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White paper connected health
 

White paper connected health

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White paper written by Kulin Marketing on the telehealth and mhealth space that is filled with startups. ...

White paper written by Kulin Marketing on the telehealth and mhealth space that is filled with startups.

Contact us at info@kulinmareting.com to purchase a printed version of this white paper.

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    White paper connected health White paper connected health Document Transcript

    • 
 
 
 Startup the Right Way 
 
 
 
 
 
 
 White
Paper:
 Connected
Health:
A
Startup
Phenomena

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Written
by
Kulin
Marketing
 A
Marketing
Team
For
Startups.
 www.KulinMarketing.com
 February
2012


 For
questions,
comments,
or
to
start
marketing
the
right
way
Contact:
 info@kulinmarketing.com

 

    • Kulin Marketing – White Paper: Marketing for startups www.KulinMarketing.com The Economics of Connected Health There is a demand for a new type of healthcare. One that is more affordable at higher quality. There are 133 million people who suffer from 1 chronic condition in the U.S. These 133 million attribute to 75% of the total healthcare cost in the U.S. (U.S CDC and Prevention). Not only is that a daunting fact for our healthcare spending, but for chronically ill patients as well. A solution to decreasing healthcare costs starts with addressing the reason why there is a problem in the first place, patient health. If patients were healthier and had lower claim rates issued with payors, less cost would be attributed to them and payors could roll the cost savings over into premium discounts for lower risk patients. Furthermore, the demand for higher quality, lower cost healthcare increases as we see the general public aging and the number of healthcare providers decreasing. As economics teaches us, when there is a demand in the marketplace there is an opportunity to supply it with revenue generating products or services. This opportunity has been noticed within the healthcare space. In the first decade of the 2000’s we saw medical tourism attempt to meet the demand, but fall short at delivering improved quality while lowering costs. Recently, there has been a wave of new innovative provider and payor structures such as Qliance and MedLion. These structures are built on the model of charging monthly rates for prevention services. The added value is that patients will have abundant access to primary care, which will decrease future chronic conditions. It is thought that these models are ahead of their time. However, they are trying to supply the demand. Another group of businesses include a myriad
of InfoTech products. The umbrella of InfoTech includes connected health technologies such as telehealth, which predominately connects patients to providers using the internet, and mHeath, which primarily enables patients to manage their own health via mobile devices. Connected Health: Telehealth and mHealth Telehealth and mHealth companies are both attempting to increase the quality of healthcare for patients, and to some extent they are succeeding. Both companies are using technology to connect patients with the means to increase their healthcare. Additionally, both types of technologies have developed remote
    • Kulin Marketing – White Paper: Marketing for startups www.KulinMarketing.com monitoring tools, an industry that earned $126.8m in 2010 and is estimated to reach $294.9m in 2015. TeleHealth Kulin Marketing Founder, Elizabeth Kulin, worked for Preferred Global Health (PGH) in 2005, working closely with Boston based Harvard Medical, an affiliate of Partners Healthcare and Partner’s Telemedicine departments. PGH worked with Partners TeleHealth program to connect patients living outside of the United States with leading physicians located at Dana Farbar, Brigham and Women’s, and Massachusetts General Hospital. At that time, the devices used to connect were email, fax, and phone. Since that time, the telehealth technology has been developed to connect remote patients with more physicians, at lower costs and quicker rates. For example, the TeleHealth startup Health Spot is installing medical check up Kiosks (Care4 Stations) in drug stores that enable physicians to conduct a physical with a patient remotely via video and other devices such as a connected health blood pressure medical device. mHealth Unlike Telehealth, which has been structurally developing for an estimated 10 years, mHealth has recently displayed a surge of new technologies for startups. From a broad view, mHealth technologies enable users to do 3 things: set goals, track progress, and integrate a motivational program that will attempt to change their behavior using social and/or monetary influences. Some mHealth technologies include only setting goals and tracking progress, and some encompass all 3 functions. For example, Goals.com enables users to set goals, track, and schedule SMS reminders, but lacks social and/or monetary motivators. On the other hand, HealthSeeker (the Facebook app) uses social influence to motivate users in a fun way, and Lose it! (a mobile app and web platform) helps people lose unwanted weight via peer support. These are great examples of web and mobile apps that successfully incorporate all 3 functions in their technology products. MHealth startups can be vastly different in business model, connection strategies and market positioning strategies. Types of mHealth Business Models • Web platforms o For example: Virgin Healthmiles
