+ Follow

Solving the Wanamaker Problem for Healthcare (keynote file)

by Tim O'Reilly on Oct 17, 2012

953 views

Finding a solution to Wanamaker's complaint, "Half of my advertising doesn't work, I just don't know which half" fueled the consumer internet revolution. We are now in the process of finding and ...

Finding a solution to Wanamaker's complaint, "Half of my advertising doesn't work, I just don't know which half" fueled the consumer internet revolution. We are now in the process of finding and solving a similar dilemma in healthcare. I offer some lessons from Silicon Valley for Healthcare

Accessibility

View text version

Upload Details

Uploaded via SlideShare as Apple Keynote

Usage Rights

File a copyright complaint

1 Embed 1

http://amasomo.wordpress.com

Statistics

Likes: 1
Downloads: 12
Comments: 0
Embed Views: 1
Views on SlideShare: 952
Total Views: 953

Solving the Wanamaker Problem for Healthcare (keynote file) Presentation Transcript

Solving the Wanamaker Problem for Healthcare Tim O’Reilly O’Reilly Media StrataRx October 16, 2012

How Data Science is Transforming Healthcare • Changing healthcare business models • Enabling new scientific breakthroughs • Empowering patients • Changing tradeoffs between privacy and efficacy http://oreillynet.com/oreilly/data/radarreports/how-data-science-is-transforming-health-care.csp

Big ideas from Silicon Valley that will shape the future

Solving The Wanamaker Problem for Healthcare “Half the money I spend on advertising is wasted; the trouble is I dont know which half.” - John Wanamaker (1838-1922)

“What I learned from Google isto only invest in things thatclose the loop.” - Chris Sacca

“Price increases, notincreases in utilization,caused most of theincreases in health carecosts during the past fewyears in Massachusetts.Higher priced hospitals aregaining market share at theexpense of lower pricedhospitals, which are losingvolume. The commercialhealth care marketplace hasbeen distorted bycontracting practices thatreinforce and perpetuatedisparities in pricing.”

“A friend of mine jokingly said, "Whats all this talkabout the US health care system being inefficient? Ifwe consider that the system was designed to transfermoney from consumers to the various parts of thehealth care industry, we are twice as effective as theworld average! Why would we expect that a freeenterprise health care system designed by hospitals,doctors, pharmaceutical and device companies, ITfirms, and industry consultants and suppliers would doanything other than maximize transfers of this sort?"Paul Levy, http://runningahospital.blogspot.com/2012/10/when-you-think-about-it-that-way.html

Feedback Loops and “Algorithmic Regulation”

There should be a number of preconditions before one seeks to use financialincentives or penalties to influence behavior. If these conditions are not met,the financial tools will either not work or will have unintended consequences.What might those conditions be? Lets start with a few:1) Have a clear sense that the metric to be measured is determinative of theresult sought.2) Ensure that the recipient of the financial payment or debit controls the workflow associated with the metric.3) Be confident that the recipient is likely to be influenced in the correctdirection by the financial incentive.4) Ensure that the amount of the financial incentive is sufficiently meaningful tothe recipient that it is likely to influence his or her behavior.5) Consider how to avoid the unintended consequences of the financialincentive, e.g., impacts on other metrics that are of concern.Paul Levy, http://runningahospital.blogspot.com/2012/10/my-arms-getting-tired.html

The secret of algorithmic data systemsis to focus on real time measurement of outcomes

The Lean Startup The goal of a Lean Startup is to move through the build-measure-learn feedback loop as quickly as possible.

Personalized Medicine

• patientslikeme and collaborative clinical trials

This is the real “social revolution”

• copy of letter about lab results

http://oreil.ly/patient-tests

The spread of sensors• sensor platform slide

“The PC is just a toy.” -Ken Olsen, Digital Equipment Corporation

OMG, I could have my own computer!

Innovation often starts not with entrepreneurs, but with people having fun, who believe in an impossible future

What happens when you throw open the doors to partners More than 50,000 iPhone applications in less than a year! Now at 688,000

“What if we felt aboutgovernment the way we feelabout our iPhones?” - Jennifer Pahlka,

“I believe that interfaces to governmentcan be simple, beautiful, and easy touse.” - Scott Silverman 2011 Code for America Fellow

What if interfaces for both doctors and patients were simple, beautiful, and easy to use?

Steve Jobs on Design “In most people’s vocabularies, design means veneer. It’s interior decorating. It’s the fabric of the curtains and the sofa. But to me...design is the fundamental soul of a man-made creation that ends up expressing itself in successive outer layers of the product or service." http://www.nytimes.com/2011/10/08/business/how-steve-jobs-infused-passion-into-a- commodity.html?hp=&pagewanted=all