in the future.

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Patient View

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Practitioner View of Submitted Forms

Submission Management

After a patient submits a questionnaire, the completed response appears immediately to

the clinician in a form submission inbox. Selecting a completed form displays the questions

and patient responses. Forms submitted anonymously through a public link can be

manually associated with a patient profile, if desired. Form data can be exported as plain

text (for copy/pasting into a clinician's electronic medical record system), or downloaded

and saved in multiple file formats including PDF and CSV.

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Practitioner View of Patient Responses

Patient Profile

Clinicians are able to create profiles for specific patients, associating a patient name or

custom identifier with an email address for sending custom form links to patients (either

manually or on a predefined schedule). The clinician can then quickly review the patient's

form response history and track changes over time.

Patient Security

Legal Security Requirements

AEGLI’s predominant legal concern is the federal Personal Information Protection and

Electronic Documents Act (“PIPEDA”), given that AEGLI will be collecting personally

identifiable information through commercial means. Fortunately, PIPEDA does not restrict

the collection of data or impede AEGLI’s operations - it is a set of recommended guidelines

to which AEGLI’s data collection practices abide by.

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Other than PIPEDA, legal research has shown that medical data must be stored in Canada

as to avoid foreign monitoring. Although server hosting is cheaper in other countries, for

example, AEGLI is restricted to hosting data on physical servers within Canada – even if it is

still a cloud-based system.

Back-End Security

Following extensive research into the legal requirements as listed above, AEGLI developed

a security system to maximize accessibility while minimizing the potential for issues to

arise. AEGLI implements a two-server, UNIX system, separating the front- and back-ends to

ensure data cannot be inappropriately accessed. Given the heavy regulation of the

healthcare industry and confidential nature of the data, an impenetrable information

system has been planned out for use.

The first server, the ‘front-end’ server, only stores the forms for doctors and patients to use.

The first server will implement a Linux or UNIX operating system due their superior ability

to manage user access, and efficient memory management. As the front-end server does

not contain restricted information, the server is restricted from being overwritten and

changed, but anyone with a link can read and access the forms. When a form is accessed

and information is submitted on it, internet-standard SSL encryption is used to submit it to

the first server. As the first server does not store patient data, it is then immediately

transferred to the second, ‘back-end’ server. Each time this transfer is initiated, the client is

authenticated using a client certificate before a transfer is allowed – allowing access only

from the front-end server’s IP address.

The back-end server restricts access through two main features. First, the servers are

installed with firewalls in place, restricting all external access, restricting ports from

unknown IP addresses. Even the front-end server will be blacklisted to ensure no-one is

able to access the back-end server through the unrestricted front-end server. Secondly, in

the case of a physical security breach or unlikely electronic breach, the data is encrypted

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with a 128 bit encryption. At this level of encryption, even a computer checking a

quintillion possibilities per second would take 1013 years to crack the encryption, and

without doing so, the data is useless. The only people able to access the back-end server to

retrieve client data are the doctors and clinic administrators, who would be set up with

access certificates.

Furthermore, the servers run applications which continuously monitor the accessing of

data. Therefore, if an unauthorized party did manage to access the data, the server hosts

would be e-mailed and the servers would be temporarily shut down.

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V. Market Analysis

Healthcare IT Industry

Applications of information technology to the clinical health care sector are numerous and

growing, both in demand from institutions and individual practitioners, as well as in

diversity and capability of offerings from software vendors. Global industry revenue

estimates were $11.6 billion in 2009, with expected growth at 12.4% annually to 25.6

billion in 2016.1

Software as a Service (SaaS) is expected to play an important role in future healthcare IT

investments, providing centralized, flexible, and scalable solutions that can be implemented

incrementally and with minimal initial infrastructure investment.

Business Environment Analysis

An unprecedented convergence of demographic trends, medical culture shifts, and

incentivized technology adoption is creating an ideal – and time limited – environment and

market for the product AEGLI provides. As patient-doctor communication becomes

increasingly valued, health care systems increasingly stressed, and IT solutions spread into

wide clinical usage through government subsidy (and while EMR vendors continue to

struggle to meet baseline eligibility requirements for those subsidies), the ideal

opportunity to create value as a third-party IT solutions provider through accessible,

electronic patient-doctor communication is now.

