follow the money - healthcare business models - seattle startupweek
TRANSCRIPT
Follow the Money in Healthcare: Business Models
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Geoffrey BakerManaging Director Michael UradnikCEO
www.cascadebh.comwww.venadvisory.com
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• Follow the money• Healthcare Value Chain – Who, What, Where, and How?• Opportunities – Changes & Shifts in healthcare • Finding the Right Business Models • Where to Play and Not Play - Entrepreneurial opportunities• Healthcare Business Model Case Study• Discussion
Session Introduction
2015, Seattle Start-up Week. Venture Advisory Services, Cascade Behavioral Health 2
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Just Follow the Money
2015, Seattle Start-up Week. Venture Advisory Services, Cascade Behavioral Health
Healthcare Value Chain
4Source: The World Financial Review (9-2012), “The Business of Healthcare Innovation: Convergence in the Marketplace.”2015, Seattle Start-up Week. Venture Advisory Services, Cascade Behavioral Health
Disruption& Change
Lacking Open StandardsData Integration, Interoperability, Connectivity
Aging Population
SubstandardHealthcare Value, Safety & Waste Need for Patient Centered Care
Unaffordable, Uncoordinated, Inaccessible Care5 A’s
Government Intervention &Compliance
Need for Transparency
Precision Medicine
Drivers of ChangeDrivers of Change
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Paradigm Shift
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Source: #1 HLTH 807
Sources: Frost & Sullivan, June 2015
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Crowded Digital Health Marketplace
2015, Seattle Start-up Week. Venture Advisory Services, Cascade Behavioral Health
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Where Are You In Your Business Model Journey?
Source: Bill Aulet, MIT Entrpreneurship Center, “Disciplined Entrepreneurship: 24 Steps to a Successful Startup” 2013
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• Profit Model: How you make money.• Network: How you connect with others to create value. • Structure: The organization and alignment of talent, resource and assets. • Process: Developing and implementing unique or superior methods.
• Product Performance: the development of distinguishing features and functionality.• Product System: the creation of complementary products and services.
• Service: supporting and amplifying the value of your offerings.• Channel: The way in which your offerings is brought to customers. • Brand: The representation of your offerings and business. • Customer Engagement: Fostering compelling interactions.
Why is your Business Model Innovative?
Source: Perkin [2014]; Kelley, L. et al. 2013.
Profit Model Network Structure Process Product Performance Product System Service Channel Brand Customer Engagement
C O N F I G U R A T I O N O F F E R I N G E X P E R I E N C E
2015, Seattle Start-up Week. Venture Advisory Services, Cascade Behavioral Health
Finding the Right Business Models in Healthcare
Source: Ash Maurya (Running Lean) 2012 adaptation of Business Model Generation (2009) Canvanizer.comLeanstack.com
Start with Lean Business Canvas Model
Orbits
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(1) Center for Medicare and Medicaid Services, Office of the Actuary, April 2010. (2) CPT code 99490 - chronic condition management $42.60(3) Steve Blank “The Startup Owner’s Manual”
$635 BN (1)Chronic Care Conditions
$17BN (2)CPT 99490
Served AvailableMarket TargetMarket
Total Addressable Market (TAM)(100% market share) (3)
2015, Seattle Start-up Week. Venture Advisory Services, Cascade Behavioral Health
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What Value Does Your Business Model Create for Customers?
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Metrics Improved
Solution Value
Growth
Efficiency
LeversValue leversCustomersNew Markets
New & optimized products & services
Channels
Consumption & Pricing models
Lower Cost
Process Improvement
CapabilityMaturity
Velocity
QualityOutcomes
General Industry
Healthcare• Triple Aim• Better Experience• Better Access• Less Disparity• Better Outcomes• Lower Cost• Reduced waste• Patient Safety• Care Coordination• Payment for value
+Customers
New Markets
New & optimized products &
services
Channels
Consumption & Pricing models
Process Improvement
Lower Cost
CapabilityMaturity
Velocity
2015, Seattle Start-up Week. Venture Advisory Services, Cascade Behavioral Health
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What is your Business Model Evidence?
#’s are Illustrative Only
2015, Seattle Start-up Week. Venture Advisory Services, Cascade Behavioral Health
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Live Case Study – MVP lean validation interview with customer
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Mental Health Virtual Intelligent Assistant
Take Aways...What did we learn?
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