Conceptual Health® · FAQ
The honest answers.
These are the questions skeptics, regulators, investors, and our own family ask us at dinner. We don't dodge — we answer in writing, with citations, and link to the document that makes the answer enforceable. If your question isn't here, write us and we'll add it.
Q1
Isn't this just another wellness rewards program?
No — and that's the most important "no" on this page. Wellness rewards programs (UnitedHealthcare Motion, Vitality, Fitbit Premium) are marketing tools: an employer or insurer buys discounts in exchange for tracking your steps so they can deny coverage later. The "reward" is small, the data flows up, the patient owns nothing.
Conceptual Health® inverts the entire stack. The patient owns the record (end-to-end encrypted, exportable, FHIR-native). HCR is a digital commodity earned through verified personal health activity. The company doesn't sell your data, doesn't mark up your insurance, and doesn't get paid more if you're sicker. Our only revenue is the 0.5% protocol fee on token transfers.
Q2
How is "Religious & Spiritual" not religious discrimination?
Two protections, both architectural.
1. The RS axis is a wellbeing dimension, not a profession of faith. It measures self-reported meaning, awe, contemplative practice, gratitude, forgiveness, and purpose — variables that every validated wellbeing instrument captures (FACIT-Sp, PROMIS Meaning & Purpose, RCOPE). An atheist who meditates daily, volunteers regularly, and feels deep purpose at work will score high on RS. A person who attends religious services because of social pressure but feels no meaning will not. We do not ask about denomination, observance frequency, or doctrinal beliefs — and we will never use any such information to gate clinical access.
2. The Master Equation never makes a clinical decision. Per GDPR Article 22 and the architectural design, CH scores are advisory only. Every clinical decision involves a human clinician with full override authority logged on-chain. No prior authorization, no formulary, no care pathway in Conceptual Health® uses RS as a gating variable.
Q3
Why trust a private company with my lifetime record?
Because we built the system so that you don't have to.
- You hold the keys. Field-level AES-256-GCM encryption with the key in your device's Secure Enclave (iOS) or Strongbox (Android). Our servers store opaque ciphertext only.
- Every read is on-chain. HMAC audit chain — SHA3-512 forward (since sequence #24971, 2026-05-26), SHA-256 history preserved as written. Root key Shamir-split across named custodians. No single party can rewrite the log. Anyone can re-verify the chain right now.
- You can leave with everything. One-click export of every record, every reading, every chain receipt. FHIR-native, portable, in formats other systems read.
- Three commitments are in the corporate charter — not the marketing copy: never sell patient data, never charge patients to use the platform, never lock anyone in. All three bind successors.
The fundamental shift: this is not "trust us" — it's "verify us continuously."
Q4
What happens if you get acquired or shut down?
The corporate charter has three operative successor clauses, drafted with this exact scenario in mind:
- The non-sale obligation binds any successor. Whoever acquires us cannot sell patient data — period. The clause survives M&A.
- The non-assertion patent covenant survives. Our perpetual royalty-free license to HIPAA-Covered Entities serving under-served populations, IRB-approved research institutions, U.S. public-health agencies, and OSI-licensed open-source implementations cannot be revoked by a successor.
- Chain trustees take over the audit-log keys. If the Company ceases operating, the Shamir-split root key passes to the named chain trustees. Patient records remain accessible to their owners; new writes stop; the audit log remains queryable.
Operationally: you would receive a 90-day notice with one-click export of every record. Your encrypted patient vault continues to be accessible after shutdown, mirrored to a successor custodian publicly named in advance.
Q5
Is HCR taxable income? When?
The short answer: yes, when received — but the platform does the bookkeeping for you.
For U.S. federal tax purposes, HCR earned through health activity is ordinary income at fair market value when received (IRC § 61). HCR you later sell, transfer, or redeem is a property disposition subject to capital-asset rules (IRC § 1221) — short-term or long-term depending on the holding period. Both events generate Form 1099-B at year end.
Conceptual Health® handles this end-to-end:
- Every HCR mint event is logged with cost basis = fair market value at mint time.
- FIFO cost-basis lot tracking is enforced by the protocol — every sell consumes from the oldest lot first.
- 1099-B forms are generated automatically each January, downloadable from your tax center, importable into TurboTax / H&R Block.
- The full ledger exports to CSV for your CPA.
State income tax treatment varies — most states follow federal, but consult your accountant if you're in CA, NY, MA, or HI.
