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The Global Transformation of Healthcare: The Global Tilt; Rethinking Your Role; and Medical Technology
1. The Global Transformation of Healthcare:
The Global Tilt and Rethinking Your Role
Medical Technology
.
Mercus Evans Medical Device
Summit @ Trump Doral
December 8, 2014
Thomas M. Loarie, Executive Chairman
3. eMedonline
Medication Therapy Management
3 12/23/2014
• Designed from the patient out
• Value propositions
• Proven behavior change
• Data and analytics
• Scientifically based (Parks)
• 98% Compliance
• 10 controlled clinical studies
• Managing patients taking up to 27 meds/day
4. 1. Exponential Technology
2. The Global Tilt
3. Globalization
4. Distributed Healthcare Delivery
5. Impact on Future Medtech
6. What Does This Mean for You?
4 12/23/2014
Road Map
8. 1. Exponential Technology
2. The Global Tilt
3. Globalization
4. Distributed Healthcare Delivery
5. Impact on Future Medtech
6. What Does This Mean for You?
8 12/23/2014
Road Map
17. 1. Exponential Technology
2. The Global Tilt
3. Globalization
4. Distributed Healthcare Delivery
5. Impact on Future Medtech
6. What Does This Mean for You?
17 12/23/2014
Road Map
27. 1. Exponential Technology
2. The Global Tilt
3. Globalization
4. Distributed Healthcare Delivery
5. Impact on Future Medtech
6. What Does This Mean for You?
27 12/23/2014
Road Map
38. 1. Exponential Technology
2. The Global Tilt
3. Globalization
4. Distributed Healthcare Delivery
5. Impact on Future Medtech
6. What Does This Mean for You?
38 12/23/2014
Road Map
46. 1. Exponential Technology
2. The Global Tilt
3. Globalization
4. Distributed Healthcare Delivery
5. Impact on Future Medtech
6. What Does This Mean for You?
46 12/23/2014
Road Map
Medication Compliance
A $300 billion (U.S.) healthcare problem
125,000 deaths per year
26% of all assisted care admissions
>50 of all ER and hospital admissions
2000 hospitals fined a total of $227 million (2013)
Why?
50% of prescribed medications are not taken
25% of prescribed medications are not filled
Drug interactions
1991 ad. All items advertised now exist on a smart phone.
Fewer than 20% of the world’s nations are experiencing growing population rates.
The elderly population is ballooning in most every developed nation – higher pension, health care, and related costs.
Experts believe that the world’s population will continue growing in the decades ahead, then stagnate and drop. (Global Warming is no longer an issue!)
By 2030
Asia will have 50% of world’s elderly
Asia will have 50% of noncomunnicable diseases – cancer, diabetes
Extremely poor sub-Saharan African States have the highest birthrates
Alibaba’s success is a reminder that a new breed of companies is being founded, and important innovation is taking place in other parts of the world. More than 25% of all patents filed today in the U.S. bear the name of at least one foreign national residing here.
Demand uncertainty vs technological uncertainty. To illustrate this, consider that patent applications in the U.S. have increased by 6x (from 100k to 600k annually) and, worldwide, start-ups have increased from 10 million to almost 100 million per year over the past 59 years. That means new technologies and new competitors are hitting the market at an unprecedented rate. Although uncertainty is accelerating, it isn’t affecting all industries the same way. That’s because there are two primary types of uncertainty — demand uncertainty (will customers buy your product?) and technological uncertainty (can we make a desirable solution?) — and how much uncertainty your industry faces depends on the interaction of the two.
How much uncertainty does your industry face? Ask yourself the following questions:
Have new technologies or startups started to threaten my company or my industry?
Over the past five years have new competitors entered the market and captured 10% share by targeting our customers with a different value proposition than what we offer?
Over the past five years have we begun to see customer preferences change, resulting in a different mix of products and services being demanded?
Have you recently started offering (or are planning to offer) a product or service that has never been offered before?
If you answered “yes” to the first two questions, you’re likely sitting in a business with high technological uncertainty; if “yes” to the last two questions, you’re probably dealing with high demand uncertainty.
Massachusetts General Hospital (MGH) and Guangdong Hospital of Traditional Chinese Medicine will cooperate together to establish the MGH Hospital China.MGH Hospital China, a world-class hospital, which is expected to be constructed in the Zhuhai Special Economic Zone in Guangdong province, is funded and constructed by Zhuhai Hengqin Guolian Kanghua Medical Investment Company and managed by Massachusetts General Hospital and the Guangdong Provincial Hospital of Traditional Chinese Medicine. MGH Hospital China will have 500 beds in the first stage and will have technology, equipment and staff from Massachusetts General Hospital when it is completed. In addition, MGH Hospital China will include research centers to help training Chinese doctors and special personnel and to study the combination of Western and traditional Chinese medicines. It is the first time that Massachusetts General Hospital has signed an agreement outside the United States with a traditional Chinese medicine hospital to jointly run and manage a world-class medical facility. Guangdong Provincial Hospital, Massachusetts General Hospital, Zhuhai Hengqin National League Hong Wah Medical Investment Co., Ltd. in Zhuhai Hengqin signed a cooperation framework agreement to establish a world-class hospital in Hengqin - Massachusetts General Hospital Chinese hospital. According to the framework agreement signed by the three parties, the hospital League of Nations by the Zhuhai Hengqin Hong Wah Medical Investment Co, Massachusetts General Hospital and the Guangdong Provincial Hospital of co-management and operations. Beginning of construction scale of 500 beds, from Massachusetts General Hospital to introduce the brand and technology, equipment, and excellent human resources, management, led by Massachusetts General Hospital guidance. The hospital will also establish a research center, set up training Chinese medical personnel education and training programs, and to carry out in Chinese medicine and Western medicine combined with modern targeted research projects. This is the first time the Massachusetts General Hospital and traditional Chinese medicine hospital signed a non-US co-operation in a world-class joint venture hospital.