    • Kulin Marketing – White Paper: Marketing for startups www.KulinMarketing.com • Mobile apps o For example: RunKeeper 
 • Tangible products/ fitness device (might have websites and/or apps) o For example: Switch to Health ($24.95), Fitbit ($99), Nike Fuel Band ($149.00) Connection Strategies • Enterprise Partnership o Positioning: Keeping employees healthy and enterprise benefit costs down. o For example: Virgin Healthmiles, Limeade, Redbrick o Pros: Can reach user audience directly through HR departments. Can partner with employee executives to motivate users monetarily. o Cons: There are a limited number of companies in the USA that can afford to implement employee wellness programs. • Payor Partnership o Positioning: A wellness prevention tool o For example: Everymove o Pros: Can reach target audience directly through payor network, position as a prevention tool, and motivate a change in the payor’s members via monetary reviews or discounts on premiums. o Cons: Will have to target payors and convince them that mHealth, as a prevention tool, will decrease claims in the long term. Also, limited target market that caps at payor’s network. • Direct to Consumers o Positioning: many direct to consumer mHealth brands focus on a vertical, such as diabetes, and position themselves in line. This also enables the company to target a vertical the vertical and be unique in a crowded mHealth space. o For example: HealthSeeker (diabetes), MapMyFitness (fitness enthusiastic) o Pros: Can target the largest market to potentially make high revenues. o Cons: Must invest in marketing to reach specific target markets, active acquisitions, and retain users.
    • Kulin Marketing – White Paper: Marketing for startups www.KulinMarketing.com The wave of these types of technologies has been so massive, that there have been tens of thousands of new businesses developed. A startup phenomenon is truly occurring. A Startup Phenomena In 2011 the healthcare industry began using technology devices to capture health information in a coded format. It has been determined by the InfoTech healthcare industry that we are currently experiencing the “capture of information” stage. The next stage involves InfoTech products utilizing the captured information to improve the quality of healthcare for the specific opt-ed in patients. Subsequently, it is believed that we will see a development of technology and innovations to improve overall global health. I would argue that telehealth, and predominately mHealth, technologies are attempting to execute stage 2 at the same time as they capture information. For example, thousands of mHealth applications are used on mobile devices by millions of users who not only allow the technology to collect their health information, but also allow the technology to attempt to change their health related behaviors. The plethora of new technology companies developing and operating mobile health applications are truly meeting the demand for a new type of healthcare. In 2010 it was stated that over 17,000 mHealth applications had been developed. That is over 17,000 startups! Startups that have created a solution to a problem, and have supplied the demand. However, just like any other startup, their potential for success largely relies on the action of their target market, the individual patient. The Dependencies Just as it always has, healthcare must be met halfway by patients. Not only do the customers of connected health have to be able to access the technologies, but they must also use them. In order for connected health solutions to be successful, patients must have access to the technology platforms they operate (on the internet and mobile devices). This requirement depends on social economics, and is forecasted to be a realistic accomplishment. It was stated by the Nielsen Company in
    • Kulin Marketing – White Paper: Marketing for startups www.KulinMarketing.com September 2010 that, “28 percent of all cell phone users have a Smartphone”, and in February 2012 Entrepreneur magazine stated that, “More people in the U.S. will access the web via mobile devices than via computers by 2015”. It has also been measured that the most popular mHeath app (CardioTracker), has been installed on smart phones between 1 million and 5 million times. Therefore, in the United States this first hurdle of adoption for connected health technologies looks to be achievable. At the same time, it is obvious that the supply and demand of this space has not yet reached its equilibrium. This is because patients have a history of neglecting to take the actions necessary to improve their health, even when they have access to health improving tools. It is a fact that even when threatened with life threatening conditions, many patients do not take their medications. Only 45% of heart attack survivors take their medication. Lack of self-care costs the healthcare industry over $100 billion in unnecessary costs per year. How can connected health help? The Solutions Connected health startups must do the following: 1. Educate patients that tools are available that can increase their quality of health, and of life, at lower costs than traditional healthcare management regiments. 2. Motivate patients to take action and use the new technologies available. 3. Motivate patients to continue usage. a. iHealth Connections published a study that showed that smokers were three times as likely to quit when a monetary variable ($400) was introduced as a prize. Each of these three steps should be supported by product development and marketing. Execute a Plan: Product Development & Marketing Product Development In order to develop a product that patients can use to improve personal healthcare, the product’s functionality must actually do so. In some way, the technology must connect the user with the relevant support that their specific