Demographic and Cultural Trends

As collaborative and patient-centered concepts gain traction in medical care delivery,

frequent and meaningful doctor-patient communication is becoming increasingly

important2. However, growing demands on healthcare systems, spurred by aging

1 GlobalData Market Report, 2010 2 OMA Policy Paper - Patient Centered Care - Ontario Medical Review, June 2010 (https://www.oma.org/Resources/Documents/Patient-CentredCare,2010.pdf)

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populations and physician supply-demand imbalances, have resulted in doctors having less

time to spend with individual patients. In the face of such conflicting trends, improving the

efficiency with which patients and clinicians communicate becomes vital. Offloading

objective information gathering from the examination room into the waiting room or

privacy of a patient's home allows patients and doctors to spend face-to-face time on

meaningful consultation and analysis a patient's condition, rather than simply collecting

data on it.

Regulatory Considerations

Given the sensitive nature of personally-identifiable health care information, health

information custodians and their agents (including third-party IT organisations handling

patient data) are required to comply with provincial and federal privacy regulations

(PHIPA and PIPEDA) governing the collection, use, and disclosure of all personal

information collected3.

Compliance with such regulations involves establishing formal policies justifying the

purpose of collection of personally identifiable information, demonstrating transparency

and patient consent in collecting such information, and describing information access

controls as well as physical, organisational, and technological safeguards.

Financial Incentives for Digitization

Publicly-funded incentives to digitize health care data are a core driver of industry growth

trends, as governments seek to promote IT solutions adoption in order to leverage the

demonstrated quality-of-care increases, clinical efficiencies, and cost savings associated

with such technologies4.

3 PHIPA: http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_04p03_e.htm, PIPEDA:

http://laws-lois.justice.gc.ca/eng/acts/P-8.6/ 4 Kalorama Market Information - Electronic Medical Records, 2013

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In Ontario, eHealth Ontario subsidizes physician EMR adoption. For a product to be eligible

for such subsidy, the EMR vendor must meet functionality specifications as set by

OntarioMD and updated on a regular basis5.

Technical Opportunities Arising

As EMR market penetration continues to climb (to the 100% targeted by government

funding agencies), healthcare providers naturally develop repositories of digitized patient

data that becomes available for enhancement complemented by third-party solutions

providers6. A network effect encourages further IT investment as digitizing specific aspects

of the healthcare delivery workflow encourages the adoption of compatible systems in

other areas, while integrating with traditional analog systems can become more expensive

or time consuming such as printing or scanning paper, manual data entry and the like.

5 OntarioMD EMR Specs: https://www.ontariomd.ca/portal/server.pt/community/emr_specification/spec_4_1_requirements/ 6 Frost - Electronic Medical Records, 2011

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VI. Marketing Strategy by Market Segmentation

Researchers

Researchers represent a profitable market for AEGLI since the platform can be used to

conduct research. The system’s forms can be specifically tailored to a researcher’s needs

and AEGLI’s export functions will generate condensed spreadsheets of the research results.

There are an estimated 130 institutions funded by the federal government, which

represents over 14,000 researchers each receiving a grant ranging from $1,000 to over a

million in size (Exhibits 11 and 12).7 At a usage rate of just 10% amongst funded Canadian

researchers alone, AEGLI is expected to generate revenues of over $3 million when

charging researchers upwards of $2000 a year.

AEGLI will target researchers through individual medical institutions. There are numerous

academic research portals, networks, and papers that connect researchers together. Each

university have Directors in Industry Partnerships that link the research community with

companies that require academic research conducted. Connecting through the Industry

Partnerships wing of a university to gain exposure to researchers have proved extremely

successful.

General Practitioners

51% of all healthcare practitioners in Ontario are Family Physicians (Exhibit 10). These

general practitioners run their own practices or work at clinics with typically under seven

general practitioners.

AEGLI will tap the general practitioner market through the partnership with LIBERATE.

