Hayes Batson, President
Richard Flanagan, Ph.D., Clinical Director
Product Line or Service Epotec is developing and will market
and administer Internet-based behavioral health services for major employers.
Epotecs interactive products are designed to help employees identify and solve
personal and emotional problems, as well as improve their general health, personal
communication and organization skills. These products will be delivered via the Internet
and include basic information and referral, 20-30 minute computer interactive assessment
and self-help modules, 10-session interactive programs assembled and guided by trained
behavioral health coaches, private live chat and a monthly behavioral health magazine.
Version 1.0 will include products addressing approximately 35 problem areas such as
depression, anxiety, relationships, stress, adjustment to change, insomnia, loss and
grief, diet, exercise, communication and time management.
Technology/Proprietary Rights Epotec is developing a state of
the art Web system as well as a proprietary software tool, ModuleBuilder, which will allow
the Companys clinicians and content developers to create Web-ready products without
involving programmers. Management believes that this tool, along with the Companys
underlying Web system infrastructure, will give Epotec a substantial advantage over
potential competitors in terms of both time to market and development costs. In addition,
Epotec will copyright its content as appropriate.
Market Opportunities Epotecs products will be targeted
towards human resources and benefits departments of major corporations, particularly those
in the financial services, insurance, technology, health care, and utilities industries.
For these employers, the Companys products will be positioned as either a supplement
to an existing employee assistance program (EAP) or an alternative for employers without
an EAP. In 1995, total United States EAP industry revenues were estimated at $1.1 billion,
with approximately 50% of the workforce having access to EAP services.
Marketing/Sales and Distribution Epotec will assemble a
salesforce to sell its products directly to large employers in industries with high
computer utilization. The company will promote its products through human resources and
benefits trade shows and magazines, as well as through direct mail.
Because Epotecs products are currently 100% Web-based, service delivery is a
relatively simple process. After receiving a file from a new client which contains each
registered employees name, social security number, date of birth, and location
number, Epotec will simply activate the new accounts. All further services will be
provided through Epotecs Web system in an automated manner.
Competition Competition to Epotec, Inc. may come from at least
three sources: employee assistance programs (EAPs), current self-help products, and mental
health providers. Management believes that the most significant competition will come from
the major EAPs, primarily subsidiaries of managed care companies, as they seek to leverage
technology and the Internet to provide services to their geographically dispersed client
bases. While the behavioral health industry is very concentrated, the EAP segment is still
fragmented; the top 6 players control 30-40% of the market. Leading companies include
Magellan Health Services, FHC Health Systems, United Behavioral Health, and MCC Behavioral
Financial Information Epotec currently has no revenues. The
company raised sufficient cash in its October 1997 private offering to complete the
development, testing and piloting of its Version 1.0 products.