# Vital Financial Model AI + UI platform for hospital emergency departments - patient engagement, follow-up automation, and clinical decision support sold as SaaS to health systems. - Canonical: https://finamodel.com/startups/vital - Excel download: https://finamodel.com/startup-models/vital.xlsx - Category: Health-tech - Model type: SaaS ARR / Valuation - Funding round: Series A - Funding: $15M - Founded: 2021 - Geography: United States (operations confirmed across GA, AZ, PA, TN and others) [DECK, slide 15]. - Customer: B2B2C ## About the company Vital sells AI and user-interface software for hospital emergency departments, covering patient engagement, follow-up automation, and clinical decision support. It helps health systems improve the emergency-department experience and operational follow-through across a high-volume, time-sensitive care setting. The platform can be sold as a subscription or usage-linked enterprise product, with expansion through ED volume, sites, workflow modules, and clinician adoption. Customer value depends on successful implementation, integration into clinical operations, patient engagement, and retention within hospital systems. The model forecasts hospital logos, ED volume, subscription or usage fees, implementation, clinician adoption, expansion, and churn. It includes AI and cloud costs, clinical integration, sales cycles, customer success, product investment, gross margin, cash burn, and runway. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition Three modules, each sold as an add-on tier: 1. **ERAdvisor (Patient)** - no-download web app delivered via SMS at registration; AI-powered wait times, multi-lingual, labs/imaging education, family sharing, follow-up scheduling. Deployed at 60+ hospitals. 2. **ED Follow-Up AI** - post-discharge AI that stratifies patients by value (high → human call, medium → automated, low → SMS) to capture new patient revenue. Deployed at 10 hospitals. 3. **Clinical** - lite mobile EHR, AI alerts (admission likelihood, readmission risk, missed billing). Trial at 2 hospitals. Core pitch: ED is treated as a cost center; Vital turns it into a retention and revenue engine for the health system. ## Market - 5,250 EDs in the US. - 140M ED visits/yr in the US, increasing. - ~$2,000 avg visit cost → $300B total ED spend = 25% of all US hospital spend. - 40% of ED patients are new to the health system; 70% of all hospital admits and 70% of new diagnoses originate in the ED. - ~60% of US market can be reached without hospital IT involvement (via existing EHR/ADT connectivity partners: Redox, CollectiveMedical, PatientPing, Audacious Inquiry). - SAM (no-IT-required): ~3,150 EDs. - SOM stated: 480+ hospitals (9% of US market) via expansion of existing health system relationships. - No explicit TAM/SAM dollar figures in deck beyond ED spend context. ## Revenue model - **Pricing tiers** (per facility per month): - Tier 0 - Free (3-month trial): $0/facility/mo - Tier 1 - ERAdvisor: $5k/facility/mo ($60k/yr) - Tier 2 - ERAdvisor + ED Follow-Up AI: $10k/facility/mo ($120k/yr) - Tier 3 - Full suite (eventual): ~$500k/yr/facility - **Average ACV today**: ~$100k/hospital. - Billing: monthly per facility. - Sales motion: pilot (free, 3 months) → paid contract → upsell additional modules. - Sales cycle compressed to 2–4 months (from industry standard 12–18 months) via no-IT-required deployment. - Channel: direct enterprise sales to health systems; leverages existing EHR integrations. ## Traction & metrics - **Hospitals**: 67 hospitals, 13 health systems. - Hospital count by month (Nov–Mar): ~5 → ~11 → ~12 → ~38 → ~60. - Of ~60 in Mar: ~19 contracted (green), ~41 pilots started (blue). - **Expansion pipeline**: 480+ hospitals across existing health system relationships (UPMC 40 total, Ascension 150, Tenet 65, AdventHealth 50, Emory 6, etc.). - **Patient volume**: 250k patients + family/yr now; ~400k/yr end Q2 '21; ~1M+/yr end Q4 '21. - **Adoption rate**: 50–60% of patients with mobile numbers use the product (64%, 57%, 58%, 51% across four Emory EDs). - **Revenue at Emory (4 EDs)**: $7M+ in new revenue attributed to Vital; $5M+ immediate new revenue from Follow-Up AI alone. - **Clinical AI trial**: identified $3M/yr/ED in missed supply billing and $1M+/yr/ED in missed critical care billing. - **Visit length**: 13-minute decrease in visit length. - **Staff burden**: 1,500 fewer questions/month. - **Patient satisfaction**: 97% satisfaction rating on ERAdvisor. - **HCAHPS (Dignity Health SJHMC)**: +38% on "information about delays"; +226% likelihood to recommend after Vital launch. Press Ganey score rose from ~22 pre-launch to 98 post-launch. - **Team size**: 20 FTEs pre-raise → 35 post-raise. ## Unit economics - **ACV range**: $60k–$120k/yr/hospital contracted; eventual $500k/yr. - **Current blended