LIBERATE is sponsored by pharmaceuticals and is free for all practitioners and patients

making it extremely attractive for general practitioners. Through partnering with

LIBERATE, we are further enhancing their platform and value for general practitioners and

7 "2013 Funding Decisions Notifications." Government of Canada, Canadian Institutes of Health Research,

Research and Knowledge Translation,. N.p., n.d. Web. 27 Oct. 2013.

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we will be able to penetrate the market with them. We will generate revenue through a

pay-per-form method paid for by LIBERATE.

Specialists

Both MD Specialists and Non-MD Specialists (Chiropractors, Psychologists, and Mental

Health Teams) require a better method of tracking information over time, collecting

information remotely, and analyzing that data. AEGLI will allow specialists to minimize

unnecessary appointments through secure information transfer in remote care and track

progress to know what went wrong and when. Currently, when any form involving

confidential patient information is submitted, it must be submitted in person or done

through fax since e-mail is not secure enough. AEGLI can save specialists time and energy

with our secure form portal.

Many specialists are professors or researchers at medical institutions. Each specialist chain

also has an online network, such as the College of Psychologists, where specialists connect

and share the most recent news of the practices, including what Healthcare IT solution to

use. AEGLI will enter the market through the connections at universities and expand

through the power of word of mouth.

Walk-in Clinics

In 2010, 4.4 million (15.2%) of Canadians aged 12 and older reported that they did not

have a regular medical doctor8. These are the people that are crowding walk-in clinics and

build up the six hour wait times. This, coupled with the fact that Canada boasts some of the

longest wait times to receive medical treatment in the developed world9, makes AEGLI an

ideal product to implement at health care facilities across the country. By saving 3 minutes

per patient on documentation and interviewing time through having patient information

filled out before the appointment, doctors can see over 200 more patients every month.

8 2010 Statistics Canada 9 "Canada Could Shorten Health-care Wait times by Building ‘market-based Policies’ into System,

Author says." National Post News Canada Could Shorten Healthcare Wait times by Building

Marketbased Policies into System Authorsays Comments. N.p., n.d. Web. 27 Oct. 2013.

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With the average walk-in appointment revenue of $60 per patient, that is $1200 more

revenue for the doctor every month.

We will target walk-in physicians after many white paper clinical papers that support our

credibility and results. Walk-in clinics are very risk averse and fear that a new technology

will make practices less efficient. A doctor’s time is the most valuable asset to a walk-in

clinic and a solution that will allow doctors to see more patients has sparked the interest of

every clinic manager AEGLI has proposed to.

Hospitals

Emergency departments are high risk, high stress environments. When patient capacity is

exceeded, there are heightened opportunities for error; quality of care is compromised

when patients experience long wait times to see a physician. Walk-ins, ER, and Urgent Care

Centres also lose revenue because of the temporary inabilities to meet the high patient

demand. Patients are being turned away hours before the clinic closes at walk-in clinics and

patients are walking away due to long wait times at Emergency Rooms and Urgent Care

Centres. This loss of revenues is detrimental for the institutions. Furthermore, high re-

admission rates are a considerable expense for healthcare institutions.

In the triage process, nurses can be provided a form that the patient fills out and will be

able to add more questions, notes, and annotations during their personal evaluations of the

patient. Not only do these customizable forms help nurses follow a consistent procedure in

the triage process, ensuring that patients are receiving the same level of care throughout

the organization, but it also allows the nurses to see more patients by saving time on

interviewing and documentation. These forms can be then seen again through the system

by the doctor in the ER, altogether allowing the through time and flow rate of patients in

the department to be much faster.

After the ER, Urgent Care or Walk-in visit, hospitals can work on reducing re-admission

rates through and preventative measures with the AEGLI follow-up features. AEGLI allows

healthcare providers to create customized individual forms for patients to fill to keep up

with discharge instructions (e.g. taking medications as prescribed, following appropriate

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diets, and utilizing any in-home monitoring equipment), tracking of symptoms before they

escalate, tracking follow-up appointments, and collecting information on quality of care

feedback.

Hospital systems will be AEGLI’s final target. A hospital system is made up of multiple

departments including researchers, specialists, general practitioners, and an ER that will

need to see previous results and successful cases in similar settings. AEGLI does not plan to

enter this market in the first two years. In order to target this market, we will need to rely

heavily on word of mouth reputation and build up a strong healthcare IT sales force that

have been in hospitals before.

