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How Does Zocdoc Make Money? Zocdoc Business Model

Zocdoc is an online medical appointment booking platform founded in 2007 by Cyrus Massoumi, Nick Ganju, and Dr. Oliver Kharraz. With the mission to connect patients with doctors more efficiently. For patients, the use of the Zocdoc platform is free of charge. The company instead charges physicians a subscription fee for the privilege of being a listed service.

Origin Story

Zocdoc is an online medical appointment booking platform based in New York City.

The private company was founded in 2007 by Cyrus Massoumi, Nick Ganju, and Dr. Oliver Kharraz. Fundamentally, Zocdoc was created to connect patients with doctors more efficiently. The idea came after Massoumi ruptured an eardrum during a domestic flight and could not find a doctor to see him immediately. Some of the numbers he called were out of date, while the doctors that did answer were booked out for weeks.

Over lunch with Kharraz, Massoumi wondered why consumers could book a restaurant table online but not a doctor. With original CTO Ganju, the trio then went about contacting every doctor they could find and convince them to become paying customers. Zocdoc was launched as a dental service in Manhattan but quickly expanded across the United States offering doctors from over 50 specialties. Functionality allowing patients to fill out medical forms before their appointments soon followed.

Today, Zocdoc customers can see doctor availability and make informed choices with verified doctor reviews. There is also a tailored reminder feature so that important check-ups are not missed. The service now hosts more than 10,000 healthcare providers across 100 specialties.

Zocdoc revenue generation

For patients, the use of the Zocdoc platform is free of charge.

The company instead charges physicians a subscription fee for the privilege of being a listed service. When the platform was first launched, the annual fee of $3,000 was reduced in 2018 after smaller and more rural healthcare practices could not justify the expense.

In Colorado, Connecticut, Florida, Georgia, Indiana, New Jersey, New York, Pennsylvania, Texas, and Washington, subscription fees are charged annually at $299 for up to five healthcare providers. 

In the abovementioned states, the company also charges a one-time fee for every new patient booking Zocdoc facilitates. This fee is typically between $35 and $110 and depends on the type of physician being booked. In general, primary care doctors pay less per booking than experienced specialists. 

Bookings made by existing patients or through the website of the physician are included at no extra cost. In recent times, Zocdoc has attracted criticism over this fee because it charges even if the patient misses their appointment. 

The newer pricing structure is said to reduce the financial burden on new practices without a regular clientele. Larger, well-established practices that are skilled at attracting new clients through the Zocdoc portal are also earning the company a significant amount of money. This popularity, the company hopes, will attract new physicians to the service and is a win-win for all parties.

Key takeaways:

  • Zocdoc is an online medical appointment booking platform. The idea came after co-founder Cyrus Massoumi experienced difficulty in finding a doctor at short notice after rupturing his eardrum.
  • Zocdoc charges physicians an annual subscription fee in exchange for being listed as a service. The fee structure was changed in 2018 to make the platform more cost-effective for smaller or rural practices.
  • Zocdoc also charges a new patient onboarding fee for physicians in 10 states. The ranges between $35 and $110 depending on the type of physician booked.

Read Also: How Does GoodRx Make Money, How Does Yelp Make Money, How Does Google Make Money.

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