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Millionaire GP quits Healthengine
NEW
PBS LISTING 1ST JAN 2023 1
Sarah Simpkins THE GP founder of online booking site Healthengine is taking his first break since he started work on the project in his lounge room almost 20 years ago .
Without giving dollar figures , he acknowledges he could retire with the money he has made .
In the beginning though , he says he earned little from the company , living on the hope that one day his stake would be worth something .
“ Let ’ s face it , a lot of these ventures do not go well ,” he tells AusDoc .
“ You can walk away with less than what you may have earned over the 10 or 15 years .
“ If you are a doctor looking to get into entrepreneurship , just looking at the money side by side , you may not end up better off or just marginally better off .”
He says the company , which now has around 9000 medical practice subscribers , having processed almost 75 million patient bookings , “ almost died ” a couple of times .
“ In healthcare , there are so many people who don ’ t want you to do what you are doing — in the sense that there are a lot of conservative incumbents who don ’ t want to see change .”
The concept came to him when he was sifting through paper directories of medical specialists , and he decided to join with another GP to build an online directory . The project failed . He then encountered another business , which had its own fledgling online directory , called Healthengine .
The business was failing too , but they handed control to Dr Marcus Tan .
“ Effectively , we rebooted the whole thing , again out of my lounge room , in around 2009 ,” he says . “ But we kept the name : Healthengine .” The “ missing piece ”, which he had to complete to make Healthengine work , was listing each doctor ’ s available appointment times .
He says it was very rudimentary at the start , and during those early days , Dr Tan was still working full-time as a GP .
He says the stress of the startup company weighed on him more than the medical decisions .
“ It is stressful enough to punt your own money on something like this .
“ But when you have raised money , you are dealing with other people ’ s money ; that makes it additionally stressful .
“ You do feel an obligation to make sure the people get a good return on their money and also get a good experience of working with you .
“ And that is not always easy because everybody has their own agendas and their own motivations .”
Healthengine became a rare GP business , a financially successful venture .
But then in 2020 , it ran into the ACCC . The watchdog investigated claims that Healthengine was doctoring patient reviews of GP practices , not publishing patients ’ star ratings for practices if they were not positive and misleading patients over use of their data when they booked appointments .
In terms of the doctoring , it was mainly about edits .
For instance , one patient originally wrote : “ The practice is good . All the doctors I ’ ve seen there are good apart from [ doctor ’ s name ] ... She genuinely comes across like you are wasting her time .”
Dr Marcus Tan .
This was whittled down to “ The practice is good . All the doctors I ’ ve seen there are good ” and posted on the clinic ’ s webpage .
Another submitted : “ I will use this practice if I have no other option . Receptionist was lovely , but the wait and then the doctor checking text messages and not seeming connected with us was disappointing .”
This was published as , “ Receptionist was lovely .”
Patients who made bookings were asked if they wanted to “ speak to one of our private health insurance experts ”, a reference to third-party private health insurance brokers .
Dr Tan claims the $ 1.4 million fine for sharing patient data without informed consent came down to “ that one word — our ”.
“ That created the sense that it was a first
party rather than a third party . That was it .
“ While the consumer ticked the box and said we are happy to speak to somebody , the ACCC said it was vague whether it was a third party or Healthengine doing the comparison .”
The ACCC also fined Healthengine $ 1.2 million for the patient review edits and a further $ 300,000 for not publishing bad ratings for practices .
Dr Tan says the rating system was the result of practices being hesitant to buy a Healthengine subscription because of concerns patients would post reviews that were defamatory .
“ Basically , we had one moderator , who did not fully understand the moderation guidelines that we had put in place ,” he says .
“ This did not happen with very many reviews , by the way , but it still happened .
“ We would create a situation where someone would say : ‘ The doctors were great , but the waiting room was a bit dirty .’
“ And they [ the moderator ] were just looking for the positive comments to be able to demonstrate this was a good
‘ In healthcare , … there are a lot of conservative incumbents who don ’ t want to see change .’ practice . So they would just say : ‘ The doctors were great .’
“ That was in breach of our own internal moderation guidelines , but it was not picked up because we had hundreds of thousands of reviews .
“ When we found out that was an issue , we wanted to fix it . But by that time , it was deemed by the ACCC as potentially misleading .”
The allegations were reported first in The Sydney Morning Herald and The Age , but Dr Tan says the media coverage “ did not necessarily reflect what was actually happening ”.
“ It is easy to draw a headline that makes it more than what it is .
“ There is a lot of stuff that , without thinking too hard about it , without spending enough time looking at it and speaking to the right people , you can draw conclusions .
“ But as a CEO , you spend a lot of time trying to rebuild your trust and reputation , which is not fun .” Healthengine has weathered the storms . As for Dr Tan ’ s plans now ? He will keep working as a GP . But beyond that , there are no plans .
“ I had a personal idea that at the age of 50 — I am turning 50 this year — I would step back and just do something different ,” he says .
“ Yes , the past few years have been tricky and tough , with the pandemic . “ But nothing specific has triggered it . “ I have spoken to a few people who have been in similar situations , and the general feedback has been , if I can afford to take an extended break , I should do that .
“ Personality-wise , a lot of founder – CEO types want to just do stuff , to get on the horse and go again .
“ I am not that different , but I will try to resist the urge to jump onto something too quickly .”
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