Healthcare in Digital Age
by Assit. Prof. Polawat Witoolkollachit,MD
Present for the 3rd Samitivej Sriracha Medical Symposium 2018 "CQI & Innovation in Healthcare 4.0"
Engineering Services: con gli ingegneri per creare valore sostenibileaccenture
Collaboriamo con gli ingegneri di aziende capital intensive per combinare tecnologie innovative con un approccio pragmatico che aiuti a raggiungere risultati aziendali migliori.
Accenture Digital Health Technology Vision 2018accenture
Explore Accenture's Digital Health Tech Vision 2018 report, showcasing five health IT trends that are going to redefine how intelligent enterprises of the future will work. Learn more: https://accntu.re/2IoOLMI
Digital Healthcare Trends: Transformation Towards Better Care RelationshipKumaraguru Veerasamy
Digital health encompasses digital care programs, technologies with health, healthcare, living, and society to enhance the efficiency of healthcare delivery and to make medicine more personalized and precise. With the increasing adoption of telemedicine, wearable devices, mobile health apps (especially during the recent COVID-19 pandemic) and VR/AR; digital health is poised to take healthcare forward.
Emerging Trends in Healthcare InnovationGokul Alex
A Point of View on Applying Innovation Incubation and Ecosystem Development to build a business innovation ecosystem in Healthcare sector with specific focus on Service Design and Service Innovation
Life Sciences Commercial Services | Accentureaccenture
Accenture Life Sciences commercial services bring insights, design thinking and human ingenuity together to reimagine your customer experiences and commercial growth. Visit https://accntu.re/2me47gO to learn more.
COVID-19 heightened chronic challenges within the global healthcare industry. It became a catalyst amid fierce competition and tight regulations for health providers and payers to focus on digital health, cybersecurity, patient data transparency, and a variety of customer-centric and operational enhancements. As a result, we found the 2022 trendline pointing to improvements in access and quality of care.
Healthcare challenges such as optimizing the cost of care while simultaneously enabling personalized interventions and consumer-friendly shoppable services are long-standing − but, historically, the industry has been slow to react.
Read our Top Trends 2022 report to examine the lingering ramifications of the pandemic, responses from medical and insurance organizations, and the worldwide impact of ever-changing regulatory standards and mandates.
Healthcare in Digital Age
by Assit. Prof. Polawat Witoolkollachit,MD
Present for the 3rd Samitivej Sriracha Medical Symposium 2018 "CQI & Innovation in Healthcare 4.0"
Engineering Services: con gli ingegneri per creare valore sostenibileaccenture
Collaboriamo con gli ingegneri di aziende capital intensive per combinare tecnologie innovative con un approccio pragmatico che aiuti a raggiungere risultati aziendali migliori.
Accenture Digital Health Technology Vision 2018accenture
Explore Accenture's Digital Health Tech Vision 2018 report, showcasing five health IT trends that are going to redefine how intelligent enterprises of the future will work. Learn more: https://accntu.re/2IoOLMI
Digital Healthcare Trends: Transformation Towards Better Care RelationshipKumaraguru Veerasamy
Digital health encompasses digital care programs, technologies with health, healthcare, living, and society to enhance the efficiency of healthcare delivery and to make medicine more personalized and precise. With the increasing adoption of telemedicine, wearable devices, mobile health apps (especially during the recent COVID-19 pandemic) and VR/AR; digital health is poised to take healthcare forward.
Emerging Trends in Healthcare InnovationGokul Alex
A Point of View on Applying Innovation Incubation and Ecosystem Development to build a business innovation ecosystem in Healthcare sector with specific focus on Service Design and Service Innovation
Life Sciences Commercial Services | Accentureaccenture
Accenture Life Sciences commercial services bring insights, design thinking and human ingenuity together to reimagine your customer experiences and commercial growth. Visit https://accntu.re/2me47gO to learn more.
COVID-19 heightened chronic challenges within the global healthcare industry. It became a catalyst amid fierce competition and tight regulations for health providers and payers to focus on digital health, cybersecurity, patient data transparency, and a variety of customer-centric and operational enhancements. As a result, we found the 2022 trendline pointing to improvements in access and quality of care.
