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How mobile technology is transforming health care gv


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Overview of the mHealth market and players perspective, with focus on telecom operators

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How mobile technology is transforming health care gv

  1. 1. Research Study How mobile technology is transforming health care November 2013 By Gisela Vendrell @giselebcn
  2. 2. How mobile technology is transforming health care Contents 1. Overview of the mHealth market 2. Players perspective 3. Conclusions 2
  3. 3. How mobile technology is transforming health care The global healthcare industry is facing major challenges Figure 1: Major challenges in the global healthcare industry [Source: own elaboration]  Shortage of health professionals- likely to worsen Access and coverage further- thus leading to low coverage in certain areas  Increasing demand for more available access to healthcare in developing countries Outcomes Outcomes  Patients are increasingly demanding better outcomes in terms of quality, velocity and safety Key challenges  Health spending as part of GDP is expected to Access and coverage Cost Cost reach 15% in larger developed countries in 2015*  Cost escalation due to chronic diseases increase - costly to manage and time-consuming * McKinsey estimate 3
  4. 4. How mobile technology is transforming health care Technology innovations have the potential to overcome them, enabling more accessible, faster, better and cheaper services Figure 2: Technology innovation impact on healthcare provision [Source: Ernst & Young analysis, 2013] Technology enabler Impact Applications Smart mobility  Wireless and user-friendly devices (eg: senior phones)  Increased access to health information and delivery through mobile devices and apps  Remote treatment and real-time interactive communications  Prescription of smartphone apps to patients Social networking  Increased access to critical health insights collection and sharing trough social networks  Disease progress tracking (eg: users)  Understanding of patients care experience and findings sharing Big data analytics  Ever-growing information processing transformation into valuable data and  Use of insights to build treatment practices predictive modeling Cloud computing  Large scale, flexible and secure data storage in a public or private cloud  Remote access via cloud applications and microsites designed for mobile devices  Mobile access to health personalized data and services - anywhere and anytime  Networking with healthcare providers and connection with patients 4
  5. 5. How mobile technology is transforming health care Smartphones expansion is driving mHealth growth- healthcare delivery supported by mobile devices Figure 3: Smartphone (SP) connections split by region [Source: Informa telecoms & media, 2013] m-Health technology platforms on cellular or wireless networks … − Such as cell phones, tablets, mobile-enabled Connections (millions)  Delivery of health-related services through mobile 3.000 Western Europe North America Middle East Latin America 3.500 Eastern Europe Asia Pacific Developing Asia Pacific Developed Africa 2.500 2.000 1.500 1.000 diagnostic and monitoring devices 500  …anytime and anywhere… − Real-time information access and monitoring 0 2011 outside of physicians’ offices and patients’ home  …thus driving a significant change in the Global smartphone penetration 2012 2013 2014 2015 2016 2017 12% 16% 21% 26% 31% 36% 42% healthcare traditional delivery system − Patients are actively engaged in delivery and assist to real-time experiences  44M health-related apps downloaded in 2011- 142M downloads by 2016 (CAGR of 26%)  3B of SP connections by 2017 with exclusive functionalities (expanded memory, location tracking, touch-screen technology, …) 5
  6. 6. How mobile technology is transforming health care The global mHealth market is expected to reach $ 23 billion by 2017 –growing at a compound annual growth rate (CAGR) of 50% Figure 4: global mHealth market evolution [Source: PwC, 2013] Key highlights ($ in billions) CAGR ‘13-’17: 50% 23  Health call centers creation and SMS for reminders among the most common initiatives 15 1 5 2012 2013 7 10  Key drivers of mHealth might differ per country and stakeholder 2014 2015 2016 2017 − Convenience of access and desire to take greater control of own health are the leading drivers of mHealth in developed countries… Figure 5: global mHealth market per region [Source: PwC, 2013] − …while cost reduction is the biggest attraction in emerging countries, such as India 5% 7% Europe 30% 28% Asia Pacific  52.7M m-health connections worldwide by 2021, growing at a GAGR of 43% between 2011 and 2021 North America 30% LatAm Africa 6
