FAQs ABOUT CASH FOR HEALTH SYSTEM

HOW WILL THE OBAMA PLAN IMPACT THE STRATEGY?

The missing link in the Obama plan is testing for individual health facts to rationally reallocate money from "Cadillac" plans for people who don't use benefits to people who need them. Health is not static. We need to financially reward health improvements because it saves the government money! Then there is plenty to go around and the medicare problem would organically be solved in the process. Obama would like to start from scratch but can't because employers are health insurance company customers...not you or me...and employers have no other alternative right now. What insurance firms actually sell to large employers, which account for the largest segment of the entire health care market, is administrative services, not actual insurance. And even worse, ask any person on the street and they will tell you their health insurance is FREE! Employees have no idea their employers pay $10,000 - $15,000 per year on health insurance for them. And at these prices employers and doctors are jumping ship. CASH FOR HEALTH is the rescue boat. Employers will "buy" from whomever provides the best care for the least cost to keep their employees in their cubicles. CASH FOR HEALTH goes one step further for $6,000 per employee rather than $10,000. H2O pro-active plans will actually make people healthy, happy, and more productive! An employer will choose CASH FOR HEALTH over any government plan simply because it will be perceived as higher quality in the eyes of their employees. And even better, it really is.


WILL DOCTORS ACCEPT THE CASH FOR HEALTH DEBIT CARD?

Only CASH FOR HEALTH doctors (franchisees) and CASH FOR HEALTH suppliers (participating gyms, pharmacies, food stores) will accept the CASH FOR HEALTH card. The CASH FOR HEALTH system is designed to give member patients a customized list of CASH FOR HEALTH practitioners and suppliers for their personalized health care, so patients never have to worry about a doctor not accepting the CASH FOR HEALTH card. Members of course can pay cash for services outside the network.


DOCTORS ARE NOT BUSINESS PEOPLE.

That is why CASH FOR HEALTH is perfect for doctors. H20 handles the business systems and doctors get to practice medicine and care for patients. CASH FOR HEALTH doctors are current medical practices who have converted to the CASH FOR HEALTH system. Today many doctors can't afford to accept insurance because they are abused financially by Medicare and insurance companies and are without leverage to negotiate changes to payor agreements, fees, and schedules. Doctors get paid on average $24 per patient/per visit and 50% of that goes to their admin staff to manage the paperwork. CASH FOR HEALTH by comparison pays them $75 per patient/per visit by controlling patient flow with mandatory scheduled visits. Doctors will trust a system that pays them cash.  CASH FOR HEALTHs Chairman will be a branded doctor (like a Dr. Oz or Dr. Roizen) and doctor franchisees will trust another doctor.


PEOPLE ARE CUTTING BACK ON DISCRETIONARY AND PREVENTION SPENDING
CASH FOR HEALTH proposes not spending extra; simply reallocating what you are already spending (you or your employer) and saving you money in the process as well as getting more benefits.

PEOPLE HAVE BEEN TRYING TO FIX HEALTH CARE FOR 60 YEARS BUT THERE IS NO COORDINATED THRUST TO LOWER COSTS AND BUILD EFFICIENCY INTO THE SYSTEM
Many of the relics who built this system can no longer make an impact. People's wages have not increased while corporate profits have. So change is coming simply because employers can't afford the current system now.

Health Insurance was created after WW2 as an low cost incentive so employers could entice employees to work in exchange for low wages. Wages were kept static. Software came along and companies became more efficient and profitable. Then banks offered CEOs incentives to invest profits with them instead of increasing wages. As cost of living increased and wages stayed the same people could no longer pay their bills and had to send mom out to work. Families took this as a personal problem. Not an employer problem. With mom as the emotional glue of the family, now out of the house, more stress, more fast food, more fighting over bills contributed to our current chaos.


HOW LONG DOES IT TAKE A FRANCHISEE TO GET 5000 PARTICIPANTS

Current medical practices already have 2,000 - 10,000 patients. CASH FOR HEALTH simply converts these practices to the CASH FOR HEALTH system and inherits their current patients as CASH FOR HEALTH members. CASH FOR HEALTH will simultaneously sell employers in the local area as a "group" and push these new members to each new CASH FOR HEALTH practice. Every new CASH FOR HEALTH franchisee will start with 5000 members minimum and will be recruited that way.


HOW MUCH WILL THE FRANCHISE HAVE TO INVEST TO GET 5000 PARTICIPANTS

Since the CASH FOR HEALTH strategy is to convert current medical practices already in operation so start-up costs are minimal. Many doctors have long term leases and even own their practice location because it is their only profit center now. Once CASH FOR HEALTH eliminates the need for the doctor to continue badly leveraged third party agreements, cash is automatically freed up, and can be applied to the initial franchise fee. We are basically converting them to the H2O system at no cost just by finding them money!


THE 5% PROFIT NUMBER IS VERY LOW TO JUSTIFY A LARGE UPFRONT INVESTMENT.  THIS IS WHY THE COSTS LOOK ATTRACTIVE.

Most doctors right now are breaking even or barely making $100,000 in salary per year and no profit. Based on a patient list (panel size) of 5000 CASH FOR HEALTH offers doctors a $500,000 salary and a $1 million profit/bonus.

Non-medical franchise or retail businesses or with one location is essentially just buying themselves a $50,000 to $100,000 per year job. You generally only break-even. In any franchise system you have to own at last five locations to make it to millionaire status.

CASH FOR HEALTH is dynamically designed to give CASH FOR HEALTH doctors an incentive to live off their CASH FOR HEALTH pay increase earning $500,000 per year and to reinvest their $1 million profit in buying new CASH FOR HEALTH locations over 5 years.

H2O AS FRANCHISOR MAKES MONEY FROM THREE REVENUE STREAMS
1. Initial franchise fee...$500,000 (financing options are available)

2. 8% royalties per location.

3. 30% profit from CASH FOR HEALTH debit/credit card interchange fees. (In other issuer models paying for reward programs consumes 44% of the interchange costs, processing 13%, network branding 3%, and 35% covers cost of fund and profit margins.)