Healthcare challenges such as optimizing the cost of care while simultaneously enabling personalized interventions and consumer-friendly shoppable services are long-standing − but, historically, the industry has been slow to react.
Read our Top Trends 2022 report to examine the lingering ramifications of the pandemic, responses from medical and insurance organizations, and the worldwide impact of ever-changing regulatory standards and mandates.
Digital Health Market has exploded in the last few years. Will that continue? What are the main areas of growth in digital days and what the future will bring us.
Patient centricity and digital solutionsAhmed Graouch
Beyond product offerings, it also positions Medtech companies to help hospitals and health systems transition to the future of health through services.
The term “digital twin” refers to the digital version of a physical device or process. By bridging the physical and the virtual worlds, data is transmitted seamlessly allowing the virtual entity to exist simultaneously with the physical device or process. Digital twins are emerging as virtual test beds for
possible solutions before they implement physical devices. These computer-based models are fed individual and population data and mimic the electrical and physical properties of an object.
Medical device companies are using this technology to simulate how their devices are being used in the
clinical setting.
In our view of the future of health, radically interoperable data is likely to play a huge role in transforming health care. Data from medical technologies such as wearables, remote monitors, and
sensors will be standardized, stored, updated, and aggregated with other sources of information such as social media platforms, retailers, and electronic health records.
The combined data will create a complete personal profile that physicians and health systems can use to help ensure that
I deliver health services in an appropriate fashion.
At Vital Signs Conference in Denmark Monty Metzger has been invited to hold a Keynote about the Future of Digital Health. The Keynote speech contains an overview of five MegaTrends in the Health & Medicine Industry: Ubiquitous Health-Tech, DataSexuals, Orchestrated Data, CrowdMarket and Empowered Patient.
Video of the Speech: http://youtu.be/wRdgNisYM9E
To support this future vision and illustrated the trends Monty has integrated best-in-class examples and international case studies from USA, Europa and Asia. We hope that this presentation can elevate your organization's point of view on the evolving healthcare landscape and inspire you to imagine a future focused on delivering superior care and patient experiences.
For Speaking requests please contact Monty Metzger at http://blog.monty.de/speaking
or contact me at monty (at) aheadoftime (dot) de
For customized Trend Reports, Corporate Workshops or international Trend Tour Requests please contact
www.aheadoftime.de
March 02, 2018
Value-based health care is one of the most pressing topics in health care finance and policy today. Value-based payment structures are widely touted as critical to controlling runaway health care costs, but are often difficult for health care entities to incorporate into their existing infrastructures. Because value-based health care initiatives have bipartisan support, it is likely that these programs will continue to play a major role in both the public and private health insurance systems. As such, there is a pressing need to evaluate the implementation of these initiatives thus far and to discuss the direction that American health care financing will take in the coming years.
To explore this important issue, the Petrie-Flom Center for Health Law Policy, Biotechnology, and Bioethics at Harvard Law School collaborated with Ropes & Gray LLP to host a one-day conference on value-based health care. This event brought together scholars, health law practitioners, and health care entities to evaluate the impact of value-based health care on the American health care system.
For more information, visit our website at: http://petrieflom.law.harvard.edu/events/details/will-value-based-care-save-the-health-care-system
The latest in advanced technology and digital capabilities are changing the way the life sciences industry develops new, life-changing treatments for patients.
Digital Health Market has exploded in the last few years. Will that continue? What are the main areas of growth in digital days and what the future will bring us.
Patient centricity and digital solutionsAhmed Graouch
Beyond product offerings, it also positions Medtech companies to help hospitals and health systems transition to the future of health through services.
The term “digital twin” refers to the digital version of a physical device or process. By bridging the physical and the virtual worlds, data is transmitted seamlessly allowing the virtual entity to exist simultaneously with the physical device or process. Digital twins are emerging as virtual test beds for
possible solutions before they implement physical devices. These computer-based models are fed individual and population data and mimic the electrical and physical properties of an object.
Medical device companies are using this technology to simulate how their devices are being used in the
clinical setting.
In our view of the future of health, radically interoperable data is likely to play a huge role in transforming health care. Data from medical technologies such as wearables, remote monitors, and
sensors will be standardized, stored, updated, and aggregated with other sources of information such as social media platforms, retailers, and electronic health records.
