The document summarizes a presentation on digital health value propositions. It discusses how digital health can help address rising healthcare costs, defines digital health as software combined with healthcare, and notes the venture potential of fast failure, low capital needs, and scalability alongside regulatory challenges. Key customers for digital health include consumers, employers, insurers and government, providers, and medical producers. The presentation emphasizes testing value propositions with minimum viable products and customer interviews to determine product-market fit within 10-20 weeks.

1. Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd

2. HC Costs are a BFD
“Healthcare costs will be the preeminent
social and political issue of the next decade”

3. What is Digital Health?
Software
Healthcare
+/- Consumers
Venture Profile:
Fast to fail, low capital intensity,
highly scalable, +/- regulatory burden

4. Why now?
Technology
Adoption
Data
Evolving Business Models
ACOs
Capitation
Consumer
Reach

5. Business Model Canvas
Product/Market Fit, Customer Growth,
Revenue and Costs, Partnerships and Operations

6. Broader Context
Competitive
Landscape
Regulatory
Changes
Industry
Trends
Become your own expert!

7. Value Propositions
This
Week
Next
Week

8. Key Customers
Consumers
Employers
Insurers + Government
Providers
Producers

9. Learning Loops
Consumers
Employers
Providers
MVP?
MVP?
MVP?
Insurers + Government
Producers
MVP?
MVP?
Hypothesis, Experiment, Data, Insight

10. Consumers
Convenience
Lower Costs
Better Quality
(perceived)
Other Factors:
Privacy, social, comfort, delight,
decision support, outcomes...

11. Employers
Lower Costs
Productivity
Work output
Engagement
Absenteeism
Other Factors:
Lower administrative burden,
hiring advantages, culture, ...
Employee
Satisfaction

12. Providers
What is their business model?
Fee-for-Service
At-Risk
!
!
Reimbursement
Productivity
...
Retention
Cost Reduction
(Outcomes,Technology)
In-Network
Productivity

13. Insurers + Government
Core Business
!
Productivity
Provider Offerings
Acquisition/Retention
Risk Analytics
Compliance
!
As Fiscal
Intermediaries:
Consumers
(Self-Insured) Employers

14. Producers
Pharma, Medical Devices, Cloud-based EMRs
Increase Sales of
Existing Business
Enter New Lines of
Business
Cost & Risk
Reduction
Core functions -> Enterprise SaaS opportunities

15. Key Customers
Consumers
Employers
Insurers + Government
Providers
Producers

16. This Week’s BIG IDEA
Strength of
Value Proposition
is proportional to
Pricing!
ROI > Outcomes > Access > Convenience

17. Looking Ahead
Product & MVPs:
10-20 interviews with
key customers/users
!
Efficiently Sample
Customers:
Start with breadth,
transition to depth
!
In 2 weeks, you should
have Product/Market Fit
down cold!
This
Week
Next
Week

18. Our Contact Information
agupta@mdv.com
@abhasguptamd
linkedin.com/in/abhasguptamd
kyra.davis@ucsf.edu
@kyradavis
linkedin.com/in/kyradavis