The University of Pittsburgh Medical Center is exporting its knowledge and management services around the world, to countries like China and Lithuania expanding healthcare for emerging middle class populations.
In 1996, UPMC partnered with Italy to create a transplant center in Palermo, the Mediterranean Institute for Transplantation and Advanced Specialized Therapies, and then in the 2000s took on operations and services contracts in Ireland and elsewhere.
While research and clinical trials have become less of an option for many health systems in the U.S., in China, medical researchers are tracking mortality, cancer and other diseases, where cost-effective therapies are much needed for aging societies and growing cancer and cardiovascular disease incidence.
The Third Hospital of Nanchang signs cooperation agreement with La Rochelle Central Hospital and La Rochelle Leoini Medical Group.
Central Hospital in collaboration with La Rochelle academic exchange agreement is focused on subjects of mutual interest in clinical medicine, training, specialty construction, as well as academic exchanges administrative areas.
Roral Free Hospital NHS builds a strategy partnership with Beijing Henghe Hospital.Beijing Henghe Hospital, the general second-class hospital with traditional Chinese and Western medicine, built a strategy partnership and signed cooperation agreement with Roral Free Hospital (HHS), the largest public hospital in UK.
Increase in public spending
Taxpayer revolt
Flu shots, shingle shots, now primary care clinics.
CVS health – stopped selling cigarettes
Target collaboration with Kaiser.
Different metrics.
Offers a wide range of medical services
Lab testing
School physicals
Chronic condition management
70% of americans live within 3 miles of a drug store.
Source: Novartis
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Urgent care centers are quickly emerging as a popular, cost-effective alternative to the emergency department, reports a new study by the Center for Studying Health System Change (HSC) for the nonpartisan, nonprofit National Institute for Health Care Reform.
The growth of nearly 9,000 urgent care centers across the country is driven by consumer-demand for convenient and timely access for care for illnesses and injuries, according to an announcement about the study. At the same time, hospitals are jumping on the bandwagon to gain patients, and health plans view the centers as a way to contain costs by steering patients away from costly ED visits, the study says.
In the past urgent care centers were independently-owned, standalone facilities, but the study says the landscape has changed. Now large urgent care center chains operate in some regions, and hospital systems are establishing these facilities to expand their service area and referral base.
Financial pressure due to reimbursement cuts
Moving from FFS to value. The Challenge for CFOs. Longitudinal economics of any procedure. Patient engagement.
Overwhelming pressure, need solutions asap
Information transparency
Customers becoming knowledgeable and involved in their care.
Increased participation of govt as a payor and regulator.
Kanav Kahol returned home to New Delhi in 2011. He was a member of Arizona State University’s department of biomedical informatics. Connect these to a common computer platform and use commercially available tablets to display diagnostic information, thereby dramatically reducing the cost of the medical equipment. He also wanted to repackage the sensor data to make them intelligible to technicians with just basic medical training — the frontline health workers who do the tasks of physicians in parts of the world where physicians are in short supply. Kahol believes that, in high volumes, the Swasthya Slate can be produced for as little as $150 per unit.
for a cost of $11,000. This used an off-the-shelf Android tablet and incorporated a four-lead ECG, medical thermometer, water-quality meter, and heart-rate monitor. They then enhanced this with a 12-lead ECG and sensors for blood pressure, blood sugar, heart rate, blood hemoglobin, urine protein, and glucose. In June 2012, they sent this device to 80 medical labs for testing, which reported that it was as accurate as the medical equipment they used — but more suitable for use in remote and rural areas, because it was built for the rugged conditions there.
D-Rev is a non-profit product development company that designs and delivers products to people living on less than $4 a day.
When companies talk about serving emerging markets, they really mean is that they are serving the highest income people in emerging markets.
Phototherapy device – to treat severely jaundiced babies. As good as or better at $400 vs $3500.
Knee - $80 for a good, high performance polycentric knee. Comparable is $6000.
Nikon Shifts Focus to Health as Camera Sales Flag
Kazuo Ushida Says Camera Maker Plans to Spend About $2 billion on M&A
Kazuo Ushida, currently the senior executive vice president, said the Tokyo-based camera maker plans to spend about $2 billion for mergers and acquisitions in the medical and instruments businesses over the next three years.
"Merger and acquisition will account for a large part of the initial sharp growth" in the medical business, Mr. Ushida said.
Mr. Ushida, who will take over as CEO pending approval at an annual shareholders meeting later this month, said Nikon will hire M&A experts to compile a list of targets and to handle due diligence and postmerger integration. It also will allocate nearly a quarter of its $2.2 billion in planned research-and-development spending for the medical business and new areas.
Nikon's health-focused blueprint for growth mirrors a series of other technology companies, including Toshiba Corp. 6502.TO +1.31% and Hitachi Ltd. 6501.TO +0.41% , that are betting big on rising medical needs as revenue from traditional electronics products tapers off. Rival Canon Inc. also has beefed up its R&D spending on medical devices.
Toshiba and Hitachi have said they are actively hunting for acquisition targets as they look to double their health-care revenue over the next few years.
An increasing number of companies, such as Sony Corp., Samsung Electronics Co.005930.SE -1.44% and Apple Inc., have also launched or plan wearable devices and software to collect and track health data.
While the field is flooded with new competitors, Nikon says it will use its prowess in semiconductor lithography technology to develop, for example, DNA chips—a hot technology for genetic research.