The combined data will create a complete personal profile that physicians and health systems can use to help ensure that
I deliver health services in an appropriate fashion.
At Vital Signs Conference in Denmark Monty Metzger has been invited to hold a Keynote about the Future of Digital Health. The Keynote speech contains an overview of five MegaTrends in the Health & Medicine Industry: Ubiquitous Health-Tech, DataSexuals, Orchestrated Data, CrowdMarket and Empowered Patient.
Video of the Speech: http://youtu.be/wRdgNisYM9E
To support this future vision and illustrated the trends Monty has integrated best-in-class examples and international case studies from USA, Europa and Asia. We hope that this presentation can elevate your organization's point of view on the evolving healthcare landscape and inspire you to imagine a future focused on delivering superior care and patient experiences.
For Speaking requests please contact Monty Metzger at http://blog.monty.de/speaking
or contact me at monty (at) aheadoftime (dot) de
For customized Trend Reports, Corporate Workshops or international Trend Tour Requests please contact
www.aheadoftime.de
March 02, 2018
Value-based health care is one of the most pressing topics in health care finance and policy today. Value-based payment structures are widely touted as critical to controlling runaway health care costs, but are often difficult for health care entities to incorporate into their existing infrastructures. Because value-based health care initiatives have bipartisan support, it is likely that these programs will continue to play a major role in both the public and private health insurance systems. As such, there is a pressing need to evaluate the implementation of these initiatives thus far and to discuss the direction that American health care financing will take in the coming years.
To explore this important issue, the Petrie-Flom Center for Health Law Policy, Biotechnology, and Bioethics at Harvard Law School collaborated with Ropes & Gray LLP to host a one-day conference on value-based health care. This event brought together scholars, health law practitioners, and health care entities to evaluate the impact of value-based health care on the American health care system.
For more information, visit our website at: http://petrieflom.law.harvard.edu/events/details/will-value-based-care-save-the-health-care-system
The latest in advanced technology and digital capabilities are changing the way the life sciences industry develops new, life-changing treatments for patients.
Non Invasive Health Monitoring with mHealthBart Collet
mHealth Trends and examples of non invasive mobile health devices, organisations and services.
Made as preparation for MoMoAMS #14 about mHealth, Jan 25th 2010, Amsterdam
What’s next in healthcare digital marketing?White Rhino
It's time to think beyond hospital digital marketing table stakes and embrace a new generation of provider digital marketing. It’s “advertising without the ads” and works best when weaved into the organization’s operational fabric. A recent presentation at the Greystone Healthcare Internet Conference shares how creating valuable digital services can build engaging, life-long patient relationships that improve hospital service, raise satisfaction and build a better care experience.
The Commonwealth Fund - Putting the Patient at the Center of the Digital Univ...Healthegy
Keynote Address - Presentation by Commonwealth Fund at Digital Healthcare Innovation Summit 2016
Participant:
David Blumenthal, MD, MPP, President & CEO – Commonwealth Fund
Introduced By:
Robert Mittendorff, MD, MBA, Partner – Norwest Venture Partners
Powered by:
Healthegy
For more healthcare innovation
Visit us at Healthegy.com
Sensors for Wearable Electronics & Mobile Healthcare 2015 Report by Yole Deve...Yole Developpement
Yole;report;market;technology;application;research;trend;player;analysis;free;data
MEMS, Compound Semiconductors, LED, Image Sensors, Optoelectronics, Microfluidics & Medical, Photovoltaics, Advanced Packaging, Power Electronics
More information on that report at http://www.i-micronews.com/reports.html
The health care industry is lagging other industry sectors when it comes to customer-centric thinking in the age of digital, according to a new report by Adobe Digital Insights (ADI), which looks at how consumers are responding to the online tools at their disposal for managing health care.
Key Success factors in digital healthcareChiweon Kim
The slides were used at Bio Korea 2016.
The topic is key success factors in digital healthcare and it deals with 3 topics: Utility, Business model, platform.
Our analysis regarding the evolution of what we believe is the development of the Healthcare Cloud. We discuss the siloed nature of HCIT in terms of legacy and cloud and discuss how we believe entities need to shift from point to platform solutions over time. We also lay out the fundamental underpinnings of what makes a compelling digital healthcare investment.