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VII. Competitor Analysis

AEGLI does not have any direct competitors. Multiple questionnaire-creation products or

information-collection services exist, but are either a) unspecialized and not suitable for

use in a clinical health care setting; b) overly specialized and not flexible or generalizable to

custom healthcare contexts; or, c) customizable and health-care specific, but difficult or

impossible to generate and modify spontaneously and on-demand, or d) customizable and

health-care specific, but not directly accessible to patients, as well as difficult to generate

and modify spontaneously and on-demand.

General survey tools

SurveyMonkey, Qualtrics, etc. offer general questionnaire-creation services, targeted

primarily at survey- and poll-style information gathering, with a focus on collecting

aggregate summary statistics. Collaboration and sharing of created forms between users is

not a focus, nor is referencing individual responses and results. Such services are also not

generally compliant with personal health information regulations and so are not

appropriate for collecting use in a clinical context.

Condition-specific tools

Doctor-patient communications platforms often offer suites of pre-set patient information

collection tools related to specific common medical conditions, usually for ongoing

monitoring of chronic conditions. Such products cannot be customized to meet the needs of

specific doctors or extended for use by specialists. These services are also generally not

useable for gathering patient information in advance of an initial visit as they require

setting up a patient with an account.

Custom questionnaire hosting

A small number of companies offer online hosting for custom medical forms. Users are

often charged on a per-form basis and form creation and customization work is done

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manually by a company developer for a fee, de-incentivizing doctors from creating forms as

needed to collect specific information or for use with specific patients.

EMR-integrated custom forms

Select Electronic Medical Record systems (EMRs) allow doctors to import custom form

templates, and associate the completed forms with patients. However, the form creation

process requires by minimum a basic familiarity with web development technologies,

dissuading many users from building their own forms and restricting access to using more

sophisticated questionnaire elements. Most critically, such forms are only accessible

through the EMR and are not available for a patient for complete on his or her own.

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VIII. SWOT Analysis

Strengths

AEGLI’s focus on enabling individual health care practitioners to create or customize

existing forms broadens the potential market beyond any single specialization or category

of health care. The ease with which created questionnaires can be modified and re-shared

also promotes an iterative and collaborative process, giving all users access to pre-built

content that they can use immediately in their own practise.

The ability for clinicians to automate form submission requests to patients and build

custom solutions to meet a specific patient or patient demographics needs provides

significant value to patients who would otherwise only be able to share information on an

infrequent basis, without placing additional time constraints on the health care provider.

Weaknesses

While the platforms allows for data export in a variety of standard and open formats,

integration with specific proprietary EMRs and other software products is non-trivial given

the fragmented EMR landscape, making cross-platform data integration generally

infeasible without specific corporate partnerships.

Opportunities

An in-progress cultural shift towards patient-centred care will bring focus onto

personalized treatments and increased patient-doctor communication. At the same time,

individual healthcare providers lack the technical expertise to create and leverage tools for

connecting electronically with patients without compromising data privacy or security.

Established EMR and other healthcare IT software vendors are focused primarily on

developing core products and keeping up with government-mandated requirements for

subsidy eligibility, and few focus on non-traditional / value-added / extension functionality.

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Threats

With little potential for formal intellectual property protection, a larger player could build a

similar product and leverage their existing customer base and distribution networks as a

competitive advantage. In particular, a competing product developed by an established

EMR vendor could integrate natively with that vendor's EMR software, providing a more

compelling product for their existing user base.

Competitive Advantages

There are no direct competitors pursuing our highly unique approach. The sustainable

competitive advantage that AEGLI commands include:

Our focus on delivering the best customizable forms in the most user-friendly

interface

Our platform-agnostic technology and open data export, allowing for use with any

EMR system or Healthcare IT software already in use by a physician

Our partnership with healthcare IT start-up LIBERATE has allowed us to form a

complete package in patient communication technology. With over 500 offices that

have pre-ordered our package, AEGLI has the first-mover advantage in electronic

patient forms

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IX. Financial Forecast

AEGLI will be pursuing two different financial models. When targeting General

Practitioners, AEGLI will be paid for by LIBERATE to enhance the LIBERATE platform.

