In this talk from Stanford Medicine X 2013, Alex Fair explores the blossoming patient-centered healthcare revolution and his journey from "Geek to Freak to Hero".

1. Healthcare Revolution
@alexbfair#MEDX

2. Geek
to
Freak
to
Hero
@alexbfair#MEDX

3. Not just any Geeks

4. And we don’t control anything
Not the PayPal Mafia

5. We do our jobs and see problems

6. And Imagine Solutions

7. Healthcare Innovation is
more difficult due to
regulations and aversion to
adoption
…and predicting Success
in Healthcare is difficult…
PROBLEM
which constrains capital,
which limits innovation,
which makes healthcare less effective

8. And our solution isn’t usually a
widget
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9. It doesn’t usually get sold to
consumers (patients)
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10. You generally need an expert to
install it
Image courtesy of Policymed.com

11. And no one, especially the patient thinks
they should pay very much for it

12. And it costs like a billion dollars to
do anything

13. Which YOU have No Say in
NIH Grants, $30.9
Pharma R&D
Investment,$49.5
Foundations/
SBIR, $3.0
Venture
Capital,$8.5
Approximately $100B is Invested to fund
Healthcare Innovation in U.S. Annually
Sources of Funding For Healthcare Innovation – 2011 ($B)
Venture Capital
 Of the $8.5B invested in 2011, 19% ($1.6 billion) was invested in first
or seed round investments and 81% ($6.9 billion) was invested in later
stage projects
 Of the $8.5B invested in 2011, 14% ($1.2 billion) was invested in
healthcare IT investments and 86% ($7.3 billion) was invested in life
sciences
Excludes: Angel investments, No detailed backup to foundation capital invested in early stage projects.
Foundations
 A variety of foundations offer funding for early stage healthcare
innovation, mostly focused around disease groups
 In 2011, Susan G Komen For The Cure, one of the larger research
funding not-for-profits had 2011 revenue of $358 million, but after
fundraising expenses and administrative expenses only spent $283M
million on programs (79% margin)
NIH Grants
 Largest institutes are the National Cancer Institute which consumes
16% of NIH funding ($5.1 billion) and National Heart, Lung, and Blood
Disease which consumes 10% of the NIH funding ($3.0 billion)
 NIH budget expected to contract due to government debt pressures
and expected decline in national spending
Excludes angel investment; approximates foundations

14. Because people will die if you get it
wrong

15. But they also die if you don’t try
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16. And we are not powerless

17. When People Stand Up
Revolutions Happen
When citizens get involved and activated,
massive change is enabled. Crowdsourcing
innovation and Crowdfunding their ideas is
changing the world.

18. What Happens When You Engage Crowds that
Care
• Funding – Investors look for traction among KOLs and
constituent institutions and patients
• Partners – Where Corporate Innovation Officers shop
• Publicity – weekly News Stories and three television
interviews in our first six months
• Community – Feedback, Clinical Centers, Trials, Support,
Beta Testers, Distributors, and more
…but this is just the beginning

19. 1. How to Code a Revolution in
Healthcare
@alexbfair#MEDX

20. 1: Get a Crazy Idea
…that just might work
@fredtotter
#MEDX

21. 2. Run it by some friends
(designers, doctors, programmers, nurses, artists, investors…)
…until you prove it does

22. 3. Ask a crowd that cares to back it

23. …and they ask a
crowd,

24. …and so on,

25. …and so on,

26. …and so on,

27. And then…
You may actually get a hospital to sign up
But who cares?

28. Because you already have:
Customers
Partners
and Funding

29. And who
wants a term
sheet?
When you
can have a
bill of sale?

30. Fred Trotter/ NotOnlyForDev
• Eight Weeks
• $45,011 Raised
• 113 Patients, Doctors,
Nurses or Health Care
Pros
• 24 Partners
• New de facto standard

32. Partners Step Up
Companies that are partnering with crowdsourced solutions
Over 100 Partnerships Startd

33. 2. Partners Driving Innovation
• Challenges
• Open Innovation Programs
• Grants
• Pitch Days

34. -
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Inside
Govt
Rock
Outside
Cost Per Idea Cost Per Solution
Open vs. Closed
– In-House (2012, Fortune 100
Company)
• 50M cost
• 2 outside design vendors
• 18 Months
– Open Innovation Challenge CMMI/
CMS
• 8,500+ ideas submitted
• 900M offered
• 3 Months
– Public Open Challenge: Rock
Health:
• 800+ ideas submitted
• 1.3 M/ 100K offered
– Outside Customer Challenge
• 10K offered
• 1,000s of submission from
customers
Dollars
@alexbfair#MEDX

35. Crowdsourcing Innovation

36. Tech
•Crowdfunding
•Challenges
•Social Media
Awareness
•Strategy
•Outreach
•Design
Operations
•Setup
•Management
•Support
Experts
•Optimization
•Mentors
•Partners
Engagement
•Customers
•Communities
•Live Events
How Your Crowd Drives
Crowdfunding with an Open
Innovation Ecosystem
EcoSystem

37. Get Help From: Dr. Howard Luks, Regina Holliday, Sutha Kamal, Kim Whittemore,
Eythor Ernstson, Donna Usiskin, Eugene Borukovich, Dr. Jen Dyer, Steve Greene,
David Williams RN, Paulo Machado, Dave Chase Fred Trotter, and many more
Mentors get involved, becoming advisors, early adopters,
investors, or champions driving our client’s success
Results: Crowds Drive Massive Exposure

38. Get Help From: Dr. Howard Luks, Regina Holliday, Sutha Kamal, Kim Whittemore,
Eythor Ernstson, Donna Usiskin, Eugene Borukovich, Dr. Jen Dyer, Steve Greene,
David Williams RN, Paulo Machado, Dave Chase Fred Trotter, and many more
Mentors get involved, becoming advisors, early adopters,
investors, or champions driving success
PR
Design
Copy BizDev
Partners
IP
Strategy SoMe
Legal
Capital
Events
Uber Geeks Get Involved to Power
Ideas

39. 3. Power to the Patients!
@ReginaHolliday

41. #TheWalkingGallery Film
• $13,175 in 4 weeks from Doctors, patients,
Medical School Leaders
• Film produced and distributed to increase
awareness of Patient perspectives in all
communities
Partnership With Patients
• $18,165 in 6 weeks from Doctors, Patients,
and Cerner Sponsored in Kansas City
• Created a conference to promote Physician /
Patient Partnership

42. Sarah Kucharski
FMDchat 501c(3) formed to
help people suffering from
a rare disease @FMDChat

43. Michael Weiss
• Crohn’s Disease Warrior Patrol 501c(3) formed to help people
suffering from Crohn’s, Colitis, and Irritable Bowel Disease
@HospitalPatient

44. John Accardi (Patient) &
Frank Lewis (Engineer)
@LewCardia

45. Creating the Wave
• Starts with
Patients
• Builds with
Doctors
• Peaks with
Partners
• And you may even
get a Hospital to
sign up
If you Do it Right, You all Ride the Wave together
Photo courtesy New York Times

46. How will you
Revolutionize
Medicine?
@alexbfair#MEDX

47. Get Your
Hero On(if you need a cape, please see Regina Holliday in the back)
Thank you for your support and attention
@alexbfair#MEDX