Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
1	
  
	
  
Digital	
  transformation	
  of	
  the	
  health	
  sector	
  –	
  opportunities	
  and	
  challenges1
	
  
	
 ...
2	
  
	
  
The	
   traditional	
   health	
   care	
   model	
   is	
   what	
   could	
   be	
   called	
   the	
   ‘’sic...
3	
  
	
  
matter	
  of	
  ethics	
  and	
  moral	
  standards.	
  Companies	
  who	
  want	
  to	
  succeed	
  in	
  this...
4	
  
	
  
New	
  Zealand	
  provides	
  an	
  example	
  of	
  what	
  is	
  possible,	
  in	
  terms	
  of	
  transforma...
Upcoming SlideShare
Loading in …5
×

0

Share

Download to read offline

FINAL APPROVED Digital transformation of the health sector - summary record of Dr David Noble presentation

Download to read offline

Related Audiobooks

Free with a 30 day trial from Scribd

See all
  • Be the first to like this

FINAL APPROVED Digital transformation of the health sector - summary record of Dr David Noble presentation

  1. 1. 1     Digital  transformation  of  the  health  sector  –  opportunities  and  challenges1     Dr  David  Noble,  Founding  Director,  BDI  Health     “When  you  grow  up  you  tend  to  get  told  that  the  world  is  the  way  it  is  and  you're  life  is  just  to  live   your  life  inside  the  world.  Try  not  to  bash  into  the  walls  too  much.  Try  to  have  a  nice  family  life,   have  fun,  save  a  little  money.  That's  a  very  limited  life.  Life  can  be  much  broader  once  you  discover   one   simple   fact:   Everything   around   you   that   you   call   life   was   made   up   by   people   that   were   no   smarter  than  you.  And  you  can  change  it,  you  can  influence  it,  you  can  make  things  that  other   people  can  use…  Once  you  learn  that,  you'll  never  be  the  same  again.”  Steve  Jobs     Transformation,  be  it  digital  or  otherwise,  is  fundamentally  a  cultural  event.    A  revolution  if  you  will.     Technology  provides  the  tools  for  the  revolution.    The  outcome  of  transformation  is  dependent  on   the  usefulness  of  the  tools  and  the  validity  of  the  reason  for  the  change.  Our  health  care  system  is   economically   unsustainable   and   must   undergo   transformation   and   medicine   is   moving   from   a   physician-­‐centric  model  towards  a  patient  or  user-­‐-­‐centric  model.       So,  will  doctors  be  replaced  by  technology  or  robots?  I  do  not  think  this  will  happen,  although  the   role   of   the   doctor   will   inevitably   change   as   a   result   of   this   technological   and   social   progress.   Technology  is  just  a  tool  to  achieve  this  better  outcome;  the  question  is  how  to  transform  the  health   sector   by   applying   technology   to   achieve   better   economic   and   social   outcomes   –   for   medical   practitioners  as  well  as  for  patients  and  their  families,  and  ultimately  for  the  country  as  a  whole.   What  the  health  community  needs  to  understand  is  that  people  want  to  have  the  tools  to  help  them   lead  a  full  life;  they  do  not  want  just  more  tools  designed  for  a  limited  life.     The  four  Cs   In  order  to  take  advantage  of  the  technological  tools  of  this  digital  health  revolution,  we  need  to   have   transformation   as   part   our   corporate   DNA.     This   requires   four   key   assets   in   our   collective   human  capital  -­‐  capability,  capacity,  culture  and  courage.     • Capability  is  the  intrinsic  strengths  and  weaknesses  of  the  people  in  the  organisation     • Capacity  is  the  collective  skills  and  knowledge  acquired  from  learning  and  lived  experience   • Culture  (or  fit)  relates  to  understanding  our  position  and  relevance  in  the  marketplace.  It’s   about  understanding  user  expectations  and  our  role  in  their  world.   • Courage  is  the  willingness  to  defy  convention  and  accepted  practice.  To  persist  because  you   believe  what  you  are  dong  is  right.         Drivers  of  the  digital  transformation  of  health   Until  the  Global  Financial  Crisis  (GFC),  the  health  system  worked  in  autonomously  governed  silos.     No-­‐one  particularly  worried  about  how  much  it  cost.  The  system  was  based  on  supply  and  demand,   with  the  medical  profession  in  the  driving  seat.    Post  GFC,  everyone  started  to  look  carefully  at  the   cost  of  health  care.  The  ageing  population,  combined  with  awareness  that  with  age  comes  increasing   healthcare   cost,   has   driven   all   governments   to   reconsider   the   health   care   model   and   to   ask   how   technology  can  assist  in  improving  care  while  also  reducing  cost.     The  traditional  “sickness”  model                                                                                                                             1  This  is  an  edited  version  of  a  presentation  given  by  Dr  David  Noble  at  Telstra’s  Chief  Technology  Office  on  16   April  2015.  [1]  This  is  an  edited  version  of  a  presentation  given  by  Dr  David  Noble  at  Telstra’s  Chief  Technology   Office  on  16  April  2015.  The  views  expressed  here  are  personal  in  nature  and  do  not  necessarily  reflect  those   of  Telstra,  IBM,  Federation  University  Australia  or  any  other  third  party.  