  7. 7. How mobile technology is transforming health care Remote monitoring is supposed to account for 65% of global market, mainly to manage chronic disease Figure 6: global mHealth market distribution per type of service [Source: PwC, 2013] 5% 0% 1% 0% 3% Monitoring Diagnosis 11% Threatments Support to medical personnel 15% 65% Key highlights Wellness Prevention Administration Surveillance support  Chronic diseases represent by far the leading cause of mortality in the world… − Eg: Diabetes, hypertension, heart failure, many cancers, and Alzheimer’s  …and are increasing in number in both developed and emerging countries  Remote monitoring technologies are likely to prevent and treat chronic disease, as they provide real-time and continuous management …  …and are expected to lead significant cost Figure 7: global mHealth monitoring services per type of patients [Source: PwC, 2013] Remote mobile monitoring savings, improved disease evolution and patient lifestyle Chronic Disease Management 71% 29% Older patients management 7
  8. 8. How mobile technology is transforming health care Remote monitoring devices enable patients to record, send and access their own health measures Figure: healthPal capabilities, a wireless mobile handheld system [Source: MedApps]  Automated data collection from peripheral monitoring devices… − Pulse oximeters Data collection − Glucose meters − Blood pressure monitors − Weight scales  … through a wireless mobile handheld device (healthPal) Data Transmission Data Management  Data communication through servers and IVR to an electronic health record or the user’s account (HealthVault)  Access for patients and families to data stored on user’s account or electronic health records…  … and for health professionnals using a web-based patient management portal (healthCOM) 8
  9. 9. How mobile technology is transforming health care Contents 1. Overview of the mHealth market 2. Players perspective 3. Conclusions 9
  10. 10. How mobile technology is transforming health care The mHealth market is a complex ecosystem, with a broad variety of stakeholders... Figure 8: The complex mHealth ecosystem [Source: own elaboration] Biopharma companies … Medical device companies Technology companies Health care providers Patients Healthcare professionals Telecom operators Pharmacies Entrepreneurs and retailers Governments NGO’s Regulators There is a shift trend towards a patient-centered model 10
  11. 11. How mobile technology is transforming health care ... with different incentives to adopt mHealth Figure 9: Key stakeholders incentives to adopt mHealth [Source: own elaboration] Patients Figure 10: Opportunities for mobile operators [Source: own elaboration]  Better care and lower costs  Increased quality of life  Ability to create a cost and capability Health care providers and professionals  Efficiency (greater time for patients, processes...)  Improved quality (better health outcomes) Cost and capability advantage advantage, based on core capabilities of connectivity, networking and large scale information management  Lower costs (fewer admissions and emergency Governments room visits, avoidable over use of medications and increased use of self-care)  Increased access and coverage Life science companies  Platform for demonstrating value of therapeutics and diagnostics Integration and access  Integration solutions based on mobile operators core capabilities, accessible by a large user base  Increased incremental revenue on top of existing voice and data revenue streams Telecom operators  Opportunity to expand into infrastructure services, managed services, cloud computing and professional services  Opportunity to own/dominate and take first mover advantage 11
  12. 12. How mobile technology is transforming health care Patients expect significant changes in terms of health data access, management and communication, thus enhancing convenience, quality and cost Figure I: Technology enabler’s impact on patients [Source: Ernst & Young analysis, 2013] Technology enabler Smart mobility Expected patient impact  Ability to… − Communicate with doctors and hospitals − Access health-related information − Obtain care from remote and underserved communities − Monitor and manage chronic disease − Fitness and wellness programs monitoring  …from anywhere at any time Social networking  Cost comparison of different providers  Outcome performance comparison  Peer advice on treatment and living with chronic conditions Cloud computing  Delivery of “heavyweight” healthcare services and information to “lightweight” mobile devices  Secure storage of patient information Figure II: mHealth expected benefits by patients [Source: Economist Intelligence Unit, 2012] (% of patients agreeing with mHealth improvements, in the next three years) Convenience 52% Quality 48% Cost of health care 46% 12
