A presentation on the basic data and business structures around starting or building a business in health care. http://hackingmedicine.mit.edu/ - To learn more: http://goo.gl/Pjd1x

1. A Hacker’s Guide to Health Care
Big Data & its Business Applications
-or-
How to Monetize Data
H@cking Medicine Joshua Rosenthal, PhD
A Production of the MIT Entrepreneurship Center 10.22-23.11

2. 1) Start with the Money
Most ‘Successes’, Aren’t
Note: Payer (money) buying intervention (provider)

3. Engineers' Guide to Multiples
1x Rev 4x Rev 8x Rev
- Ja Ja Binks + Good fights + Existential crises
of free agency vs.
- Teddy Bears determinism wrapped
in a fairy tale

4. 2) ‘Learn’ from the ‘Experts’
Specifically, learn why they are wrong
“Health Care will move to
performance-driven consumerism,
following financial services & e-com” Sounds good,
makes sense
(Nice hair, good
“Blue Steel”)
Problem:
He’s been
saying this
for 20 years
Hack:
Find out why it hasn’t happened
– then make a biz from it

5. 3) Know the Bodies
Health Care, Where Good Ideas Go to Die

6. Perverse Incentive - A
Supply-driven markets:
Note:
Google “unwarranted variation” + “health care”;
cf. Dartmouth Atlas for Unwarranted Variation

7. Perverse Incentive - B
Payers have Money and Aggregate –
but have not historically been “health care”
“Actually, I make more money
off of bad drivers.”
(Read w/ accent)
Note:
Medicare $ > Employer $
Employer populations = tougher outcomes (3-year turn)
Cf. Medicare reimbursement rates

8. Illusion
DTC: It Doesn’t Work
Track how
fat you are!
Only $1.99!
Note:
People don’t like to pay out of pocket
for something they don’t like to do
or don’t want to know about

9. 4) Do Good…
It’s easy to do good...
... but you are probably not profitable
If P < EHC x DWS, then 501c3
P: Profit; EHC: Employee Head Count; DWS: Dog Walker’s Salary;
501c3: Non-profit

10. 4) … and Make Money
It’s easy to make money...
... but you are probably doing bad things
“I’ll bill you.”

11. It’s tough
to make money
&
do good
in Health Care
But here’s a hack...

12. 5) Start
... with the money: _______
... where they make profit: _______
... with a real biz problem: _______
... with the (publicly available) data: _______
-
Then ask: Does this hose people?
A: quality > than quantity (supply driven)?
B: customer/patient satisfaction?

13. Data & Biz Problems
Package in work group
1) List of Data Sources & Context
2) Connections between Data and Biz Needs:
A Mad Libs Approach
(Psst... Know a good accelerometer app developer? – Please ping me.)

14. Hacker’s Guide
How to Monetize Data
-Summary-
1) Start with the Money
2) ‘Learn’ from the ‘Experts’
3) Know the Bodies
4) Do Good and Make Money
5) Start