AEGLI will charge 5 cents for every form that a patient under the LIBERATE platform fills

out. When charging specialists and researchers, AEGLI will charge an average of

$150/month or charge a fee that varies per project. We anticipate each negotiation will be

different varying between $1000 to $5000 for each research project and up to $2000 a year

for healthcare providers. This price has been validated by a specialist that has been billed

$3000 and in previous pricing discussion before beta.

Exhibits 1 and 2 show the revenue projections AEGLI expects over the next four years.

AEGLI hopes to acquire 100 specialists and researchers that will subscribe annually in

2014. With this reoccurring revenue model, AEGLI will pass $2M in revenue with 1200

healthcare provider subscriptions on board by the end of 2017. When partnering with

LIBERATE, a start-up that has a lot of initial scale, we will be charging on a pay-per-form

basis. Assuming that a doctor will use a form for 70% of patients every day, 20 days a

month, AEGLI will charge five cents a form and reach revenues of $1.8M by the end of 2015.

With low operational costs, AEGLI has the flexibility to adjust pricing to accommodate

clients of all sizes. Our only consistent cost is hosting servers. Before moving towards

hospitals that would like to host servers behind their own firewall, we will be expending

the following costs on server hosting. Note that these are estimates and the real amounts

will depend on specific needs.

1. 2-server security in the cloud with no redundancy: $60/month

2. 2-server security in the cloud with redundancy for a total of 4 servers:

$120/month

3. 2-server security with physical servers but no redundancy: $200/month

4. 2-server security with physical servers and redundancy for a total of 4 servers:

$400/month

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See Exhibit 4 for Income Statement details. Although initial penetration may be slower than

predicted, such as we are not able to meet targets by the end of 2015, we are confident that

AEGLI will hit all sales goals by 2017. We hope to be in 10% of Canadian doctor offices by

the end of 2017 and begin to expand into the United States. Since we do not need to cover

server costs until clients require them, we have no costs except in sales acquisition. The

first customers will be acquired through connections with medical schools, LIBERATE, and

networks. After initial trials have been completed and successful, we will build a sales force

then to reach a wider customer base. These costs will not be incurred until necessary to

expand and revenue is already generated.

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X. Management Summary

Co-Founder & Chief Executive Officer – Ivy

Ivy is a third year business student with a passion for improving healthcare efficiencies.

AEGLI was an idea that spun from her time waiting in walk-in clinics. She has had

numerous experiences consulting in high level strategy for local businesses in her

community and interned at the world’s largest HR consulting firm, Mercer, in the Health

and Benefits Department. Ivy is a member of the global Healthcare Information and

Management Systems Society (HIMSS), consistently keeping up with the efforts to optimize

health engagements and care outcomes using information technology.

In the past, Ivy has co-founded a children’s rights organization, Children for One Another

(CFOA) that raised over $150,000 in for children’s aid around the world. Her work with

CFOA has been recognized and awarded through the Algonquin Youth Entrepreneur Award

and the Coalition of the Rights of a Child Canadian National Award.

Ivy deals with building business relationships with clients, partners, and mentors and

continuously developing and updating AEGLI’s long term strategy. She strives to break

down all obstacles so that her team can perform at fullest potential.

Co-Founder & Chief Operating Officer - Gord

Gord is an Engineering Physics 2013 graduate who has always chosen to dedicate his life to

social businesses. Gord has an extensive background in web programming and experience

in front and back end web design, development, and maintenance services. He has also

worked with a SaaS social-purpose business based out of Ghana that provides an

international mobile polling and broadcast platform for NGOs. He is a sole proprietor in his

digital media consultant business performing digital image acquisition and video editing

services for non-profit, education, and narrative film making projects.

Also an entrepreneur at a young age, Gord was awarded the Spirit of the Capital Young

Entrepreneurship Award by Child and Youth Friendly Ottawa.

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Gord works on front end design and user interface for AEGLI. He works with healthcare

practitioners to determine specific needs for the product and maintains the up-to-date

product while building better features to improve user experience.