ACV**: ~$100k/hospital. - **Hospital ROI**: $5M–$7M+ in new/retained revenue per multi-ED health system customer - implies very strong payback for buyer at $60k–$120k/yr price point. ## Competition / moat - Legacy sales cycle for hospital IT is 12–18 months; Vital has cut this to 2–4 months via no-IT-required deployment piggybacking existing connectivity (Redox, CMT, PatientPing, Audacious Inquiry). - 10 AI models developed, 5 published academic papers on AI/NLP in ED (Emory University collaboration). - No named competitors called out in deck. - Moat framed as: EHR-integrated data flywheel, clinical credibility (CMO is Emory EM faculty), founder pedigree (Aaron Patzer, founder of Mint.com), and deep health system relationships with expansion runway. ## Team & funding ask / use of funds - **Aaron Patzer** - CEO; Founder & CEO of Mint.com, Fortune Top 40 Under 40, 10 patents. - **Justin Schrager, MD** - CMO; Asst Professor of Emergency Medicine, Emory University School of Medicine. - **Kurt Essenmacher** - VP Sales/BizDev/Ops; Employee #3 at InQuicker, 400+ ER relationships. - **Nate Fletcher** - Director Sales & Ops; Employee #10 at GetWellNetwork, 50+ health systems. - **Te Warren** - VP Engineering; led Pixel Fusion, Founder Summer of Dev. - **Ask**: Series A - $10–12M. - **Use of funds**: FTE 20 → 35 (scale sales & implementation), new product development (Inpatient, Clinical alerts). - **Runway**: ~3 years post-raise. --- ## Recommended financial model - **Archetype + why**: B2B SaaS - hospital/facility subscription model with land-and-expand upsell motion. Revenue is driven by hospital count × tier mix × ACV, not by patient volumes (though patient metrics are the key sales proof). The expand dynamic (pilot → Tier 1 → Tier 2 → Tier 3) is the core value creation mechanism and must be modelled explicitly. - **Forecast horizon & granularity**: 5 years (Y1–Y5); monthly for Y1–Y2 (to track pilot-to-contract conversion and cohort build-up), quarterly for Y3–Y5. - **Key drivers & assumptions**: - **Starting contracted hospitals**: ~19 contracted at model start - **Starting pilot hospitals**: ~41 pilots at model start - **Pilot-to-contract conversion rate**: 60% - deck shows strong momentum and health system relationships; hospital budgets are constrained but ROI is demonstrated - **New hospital signings (pilots/mo)**: 15–20/mo in Y1, scaling with sales headcount; deck shows ~20 in one month (Feb→Mar jump from ~38 to ~60 total) - **Sales ramp with headcount**: ~2 quota-carrying reps post-raise → 6 by end Y2; each closes ~10–15 hospitals/yr - **Tier distribution (contracted hospitals)**: - Tier 1 (ERAdvisor, $60k/yr): 60% of contracted base initially - Tier 2 (+ Follow-Up AI, $120k/yr): 30% of contracted base - Tier 3 ($500k/yr): 10% of contracted base, growing over time - **Blended ACV today**: ~$100k/hospital - **Upsell rate**: 20% of Tier 1 hospitals upgrade to Tier 2 per year; 10% of Tier 2 upgrade to Tier 3 - **Churn rate**: 5%/yr - health IT contracts are sticky, EHR integration increases switching cost - **Gross margin**: 70–75% - typical B2B healthtech SaaS; implementation costs and customer success are the main COGS; no hardware - **Implementation cost per hospital**: $5–10k one-time (no-IT-required deployment is a key selling point, so should be low) - **Headcount**: 20 FTEs pre-raise → 35 post-raise; ~55% of opex is personnel - **S&M as % of revenue**: 40–50% in early years, declining toward 25% at scale - **R&D as % of revenue**: 20–25% (AI model development is core) - **G&A as % of revenue**: 10–15% - **Burn rate implied**: ~$300–400k/mo at 20 FTEs; ~$500–600k/mo at 35 FTEs - **Runway**: ~3 years on $10–12M - consistent with ~$330k/mo burn - **Scenarios (Base / Bull / Bear)**: - **Base**: Pilot conversion 60%, 15 new pilots/mo, tier mix stays blended at ~$100k ACV - **Bull**: Faster health system expansion (Ascension 150, UPMC 40 converting), Tier 3 adoption accelerates, blended ACV hits $200k+ by Y3 - **Bear**: Pilot conversion drops to 40%, hospital budget freezes, sales cycle elongates back to 6+ months, churn at 10% - **Required sheets / outputs**: 1. **Assumptions** - all drivers above with scenario toggles 2. **Hospital Cohort Model** - monthly new pilots, conversions, tier mix, churn; waterfall of ARR by cohort 3. **ARR Bridge** - new ARR, expansion ARR, churned ARR, net new ARR 4. **P&L** - Revenue, COGS, Gross Profit, S&M, R&D, G&A, EBITDA 5. **Headcount Plan** - by function (Sales, Eng, CS, G&A), linked to opex 6. **Cash Flow & Runway** - monthly burn, cash balance, months of runway 7. **KPI Summary** - ARR, hospitals (pilot/contracted), blended ACV, net revenue retention, burn multiple ## Frequently asked questions ### Is the Vital financial model free? Yes. The Vital model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.