Tennessee HFMA Conference | Turning Chaos Into Opportunity

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Presentation given on 05.20.14 at the Tennessee HFMA Spring Conference. Speaking about new opportunities in Healthcare related to the Affordable Care Act, Consumerism in Healthcare, New Investment Opportunities, and how large Health Systems can become more competitive in the market.

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Tennessee HFMA Conference | Turning Chaos Into Opportunity

  1. 1. TURING CHAOS INTO OPPORTUNITY HFMA 2014 Spring Institute Dr. Michael Burcham President & CEO The Nashville Entrepreneur Center m@ec.co
  2. 2. Part 1 | The Current Chaos HFMA 2014 Spring Institute 05.20.14 | Burcham
  3. 3. AN ERA OF UNPRESCEDENTED OPPORTUNITY ! •  A New era of Consumerism! •  New Financial Models and Insurance Constructs ! •  The fusion of Medical and Social Data! •  Explosion of Mobile Technology! •  Shift from Classic B2B | Now B2B2C, C2B & B2C Models! •  Influx of New Entrants in the Industry! ! !
  4. 4. HIGH DEDUCTIBLE PLANS GO MAINSTREAM!
  5. 5. ACA | IMPLEMENTATION TIMELINE
  6. 6. AVERAGE DEDUCTIBLES FOR VISITS ARE INCREASING Source: PwC 2013 Health & Well-Being Touchstone Survey In-Network at Out-of-Network Deductibles
  7. 7. CONSUMERS ARE DISCOVERING THAT CONVENIENT CARE IS EFFICIENT CARE
  8. 8. INDUSTRY CONSOLIDATION HAS LED TO HIGHER PRICES | FOR NOW Source: Irving Levin Associates, 2013 Hospital Deals on the Rise
  9. 9. HOSPITAL PRICES REMAIN A MYSTERY FOR CONSUMERS
  10. 10. HOSPITAL READMISSION PENALTIES
  11. 11. Part 2 | The New Market Reality HFMA 2014 Spring Institute 05.20.14 | Burcham
  12. 12. …While Expanding the Fitness & Wellness Space New Players Will Disrupt the $3 Trillion US Health Economy Drawing Billions from Traditional Players
  13. 13. Of the 2013 Fortune 50 Companies, 24 are New Healthcare Entrants. Source: Fortune 50, 2013 New entrants will propel the Democratization of Healthcare – Empowering Consumers
  14. 14. Have you (or someone in your household) ever sought healthcare treatment in a retail clinic? Would you (or they) go to a retail clinic again in the future? AS HEALTHCARE GOES RETAIL | THERE’S ROOM FOR GROWTH
  15. 15. 35 - 54 YEAR OLDS ARE MOST LIKELY TO CHOOSE NEW OPTIONS FOR CARE
  16. 16. •  Diagnostics •  Primary Care •  Online Support Source: HRI Consumer Survey, December 2013 CONSUMERS | THEY ARE READY TO GET CARE IN NEW WAYS & IN NEW PLACES
  17. 17. MOBILE | THE FUTURE OF HEALTHCARE
  18. 18. MOBILE | 2005 vs 2014 2   80% Don’t leave home without their device Source: Google, Our Mobile Planet 2005 2014
  19. 19. CONSUMERS TURN TO TECHNOLOGY TO COMMUNICATE WITH PROVIDERS How willing would you be to communicate with your doctor, nurse or caregiver in the following way?
  20. 20. More than half of consumers want to shop for healthcare...but their preferred method of doing so doesn’t exist yet Source: HRI Consumer Survey, December 2013 OPPORTUNITY | CONSUMERS WANT AN AMAZON.COM STYLE EXPERIENCE
  21. 21. GROWING THE $267 BILLION WELLNESS AND FITNESS MARKET Source: HRI Consumer Survey, December 2013
  22. 22. 80 Million Wearable wireless sensors for fitness and wellbeing by 2016. Adoption is driven by device availability & new social patterns that encourage people to record and share fitness data
  23. 23. The ideal experience is increasingly being defined by non-clinical elements, such as convenience, amenities, and customer service. AN IDEAL EXPERIENCE PROMPTS 34%
 OF CONSUMERS TO SWITCH PROVIDERS Source: PwC 2013 | Customer Experience Radar Research
  24. 24. Part 3 | From Chaos To Opportunity HFMA 2014 Spring Institute 05.20.14 | Burcham
  25. 25. 1. FOCUS ON THE BUSINESS MODEL | Base your business models on generating value in the New Health Economy. BUSINESS PRINCIPLES TO TURN CHAOS INTO OPPORTUNITY 10
  26. 26. 2. INNOVATION IS NOT CREATED EQUAL | Aim for disruptive leaps as customers will reward truly transformative services. Embrace a fast, frugal, frequent failure model to quickly develop and test ideas (think “lean startup”). BUSINESS PRINCIPLES TO TURN CHAOS INTO OPPORTUNITY 10
  27. 27. 3. TURN THE TABLES | Consider a Consumer- to-Business (C2B) strategy. Use consumer data to refine business models, enhance consumer experience and earn greater loyalty. BUSINESS PRINCIPLES TO TURN CHAOS INTO OPPORTUNITY 10
  28. 28. 4. ENGAGE RISK MANAGEMENT | Traditional rules of healthcare still apply. Involve regulatory, legal and compliance counsel early. BUSINESS PRINCIPLES TO TURN CHAOS INTO OPPORTUNITY 10
  29. 29. 5. COLLABORATE | Blend the best of Emerging ventures and incumbents. Fill skill and asset gaps. BUSINESS PRINCIPLES TO TURN CHAOS INTO OPPORTUNITY 10