  13. 13. How mobile technology is transforming health care Efficiency and quality are considered as top incentives among doctors Figure III : Top incentives to adopt mHealth among doctors [Source: Economist Intelligence Unit, 2012] Improved quality of care/better health outcomes 36% Reduction in administrative time for medical personnel, allowing greater time for patients 32% Ability to reach previously unreachable patients 32% More efficient internal processes/communication 29% Patient expectations/demand 26% Lower overall cost of care for patients 25% Easier access to care for existing patients 24% Opportunity to provide new services/tap into new markets Ubiquity of smartphones and applications in all areas of life Encouragement by regulations Expectation/demand of medical personnel or employees 17% 16% 14% 13% Efficiency incentives Quality incentives 13
  14. 14. How mobile technology is transforming health care mHealth can also benefit developing countries by spreading information and bringing health care to underserved populations Figure IV: Key applications for mHealth in developing countries [Source: UN Foundation and Vodafone Foundation, 2013] mHealth key applications Description Education and awareness  Spreading of mass information about various subjects through SMS… − Including testing/treatment methods, availability of services, disease management  … to strengthen education and awareness and healthy habits adoption Remote data collection  Collection and transmission of real-time data quickly, cheaply and efficiently… − Eg: location and levels of specific diseases, areas of greatest needs within a country  …. thus leading to disease and epidemic outbreak tracking Remote treatment  Automated care delivery and advice about diagnosis and treatment of patients through mobile devices… − Eg.: SMS, mobile applications, …  …specially useful to mitigate cost and time of travel for patients located in remote areas Remote monitoring  Automated monitoring to patients situated in different location to healthcare professionals leading to: − Better tracking of patient conditions, medication regimen adherence and follow-up within environments of limited resources 14
  15. 15. How mobile technology is transforming health care Telecom operators have three potential options to monetize mHealth Figure: Potential options to monetize mHealth for Telcos [Source: McKinsey] 1  No relationship between mHealth providers and MNO’s Pure connectivity 2  Data transmission through MNO’s  Mobile charges as part of data plan or charged as additional usage via mobile bill  MNO’s as the primary face to the consumer, providing an integrated solution Operator end-to-end − Transmission, Devices, Software apps, Deployment & integration services  Benefits for Telcos: larger revenue share in the value chain  Challenges for Telcos : lack of healthcare knowledge; patients may hesitate 3  Interaction with mhealth providers Joint service − Providers are not required to develop a large tech infrastructure  Transmission and other services subcontracted to MNO’s 15
  16. 16. How mobile technology is transforming health care However there are several factors that may affect mHealth initiatives success and Players should bear in mind... Figure 12: Key factors in mHealth models success and level of contribution [Source: own elaboration from PWC data, 2012] Impact Outcomes  Provide a return on investment in terms of cost, access, and quality of care...  ... by defining a suitable business model, taking into account patients willingness to pay and technology costs Interoperability  Interoperability with sensors and other devices that enable information sharing (when authorized) Integration  Integration into existing activities and workflows of providers and patients Intelligence  Provision of real-time and qualitative solutions based on existing data Socialisation  Share information across a broad community to provide support, coaching and recommendations Engagement  Enable patient involvement and provision of instant feedback in order to improve services orientation ... thus requiring an in-depth analysis of the ecosystem, key challenges and success factors Impact level - + 16
  17. 17. How mobile technology is transforming health care Contents 1. Overview of the mHealth market 2. Players perspective 3. Conclusions 17
  18. 18. How mobile technology is transforming health care Key findings  Mobile technology is enabling a new era in health care − Shift towards a patient-centric model, delivering health care anytime and everywhere − Smartphones expansion as key accelerator of mHealth adoption  The global mHealth market is expected to show strong growth-reaching $ 23 billion by 2017 − Remote monitoring is supposed to account for 65% of global market, mainly to manage chronic disease  The mHealth ecosystem involves a broad variety of stakeholders with different perspectives and levels of involvement − MNOs have an opportunity to play a big role in mHealth and develop new revenue streams  There are key challenges that may affect mHealth adoption and need to be deeply analyzed − In terms of technology, business models, policy and regulatory barriers 18