    • Kulin Marketing – White Paper: Marketing for startups www.KulinMarketing.com area of health requires. Many mHealth apps do this by focusing on a target market vertical such as Ginger.io for Diabetes and Ubiqi for migraines. Marketing Like any other startup business, connected health startups should develop a marketing plan. A marketing plan can be used to determine positioning, strategy, and tactics to reach, activate, and retain users. The most critical part of a marketing plan for mHealth startups is positioning. For instance, with over 17,000 platforms online and apps on mobile devices, it is critical for a startup in this space to be unique in order to stand out among the crowd and win customer acquisitions. Different business models and connection strategies have helped set apart some early mHealth technologies, but new businesses in the space will have to be very creative in the future as exponential growth is expected to occur over the next 3 years. Finding ways to be unique through product development can enable an mHealth brand to obtain a unique positioning and become an indirect competitor to other mHealth technologies. The next steps are to choose which tactics can effectively support your objectives and reach your target audience. Reach, Active, and Retain Users Tim Cascio wrote the blog post, “Mobile Marketing: 50 Ways to Promote Your iPhone App” in 2009. It is a helpful list of ideas on how a company can promote their new mobile app. In an effort to reach users and obtain signups, a process of trial and error tactics may occur. Always follow the mentality of Eric Ries (author of ‘The Lean Startup’) when debating if a tactic is worth the investment, and ask yourself not “can we do this?” but “should we do this?” Some connected health startups with recent success in acquiring signups have used traditional marketing to drive users to their connected health technology locations, web platforms, and/or apps. Inbound marketing is also a successful tactic, and can not only increase signups, but brand equity as well. Once reach has been established, use a strong call to action to motivate acquisition. To establish user loyalty, listen to your users’ feedback and lean on your product development team to add new ways users can easily use your technology to reach their healthcare goals. Never Stop Innovating
    • Kulin Marketing – White Paper: Marketing for startups www.KulinMarketing.com There will be opportunities to extend your connected health technology. Business development teaches us that products and services expansions have these choices: • The same product in the same market • The same product in a new market • A different product in the same market • A different product in a new market Future product proliferation could enable today’s connected health startups to sell their same products in new markets such as a different location, and/or a variation of their product to the same market, for instance, a second target vertical. The end result will be a startup phenomenon that successfully establishes a new industry of profitable businesses, hundreds of thousands of jobs, and possibly a new type of healthcare that enables higher quality of life for the entire global population.
    • Kulin Marketing – White Paper: Marketing for startups www.KulinMarketing.com References: • http://www.touchbriefings.com/ebooks/A1v2rp/ihealth12/resources/index .htm?referrerUrl=http%3A%2F%2Fwww.linkedin.com%2Fshare%3FviewLin k%3D%26sid%3Ds771268694%26url%3Dhttp%253A%252F%252Fwww% 252Etouchbriefings%252Ecom%252Febooks%252FA1v2rp%252Fihealth12 %252F%26urlhash%3DMyTO%26pk%3Dmember- home%26pp%3D%26poster%3D37656291%26uid%3D555493110988145 0496%26trk%3DNUS_UNIU_SHARE-title • http://healthcareitnews.com/news/mhealth-apps-forecast-increase- threefold-2012 • http://ehealth.eletsonline.com/2012/01/“3g-is-creating-wonders-in- healthcare-domain”-thierry-zylberberg-executive-vice-president-orange- healthcare- division/?utm_source=feedburner&utm_medium=feed&utm_campaign=F eed%3A+ehealthelets+%28eHEALTH%29&utm_content=Google+Reader • http://www.touchbriefings.com/ebooks/A1v2rp/ihealth12/resources/index .htm?referrerUrl=http%3A%2F%2Fwww.linkedin.com%2Fshare%3FviewLin k%3D%26sid%3Ds771268694%26url%3Dhttp%253A%252F%252Fwww% 252Etouchbriefings%252Ecom%252Febooks%252FA1v2rp%252Fihealth12 %252F%26urlhash%3DMyTO%26pk%3Dmember- home%26pp%3D%26poster%3D37656291%26uid%3D555493110988145 0496%26trk%3DNUS_UNIU_SHARE-title www.KulinMarketing.com The group of consultants that make up Kulin Marketing believe startups strengthen the economy. Each member uses their specialty in marketing to help startups change the world.