key success factors in digital healthcare
TRANSCRIPT
Key Success Factors in Digital Healthcare
CHIWEON KIM2016.3.30
Key Success Factors
• Utility
• Business Model
• Platform
4 questions digital healthcare products should address
No
Yes
No
Yes
No
Yes
No
Yes
Medical utility??
Recognized as problem?
Does consumer want solution?
Does it solve the problem?
1. Utility
Product with utility but not regarded as a problem
Smart water bottle•Drinking water helps improve health•Do the consumers regard dehydration as a problem?•The bottle may be trying to solve a problem that does not exist.
Other examplesUpRight
BitBite
Recognized as problem, which consumers don’t want to solve with the particular solution
VS
Lets you know that there is an intruder, and then?
Zeo did not help solve the problem
Zeo sleep manager
•Monitors sleep pattern•Once regarded as signature product of digital health•Stopped operation in 2013•Reason for failure limited meaning Do not lead to sleep improvement
Heart rate variability does not solve a problem
Need to have a clear view on utility
Medical ProblemWanna
solve Solution
Utility evaluation
Digital healthcare’s utility for consumers
Utility forConsumers
Short term
• Access to care
• Problem-based utility-Triage-Try to solve outside of hospital
Mid-long term
• Behavioral modifiation
• Sustained use
Short term utility: enhanced access to care
Short term utility: what do Korean patients want?
Short term utility: what do Korean patients want?
Thermocare 열나요
Short term utility: Type I DM and CGM
Long term utility: Type 2 DM
• For chronic diseases like diabetes, the most important thing is sustained behavioral change.
• Most of current solutions for diabetes focuses on ancillary problems rather than the core ones.
Dig
ital
hea
lthc
are
Hospital
Home
No
Yes
Where to use?Does the 3rd party pay the bill?
Employer
No
Yes
Consumer
Insurance
Hospital
4 business models in digital healthcare2. Building business model
B2C: Digital healthcare is a credence good
Credencegood
Experience good
Chracteristics
Search good
Examples
•Can’t be judged even after it is used
•Can’t be judged before it is used
•Can be judged without being used, if you spend enough time to search
Insurance: Needs of insurance companies?
• Some insurance companies offer wearables to their members
• Some members may try to take advantage of it
• Insurance companies want heart rate sensor to prevent the fraud.
In Korea, only NHIS has enough motivation to invest in digital healthcare
NHIS Privatepayer
Consumer
Portion saved by digital health
90%
10%
90%
10%
90%
10%
Private payer Consumer
90%
10%
90%
10%
Korea US
Digital healthcare’s impact on insurance depends on payer structure
Digital healthcare products fit into healthcare business structure
• Google glass case
• Google glass showed promise for use in hospitals.
• However, the issue is who will pay for it
• Payer:?
• Hospital: ROI issue
• Doctors?
Platform is needed to connect products, consumers and hospitals.
Apple Healthkit•Healthcare platform•Major partnersEMR: Epic EMR Hospital: Mayo clinic
•이후 연구를 위한 ResearchKit 과 ResearchKit 의
연구 결과를 앱으로 만들 수 있는 CareKit 출시
Google Fit
•Focuses on fitness•Partners: no hospitals or EMR companiesIT: LG, HTC, ASUS Fitness, Sports: Nike, Adidas, Noom
3. Platform