Chief Technology Officer - Trevor

Trevor is the first member to join AEGLI’s management team. We were blown away by his

advanced technical skills and experience with user security. He is proficient in python

application development and scripting, SQL databases with SQLAlchemy, Web

development with Flask, and Linux server management amongst many other coding

languages. He has worked at multiple start-ups and large corporations such as IBM in

software development.

Trevor also runs his own enterprise application development consulting business where he

has engineered systems that process over $3M per year in e-commerce transactions and

$2M per year in cellular renewals. He has developed customer-facing and internal web

applications to interact with complex backend systems and maintained security to protect

sensitive customer information.

Trevor’s past experiences directly apply to his role as CTO at AEGLI. Trevor has built and

now manages the back-end servers and the connections to front-end applications. Patient

security and confidentiality is a priority for the healthcare industry and AEGLI. Trevor will

be dedicated to mitigate risks and provide immediate response in case any security

problems arise.

Business Analysts

AEGLI currently employs three business student analysts. These students work part-time

and deal with sales and client acquisition. The analysts approach new leads, reach out to

potential healthcare practitioners, and manage beta trials.

Company Ownership

AEGLI was incorporated in August 2013 and the shares were allocated between the three

managing directors. There are currently no investors or external shareholders.

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XI. Appendices

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Exhibit 1 – Sales Projections in Independent Sales

Exhibit 2 – Sales Projections in Partnership with LIBERATE

2014 2015 2016 2017

General Practitioners 1000 3000 6000 8000

Number of Forms Used 6000000 36000000 72000000 96000000

Price/Form 0.05 0.05 0.05 0.05

Total Revenue $ 300,000.00

$ 1,800,000.00

$ 3,600,000.00

$ 4,800,000.00

Exhibit 3 – Combined Revenue

$0.00

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

$7,000,000.00

$8,000,000.00

2014 2015 2016 2017

Revenue Projections

2014 2015 2016 2017

Practitioners and Researchers 100 300 450 700 Retained Practitioners and Researchers

101 293 503

Total Subscriptions 100 401 743 1203

Price $ 1,800.00

$ 1,800.00

$ 1,800.00

$ 1,800.00

Total Revenue $ 73,748.23

$ 721,800.00

$ 1,337,877.00

$ 2,165,470.65

31

Exhibit 4 – Income Statement

2014 2015 2016 2017

Revenue

$ 373,748.23 $ 2,521,800.00 $ 4,937,877.00 $ 6,965,470.65

Variable Server Costs

$ 36,000.00

$ 114,060.00

$ 224,595.90

$ 312,182.36

Variable Sales Acquisition Costs

$ 37,374.82

$ 252,180.00

$ 493,787.70

$ 696,547.07

Total Variable Costs

$ 73,374.82

$ 366,240.00

$ 718,383.60 $ 1,008,729.42

Contribution Margin

$ 300,373.40 $ 2,155,560.00 $ 4,219,493.40 $ 5,956,741.23

80% 85% 85% 86%

Fixed Costs

Server Costs

$ 4,000.00

$ 4,000.00

$ 4,000.00

$ 4,000.00

Business Travel Costs

$ 2,000.00

$ 3,000.00

$ 5,000.00

$ 7,000.00

Payroll

$ 65,000.00

$ 97,500.00

$ 146,250.00

$ 219,375.00

Business Admin and Miscellaneous

$ 1,000.00

$ 1,000.00

$ 1,000.00

$ 1,000.00

Total Fixed Costs

$ 72,000.00

$ 105,500.00

$ 156,250.00

$ 231,375.00

Net Profit

$ 228,373.40 $ 2,050,060.00 $ 4,063,243.40 $ 5,725,366.23

32

Exhibit 5- Use Case: Walk-In Clinic

John wakes up feeling nauseous and realizes he is ill. He phones in sick to his workplace

and decides he needs to be seen by a physician. As he does not have a family doctor, he

searches online for the closest walk-in clinic. He browses its website and notes a link to an

online pre-visit form.

Upon arriving at the clinic, he is reminded that he has the option to fill out the pre-visit

questionnaire. He uses his smartphone to access the form while he sits in the waiting room.

He uses his time waiting to carefully think though his symptoms, medication profile, and

medical history, submitting each via the form as requested, along with his name for

identification.

