How does Doximity make money?

  • Doximity is an online networking platform for medical professionals that was founded in 2010 by Nate Gross, Jeff Tangney, and Shari Buck. Tangney got the idea for Doximity after discovering that communication with patients, administrators, recruiters, and other doctors in the healthcare industry was slow and antiquated.
  • Doximity’s primary source of revenue is the subscription fee it charges brands that want to advertise to its vast healthcare professional audience. These are mostly hospitals and pharmaceutical companies.
  • Doximity also makes money from its healthcare recruitment platform and telehealth solution, which was to some extent developed in response to the COVID-19 pandemic.

Background

Doximity is an online networking platform for medical professionals that was founded in 2010 by Nate Gross, Jeff Tangney, and Shari Buck.

The story of Doximity started in the late 1990s when Tangney was living in New York with colleague Richard Fiedotin. At the time, the Palm Pilot had just hit the market, and the pair wanted to know whether they could create an app that would enable doctors to access critical information.

Tangney and Fiedotin then took the idea to Stanford University where they met another physician called Tom Lee. The trio discovered a shared interest in the intersection of healthcare and tech, with the Epocrates app launched in 1998. But due to the dot-com bubble burst and September 11 attacks, business confidence was low and the company was forced to lay off multiple staff.

After Fiedotin and Lee left the company, Tangney powered on alone for much of the 2000s. His plans to take the company public were again thwarted by a financial crisis, this time the GFC. Finding that he was no longer enjoying his work, he left Epocrates in 2009.

Tangney’s work was not in vain, however. During his tenure at Epocrates, he spent years learning about the challenges doctors faced in their profession. Above all, he realized that communication with patients, administrators, recruiters, and other doctors was a constant source of frustration.

Convinced that software was the answer to the antiquated health care industry, Tangney partnered with former Epocrates colleague Shari Buck and doctor turned entrepreneur Nate Gross. Doximity was unveiled to the public in October 2010 as a private, mobile-centric social network for physicians.

Doximity now comprises around 1.8 million medical professionals in the United States, a number that represents over 80% of all physicians. The company debuted on the NYSE in June 2021 and ended the week with a market cap of almost $10 billion.

Doximity revenue generation

Doximity operates under the subscription-based business model with various fees applicable to its marketing, telehealth, and recruitment services. Below is a brief look at each.

Marketing solutions

Most company revenue comes from marketing or advertising fees that Doximity charges to interested parties. Most of these are pharmaceutical companies and hospitals that want to use the platform to market their brands to millions of healthcare professionals.

Ads appear in a user’s news feed in a similar way to those that appear on Facebook and can be targeted according to specialty, geography, hospital affiliation, patient volume, and payor mix, among other attributes.

Marketing solutions accounted for 80% of total revenue in the fiscal year 2021.

Recruitment solutions

Doximity also makes money by collecting a subscription fee from companies that are looking to hire medical professionals from its platform. This is an approach that is also favored by LinkedIn.

Doximity uses artificial intelligence and machine learning so that companies searching for talent can run extremely targeted campaigns across various medical specialties. Prices for this service depend on the number of messages and job vacancies a company wants to incorporate.

Telehealth solutions

Telehealth solutions were also introduced in 2020, mostly in response to the pandemic and a need for doctors to consult remotely.

There are three choices here:

  1. Dialer Free – a free app for physicians, nurse practitioners, and physician assistants.
  2. Dialer Pro – for small practices and individual clinicians. Prices start at $19.99 per user per month.
  3. Enterprise – for larger practices, hospitals, and other healthcare systems. Pricing here depends on the size of the health system.

Main Free Guides:

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