tie healthcare technology innovation zen chu
DESCRIPTION
Overview of the Challenges & Opportunities within Healthcare Information Technology amid the 2009 Healthcare Reforms. Cost savings, business models and medical technology and software solutions are described.TRANSCRIPT
Healthcare Information TechnologyInnovation & Opportunities
The Indus EntrepreneurTiE Boston Symposium
Microsoft New England July 2009
Zen ChuAccelerated Medical Ventures
ZEN @ ACMEDX.COM
Unique Healthcare Mission & Business
• Safety & Effectiveness Paramount• Evidence-Based Outcomes• Regulatory & Reimbursement Barriers• Cost-effective to society• Alignment of 4 P’s & Big G– Patients– Payers– Providers– Products– Goverment
Multiple CustomersWho Pays?
Products & Services
Drugs, Medical Devices, Capital Equipment
Software, Services
Patients vf
Healthcare Players
PayersInsurers, Employers, Medicare
ProvidersPhysicians, Hospitals, Nursing Homes
Procedures
$$$
Information Asymmetries Confound Best Practices© [email protected]
Healthcare Delivery Value ChainComplex Value Chain Across Disease Cycle
Source: Porter & Teisberg, Redefining Health Care© [email protected]
US Healthcare Spending 2007$2.3 Trillion, 15.2% GDP
31%
21%10%
8%
7%
23% Hospital Care
Physician ServicesPharma
Nursing Homes
Admin Costs
OtherDevices, DiagnosticsPharmacy, etc
Source: PHRMA Annual Report 2008© [email protected]
Sources of Healthcare Dollars
Health Care Cost InflationPassed Along Value Chain Without Cost Controls
Source: McKinsey Global Institute
Who Aligned To Manage Wellness?
Source: Clayton Christensen, Innovator’s Prescription
Fragmentation & Scalability ChallengesGeography, Specialty, Disease State
700 Payers
5700 US Hospitals
Medical Product Companies
Negotiated Payments & Pricing Among Each Player & Region
Successful Products & Services Pattern
• Prove Effective Therapies for Right Patient– Unmet Medical Need– Remove treatment ambiguity– Improve Standard of Care– Comparative Effectiveness
• Prove it quickly & efficiently• Productivity = Save Physician Time• Reduce Patient Pain• Enable New (Cheaper) Provider & Venue• Intellectual Property (Patents, trademarks, brand)• Lower Cost
Necessary But Insufficient
Healthcare Information TechnologyChallenges
• HIT under-invested vs other industries– 2.2-3.8% IT/Total Operating Expense (HIMSS)– 50% less gross revenue investment than banking
(Gartner)
• Spaghetti code & lack of standards• Privacy & security costs• Technology cost inflation under microscope
… But strong case for HIT as Quality Driver Obama’s $19B HITECH Funding
Enabling New Business ModelsNEW MODEL EXAMPLE
• New Device SonoSite Ultrasound• New Workflows e-Prescribing• Payment Services Athena Healthcare• Collective Knowledge Sermo Social Network• New Therapies Image-Guided Therapy• Direct to Consumer iPhone Disease Management• Outsourcing O2i Teleradiology• Decentralization In Home Warfarin Testing• Pay 4 Performance Cerner• Bundling Episode-Based Pricing• Unbundling Bluetooth BP reporting
Additional Reading• Viswanathan, Vijay. “Special Report: Medicine Goes Digital.” The Economist 16 April, 2009.• Gawande, Atul. “The Cost Conundrum.” The New Yorker 1 June, 2009.• Gawande, Atul. Complications: A Surgeon’s Notes On An Imperfect Science. 2002, Picador.• Center for Accelerating Medical Solutions. Investing in Innovation: Accelerating Disease Research Through
Philanthropy and Business. www.fastercures.org, 2005.• Chesbrough, Henry. Open Business Models. 2006, Harvard Business School Press.• Christensen, Clayton. The Innovator’s Dilemma. 1997, Harvard Business School Press.• Christensen, Clayton, et al. Seeing What’s Next. 2004, Harvard Business School Press. • Megantz, Robert. How to License Technology. 1996, John Wiley & Sons.• Moore, Geoffrey. Crossing the Chasm. 1991, HarperCollins.• Porter, M. and Teisberg, E. Redefining Healthcare: Creating Value-Based Competition on Results. 2006, Harvard
Business School Press. • www.thehealthcareblog.com• www.health2con.com• www.himss.org• http://www.economist.com/specialreports/displaystory.cfm?story_id=13437990• http://cimit.typepad.com/cimit_forum_blog/2008/05/zen-chu-slides.html• http://cimit.typepad.com/cimit_forum_blog/2009/04/the-new-economic-playbook-for-healthcare-development.
html
Healthcare Information TechnologyInnovation & Opportunities
Panel Discussion
Prof. Bhaskar Chakravorti Harvard Business School, McKinseyZen Chu Accelerated Medical VenturesPam Randhawa Sermo, Inc.Joseph Ternullo Partners Healthcare
Center for Connected Health