Environmental Influences


The fundamental principles behind doublesys's business model are not new, but the model's design and structure is innovative and entirely unique. The opportunity for the successful introduction of doublesys's Physician Owned Health Plan business model at this time is driven by the convergence of the following key environmental influences:

• The Medicare Act of 2003, enacted in December 2003, is considered the most significant change to the Medicare program since its inception in 1965. This Act and the government's underlying imperative to control Medicare expenditures will drive significant changes in the healthcare system. doublesys responds by providing a health plan model that enables physicians, who direct all health care and cost, to successfully develop, own and govern their own health plan. This places management of the patient's health back in the hands of the attending physician, who is incentivized to deliver high quality care and reduce total costs. doublesys's Model takes full advantage of the benefits of the Medicare Act.

• Physicians' practice economics have deteriorated to the point where physicians must change their traditional practice model to maintain their quality of work life and their standard of living. Physician reimbursement has been in decline since 1995, practice costs have increased dramatically, and physician practice equity has been contracted away to HMOs. doublesys responds with its model that increases physician revenue through participation in health plan profits from managing 100% of Medicare patient revenue, reduces expenses through group purchasing and applied economies of scale, and returns patient ownership and the equity value of the Medicare patient base to the physician.

• The physician patient relationship is under siege as the control over patient care decisions has been shifted to HMOs, PPOs and other managed care organizations. The patient's relationship with his or her personal physician is eroding, resulting in depersonalized care, lower quality, and fewer choices in his or her primary care physician relationship. doublesys responds by restoring the basic integrity of the physician patient relationship and returning management of the patient's health and the governance of the patient's health plan to the patient's physician.

• Medicare beneficiaries are faced with higher and higher costs for what Medicare doesn't cover, including hospital deductibles, the 20% physician coinsurance, new prescription drug deductibles and coinsurance, and escalating premiums for Medicare Supplement (MediGap) policies. doublesys responds through a plan that manages the patient's overall health and provides a benefit package that uses Medicare and patient dollars more efficiently, eliminating duplication and waste and adding disease prevention and management. This gives the doublesys Plan member better general health, more controllable total expense and more value for his or her healthcare dollar.