How Technology is Changing the Health Care Marketspace Mark Scrimshire b: ekive.blogspot.com e: [email_address] t/a/s: ekivemark May, 2008 Remember June 14th Ads not by Google MD

Mark Scrimshire b: ekive.blogspot.com e: [email_address] t/a/s: ekivemark

May, 2008

“ There is so much still to be done” -Tim O’Reilly, We 2.0 Expo “ Then why are still just throwing sheep?” -Health Industry attendee, We 2.0 Expo

There are four changes driving the Health Care industry PAY FOR PROVIDER PERFORMANCE RISE OF THE INDIVIDUAL CONSUMER PUBLIC POLICY AND THE UNINSURED TECHNOLOGY EVOLUTION

PAY FOR PROVIDER PERFORMANCE

RISE OF THE INDIVIDUAL CONSUMER

PUBLIC POLICY AND THE UNINSURED

TECHNOLOGY EVOLUTION

Its time to take the Red Pill… IT IS TIME TO TAKE THE RED PILL... AND FACE A NEW REALITY

The industry is on the brink of massive structural change. A change we must embrace. The “Long Tail” signifies a relentless drive towards control placed in the hands of the consumer The “Long Tail” of health care is consistent with the CareFirst vision of extending the reach of health care to more people

The “Long Tail” signifies a relentless drive towards control placed in the hands of the consumer

The “Long Tail” of health care is consistent with the CareFirst vision of extending the reach of health care to more people

The Personal Health Record (PHR) is strategically important & the customer should want to own it Google, Microsoft and IBM recognize this and are spending billions to address Health Care Web businesses understand the importance of data Industry powerhouses on the web control a hard to re-create data set Amazon – Enriched media catalogue Google – Search index eBay – Seller reputations The PHR is the next major battleground and will influence the dynamics of the entire health sector Who will the consumer trust? Will consumers let their PHR be held hostage by a provider? Major players are already promoting their PHR solutions The customer will want easy control

Google, Microsoft and IBM recognize this and are spending billions to address Health Care

Web businesses understand the importance of data

Industry powerhouses on the web control a hard to re-create data set

Amazon – Enriched media catalogue

Google – Search index

eBay – Seller reputations

The PHR is the next major battleground and will influence the dynamics of the entire health sector

Who will the consumer trust?

Will consumers let their PHR be held hostage by a provider?

Major players are already promoting their PHR solutions

The customer will want easy control

Real efficiency in the market place comes from keeping people healthy - not from treating their illnesses. People need knowledge and insight to make effective life choices If we think in terms of patients then we are out of touch with the market

Real efficiency in the market place comes from keeping people healthy - not from treating their illnesses.

People need knowledge and insight to make effective life choices

The Internet industry know the value of massive data volumes and social conversations The healthcare industry has to learn how to leverage the massive amounts of clinical data together with demographic information to gain new insights into health and disease management The Internet industry has proven how passionate community members can be more knowledgeable than general practitioners Social networks are a valuable tool that the medical profession must learn to tap into in order to deal with less common diseases

The healthcare industry has to learn how to leverage the massive amounts of clinical data together with demographic information to gain new insights into health and disease management

The Internet industry has proven how passionate community members can be more knowledgeable than general practitioners

Social networks are a valuable tool that the medical profession must learn to tap into in order to deal with less common diseases

Transforming the user experience has many facets, after all users don’t really want our existing services. Demand for Knowledge “ A sample of US-based health insurers' portals reveals emphasis on self-service functionality, with little knowledge dissemination to create a broadly appealing customer experience. Few of the portals currently offered to customers by payers have readily available medical decision-making tools or brand-differentiating features.” Rising Expectations “ Health insurance portals that reflect an emphasis on self-service without enhancing knowledge transfer will not meet customers' increasingly sophisticated expectations of online experiences. Integrating these two value elements will enable health insurers to map portal design to strategic goals.” Essential to Have IT and Business Alignment “ Organizational realignment and fundamental changes in IT philosophies are needed to move beyond a tactical healthcare insurance solution map. Failure to recognize the limitations of the new solution map's alignment of IT resources and business processes will imperil future growth and profitability.” " most brand web sites may not matter in 2012 " - STEVE RUBEL THE BOTTOM LINE… WE HAVE TO MEASURE OURSELVES AGAINST THE BEST OF THE WEB WE HAVE TO MORE OPENLY SHARE INFORMATION WE HAVE TO PUT OURSELVES IN THE SHOES OF OUR STAKEHOLDERS WE HAVE TO MOVE WELL BEYOND THE TRANSACTION - GARTNER “ I AM A PERSON ..NOT A PATIENT”

Demand for Knowledge

“ A sample of US-based health insurers' portals reveals emphasis on self-service functionality, with little knowledge dissemination to create a broadly appealing customer experience. Few of the portals currently offered to customers by payers have readily available medical decision-making tools or brand-differentiating features.”

Rising Expectations

“ Health insurance portals that reflect an emphasis on self-service without enhancing knowledge transfer will not meet customers' increasingly sophisticated expectations of online experiences. Integrating these two value elements will enable health insurers to map portal design to strategic goals.”

Essential to Have IT and Business Alignment

“ Organizational realignment and fundamental changes in IT philosophies are needed to move beyond a tactical healthcare insurance solution map. Failure to recognize the limitations of the new solution map's alignment of IT resources and business processes will imperil future growth and profitability.”

