how does Healthgrades make money?

The purpose of this blog is to examine the question of “how does Healthgrades makes money.” Additionally, we will discuss how Healthgrades was founded as well as the many business processes of healthcare; if you are interested in learning more about this subject, please continue reading.

how does Healthgrades make money

Healthgrades make money by either directly selling the data to third parties or by leveraging it for internal purposes such as boosting the effectiveness of advertising campaigns, in combination with Advertising, combining data within and across industries, Customer data, Featured listings, Multi-level marketing and Two-sided market. Let’s discuss each of these aspects down below.

What is Healthgrades?

Healthgrades is a corporation established in the United States that provides knowledge about doctors and clinics. It is estimated that about 3 million healthcare practitioners in the United States have been profiled by Healthgrades, a website that gathers user evaluations and ratings.

Kerry Hicks is a Colorado-based design business founded by her husband, David Hicks, her son, David Hicks, Peter Fatianow, John Neal, and Sarah Lochran, among others. Rob Draughon is the company’s chief executive officer. Healthgrades is the world’s first comprehensive database for comparing and evaluating medical professionals. Consumer-driven healthcare is a developing trend in American health technology, and this software is a perfect match for that movement.

History of Healthgrades

Healthgrades was founded in 1998 by Kerry Hicks and is a free online resource. In his previous position as CEO of Specialty Care Network, Hicks founded Healthgrades. In 2008, Healthgrades acquired Ailjor, an online health directory that had been operating since 1995. On the website, members of the public were able to see the contact information for healthcare practitioners. According to the firm, Healthgrades cooperated with approximately 400 institutions throughout the United States in 2009.

A significant amount of money has been invested on this project. Healthgrades was bought by Vestar Capital Partners via a subsidiary in 2010. Healthcare rating and review website Healthgrades has teamed with CPM Marketing Group, a Madison, Wisconsin-based company that provides relationship marketing solutions to hospitals and healthcare organizations. Eventually, CPM Marketing became CPM Healthgrades, a subsidiary of the Healthgrades corporation that is now known as the Healthgrades Hospital Solutions division of the company. A single online corporation with over 200 million visitors per year has emerged as a consequence of the consolidation.

Healthgrades, which launched in October 2014 and is the first complete database in the United States for assessing and comparing physicians, is the first comprehensive database in the world. Users may search for physicians who are experts in a certain subject or method by searching the database. As reported in a research conducted by the database’s developer, its release was timed to coincide with the publication of statistics on the total knee replacement problems rates at 17 Denver-area hospitals.

The business model of Health grade

Healthgrades makes money by Advertising

Customers got promotional marketing emails from other businesses, which resulted in revenue generation for those businesses. When creating a for-profit company, their method to producing money is one of the most critical components to consider. Lots of firms provide both products and services, or some variation on these concepts. Advertising, on the other hand, accounts for the vast majority of the revenue generated by internet corporations and media organizations. Ad-based income models are what they are formally referred to as.

Combining data within and across industries

New sorts of information coordination across businesses and industries are conceivable with the help of big data science and expanding information technology standards that allow for increased data integration. A wide range of business leaders will come to see vast volumes of data as a management revolution, as a consequence of this development: As with any large organizational transition, big data-enabled businesses face challenges that need the implementation of a practical learning approach.

Customer data is utilized by Healthgrades

Users may access free services, their personal information is stored, and the site serves as a hub for users to communicate with one another. By gathering and analyzing consumer data in a way that is valuable for internal use or transfer to other interested parties, it is possible to add value to it. Businesses may generate revenue by selling data to other parties or by using it inside, such as increasing the effectiveness of marketing. As a consequence, innovative and long-term Big Data business strategies are in great demand and scarce.

Customer loyalty is prioritized by Healthgrades

Customer loyalty is a time-tested commercial strategy. It’s about offering them more than the product or service they’ve purchased. Incentives are often provided in the form of member discounts, vouchers, birthday discounts, and points. Numerous firms, such as American Airlines, reward clients with points for each trip they take with them.

Customer relationships are fostered by Healthgrades

Because of the high cost of customer acquisition, economies of scale are essential to achieving success. A business’s relationships with both present and potential customers are managed via the process of client relationship management (CRM). The primary purpose of CRM is to increase client retention, with a secondary goal of enhancing the bottom line.

