Healthcare 2020: Disrupt, Transform and Collapse


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Attend this webinar to discover:

- Changes to healthcare delivery: hospitals of the future, aging in place, cost of care innovations
- Role of the patient and consumer influence
- Role of emerging regions as a consumer and competitor
- Novel industry business models
- Key disruptive technologies

Published in: Health & Medicine

Healthcare 2020: Disrupt, Transform and Collapse

  1. 1. Healthcare 2020: Disrupt, Transform and Collapse Uncover the trends driving growth and innovation © 2014 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan. March 18, 2014
  2. 2. Today’s Presenters Reenita Das Partner, Senior Vice President , Healthcare Siddharth Saha Research Director – Medical Technologies 2 Venkat Rajan Principal Analyst Natasha Gulati Senior Industry Analyst – Connected Health
  3. 3. Where are the Biggest Opportunities in Healthcare? What are the Main Challenges towards Leveraging this Potential? Reenita Das Focus Points for Today’s Panel Discussion 3 Agenda: Business Model Disruptions Care Delivery Disruptions Technology Disruptions
  4. 4. Poll Question Which healthcare industry disruptor is your organization most focused on innovating around? Big Data & Analytics New Care Delivery and Payment Mechanisms 4 Novel Business Models for Positioning of Services & Products Consumer/ Patient Engagement Platforms Entry of Non-Healthcare Companies
  5. 5. Business Model Disruptions
  6. 6. Are you Reinventing Your Business Model? Yesterday Tomorrow? Reinventing the routineReinventing the routine Shift from hardware to serviceShift from hardware to service 6 Embrace changeEmbrace change Modular Device DesignModular Device Design Overhaul the supply chainOverhaul the supply chain
  7. 7. Deconstructing the ‘Buzz’ Terms: Which one will Transform the Industry? Big DataBig Data E-HealtheHealth Value for Many Aging in Place It is critical to deconstruct what is the underlying problem to be solved, and to what degree and scale certain new business models and technologies can be employed in addressing those. 7 Cognitive Analytics Cognitive Analytics Internet of ThingsInternet of Things Consumer centricity E-CommerceE-Commerce employed in addressing those.
  8. 8. Where Will You INNOVATE? What could the world of healthcare look like in the future? What changes are threats? What opportunities will result from the changing environment? What is your game plan? 8 Performance Technologies Markets Customers CollapseConverge Partnerships Value Finance Delivery Process Brand Customer Experience Channel Business Model ServiceSolutions Unmet Needs Efficiency
  9. 9. Overhaul legacy infrastructure through novel logistics platforms Innovating Strategies Across All Business Functions Leverage partners for strategy and scale up Supply Chain Distribution Model Leverage innovative care providers globally for strategic partnerships Provider Partnerships 9 Operational management services for targeted care settings align with value based purchasing schemes Service Models Cloud based design and rapid prototyping tools foster more collaborative innovation models Research & Development
  10. 10. Creating an Ecosystem – Bringing the Apple Business Model to Healthcare • New entities are entering the healthcare space with a direct to consumer play. • Traditional healthcare competitors focused on pure clinical services are conceding potentially a 10 Source: 9to5Mac, Mark Gurman conceding potentially a multi billion dollar market place. • Buy building a ‘playground’, Google, Apple, and others create avenues for unique developers and innovators to introduce wellness solutions.
  11. 11. Care Delivery Disruptions
  12. 12. The Motivation for Change Differs Across Stakeholders Avoid paying for unnecessary services Control waste & abuse Help me and my family become and remain healthy The overall experience matters Peace of mind – anytime, anywhere Suppliers – Changing the value proposition 12 Get paid for outcomes not services rendered Facilitate innovative care models PATIENTS PROVIDERS PAYORS POLITICIANS Stay in office while balancing the budget Make health care affordable and conveniently accessible
  13. 13. Change Requires New Skills and Competencies Payors Care provider organizations Salaried employment Operating healthcare exchanges (Private & Public) Leveraging the analytics revolution Disease management based payment models Quality of care incentives and penalties Consolidation 13 Salaried employment Information overloadPhysicians Individual responsibility Self pay burdenPatients Feature and clinical based market positioning verse workflow and econometric value based positioning. Medical device companies
