Making a cellular kit the default for patients who never paired a phone
When I joined Ardenwick in March 2021, our standard kit paired a Bluetooth scale and blood pressure cuff with the patient's own smartphone, or with a tablet we supplied. Our reports counted kits shipped, not readings received. When we looked, 32 per cent of patients had sent nothing within thirty days of delivery, and among those aged 75 or over the figure was 49 per cent. Those patients were enrolled, counted by our customers and invisible to their nurses.
The stakes were clinical before they were commercial. A heart-failure patient who never transmits a weight is not being monitored, whatever the enrolment list says, and the practice cannot bill for a programme the patient is not using.
I proposed making cellular devices, delivered already linked to the patient's record, the default for every new patient. The kit cost would rise from US$88 to US$154, plus a data charge of about US$2.10 a month. Our CFO, Grady Pelletier, accepted the clinical case but wanted a US$12 monthly surcharge for cellular kits. I argued against it because practices would then choose the cheaper kit for exactly the patients who needed the simpler one. Thaddeus Brannigan, our chief executive, backed the no-surcharge plan on condition that we held the year's operating budget, so we deferred integration of a new glucose meter by two quarters.
We switched the default between January and September 2022, kept the app for patients who asked for it, and replaced the instruction booklet with three pictures printed inside the lid.
Gross margin fell from 62 per cent in 2021 to 56 per cent in 2022, then recovered to 60 per cent by 2024 as volumes rose and set-up calls fell by 44 per cent. The share of patients sending a reading in their first thirty days rose from 68 to 90 per cent, and among those 75 or over from 51 to 87 per cent. Median time from delivery to first reading fell from nine days to three. First-reading rates now open every quarterly customer review.
I would do two things differently. I would have tested the kit with caregivers, who unpacked about a third of them, before the redesign rather than after it. And I would have measured which patients chose the app, because for two years we did not know.