  2. 2. 2     The   traditional   health   care   model   is   what   could   be   called   the   ‘’sickness   model”.   It   is   based   on   remunerating   doctors   for   treating   illness.   The   medical   practitioner,   using   an   evidenced   based   approach,  investigates  the  illness  using  a  variety  of  testing  methods,  and  based  on  this  data  then   intervenes  and  tries  to  alleviate  the  symptoms  and  ultimately,  if  possible,  cure  the  condition.  In  this   traditional  model,  the  patient  has  to  trust  the  practitioner’s  skills,  knowledge  and  contacts,  to  get   the  best  outcome.  This  model,  which  is  highly  regulated  and  relies  on  precedent  and  peer  reviewed   practice,  leads  to  increasing  demands  on  the  health  care  budget,  as  testing  and  intervention  regimes   become  more  and  more  sophisticated  and  therefore  more  and  more  expensive.  In  a  universal  health   care  system,  such  as  in  Australia,  the  Government  comes  under  increasing  pressure  to  continually   improve   the   standard   of   care   for   the   community,   which   leads   to   increasing   scrutiny   of   the   cost.   However,  as  it  is  highly  regulated  and  based  on  precedent  and  accepted  practice,  it  is  resistant  to   significant  change.     The  “wellness”  model   The  new  model  of  health  care  is  the  “wellness  model”.  This  is  different  to  the  traditional  model,  in   that  it  relies  on  prevention  of  illness,  and  is  aimed  at  keeping  the  user  healthy  for  as  long  as  possible.   The  doctor  can  be  one  of  a  number  of  health  practitioners  working  together  to  keep  the  patient   well;  only  where  this  approach  fails,  as  it  were,  does  the  traditional  model  of  treatment  kick  in.  It  is   much  cheaper  –  both  for  the  individual  and  for  the  society  and  economy  as  a  whole  -­‐  to  keep  people   well   and   out   of   hospital   and   out   of   the   traditional   health   care   system   for   as   long   as   possible.   IT   companies  are  attracted  to  this  new  model  of  healthcare,  as  it  is  not  highly  regulated;  it  is  based  on   a  preventative  approach  using  diet,  exercise  and  wearable  technology  which  monitors  the  person’s   lifestyle  and  vital  signs.  It  is  a  massively  growing  market.  For  example,  IBM,  Apple  and  other  partners   have  just  announced  a  partnership  to  capture  and  analyse  personal  health  data,  to  provide  better   predictive  analytical  tools,  with  the  stated  aim  of  improving  healthcare  and  outcomes.     To  dramatically  advance  the  quality  and  effectiveness  of  personal  healthcare,  IBM  is  establishing  a   Watson  Health  Cloud  that  will  provide  a  secure  and  open  platform  for  physicians,  researchers,  insurers   and  companies  focused  on  health  and  wellness  solutions.    The  HIPAA-­‐enabled  Watson  Health  Cloud   will  enable  secure  access  to  individualized  insights  and  a  more  complete  picture  of  the  many  factors   that  can  affect  people’s  health 2 .     Who  owns  your  health  data?   This  and  other  personal  health  applications  raise  the  question:  Who  will  own  the  data  generated   from  these  new  devices  and  stored  and  analysed  in  the  cloud?     Whereas   in   the   past   the   doctor   or   medical   practitioner   held   all   of   your   data   in   one   place   and   controlled  it,  and  virtually  owned  it,  in  the  future  the  ‘patient’  or  user,  will  generate  his  or  her  own   data.  This  raises  the  vexed  question  of  who  owns  the  user-­‐generated  data?  The  traditional  medical   system  does  not  yet  understand  the  importance  of  this  issue;  they  are  used  to  always  owning  their   patients’  data  and  having  access  to  it.  What  happens  if  a  third  party,  such  as  IBM  or  Google,  captures   the  user  generated  data  from  the  patient,  and  the  medical  practitioner  has  to  pay  to  get  access  to  it?   The  medical  community  will  be  left  behind  in  the  race  to  control  user  data  if  they  do  not  wake  up  to   the  importance  of  the  data  gatekeepers.     