Q6
Is this HIPAA-compliant if it's on a blockchain?
Yes — and the answer is the central architectural decision of the company.
The naive failure mode of healthcare blockchain is to put PHI on-chain, which violates HIPAA's "minimum necessary" rule and creates an immutable record of patient information that can never be deleted. Conceptual Chain solves this by storing only economic events and signed hashes on-chain, while every PHI byte stays off-chain in patient-controlled encrypted custody.
The split:
- On-chain: token transfers, fee splits, chain-audit disclosures, the SHA-256 hash of every PHI event, audit-log entries. Public by design.
- Off-chain: the actual PHI ciphertext, held by the patient's device with the AES-256-GCM key in the Secure Enclave. The cloud stores opaque ciphertext mirrors indexed only by hash; no plaintext PHI lives anywhere our servers can read.
Re-identification of any patient record requires the on-chain hash and the off-chain ciphertext and the patient's hardware-rooted key. An attacker who steals everything we have is left with hashes and ciphertext they cannot decrypt.
Q7
How is HCR / HCC not a security?
Because they fail the Howey test on the most important prong: no expectation of profits from the efforts of others.
HCR is minted to a patient for verified personal health activity the patient performs themselves — sleep, movement, meal logs, mindfulness practice, lab uploads. The patient's own effort, not the Company's, generates the token. HCC is minted to anyone performing verified healthcare work — clinicians completing patient encounters, engineers shipping merged code, compliance officers signing attestations, researchers reaching study milestones, opt-in patients consenting to IRB-approved research, validators operating attestation nodes. Again — the holder's own effort, not the Company's.
The Company:
- Did not sell tokens to fund itself. No ICO, no pre-sale, no founder allocation, no airdrop, no influencer mint.
- Earns HCC on the same terms as any other participant — through verified platform work.
- Has no unilateral withdraw authority on either of the protocol-managed contracts. Raising the protocol fee requires a governance vote and a 14-day timelock.
Both tokens are intended to be classified as digital commodities under the Commodity Exchange Act (7 U.S.C. § 1a(9)). CFTC engagement is in progress through the Office of Technology Innovation — classification has not been confirmed. We say "intended" everywhere on the site until the no-action letter or formal classification is issued.
Q8
Why Florida?
Five practical reasons, in order of how often investors ask:
- The founders live here. A single time zone, both founders in the same room, every working day.
- Florida has both a strong Patient Bill of Rights statute (F.S. 381.026) and a state-level digital-commodity-friendly regulatory posture. DBPR's MSB framework treats virtual commodities as functionally distinct from securities, aligning with the federal CFTC classification we're seeking. No state income tax also helps clinicians keep more of their HCC.
- FQHC + rural-clinic density. The Panhandle has a high concentration of federally-qualified health centers and rural critical-access hospitals — the exact populations our non-assertion patent covenant covers. We are designing for them first.
- Hurricane preparedness as a forcing function. Every Florida clinic plans for week-long power and network outages. That's the right operating assumption for the edge-tier architecture (per-clinic compute + mesh VPN to peer clinics + central) we built — it has to work when the cloud doesn't.
- Asynchronous deep work. Honestly? The light is good.
Q9
What is the Master Equation?
CH = (S × Sp)C × (T + E)p × (ER × RS)C/3
A mathematical model of multi-dimensional wellness. Scores eight axes on a 0–100 scale each — Physical & Outdoor, Nutritional & Metabolic, Emotional & Relational, Social & Communal, Religious & Spiritual, Environmental Stewardship, Technological & Adaptive, Purposeful & Vocational — and combines them into a single composite CH score on the same 0–100 scale.
It's multiplicative, not additive. A deficit in any axis is non-linear in the whole. This is the central testable claim of the company. Prior composite scores (PROMIS Global, SF-36, HOS) are additive, which lets high scores in one domain mask collapse in another.
Run the calculator, read the open-source JS + Python source, run the 50 golden vectors locally, and join the paid validator program if you find a disagreement. U.S. Provisional 63/921,717
Q10
Who funded the company?
The founders, personally. Conceptual Healthcare Corporation is a privately held Florida C-corporation, capitalized entirely from the personal funds of Raymond M. Lahti and Dr. Maria R. Lahti, MD. No outside capital has been raised. No SEC filings are on record.
Board control sits with the founders, fully — with future investor and independent seats reserved by charter for the moment they're warranted. We will publish a cap table the day we sell the first share to a non-founder.
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