RemoteFlightDoctorRoutine Medical Care, Anytime, Anywhere

Anna Maria McGowanEvan TorkosJoe Yancey

• Our Vision & Our Market• Description of our Product System• Description of Our Business Model• Concluding Summary

Outline

Our Vision: Routine routine access to preventative medical care for everyone

• Help the most isolated people in developing regions• Avoid millions preventable deaths• Save billions of dollars in reactionary medical costs around the world• Focus on a locally sustainable product

Motivation for Our Product System

Our Market Size: 2.3 Billion

. .

Rural Population Number of Trikes

Uganda 26,900,000 77Africa 620,000,000 1,800

Developing World 2,300,000,000 6,600

Our Product System

• Modify system components to provide the most effective product for different countries

• Train and prepare pilots, mechanics and community leaders to make the system sustainable

Our Product System

Equipping and Customizing Our Trikes for Remote Medical Service

• Our Design Changes– Chassis:– Wing:– Engine:– Shocks:– Tire:– Storage:

. .

Engineering Analysis

• Breguet range equation with flat plate and lumped mass– Used to determine wings and engine

• Reduction in thrust due to refrigeration• Increase in drag due to added storage• Range Loss from initial trike design: 14%

Medical Storage on the Trike

• Vaccines Blood for Transfusions

Survey Analysis

• Survey used to determine storage needs• Consider:– Volume– Weight– Refrigeration Time

• Surveyed medical professionals and business personnel with experience in developing world

• Most important attribute: refrigeration time

Medical Storage on the Trike• Volume:– 3 cubic feet

(90,000 cm3)

• Refrigeration:– 3hours

• Payload:– 60 kg

Medical Storage (Ergonomic Aspects)

• Trike storage compartment is removable

• Carry on head or back– Pad included for

comfort

Our Business Model

• Funders– Aide Agencies: Provide some capital

• Customer– National Governments in Developing Countries

• Manufacturer – Us! We manufacture the trike and design the system

• User– Bush Pilot:– Medical Workers

• Beneficiary– Remote Villages: User & Final recipient

Key Groups

Save Lives(Maximize Healthcare Savings)

And

Make Money(Only sell what’s best for the customer)

Social Entrepreneurship

Our Business Model

• Step One: – Customizable solution to maximize social benefit:– Engineering and micro-economic iteration:

• Linear Regression: – Relationship between price range and quantity with larger

bounds– Effects of storage and refrigeration on product utilization– Use solver to maximize social benefit

• Competitive Pricing: Match current Trike manufacturers

Part one: Save Lives(Maximize Healthcare Savings)

Demand Model

• Related price, range and quantity using linear regression

• Price = f(Range, Quantity)

• Price = 26,000 – 43.3Q + 2.97R

Derive Healthcare Savings Equation

• Equation components– Government statistics– Demand model– Diminishing returns

0 10 20 30 40 50 60 70 800

20

40

60

80

100

120

140

160

180

200 Healthcare Savings of TrikesUGANDA

Number of Trikes

Hea

lth

Care

Sav

ings

(Mill

ions

of

USD

)

Optimize Social Benefit Equation

• Optimal number of trikes: 77 Trikes• Required range: 57 km• Price per trike: 22,800 USD• Health care savings: 177 M USD• Price of 77 trikes: 1.8 M USD

Expansion into the rest of Africa

• Assume rural population/trike ratio is constant– Uganda People/Trike = 350,000 people/trike

• 620 Million in Rural Africa• 1,800 trikes would cover all of Africa• In actual production, each country would

receive a customized trike system

• Make a Profit by selling a system which maximizes social benefit– This reduces profits in the short term, but will open new

markets• How do we do this?:– Manufacture the trike in-house– Simple manufacturing (except for the wings)– Large market potential– No competitors– High need

Part two: Make Money

Business Plan revenue and costs

•Startup costs include:• 200,000 USD loan for

manufacturing equipment• Two months employee training

•15% market penetration rate

Feature Costs (USD/year)

Type

Building Rent 36,000 Fixed

Wages 540,000 Variable

Utilities 3,600 Fixed

Machinery energy

7,300 Variable

Setup 9,000 Variable

Parts 1,620,000 Variable

Bonus package + shipping

1,132,200 Variable

Testing 14,400 Variable

Basic administrative

42,000 Variable

Total 3,404,500 Variable

Safety factor (+10%)

3,745,000 VariableYearly costs for 180 trikes/annum

1 2 3 4 5 6 7 8 9 10

-$500,000

-$400,000

-$300,000

-$200,000

-$100,000

$0

$100,000

$200,000

$300,000

$400,000

$500,000

Profit

NPV

Investment

Year

USD

(Tho

usan

ds)

Business Plan

Company will begin to make profits between year 4 and 5, and have positive NPV after year 8

Assumptions:6 % APR5 % discount on raw materials after 100 sales/year10% tax ratelegal fees not currently included

Concluding Summary

• Customize flying trikes to enable routine delivery of medical resources– Any time– Any where

• Enable every person on the planet to have access to cost-effective preventative health care– Save lives– Save money

– Locally sustainable solution• Open the door to other beneficial opportunities for

developing countries

RemoteFlightDoctor Vision

• Trade: move goods around previously impassible area

• Education: move teachers and educational goods to places in need

• Empowerment: your country has the ability to do what you never thought was possible

• Disaster relief: can fly above regional flooding and other disturbances

Other Potential Benefits of the RemoteFlightDoctor System

• Maximum social benefit for Uganda• 77 trikes• $22,800 each• Range = 57 Km• Payload = 60 Kg• Storage/ Refrigeration = .1 m3 and 3 hrs

• Effective cost savings to Uganda: 177 million USD• Number of people reached: 26.9 million people• Break Even after 8 years• Profits over a half million dollars after 11 years

• You have a chance to help improve millions of lives and make money doing it.

Summary of Business Plan Numbers for Ugandan Customers

Questions?

Need Our Design

Locally Sustainable √

Roads Optional √

Inexpensive √

Quick √

Routine Use √

Yearly checkbook

•

year 1 2 3 4 5 Typerevenue 1,368,000 1,573,200 1,801,200 2,074,800 2,394,000 fixed(8,000 sq. ft.) Rent 36,000 36,000 36,000 36,000 36,000 variableWages 300,000 318,000 338,000 362,000 390,000 variableUtilities 3,600 3,600 3,600 3,600 3,600 fixedmachinery energy 2,400 2,800 3,200 3,700 4,300 variablesetup 3,000 3,450 3,900 4,550 5,300 variableparts 540,000 621,000 711,000 819,000 897,800 variablebonus package + shipping302,400 347,760 398,200 458,600 529,200 variabletesting 4,800 5,520 6,300 7,300 8,400 variablebasic administrative 18,000 19,800 21,800 24,200 27,000 variableSafety factor (+10%) 1,331,300 1,493,700 1,674,300 1,890,900 2,091,600 variabletax (10%) 136,800 157,300 180,100 207,500 239,400 variabletotal 1,468,000 1,651,100 1,854,400 2,098,400 2,331,000profit -100,000 -77,900 -53,200 -23,600 63,000