WE HAVE TO MEASURE OURSELVES AGAINST THE BEST OF THE WEB

WE HAVE TO MORE OPENLY SHARE INFORMATION

WE HAVE TO PUT OURSELVES IN THE SHOES OF OUR STAKEHOLDERS

WE HAVE TO MOVE WELL BEYOND THE TRANSACTION

The Health Care industry can learn from the grass roots Internet - Simple and Open is best and fastest The Data Portability movement with its focus on OpenID, OAuth and microformats is showing the way to open but secure data exchange. Data Portability grew out of the need to allow data to move between social networks. These standards help enable access and the sharing of common data and relationships. The Health Care industry has the same challenges - on a massive scale. The Personal Health Record can be considered another facet of personal information, albeit one with strong privacy and security issues associated with it. The volume of health related information will drive records in to electronic form and communication between all parties will move to an electronic medium too. OAUTH SIMPLE STRUCTURED HUMAN AND MACHINE READABLE DATA FORMATS SECURE BUT OPEN ACCESS DELEGATION SECURE EXCHANGE OF USERID AND ASSOCIATED INFORMATION

The Data Portability movement with its focus on OpenID, OAuth and microformats is showing the way to open but secure data exchange.

Data Portability grew out of the need to allow data to move between social networks. These standards help enable access and the sharing of common data and relationships.

The Health Care industry has the same challenges - on a massive scale.

The Personal Health Record can be considered another facet of personal information, albeit one with strong privacy and security issues associated with it.

The volume of health related information will drive records in to electronic form and communication between all parties will move to an electronic medium too.

We can no longer measure ourselves against our own industry The Consumer experience benchmark is set by the best service experience regardless of industry The rise of the Consumer will drive structural change in the healthcare industry “ NO ONE IS HAPPY WITH THE AMERICAN HEALTH-CARE EXPERIENCE TODAY. IT IS AN EXPENSIVE, COMPLEX SYSTEM TO WHICH PEOPLE RESORT ONLY WHEN A PROBLEM HAS GROWN THREATENING.“ BUSINESSWEEK “ WHY I STARTED REVOLUTION HEALTH” POSTED ON 08:53AM (EST) ON 2006-12-21 AFTER LEAVING AOL, I THOUGHT LONG AND HARD ABOUT WHAT I SHOULD DO NEXT. I FELT THAT HEALTH CARE WAS IN DIRE NEED OF TRANSFORMATIVE CHANGE, AND DECIDED TO BUILD ANOTHER COMPANY THAT COULD BE A CHANGE AGENT, WITH THE GOAL OF SHIFTING POWER INTO THE HANDS OF PEOPLE THEMSELVES. I SEE THIS AS A BUSINESS OPPORTUNITY, TO BE SURE, AND WE'RE AIMING TO BUILD REVOLUTION HEALTH INTO A MAJOR COMPANY. BUT I ALSO SEE THIS AS AN OPPORTUNITY TO DO SOME GOOD, BY TACKLING A HEALTH CARE SYSTEM THAT IS A MESS, IN THE WAY I KNOW BEST: BY BUILDING A COMPANY THAT CAN CHANGE THE WORLD. STEVE CASE, EX-AOL TIME WARNER

The Consumer experience benchmark is set by the best service experience regardless of industry

The rise of the Consumer will drive structural change in the healthcare industry

This area is at the epicenter of Health Care Change

An important change in Health Care transformation is placing people at the center “ Health partners for life” Treating “ people not patients” A collaborative approach to health and wellness Structuring incentives to encourage preventative health practices and optimal treatments Openly share data to encourage widespread adoption of new methods Engage the community Healthcare is a politically charged issue We have to engage the community in conversations on the subject Conversations already happen whether we are involved or not Supporting Providers to deliver effective service Pay for quality service

“ Health partners for life”

Treating “ people not patients”

A collaborative approach to health and wellness

Structuring incentives to encourage preventative health practices and optimal treatments

Openly share data to encourage widespread adoption of new methods

Engage the community

Healthcare is a politically charged issue

We have to engage the community in conversations on the subject

Conversations already happen whether we are involved or not

Supporting Providers to deliver effective service

Pay for quality service

The move to an electronic health care industry is inevitable. The question is how long will it take. The challenges faced by the industry are bigger than any single company can solve alone All parts of the industry and the consumer stand to gain by working together An open approach that leverages Internet industry practices will create an environment that is more familiar for consumers The Health Care industry has to engage in the conversations that are taking place about the industry Open conversation is necessary to develop trust. The Health Care industry is not trusted by its customers leaving it exposed to powerful new entrants that have learned how to engender trust “ HOW CAN THE PUBLIC LEARN TO TRUST THE POWERFUL, IF THE POWERFUL DOESN’T TRUST THE PUBLIC”

The challenges faced by the industry are bigger than any single company can solve alone

All parts of the industry and the consumer stand to gain by working together

An open approach that leverages Internet industry practices will create an environment that is more familiar for consumers

The Health Care industry has to engage in the conversations that are taking place about the industry

Open conversation is necessary to develop trust. The Health Care industry is not trusted by its customers leaving it exposed to powerful new entrants that have learned how to engender trust

Continue the conversation... June 14, 2008 Villa Julie College, Owings Mills MD MD

June 14, 2008

Villa Julie College, Owings Mills MD