Affordable Healthcare

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The single best solution for solving the cost problem in the US healthcare system. Sustainable, market centric but free of libertarian delusion.

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  • NOTHING: the
  • We need competition. Transparency innovators: using the new infrastructure to develop better processes and health products Insurance innovators:
  • We need competition. Transparency innovators: using the new infrastructure to develop better processes and health products Insurance innovators:
  • NOTHING: the
  • Affordable Healthcare

    1. 1. Affordable Healthcare by Johannes Bhakdi - sophotec.com 2 Healthcare Reform Defining the way towards
    2. 2. Sophotec .com > get notified first about new blueprints and developments > stay updated and shape policy > download presentations Independent single best solutions TM Progress for planet earth. VISIT
    3. 3. 1. Health care basics You get sick, enter the health cycle, and your insurer pays
    4. 4. 1. You are sick and need a doctor Doctor! You (sick) PAIN
    5. 5. 2. You pick an approved provider You (sick) Your insurer Provider A Provider B Provider C pick! approved PAIN
    6. 6. Anamnesis Analysis Treatment Recovery Healthy again 3: you enter the health service cycle Provider A PAIN
    7. 7. $ 50 $250 $3000 $1000 4: insurer pays the fees per service Provider A Your insurer pay service bills
    8. 8. 2. The vicious cycle Providers have an incentive to increase costs - and insurers too.
    9. 9. $ 50 $75 $250 $350 $3000 $4000 $1000 $1500 1: what happens if we increase costs? Provider A Your insurer ...what will they do? <ul><li>provide more services to patiens </li></ul><ul><li>increase costs / service </li></ul>NEXT YEAR… Increase costs!
    10. 10. 2: They raise your premium. Your insurer You (sick) Providers $1000 $1500 $200 $300 Insurers increase premiums Providers increase costs A B PAIN
    11. 11. 3: It's a simple loose-win-win Insurers You (sick) Providers -6% +6% +6% PAIN
    12. 12. Healthcare industry gets money from the USA Healthcare industry You -6% +6% USA Poorer Richer Every year PAIN
    13. 13. The ultimate threat $42,500 / year
    14. 14. 3. Why the market isn't working Without transparency, there is no competition
    15. 15. Market theory I: transparent products You (sick) Provider A Provider B Provider C Providers $4000 $3900 $4500 pick! PAIN
    16. 16. Market theory II: competing for performance You (sick) Provider A Provider B Provider C Providers $4000 $3900 $4500 switch! $4000 price increase reacts with lower price! $3990 PAIN
    17. 17. Market reality I: prices are intrasparent ??? ??? ??? ??? ???? PAIN
    18. 18. Market reality II: total market confusion ??? ??? ??? ??? $ 500 / month $ 1000 / month $ 100 / month we pay! you pay! it's complicated ???? ??? PAIN
    19. 19. The key indicator remains totally unknown Health Dollar ?
    20. 20. To improve profits, insurers face a choice... Insurers A B ...or improve efficiency – the HARD way: complex data gathering & analysis for tens of thousands of healthcare providers, requiring billions of IT infrastructure spending and challenging lobbying processes Increase premiums... (like all of your competitors) You USA Healthcare providers hmmm... PAIN
    21. 21. ... and choose the easier way Insurers A Don’t touch – way too difficult Increase premiums!! You USA Healthcare providers Raise! +6% PAIN
    22. 22. Surprise! It‘s nobody‘s fault. Insurers are NOT the problem . They just try to deal with the system and earn money. Providers CAUSE the problem . They raise the costs, and the insurers pass it on. ? ? But it’s not the providers fault . They cannot optimize their processes, because no one knows the real price and performance of healthcare. ???
    23. 23. Process innovators (identifying better processes & health products) Innovative insurers Intrasparency barrier! Intransparity is the barrier of entry for market innovation
    24. 24. 4. How to make it work Cure intransparitis, and the market will work.
    25. 25. Change the management decision of insurers... Insurers A B ...or try to lower costs Increase premiums... (like all of your competitors) You USA Healthcare providers Raise! PAIN
    26. 26. ...by building transparency Insurers B Health data infrastructure Provide funding, standards and urgency for nationwide transparency You USA Healthcare providers Efficiency! Government PAIN
    27. 27. Outcome centric EMR create transparency Provider A Insurer A Insurer C Provider B Provider C Insurer B BEST Outcome centric electronic medical records ( O EMR) Price: $ 3,800 Performance:100% Price: $ 3,300 Performance:100% Price: $ 4,300 Performance:100%
    28. 28. Now, markets can go to work. Providers CAN compete for the best outcome for the lowest price Insurers CAN compete for keeping patients healthy and costs low The transparency effect Costs Health Healthy market dynamics
    29. 29. A simple data collection network Costs Costs Costs Costs Total costs & results Outcome centric electronic medical records ( O EMR) PAIN
    30. 30. Aggregated over providers and states... Nationwide o EMR network Connected: every healthcare provider in the US
    31. 31. ...finally aggregated in one place A nationwide, consistent data infrastructure that provides the following data for EVERY healthcare provider in the USA: Illness Patient type Regional provider A Initial costs Lifetime recurrence Lifetime costs Regional provider B Regional Provider C Regional Provider … www.healthcare.gov
    32. 32. Now, we get the missing link Health Dollar !
    33. 33. The trillion dollar website Savings potential 7% of GDP 5 year savings 4 trillion US$ Time 5 years
    34. 34. Removing the barrier of entry for innovators Innovative insurers Transparency Process innovators (identifying better processes & health products)
    35. 35. Who can do it? Standards, rules, budget central planning Local EMR implementation National & regional planning & coordination Web-centric innovation Nationwide o EMR network (and others) (and others) (and others)
    36. 36. A comparatively small effort 36 billion US$* 36 months* *Sophotec estimates based on public discussion and provider cost proposals
    37. 37. 5. Reform booster Government can enable healthcare market innovation
    38. 38. Government catalyzes entrepreneurial energies Process & insurance innovators Healthcare market Provides Enables Blueprints Analytics Networks Department for healthcare market innovation Market innovation forum Innovates
    39. 39. Legislation required: NONE* * and that’s the most important point. It’s practical.
    40. 40. 6. Improve America! Yes, you can change the country. Read on how.
    41. 41. YOU If you don‘t agree: speak up! Tell us facts and arguments in the field below. OR: Send us your blueprint for reform to [email_address] Improve Improved blueprint
    42. 42. Friends & family Colleagues If you agree: spread the word Change Send Influence United States of America A link of this presentation Send YOU Decision makers
    43. 43. Send to decision makers Link A link of this presentation Healthreform.gov, Whitehouse.gov, house.gov, democrats.org, rnc.org, Your senator at senate.gov MSNBC.com, FOXnews.com, NYTimes.com, AARP.ORG, ama-assn.org, IBM.com, SAP.com, Microsoft.com, Accenture.com, kaiseredu.org, allhealth.org Post more influencer contacts below! Send
    44. 44. We read and consider every comment and email . We want change , and you can make it happen .
    45. 45. Sophotec .com > get notified first about new blueprints and developments > stay updated and shape policy > download presentations Independent single best solutions TM Progress for planet earth. Join
    46. 46. Universal healthcare NEXT: Part 3 – building August 27 th , 2009 sophotec.com Healthcare Reform

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