What’s next for healthcare information technology innovation?


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This is a summary of a talk I gave at the Vanderbilt Healthcare Conference 2012 in Nashville.

It focused on answering a couple of key questions:
* What does innovation in healthcare mean?
* Where are the major areas in healthcare where innovation is required?

And had a few key takeaways:
* Understand health tech buy fallacies
* Understand PBU: Payer vs. Benefiter vs. User
* Understand why healthcare businesses buy stuff so you can build the right thing

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What’s next for healthcare information technology innovation?

  1. 1. What’s next for healthcare information technology innovation? Vanderbilt Healthcare Conference 2012 Shahid N. Shah, CEO
  2. 2. NETSPECTIVE Who is Shahid? • • • • 20+ years of software engineering and multisite healthcare system deployment experience 12+ years of healthcare IT and medical devices experience (blog at http://healthcareguy.com) 15+ years of technology management experience (government, non-profit, commercial) 10+ years as architect, engineer, and implementation manager on various EMR and EHR initiatives (commercial and nonprofit) www.netspective.com Author of Chapter 13, “You’re the CIO of your Own Office” 2
  3. 3. NETSPECTIVE What’s this talk about? Questions answered Key takeaways • What does innovation in healthcare mean? • Where are the major areas in healthcare where innovation is required? • Understand PBU: Payer vs. Benefiter vs. User • Understand why healthcare businesses buy stuff so you can build the right thing www.netspective.com 3
  4. 4. NETSPECTIVE What I mean by “innovation” Innovation in healthcare is especially hard to define given the wide variety of constituencies For this presentation, we’ll assume that “innovation” means either: a) You have made the job of identifying, diagnosing, treating, or curing diseases faster, better, or cheaper for clinicians through the use of information technology (IT) OR b) You have made the job of self-diagnosing, self-treating, or preventing diseases and improving overall wellness of patients through the use of IT www.netspective.com 4
  5. 5. NETSPECTIVE What Is the Business of Health Care? What business are you in? The Emergence of Health as the Business of Health Care • It's always better to define a business by what consumers want than by what you can produce or build – For example, whereas doctors and hospitals focus on producing health care, what people really want is health • In the future, successful doctors, hospitals, and health systems will shift their activities from delivering health services within their walls toward a broader range of approaches that deliver health. Source: http://www.nejm.org/doi/full/10.1056/NEJMp1206862 www.netspective.com 5
  6. 6. NETSPECTIVE PBU: Payer vs. Benefiter vs. User If you don’t understand the exact interplay between PBU your product will fail The person or group that actually uses the product. User The person or group that benefits most from the use of the product. www.netspective.com Benefiter Payer The payer is the person/entity that writes the check for your product. 6
  7. 7. NETSPECTIVE What problem will you be solving? Focus on jobs that need to be done, not what you want to build Improve medical science? Improve access to care? Reduce costs? Improve therapies? Improve diagnostics? Improve drug design? Improve drug delivery? Create better payment models? www.netspective.com 7
  8. 8. NETSPECTIVE How to identify the best opportunities From “Jobs to be Done” to the “Five Cs of Opportunity Identification” Circumstance • The specific problems a customer cares about • The way they assess solutions Context • Find a way to be with the customer when they encounter a problem and • Watch how they try to solve it Compensating behaviors Constraints • Develop an innovative means around a barrier constraining consumption • Determining whether a job is important enough to consider targeting • One clear sign is a customer spending money trying to solve a problem Criteria • Customers look at jobs through functional, emotional, and social lenses Source: http://blogs.hbr.org/anthony/2012/10/the_five_cs_of_opportunity_identi.html www.netspective.com 8
  9. 9. NETSPECTIVE Do you have ideas in payment design? Payment models going fee for service to outcomes-driven care The business needs The technology strategy • Quality and performance metrics • Patient stratification • Care coordination • Population management • Surveys and other directfrom-patient data collection • Evidence-based surveillance • • • • • • • • www.netspective.com Aggregated patient registries Data warehouse / repository Rules engines Expert systems Reporting tools Dashboarding engines Remote monitoring Social engagement portal for patient/family 9
  10. 10. NETSPECTIVE Can you repurpose or enhance health data? Try to use existing data to create new diagnostics or therapeutic solutions Economics Administrative www.netspective.com Phenotypics Behavioral Biochemical Genomics Proteomics IOT sensors 10
  11. 11. NETSPECTIVE Some stuff not to focus on Incremental innovation is easier, disruptive innovation is probably more useful • Don’t go for simple incremental innovation if you can be bold and disruptive • Don’t look at mHealth, look at mobility in healthcare • Don’t look at apps, look at entire systems www.netspective.com 11
  12. 12. NETSPECTIVE Forget mobile apps, focus on health IOT • With all the attention being paid to mHealth there’s been an useless focus on mobile apps • For the mobile apps, instead focus on mobility in healthcare through “health internet of things (IOT)” and self-care technologies www.netspective.com 12
  13. 13. NETSPECTIVE Healthcare Industry Fallacies • Healthcare folks are neither technically challenged nor simple techno-phobes (they’re busy saving lives) • Most product decisions are no longer made by clinical folks alone, CIOs are fully involved • Complex, full-featured, products are not easier to sell than simple, stand alone tools that have the capability of interoperating with other solutions are • Hospitals will not buy unless one proves value. • Selling into doctors offices is not easy. www.netspective.com 13
  14. 14. NETSPECTIVE What makes your products successful • • • • • • • • • • • Easy to explain Defendable and differentiated Attractive partnership opportunities Word of mouth opportunity Potential for PR Scaleable staff and systems Scaleable product — build once, sell many times Uncomplicated Focused Sales model is scaleable and predictable Own relationship with and information about customers www.netspective.com 14
  15. 15. NETSPECTIVE Why healthcare businesses buy stuff Healthcare businesses have complex buying processes – figure out why and what they buy Increase revenue (topline) Maintain capabilities Reduce costs (bottomline) Attract new patients Increase staff productivity Find your reason www.netspective.com 15
  16. 16. NETSPECTIVE The Customer Relationship If you can’t figure out why they buy, see if any of the things below make sense Customer Gives You Get • • • • • • • • Money Time Energy Commitment Referrals Past experience Expectations Knowledge www.netspective.com You Give Customer Gets • • • • • • • • Product Price Value Convenience Selection Service Warranty Brand 16
  17. 17. NETSPECTIVE Defining your customer is really hard Don’t focus on market segmentation, but do try to figure out who your customer is Target health sector? Number of employees? Annual sales volume? Geography? Number of hospital beds? Number of patients? Type of patients? The list goes on and on…be specific! www.netspective.com 17
  18. 18. NETSPECTIVE Health technology sector has many ups and downs Make sure you understand where your product fits in the hypecycle Source: Gartner; “Hype Cycle for Healthcare Provider Applications and Systems, 2010” www.netspective.com 18
  19. 19. Visit http://www.netspective.com http://www.healthcareguy.com E-mail shahid.shah@netspective.com Follow @ShahidNShah Call 202-713-5409 Thank You