  14. 14. Lean Operations Innovations: Glitz Will Not Matter • It intends to open new hospitals and attain a figure of 30,000 beds in the upcoming 5 years. It is mounting into specialty hospitals as well like orthopedics, dental and cancer. Expansion plans outside of India include APAC and North America. • Narayana Health’s cost for an open heart surgery is USD $2,000. The hospital Despite a business model targeting low income patients, Narayana Health recognizes high profit margins (7.7% after tax). 14 • Narayana Health’s cost for an open heart surgery is USD $2,000. The hospital charges $2,400 to the patient, compared to $5,500 charged at an average private hospital in India. Cost in the United States is $100,000 to the payor. • Lean Innovations Examples • Streamlined Management of Staff • Cloud Services for Care Coordination • Smart Operations Management • Building Construction Innovations • Bundled Purchasing
  15. 15. Bending the Cost Curve, Not Just the Payment Curve Mitigate the cost of the operator: • Identify means to perform high end care (tests, diagnostics, treatments) with lower personnel resource burden. Can be facilitated through innovative staffing, automation/robotics, Specialists General Practitioners / Hospitalists / Internal Medicine 15 artificial intelligence platforms. • Push care into settings with lower infrastructure costs Nurses Patient Self Management
  16. 16. Re-organization of Care Provision Models Lower Variety Higher Volumes Supply Chain Efficiencies at Point of Care Values of services/tools driven by: • Cost of care • Procedure times • Errors/Complications • Streamline workflow 16 Focus on Clinical Care Analytics Driven Operations Management • Streamline workflow • Streamline technology
  17. 17. Technology Disruptions
  18. 18. Steeper Innovation Curve for Pharma and Life Sciences From Blockbuster To Niche Buster • Companion diagnostics • Companion drugs • Personalized medicine beyond oncology • New biomarkers like CTCs • miRNA based therapeutics 18 Liver-on-Chip + Kidney-on-Chip + Heart-on-Chip + Lung-on-Chip = Body-on-Chip
  19. 19. How will 3-D Printing Change R&D and Manufacturing? Rapid Prototyping Artificial Models for Treatment Planning 3D Printing Factories 19 In Hospital Manufacturing Bioprinted Organs for Implantation Bioprinted Organs for Testing Facial Reconstruction Custom Fitting Consumables
  20. 20. What is the Impact of Digital Hospitals on Different Stakeholders in the Eco System? Paperless Does Not Mean Digital…………… What then Does a Digital Hospital Focus on? • Singular focus on enhancing patient experience • IT systems integrated with devices and 20 • IT systems integrated with devices and equipment, such that it allows real-time information capture, action and exchange • Reduced or eliminated “sneaker time” • Automation of all non-core activities
  21. 21. Mobile Healthcare Payments Turning into a Reality Mobile Insurance & Payments Next-Gen mobile payments will allow: • Simple swiping of your mobile phone to pay for hospital and pharmacy bills • Online payment for medical registration as well as access to health records 21 Mobile Apps Subsidized by Providers well as access to health records • Collaboration between providers and payers to facilitate copay and coinsurance at the point of service • Collaboration between payers and wellness companies to facilitate real-time rewards for healthy behavior
  22. 22. What Should be Your Next Strategic Move?
  23. 23. How is this Relevant to Me/My Organization? Leveraging tools to assess risks and strategies Trend Risk Score (1-10) Aspects of Business Impacted Healthcare digitization Strategies Ability to Execute Cost to Execute 23 Execute Score (1-10) Execute
  24. 24. Next Steps Develop Your Visionary and Innovative Skills Growth Partnership Service Share your growth thought leadership and ideas or join our GIL Global Community 24 Join our GIL Community Newsletter Keep abreast of innovative growth opportunities Phone: 1-877-GOFROST (463-7678) Email:
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  27. 27. For Additional Information Reenita Das Partner Healthcare (408) 857-9386 Venkat Rajan Principal Analyst Healthcare (210) 247-2427 27 Natasha Gulati Senior Industry Analyst Healthcare, +603 6204 5876 Siddharth Saha Director of Research Healthcare +44 (0) 207 343 8347