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December 2015

Factors Driving Price Differences Why Some Providers Charge Less: Operational Efficiency: Streamlined telehealth model Lower overhead costs Technology-enabled processes Scale advantages Direct Pharmacy Partnerships: Work directly with compounding pharmacies Negotiate volume pricing Eliminate middlemen Pass savings to patients Simplified Service Model: Focus on core medical services No unnecessary premium features Efficient appointment structure Automated processes where appropriate Why Some Providers Charge More: Premium Positioning: Market as luxury service Emphasis on branding Additional amenities Concierge-style care Higher Overhead: Expensive physical locations Large staff for support services Extensive marketing costs Multiple service layers Additional Services: Nutrition coaching bundled Fitness programming Regular body composition testing Extensive support programs Complex Business Models: Multiple profit layers Franchise fees Marketing costs Investor return expectations The medication is identicaldifferences are in service model and business structure, not medication quality

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