  30. 30. 6. BIGGER THAN A WEBSITE | Healthcare’s next generation consumer is mobile and lives online. It will take more than a website to thrive in the New Health Economy. BUSINESS PRINCIPLES TO TURN CHAOS INTO OPPORTUNITY 10
  31. 31. 7. CONSUMER CENTRIC | Evaluate everything from operating hours to availability of clinicians via digital devices to transparency of pricing and quality – through the Eyes of the Consumer. BUSINESS PRINCIPLES TO TURN CHAOS INTO OPPORTUNITY 10
  32. 32. 8. DO WHAT MATTERS MOST | Carefully evaluate whether to chase commodity revenue or develop new revenue models anchored on core capabilities. Invest in new ones. BUSINESS PRINCIPLES TO TURN CHAOS INTO OPPORTUNITY 10
  33. 33. 9. THINK VALUE | Challenge traditional thinking in healthcare – focus on the customer, who wants and needs change and is critical to enabling it. BUSINESS PRINCIPLES TO TURN CHAOS INTO OPPORTUNITY 10
  34. 34. 10. EMPHASIZE QUALITY | Match or beat incumbents on quality by using innovative approaches such as virtual networks of experts for second opinions. BUSINESS PRINCIPLES TO TURN CHAOS INTO OPPORTUNITY 10
  35. 35. Part 4 | A Few Local Favorites HFMA 2014 Spring Institute 05.20.14 | Burcham
  36. 36. The Online Patient Self-Scheduling Solution
  37. 37. of online consumers are comparison shopping on 2+ hospital websites before accessing care. 64% |
  38. 38. $112,824 Opportunity cost of losing one hospital website visitors
  39. 39. IASIS Healthcare ü  Started InQuicker partnership with 3 EDs in 2012 ü  13 IASIS sites now have scheduling in ED, Urgent Care, and Physicians’ Clinics
  40. 40. 35% vs. 29% Commercially Insured $21,665,785 InQuicker program ROI RESULTS
  41. 41. +
  42. 42. Less Noise | More Signal
  43. 43. THE COMMUNICATION PROBLEM Super-Sized Health Systems have a fragmented approach to internal communications leading to confusion, loss of information and decreased engagement.
  44. 44. AN ELEGANT SOLUTION A Communication Management Systems and Mobile App that strengthens and streamlines internal communications.
  45. 45. Why It Matters Engaged staff are 50% more likely to show an attitude of genuinely caring about patients than non-engaged staff. Hospitals with above median HCAHPS scores report 37% high operating income. Towers Watson, 2013
  46. 46. Product Features
  47. 47. Core Functionality Pulse Surveys Calendar Integration Interest Management Push Notification
  48. 48. Time Matters in Cardiac Care Josh Nickols, PhD MBA Chief Executive Officer 6.7 Deaths in the US 313 Deaths Worldwide
  49. 49. Cardiology ECG Technician Most ECG systems print on thermal paper ECG USE REMAINS WIDELY UNCHANGED
  50. 50. CARE PROVIDERS ARE IN NEED OF A SOLUTION Faxing Scanning Phone Camera Cell phones and Faxes are SolutionsBandAid
  51. 51. CELLPHONES AND EMAIL CREATE PROBLEMS FOR HOSPITALS Unreadable ECG tracings Violations of healthcare law 70% loss of tracings Unsigned reports: Medicare fraud
  52. 52. CURRENT ECGS DON’T FIT THE PRESENT MODEL OF HEALTHCARE Obsolete within 24 months Delays through hospital server systems Relatively immobile ECG devices and data systems are expensive
  53. 53. 1” INVISIONHEART ECG - Small and Highly Portable - Higher Resolution than Conventional ECGs - Accessibility
  54. 54. InvisionHeart
  55. 55. 10 MINUTES ECG OVER-READ SERVICES
  56. 56. Part 5 | An Entrepreneurial Mindset HFMA 2014 Spring Institute 05.20.14 | Burcham
  57. 57. •  Search •  Big Data •  Indoor Mapping •  Online Scheduling •  Near Field Communication •  Mobile Diagnostics •  Connected Devices •  Wearable & Embedded Technologies •  Wellness Apps •  Virtual Visits | Telemedicine •  Mood Detection •  Gesture Recognition •  3d Printing & Bio-Printing WHAT IS IMPACTING HEALTHCARE CONSUMER BEHAVIOR?
  58. 58. Source: The New Multi-Screen World Study | Google, August 2013 CONSUMER CHOICE IS OFTEN MADE IN CONTEXT OF TIME & ACCESSIBILITY
  59. 59. MULTI-CHANNEL LIFE MOST CONSUMERS HAVE A Customers
  60. 60. EMPLOYERS SEARCH PROVIDERS SERVICE VENDORSA HEALTH PLANS APP MAKERS Customers AROUND THE CONSUMER HEALTHCARE STAKEHOLDERS ARE ALIGNING You are competing with every other type of healthcare entity for “shelf space” with the consumer.
  61. 61. WHY AREN’T HOSPITAL MARKETERS DOING THIS?
  62. 62. Two-way communication with consumers. Digital engagement is part of corporate DNA Analytics integrated into business, standardization, data driving behavior modification of consumers Lean Startup mindset for new ideas | strategic partnerships driving innovation & service lines Focus on value and centered around consumer, close to home, through digital devices Business Models Consumer Engagement Data Driven Design New Innovation THERE IS NOT BETTER TIME TO TURN CHAOS INTO OPPORTUNITY THAN NOW

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