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Physicians are the key decision makers in healthcare, directing more than 73% of the approximately $4.0 trillion U.S. healthcare spending. Despite their critical role, physicians face challenges caused by fragmented knowledge bases and antiquated technologies.
These challenges inhibit physicians’ ability to effectively connect with specialists and colleagues, instantaneously access relevant and up-to-date medical information, and efficiently deliver patient care.
Cloud-based software has transformed the ability to network, communicate, and work across most industries but has been slow to address the specific needs of medical professionals. On average, it takes a medical provider 11 minutes to submit an attachment manually by mail or fax compared to less than half the time using electronic methods, hindering care coordination in a modern world where a patient might quickly need input from various specialists.
Scientific advances are increasing the specialization, complexity, and pace of medications coming to market. Pharmaceutical manufacturers face difficulties accessing and educating the relevant specialists for new medications and clinical trials. Educating suitable physicians on the benefits of pharmaceutical products is critical for improving patient care and facilitating commercial success for pharmaceutical manufacturers.
Doximity is on a mission to help every physician be more productive and provide better patient care through modern software tools. In this strategy story, we analyzed the business model of Doximity and learned how does Doximity work and make money.
What is Doximity? How does Doximity work?
Doximity is an online networking service for medical professionals. Launched in 2010, Doximity offers its members curated medical news, telehealth tools, and case collaboration. Doximity has over two million medical professional members as of March 31, 2022, including physicians, nurse practitioners, physician assistants, and graduating U.S. medical students. Doximity has a subscription-based business model.
Doximity is physicians-first, putting technology to work for doctors instead of the other way around. That guiding principle has enabled Doximity to become an essential and trusted professional platform for physicians. Doximity’s physician cloud puts modern software tools in the hands of physicians and other medical professionals.
Doximity provides its members with capabilities specifically built for medical professionals, enabling them to collaborate with their colleagues, securely coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers.
The ecosystem Doximity has created in the medical community benefits from powerful network effects. Medical professional engagement with Doximity’s platform increases as the breadth and utility of Doximity’s tools expand, attracting even more members and driving broader and more effective communication and collaboration among healthcare professionals.
This also drives greater value for Doximity’s pharmaceutical and health system customers that seek to interact with specific groups of physicians. In turn, the insights Doximity gains from increased use of its platform enable it to invest in improving Doximity’s tools and solutions to meet the changing needs of Doximity’s members, customers, and the patients that they care for.
Doximity’s Tools for Medical Professionals
The Doximity platform is free to join and use for U.S. medical professionals. Becoming a member of Doximity is as simple as navigating to Doximity’s homepage or downloading Doximity’s mobile app, entering a first and last name, and verifying real-name identity by National Prescriber Identifier, Social Security Number, Drug Enforcement Administration Registration Number, or medical email account confirmation.
Doximity’s technology platform provides most medical professionals with a pre-populated profile using publicly and commercially available third-party data, which members can further supplement, update, and refine.
Once verified, members gain access to Doximity’s network, newsfeed, and—depending on their credentials—core features of Doximity’s productivity tools, including telehealth.
Doximity’s Professional Network: Members have a personalized and validated professional profile on the Doximity network that acts as a digital curriculum vitae. Doximity’s network makes it easy for professionals to connect and stay in touch with the broader medical community.
Members can use Doximity’s powerful search technology to find other medical professionals by name, specialty, expertise, affiliation, or location.
Newsfeed: Doximity’s newsfeed serves as the personalized, curated home screen for each member when they sign on to the Doximity platform. Doximity leverages AI to create a personalized and curated newsfeed for each of Doximity’s members.
Doximity’s platform provides access, free of charge to all of Doximity’s members, to content from various internal and third-party sources, including content created in-house and content linked to third-party sites.
Productivity: Members of Doximity’s platform can access Doximity’s productivity tools, a suite of Health Insurance Portability and Accountability Act, or HIPAA, compliant communication and digital workflow tools designed with their needs in mind to make their daily workflows more efficient. Doximity puts the following critical digital tools in one easy-to-use app and website.
How does Doximity make money? What is the business model of Doximity?
For Medical Professionals: Doximity is purpose-built for medical professionals. Medicine has always been a networked profession, with generalists and specialists working together to treat patients and advance the field of medicine. Until now, the network of medical professionals that delivers healthcare was constrained by geographic and organizational boundaries.
Doximity’s platform, with its modern tools, removes those boundaries and puts the power of information technology in the pockets of physicians everywhere. Doximity’s products are designed to put physicians first. Doximity builds tools that make doctors more informed, productive, and effective in their collective mission—to treat and heal patients.
For Pharmaceutical Manufacturers & Health Systems: Pharmaceutical manufacturers are able to use Doximity to run highly targeted marketing campaigns in a digital format, maximizing access to important physician audiences and reducing reliance on in-person sales representatives.
Pharmaceutical manufacturers can use Doximity’s platform to reach Doximity’s members to deliver educational content about their products, from what their medication does and who it treats to who is the right patient and how they can pay for it. Health systems and medical recruiting firms can also use Doximity for critical hiring needs across every specialty.
Solutions by Doximity
Doximity offers Marketing, Hiring, and Telehealth Solutions to pharmaceutical manufacturers, health systems, medical recruiting firms, and certain other healthcare companies on a predominantly subscription business model.
Doximity’s “Marketing Solutions” enable Doximity’s pharmaceutical and health system customers to get the right content, services, and peer connections to the right medical professionals through various modules, delivering high engagement and helping those customers embrace the shift to digital marketing.
Doximity’s “Hiring Solutions” provide digital recruiting capabilities to health systems and medical recruiting firms, enabling them to identify, connect with, and hire from Doximity’s network of both active and passive potential medical professional candidates. Doximity’s AI and ML-supported platform enables customers to run highly targeted hiring campaigns across a range of medical specialties and sub-specialties.
Doximity’s “Telehealth Solutions,” which are software tools that include voice and video Dialer, are designed to connect patients with care providers easily. Dialer Enterprise is sold as a subscription, with pricing based on the health system’s size.
How does Doximity make money: revenue model
Doximity made $343.5 Million in FY22. Doximity has a subscription-based business model. Approximately 93% of Doximity’s revenue for FY22 was derived from subscription customers. Doximity makes money from selling subscriptions for its marketing solutions (a digital marketing platform for pharmaceutical manufacturers and health systems) and hiring solutions (the ability to search and connect with medical professionals).
- Marketing Solutions: Hosting customer-sponsored content on the Doximity platform and providing access to the Company’s professional database of healthcare professionals for referral or marketing purposes during the subscription period.
- Hiring Solutions: Providing customers access to the Company’s professional tools where recruiters can access the Company’s database of healthcare professionals, allowing customers to send messages for talent sourcing and to share job postings during the subscription period.
Revenue for the fiscal year ended March 31, 2022, increased by $136.7 million as compared to the fiscal year ended 2021. The increase was primarily driven by a $127.0 million increase in subscription revenue. Of the increase in subscription revenue, $16.8 million was driven by adding new subscription customers, and $109.0 million was due to expanding existing customers.
The expansion of existing customers was primarily driven by average revenue per existing Marketing Solutions customer as a result of adding new brands and service lines, growing existing brands and service lines, and upselling additional modules. The remaining change in subscription revenue was generated from Dialer Pro subscriptions for individuals, small practices, and other non-recurring items.