Channel aggregation is used by Healthgrades

A corporation may decide to consolidate a lot of distribution channels into a single one in order to save money. Product and service information is collected and shown on a website by an organization (which does not manufacture or store any things) that gathers and shows product and service information from a range of competitive sources (known as “aggregation”). Because the company is capable of creating a ‘environment’ that attracts customers and designing an automated system that simplifies the process of pricing and specification matching, customers are lured to its website.

Digital transformation of Healthgrades

The digitalization of a company’s operations, processes, skills, and models allows it to take full advantage of the changes and possibilities brought about by digital technology, as well as the influence it has on society as a whole. In a hyperconnected world, the ultimate objective of digital transformation is to continuously enhance processes, divisions, and the organizational and professional environments in which we live. This is a route that has a number of interconnected intermediate goals. As a consequence, success on the voyage is dependent on the construction of the appropriate bridges.

Featured listings used by Healthgrades

Customers looking for businesses in your area will be more likely to notice your firm if it is prominently displayed on the page. Additionally, shoppers are drawn to these premium listings because they offer extra images of your house as well as its amazing setting.

Knowledge and time is utmost important

Both public and private sector analysts undertake research utilizing a range of approaches, including qualitative and quantitative procedures. The most prominent management consulting firm in the world. This kind of knowledge is variously referred to as “know how,” “procedural,” “acquaintance,” and simply “knowledge.”

Multi-level marketing of Healthgrades

A controversial pyramid-shaped marketing method, multi-level marketing (MLM), also known as pyramid selling, network marketing, and referral marketing, is a kind of MLM that produces profits from two sources. This revenue comes from an affiliate programme in which each participating salesperson receives compensation depending on how much money they make directly and how much money they make indirectly via other affiliates they’ve brought on board.

Services offered by Healthgrades


Participants in a survey on the website may submit input on their interactions with individual health-care professionals, and they will be able to access free ratings of those providers as a result of their participation. When it comes to a doctor’s ability to interact with his or her patients, as well as the ease with which one might get an urgent appointment at that doctor’s office, there is some debate.

In 2014, research published in the journal JAMA analyzed internet assessments of otolaryngologists and included Healthgrades as a source of information about the doctors. It was discovered in the research that patients’ knowledge of and usage of online rating services has increased in spite of physicians’ discontent with their presence, and that this may assist doctors manage their online reputations.


Hospitals with superior ratings will be permitted to utilize the Healthgrades ratings and trademarks in their marketing materials, so improving their image. The corporation initiates a lawsuit in order to save its reputation and ratings. After determining that Robert Wood Johnson University Hospital had abused Healthgrades’ ratings and logo in promotional materials while neglecting to pay licensing fees, Healthgrades sued the hospital in 2006 for copyright and trademark infringement.


A total of over 350 hospitals depends on Healthgrades’ consulting services to help them improve the quality of their basic patient care as well as their business and marketing initiatives.

In conclusion we answered the question that is “How does Healthgrades make money”, We found out that Healthgrades make money by either directly selling the data to third parties or by leveraging it for internal purposes such as boosting the effectiveness of advertising campaigns, in combination with Advertising, combining data within and across industries, Customer data, Featured listings, multi-level marketing and Two-sided market.

Frequently asked Questions (FAQ): How does Healthgrades make money

How does Healthgrades work?

Patients are able to leave feedback on a practice or doctor via a survey. The doctor’s office and staff are evaluated, as are the length of the wait, the quality of the doctor-patient relationship, and the likelihood that patients will recommend the doctor to others.

How much is Healthgrades worth?

Healthgrades generated sales of $250 million in 2019 and anticipates revenue in 2020 to be roughly $275 million, according to Draughon, but the financial specifics of the purchase were not revealed. In addition, the firm is making money. There are a wide range of services available on Healthgrades’ web platform.

Is Healthgrades a reliable source?

According to, has an unsatisfactory rating due to complaints of erroneous healthcare provider information, altered or faked customer evaluations, and an inability to adequately authenticate reviews prior to posting.

Who bought Healthgrades?

Mercury Healthcare has sold to RV Health, a Red Ventures company, for an undisclosed sum.

Who is the CEO of HealthGrades?

Jovan Willford is the CEO of Healthgrades.

Is HealthGrades publicly traded?

HealthGrades, a publicly listed healthcare ratings agency, announced a formal deal to be bought for $294 million by private-equity firm Vestar Capital Partners V.


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