TiE Healthcare Technology Innovation Zen Chu


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Overview of the Challenges & Opportunities within Healthcare Information Technology amid the 2009 Healthcare Reforms. Cost savings, business models and medical technology and software solutions are described.

TiE Healthcare Technology Innovation Zen Chu

  1. 1. Healthcare Information TechnologyInnovation & OpportunitiesThe Indus EntrepreneurTiE Boston SymposiumMicrosoft New England July 2009<br />Zen Chu<br />Accelerated Medical Ventures<br />ZEN @ ACMEDX.COM<br />
  2. 2. Unique Healthcare Mission & Business<br />Safety & Effectiveness Paramount<br />Evidence-Based Outcomes<br />Regulatory & Reimbursement Barriers<br />Cost-effective to society<br />Alignment of 4 P’s & Big G<br />Patients<br />Payers<br />Providers<br />Products<br />Goverment<br />Multiple Customers<br />Who Pays?<br />© zen@acmedx.com<br />
  3. 3. Procedures<br />Products & Services<br />Drugs, Medical Devices, Capital Equipment<br />Software, Services<br />Patients vf<br />Healthcare Players<br />Providers<br />Physicians, Hospitals, Nursing Homes <br />$$$<br />Payers<br />Insurers, Employers, Medicare<br />Information Asymmetries Confound Best Practices<br />© zen@acmedx.com<br />
  4. 4. Healthcare Delivery Value ChainComplex Value Chain Across Disease Cycle<br />Source: Porter & Teisberg, Redefining Health Care<br />© zen@acmedx.com<br />
  5. 5. US Healthcare Spending 2007$2.3 Trillion, 15.2% GDP<br />Other<br />Devices, Diagnostics<br />Pharmacy, etc<br />Hospital Care<br />Admin Costs<br />Nursing Homes<br />Physician Services<br />Pharma<br />Source: PHRMA Annual Report 2008<br />© zen@acmedx.com<br />
  6. 6. Sources of Healthcare Dollars<br />
  7. 7. Health Care Cost InflationPassed Along Value Chain Without Cost Controls<br />Source: McKinsey Global Institute<br />
  8. 8.
  9. 9. Who Aligned To Manage Wellness?<br />Source: Clayton Christensen, Innovator’s Prescription<br />
  10. 10. Fragmentation & Scalability ChallengesGeography, Specialty, Disease State<br />700 Payers<br />Negotiated Payments & Pricing Among Each Player & Region<br />5700 US Hospitals<br />Medical Product Companies<br />© zen@acmedx.com<br />
  11. 11. Successful Products & Services Pattern<br />Prove Effective Therapies for Right Patient<br />Unmet Medical Need<br />Remove treatment ambiguity<br />Improve Standard of Care<br />Comparative Effectiveness<br />Prove it quickly & efficiently<br />Productivity = Save Physician Time<br />Reduce Patient Pain<br />Enable New (Cheaper) Provider & Venue<br />Intellectual Property (Patents, trademarks, brand)<br />Lower Cost<br />Necessary But Insufficient<br />© zen@acmedx.com<br />
  12. 12. Healthcare Information TechnologyChallenges<br />HIT under-invested vs other industries<br />2.2-3.8% IT/Total Operating Expense (HIMSS)<br />50% less gross revenue investment than banking (Gartner)<br />Spaghetti code & lack of standards<br />Privacy & security costs<br />Technology cost inflation under microscope<br />… But strong case for HIT as Quality Driver<br />Obama’s $19B HITECH Funding<br />© zen@acmedx.com<br />
  13. 13. Enabling New Business Models<br />NEW MODEL EXAMPLE<br />New Device SonoSite Ultrasound<br />New Workflows e-Prescribing <br />Payment Services Athena Healthcare<br />Collective Knowledge Sermo Social Network<br />New Therapies Image-Guided Therapy<br />Direct to Consumer iPhone Disease Management<br />Outsourcing O2i Teleradiology<br />Decentralization In Home Warfarin Testing<br />Pay 4 Performance Cerner<br />Bundling Episode-Based Pricing<br />Unbundling Bluetooth BP reporting<br />© zen@acmedx.com<br />
  14. 14. Additional Reading<br />Viswanathan, Vijay. “Special Report: Medicine Goes Digital.” The Economist 16 April, 2009.<br />Gawande, Atul. “The Cost Conundrum.” The New Yorker 1 June, 2009.<br />Gawande, Atul. Complications: A Surgeon’s Notes On An Imperfect Science. 2002, Picador.<br />Center for Accelerating Medical Solutions. Investing in Innovation: Accelerating Disease Research Through Philanthropy and Business. www.fastercures.org, 2005.<br />Chesbrough, Henry. Open Business Models. 2006, Harvard Business School Press.<br />Christensen, Clayton. The Innovator’s Dilemma. 1997, Harvard Business School Press.<br />Christensen, Clayton, et al. Seeing What’s Next. 2004, Harvard Business School Press. <br />Megantz, Robert. How to License Technology. 1996, John Wiley & Sons.<br />Moore, Geoffrey. Crossing the Chasm. 1991, HarperCollins.<br />Porter, M. and Teisberg, E. Redefining Healthcare: Creating Value-Based Competition on Results. 2006, Harvard Business School Press.<br />www.thehealthcareblog.com<br />www.health2con.com<br />www.himss.org<br />http://www.economist.com/specialreports/displaystory.cfm?story_id=13437990<br />http://cimit.typepad.com/cimit_forum_blog/2008/05/zen-chu-slides.html<br />http://cimit.typepad.com/cimit_forum_blog/2009/04/the-new-economic-playbook-for-healthcare-development.html<br />© zen@acmedx.com<br />
  15. 15. Healthcare Information TechnologyInnovation & OpportunitiesPanel Discussion<br />Prof. BhaskarChakravorti Harvard Business School, McKinsey<br />Zen Chu Accelerated Medical Ventures<br />Pam RandhawaSermo, Inc.<br />Joseph Ternullo Partners Healthcare<br /> Center for Connected Health<br />