When the clinic's walk-in physician meets John, she pulls up his form submission on the

computer terminal in the exam room using his name, and scans through his responses. John

has never visited the clinic before and so has a blank file in the EMR system, so the

physician copies his form responses into his file, appreciating the thorough yet concise

background information she is able to obtain in a matter of seconds.

The physician spends the remainder of the visit diving deeper into John's symptoms and

asking questions that build on the base information she has already been provided. She is

able to quickly confirm the details of John's current medication profile before issuing a

prescription.

John leaves the appointment, appreciative that he wasn't put on the spot to remember

details of his medical history and satisfied that the doctor fully understood his situation.

33

Exhibit 6 - Use Case: Specialist Intake and Follow-Up

Elsa suffers from rheumatoid arthritis and visits a specialist on a bi-monthly basis. For the

past six months, she has been receiving an automated bi-weekly email from the

rheumatologist with a link to a questionnaire about her joint swelling and tenderness, and

her level of comfort and mobility. With one click she can access the form and easily input

her responses.

During her visits, the rheumatologist is able to consult the history of Elsa's responses,

noting trends and areas of no change over time. He uses her responses and reported

progress to make a decision on whether or not to change her medication or dosage

prescription. While doing this, he saves her response history into her EMR file.

After a visit, the rheumatologist easily customizes a questionnaire for Elsa based on her

specific situation and conditions as discussed during their last encounter. He then sets the

questionnaire to be sent out on a bi-weekly basis, replacing the last version of the form he

had Elsa fill in. He knows that as Elsa responds to this questionnaire over time, he'll be able

to track her answers and compare them with her answers to the questionnaires he had her

answer prior to this latest visit as well.

34

Exhibit 7 – Canadian Healthcare Spending

National Expenditure Database, Quickstats

Exhibit 8 – Canadian Healthcare Spending

National Expenditure Database, Quickstats

$150B

$170B

$190B

$210B

$230B

$250B

2009 2010 2011 2012 2013 2014 2015

Administration 3% Capital

5%

Drugs 16%

Hospitals 29%

Other Health Spending

6%

Other Institutions 11%

Other Professionals 11%

Physicians 14%

Public Health 5%

35

Exhibit 9 – Number of Physicians in Canada

National Expenditure Database, Quickstats

Exhibit 10 – Physicians in Ontario by Specialty

2011 Statistics Canada

60000

62000

64000

66000

68000

70000

72000

74000

76000

2011 2012 2013

Family Medicine

51%

Emergency Medicine

4%

Specialty Medicine

23%

Internal Medicine

16%

Pediatrics 6%

36

Exhibit 11 – Canada Foundation for Innovation Funding in Health

Research Infrastructure

Funding Program Number of Level of

Projects Funding ($)

Canada Research Chairs Infrastructure Fund 241 37,269,336

CFI Career Awards 3 1,239,066

College Research Development Fund 3 864,584

Exceptional Opportunities 0 0

Innovation Fund 161 529,024,410

International Access Fund 0 0

International Joint Venture Fund 0 0

Leaders Opportunity Fund (with CRCs) 0 0

Leaders Opportunity Fund (with federal funding agencies)

Leaders Opportunity Fund (CFI alone) 0 0

Leading Edge Fund 20 3,276,092

National Platforms Fund 0 0

National Initiatives Fund 0 0

New Initiatives Fund 0 0

New Opportunities Fund 0 0

Research Development Fund 400 64,350,837

Research Hospital Fund 3 1,036,705

10 48,920,674

TOTAL 841 685,981,704

37

Exhibit 12 – Distribution of Health Research

Funding Source Percentage

Distribution

Granting Agencies:

Canadian Institutes of Health Research(*) 58.9

Natural Sciences and Engineering Research Council 7.5

Social Sciences and Humanities Research Council 1.2

Departments and Agencies:

Health Canada 4.8

National Research Council 5.9

Canadian Institute for Health Information 0.2

Foundations:

Canada Foundation for Innovation 9

Genome Canada 4.7

Canadian Health Services Research Foundation 0.8

Indirect Costs Program 6.8

Total 100