As  far  as  the  patient  is  concerned,  many  younger  people,  the  digital  natives,  seem  a  lot  more  relaxed   about  sharing  their  personal  data  with  others.  It  is  often  a  matter  of  the  patient  or  user  making  a   trade-­‐off   between   privacy   and   personal   benefit.   The   problem   arises   if   the   data   is   later   used   for   purposes   other   than   for   which   the   individual   has   approved   its   use.   Many   companies   rely   on   the   letter  of  the  law  to  determine  their  approach  to  social  issues,  whereas  in  many  cases  it  is  more  a                                                                                                                             2  https://www-­‐03.ibm.com/press/us/en/pressrelease/46580.wss  
  3. 3. 3     matter  of  ethics  and  moral  standards.  Companies  who  want  to  succeed  in  this  area  need  to  ensure   that  they  put  in  place,  and  adhere  to,  a  strict  moral  and  ethical  code  when  dealing  with  personal   data.     Data  philanthropy   An  extension  of  data  ownership  is  the  concept  of  data  philanthropy.    Currently  there  are  two  basic   camps  with  regards  to  data.    Those  who  see  it  as  an  open  resource  that  can  be  used  to  make  a  profit   and  those  who  fear  reuse  as  a  threat  to  privacy  and  civil  liberty.    But  there  is  a  third  option  in  the   discussion:  Big  Data  as  a  raw  resource  for  public  good.      At  the  center  of  any  universal  health  care   system  are  the  commitments  to  providing  social  benefit  to  everybody,  not  just  to  those  who  can   afford  to  pay:  the  elite,  the  privileged  and  the  wealthy.      Data  philanthropy  provides  an  opportunity   for  the  for-­‐profit  sector  to  align  with  one  of  the  core  tenants  of  universal  health  care;  either   peripherally  as  a  component  of  corporate  social  responsibility  or  as  one  of  the  central  pillars  of  their   business  operational  platform.         Mental  health:  the  new  care  frontier  for  digital  technology   One  of  the  key  health  challenges  is  mental  health.  The  Australian  Government3 ,  for  example,  has  just   released   a   700-­‐page   report   by   the   National   Mental   Health   Commission’s   into   the   current   system   which,  according  to  Federal  Health  Minister  Susan  Ley,  “details  a  $10  billion  system  —  most  of  that   money  is  spent  on  welfare  payments  for  the  mentally  ill  —  which  fails  people  at  every  turn,  whether   they  are  visiting  their  GP,  attempting  to  access  community  support  or  living  in  regional  and  remote   areas”.    Suicide  is  one  of  the  biggest  killers  of  our  youth;  our  nations  future  workforce.   Mental  health  is  therefore  not  just  a  significant  health  issue,  it  is  also  a  major  economic  challenge  as   well.  Perhaps  one  of  the  options  is  to  “flip  the  model”  and  look  for  the  positives  in  mental  health,   such  as  the  link  between  creativity  and  mood  disorders.  For  example,  BDI  Health  decides  to  use  data   analytics  and  a  “flipped  model”  to  develop  a  “working  well”  approach  to  the  problem,  with  the  aim   of   achieving   a   40%   reduction   in   employee   absenteeism,   presenteeism   and   compensation   claims,   which  would  mean  a  significant  productivity  boost  for  the  Australian  economy.  This  is  an  area  where   the  wellness-­‐based  approach  could  achieve  significant  economic  and  social  benefits,  and  it  is  an  area   open  to  new  entrants  who  can  take  a  fresh  approach  based  on  mood  monitoring  and  self-­‐help  tools,   linked  to  treatment  plans  and  practitioners.   When  BDI  Health  looked  at  this  space  we  saw  that  a  diagnosis  of  mental  illness  creates  stigma  and   that  as  a  company  it  was  not  our  position  to  influence  the  medical  profession  and  the  rate  of  diagnosis   of  mental  illness.    What  we  could  do  was  influence  how  the  community  and  business  sector  perceived   such  a  diagnosis.    We  wanted  the  public  perception  to  shift  from  one  of  disease  and  disability  to  one  of   capability,  capacity,  culture  and  courage.    In  short  we  wanted  to  use  hard  science  to  dispel  popular   mythology  that  people  with  mental  illness  are  in  some  way  inferior.    This  is  the  core  of  our  business   “cultural  revolution”  and  data  analytics  is  just  one  of  the  digital  tools  we  use.     