TYDEi Health: The Future of Rebate Management for Healthcare Facilities
Executive Summary
TYDEi Health is a SEED Stage company that offers the first Physician Preference Item (PPI) Rebate Manager for ambulatory surgery centers (ASCs) and hospitals. PPIs are medical devices and products that are selected by physicians based on their preferences and clinical judgments. PPIs account for a significant portion of healthcare spending, and they often come with complex contracts that are attached to rebates from vendors.
Currently, there are not any real tools that manage these types of rebates. These contracts are either managed on a spreadsheet or left to the vendor to determine the rebate amount. This leads to lost money, dark data, and inefficiencies for healthcare facilities.
TYDEi Health solves this problem by utilizing smart contract technology combined with elements of artificial intelligence (AI). The TYDEi platform will automate the capture and processing of critical data relative to purchases made associated with PPI contracts. The platform will also provide real-time data dashboards, alerts, and automated accounts payables and payment features.
TYDEi Health aims to become the leading operating system for ASCs and hospitals, offering full operational management and modernizing data analysis. The company expects to generate strong commercial viability and attract merger, acquisition, or recapitalization interest by the end of the first half of 2026.
Market Opportunity
The global market for PPIs is estimated to be worth $200 billion, and it is expected to grow at a compound annual growth rate (CAGR) of 6.8% from 2020 to 2027. PPIs represent about 40% of total medical device spending in the US, and they are often subject to local negotiations between healthcare facilities and vendors.
However, managing PPI contracts and rebates is a challenging and time-consuming task for healthcare facilities. According to a survey by Healthcare Financial Management Association (HFMA), only 17% of hospital executives said they have a high level of confidence in their ability to manage their PPI contracts effectively. Moreover, 69% of hospital executives said they rely on vendors to calculate their PPI rebates, which creates a conflict of interest and a potential for underpayment.
TYDEi Health addresses this market gap by offering a smart contract enabled platform that automates and simplifies the management of PPI contracts and rebates. The platform will help healthcare facilities save money, increase transparency, and optimize their purchasing decisions.
Competitive Advantage
TYDEi Health has several unique features and benefits that differentiate it from its competitors:
- Smart Contract enabled: TYDEi Health is the first healthcare company to use smart contract technology from the finance market. Smart contracts are self-executing agreements that are written in code and stored on a blockchain. They enable secure, transparent, and automated transactions between parties without intermediaries. TYDEi Health will use smart contracts to encode the terms and conditions of PPI contracts and rebates, and to trigger payments when certain criteria are met.
- Simple implementation: TYDEi Health does not require any complex integration or installation. The platform can be easily implemented by just using FTP server connections to get data grabs from healthcare facilities and vendors.
- Two-sided network: TYDEi Health has created a two-sided network that will benefit both healthcare facilities and vendors. The platform will allow the vendor to see the status of rebates and market share in real-time, which will incentivize them to offer more competitive prices and better service. The platform will also allow the healthcare facility to compare prices and performance across vendors, which will enable them to negotiate better deals and improve their outcomes.
- Real-time data dashboards: TYDEi Health provides real-time data dashboards that will include analytics on spending by category, vendor, and surgeon; facility product spend by procedure; market share analysis; and more. These dashboards will help healthcare facilities monitor their spending patterns and identify savings opportunities.
- Full visibility of rebates: TYDEi Health will ensure that healthcare facilities have full visibility of the rebates they are owed by vendors. The platform will track the purchases made associated with PPI contracts, calculate the rebate amount based on the contract terms, and display the rebate status on the dashboard. The platform will also alert healthcare facilities when contracts are expiring or expired, so they can renew or renegotiate them accordingly.
- Automated payment features: TYDEi Health will leverage its corporate partnership with Discover Global Network to offer automated payment features. The platform will give healthcare facilities the ability to automate their payments to parties via check, virtual card, or ACH with consideration to float or sophisticated cash flow management. This will reduce manual errors, improve cash flow, and enhance security.
Business Model
TYDEi Health will generate revenue by charging a subscription fee to healthcare facilities based on the number of PPI contracts they manage on the platform. The fee will be a percentage of the total rebate amount that the facility receives from vendors. For Vendors to visualize their market share in a facility and the rebates they owe each facility in real-time, TYDEi Health will charge a subscription fee to the Vendor on an annual basis. TYDEi Health will also generate revenue by charging a transaction fee to vendors based on the number of payments they process on the platform. The fee will be a percentage of the total payment amount that the vendor receives from healthcare facilities.
TYDEi Health will also explore other revenue streams such as data monetization, advertising, and premium features.
Team
TYDEi Health is founded by a team of experienced and passionate entrepreneurs who have deep expertise in healthcare, technology, and finance.
Milestones
TYDEi Health has achieved the following milestones:
- Developed a fully commercial enterprise-ready platform that can handle PPI contracts.
- Secured a pilot partnership with Daykimball Hospital (now a paying customer)
- Secured a strategic partnership with Discover Global Network, a leading payment network, to offer automated accounts payables & payment features.
- Raised $700K in seed funding from family and friends
- Closed a 5 facility deal with a large ASC group in New England
- Achieved over 100K in revenue.
Future Plans
TYDEi Health has the following plans for the next three years:
- Launch the platform to the public and acquire 100 healthcare facilities and 10 vendors as customers by the end of 2024.
- Expand the platform to offer additional features such as contract negotiation RFP management, and quality reporting by the end of 2025.
- Become the leading operating system for ASCs and hospitals, offering full operational management and modernizing data analysis by the end of 2026.
Conclusion
TYDEi Health is a SEED stage company that offers the first PPI Rebate Manager for ASCs and hospitals. The company leverages smart contract technology combined with elements of AI to automate and simplify the management of PPI contracts and rebates. The company aims to save money, increase transparency, and optimize purchasing decisions for healthcare facilities. The company also aims to become the leading operating system for ASCs and hospitals by offering full operational management and modernizing data analysis. The company has a strong team, a validated product, a large market opportunity, and a clear vision. The company is seeking $3 million in SEED funding to scale its platform and grow its customer base.
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