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Health systems often worry that open access harms retention, but Kharraz reveals patients demonstrate a 75% to 80% rebooking rate with the same doctor in a specialty. This suggests providers naturally secure long-term consumer loyalty simply by offering good clinical care rather than restricting access through closed systems.
Julie Yoo's startup was founded on the discovery that despite patients waiting weeks for appointments, physician schedules were underutilized. This paradox of high demand and low utilization highlights a massive inefficiency in patient routing and capacity management, creating a significant market opportunity.
In complex ecosystems, you can't prioritize one stakeholder at the expense of another. In healthcare, while the patient's needs are paramount, enabling providers to do their best work is a prerequisite for excellent patient care. Product decisions must treat the patient-provider dynamic as an interconnected system where there can be no loser.
Elliot Cohen posits that the healthcare system is broken because it optimizes for financial relationships, not the patient. He argues the key metric should be Net Promoter Score—how much consumers love the experience. A system that people enjoy engaging with would inherently solve many cost and quality issues.
While long-term health improvement is a goal, the immediate ROI from advanced primary care comes from two levers: steering patients to lower-cost independent providers for tests and procedures, and reducing unnecessary ER and specialist visits through better access. These produce savings in the first year.
The company's core value proposition stems from a non-obvious market inefficiency: doctors have roughly 30% of their schedules open due to last-minute cancellations and no-shows. ZocDoc acts as a yield management platform, filling this perishable inventory, which benefits both doctors' businesses and patients seeking quick access to care.
By aggregating millions of users, ZocDoc acts as a collective bargaining unit for patients. It uses its marketplace power to reward providers for patient-friendly behavior (e.g., price transparency, better hours) with better visibility, proving more effective at driving change than punitive government regulations.
Health systems frequently try to lock patients in by controlling access through a single front door. Kharraz argues this is a flawed premise because healthcare functions like an open city where consumers must freely seek different doors depending on whether they need urgent, specialized, or chronic care.
High-demand specialists often experience poor load factors because their patients frequently reschedule or cancel at the last minute without double-booking buffers. Marketplaces capture this perishable capacity, enabling patients to see top providers within 72 hours despite national average appointment wait times climbing to 31 days.
By using AI scribes to audit transcripts comparing high-retention clinicians against those with high 'one-and-done' rates, Midi discovered that repeat bookings rarely correlate with clinical safety or diagnostic accuracy. Instead, churn is determined by communication style: whether the clinician ensures the patient feels heard, provides concrete next steps, and clearly specifies post-visit plans.
The core issue preventing a patient-centric system is not a lack of technological capability but a fundamental misalignment of incentives and a deep-seated lack of trust between payers and providers. Until the data exists to change incentives, technological solutions will have limited impact.