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:

There’s not enough consumer tech that is solely dedicated to healthcare.
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.
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

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

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