International  opportunities   Australia   is   well   placed   to   develop   and   export   health   and   wellness   related   technologies   and   applications,  as  it  is  an  ideal  incubator  –  combining  a  universal  health  system  with  a  booming  private   health  sector.  Many  US  companies  are  looking  at  Australia  as  a  potential  market  to  trial  a  number  of   new  systems,  because  Australia  has  a  number  of  advantages,  including  relative  cost  advantages  over   the  US  health  market,  as  well  as  being  a  stable,  English-­‐speaking  democracy  with  an  open  market   approach.                                                                                                                               3  http://www.theaustralian.com.au/national-­‐affairs/health/sussan-­‐leys-­‐mental-­‐health-­‐redesign-­‐from-­‐ground-­‐ up/story-­‐fn59nokw-­‐1227306991992  
  4. 4. 4     New  Zealand  provides  an  example  of  what  is  possible,  in  terms  of  transformation  of  the  health  care   sector.    Faced  with  the  prospect  of  an  unsustainable  health  system  New  Zealand  embarked  on  an   audacious   plan   to   transform   their   health   care   system   and   create   an   export-­‐driven   medical   technology  economy  that  linked  into  the  transformation  process.    As  a  result  local  and  international   companies   can   together   to   partner   with   the   public   sector   to   create   a   framework   for   sustainable   health  care  and  economic  growth.     The   big   opportunities   are   in   our   region,   in   China   and   India   in   particular,   where   the   scale   of   the   opportunity  for  healthcare  may  far  outstrip  the  EU  and  US  markets.  China,  with  1.5  bn  people,  is   aiming   to   introduce   a   universal   healthcare   system.     The   objectives   in   the   developing   and   the   developed   markets   are   well   aligned-­‐   better   patient   outcomes   and   lower   total   health   care   costs.   These  new  regional  markets  provide  an  ideal  opportunity  for  companies  such  as  Telstra  to  grow  their   health-­‐related  businesses.     Summary   The  narrative  for  companies  entering  the  digital  health  space  is  that  digital  transformation  can  help   address  the  risk  to  national  prosperity  of  the  current  healthcare  system,  and  can  help  achieve   productivity  improvements  while  also  improving  the  quality  of  life  of  Australians.  While  it  is  seen  as   legitimate  to  make  a  profit  from  health,  this  needs  to  be  combined  with  an  approach  that   demonstrates  care  and  advocacy  –  on  the  individual  and  the  societal  level.     The  differentiators  in  business  are  changing,  and  this  is  also  the  case  in  the  health  sector.  Once   companies  just  sold  products,  and  then  as  the  products  became  similar,  the  approach  changed  to   selling  services.  The  service  economy  then  changed  to  the  "experience  economy".  The  next  stage  is   the  "cause  economy",  where  customers  will  not  just  buy  what  you  do,  but  also  why  you  do  it.     Emerging  trends  like  data  philanthropy  makes  universal  health  care  the  ideal  "cause  economy"   opportunity.  Companies  that  are  viewed  as  having  lost  their  "cause"  will  struggle  and  will  be   replaced  by  those  that  can  demonstrate  their  cause  credentials,  in  their  company  culture  and  in   living  that  culture  in  every  interaction  with  their  customer.  This  is  the  low  hanging  fruit.     -­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐     David  Noble  MBBS,  FANZCA  is  the  Founding  Director  of  BDI  Health.     David  comes  from  a  medical  background  as  a  consultant  anaesthetist.  In  2001  he   expanded   into   medical   hardware   innovation   and   later   into   health   care   transformation.    In  2012  David  was  invited  to  be  a  strategic  adviser  to  IBM  Australia   in   the   space   of   Smarter   Health   and   in   2015   he   accepted   a   mentor   position   at   Innovyz,   a   private   technology   accelerator   in   Adelaide.   He   is   also   an   external   member   of   Centre   for   Biopsychosocial   and   eHealth   Research   &   Innovation   at   Federation  University  Australia.    David’s  lived  experiences  as  a  clinician,  entrepreneur  and  patient   provides   the   insight   that   allows   him   to   challenge   medical   mythology,   custom   and   convention;   creatively  disrupt  the  century  old  traditional  models  of  health  care  and  construct  models  that  are   relevant  to  the  needs  and  expectations  of  a  progressive  and  modern  society.  

Views

Total views

255

On Slideshare

0

From embeds

0

Number of embeds

15

Actions

Downloads

4

Shares

0

Comments

0

Likes

0

×