Recently, WebMD issued guidance to Wall Street and indicated that rough waters were ahead.  Pharma advertising dollars, the major revenue driver for WebMD, are shrinking.  Big pharma, it seems, is finally running smack into the recession.

The WebMD stock tanked.

Besides this early online healthcare leader, this is a wake-up call for any other company whose business model is based on advertising revenue.  Healthcare advertising has long ridden the big pharma horse. If that pony is getting tired, it could mean trouble for those with this revenue model.

Why do you care?

Well, there are many players offering physicians low cost or no cost solutions, even in the EHR arena, because their revenue model is based on advertising revenue. What happens if those solution providers get in trouble because the advertising spigot gets slowed down?

There are two options.  Suddenly, the bill to the physician goes up and the revenue model starts to look like other solution providers.  Or, the company goes kaput and you, the physician, are left having to start over.

Business models matter.  Not only yours, but you also better care about the soundness of the business model of your vendors and partners.