Healthcare Digital Transformation - A primer for healthcare executives and te...Damo Consulting Inc.
The future of healthcare is in digitally reimagined experiences for patients and caregivers alike. Digitalization offers increased choice and convenience for patients, and improved outcomes for caregivers while reducing costs and workloads.
Frost and Sullivan - Emergence of Digital Health PortalsDexter Wee
Compares the 6 Top Healthcare Portals around the World
1. 1177 Sweden
2. WebMD USA
3. WeDoctor China
4. NHS Choices UK
5. HealthHub Singapore
6. Sundhed Denmark
For more information on the Frost and Sullivan paper, follow the link here.
http://digitalhealth.sg/frostandsullivan-emergence-of-digitalhealth-portals/
ClickPointCare Revolutionizing Healthcare through Technology.pdfArticles Reader
Technology will undoubtedly play a bigger part in changing the healthcare scene as time goes on. As we move closer to a healthcare system that is more effective, accessible, and patient-focused, ClickPointCare not only adapts to these changes but also promotes innovation and advancement.
HealthXL Digital Health Success Stories Report Part OneMaeve Lyons
Part 1 of HealthXL’s ‘Digital Health Success Stories’ report is now available and delves into some of the recent successes in medical tech and asks the experts what it all means.
Key Points:
Multi-million dollar investments don’t always mean success. Success looks different to each stakeholder involved in digital health.
The winners in digital health will be those who provide real solutions to problems at a reduced cost.
Part 1 of HealthXL’s ‘Digital Health Success Stories’ report comprises an in-depth view of the progress of digital health, case studies, along with opinion from some key players in the industry.
Digital health empowers us with ways to improve outcomes and increase efficiency.
Part 2 of our report will look at how we can learn from failures in digital health, available [when available and how to access].
The rapid increase in population, rising burden of noncommunicable chronic diseases such as diabetes and obesity , care costs skyrocketing, and the global shortage of doctors, nurses, and technicians are leading to an increasing demand for resources to support healthcare. These global challenges will seriously affect the healthcare delivery is the US and around the world. The current technological advancements are leading to the emergence of the so called Health 4.0 revolution. Healthcare 4.0 has the potential to enable new healthcare related processes such as home care and personalized treatments and transform them into services. This paper provides an introduction to the emerging area of Healthcare 4.0 and identify its opportunities, benefits, and challenges. Matthew N. O. Sadiku | Adedamola A. Omotoso | Sarhan M. Musa ""Healthcare 4.0: An Introduction"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-2 , February 2020, URL: https://www.ijtsrd.com/papers/ijtsrd29791.pdf
Paper Url : https://www.ijtsrd.com/engineering/other/29791/healthcare-40-an-introduction/matthew-n-o-sadiku
Digital technologies are rapidly being integrated into almost every area of the healthcare industry. It is a broad umbrella term that refers to the use of digital technologies to enable universal healthcare access, improve healthcare quality, and enhance wellness. It may be regarded as the systematic application of digital technologies to support informed decision making by individuals, the health workforce, and health institutions, in order to improve health outcomes and wellness for all. It is becoming a pervasive component of healthcare practice, with applications in almost all areas of the healthcare sector. It has attracted lots of attention in the past decade in several nations worldwide. This paper provides an introduction to digital health. Matthew N. O. Sadiku | Uwakwe C. Chukwu | Abayomi Ajayi-Majebi | Sarhan M. Musa "Digital Health" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd46453.pdf Paper URL : https://www.ijtsrd.com/engineering/electrical-engineering/46453/digital-health/matthew-n-o-sadiku
List of most popular healthcare software to implement in 2023.pdfMobibizIndia1
The advancement in digital technologies has helped business areas across the globe, especially healthcare services. Medical organizations are enhancing their services via implementing emerging technologies like healthcare IT solutions for optimized performance.
Payers are being challenged as the industry shifts from volume-based care to a value-based reimbursement structure that would benefit the patient, the healthcare provider and the payer. New payment models including fee-for-service only and pay-for performance creates impetus for payers to acquire, aggregate, and analyze data.
What is Healthcare Technology Consulting and Why is it Neces1.pdfDashTechnologiesInc
Healthcare technology consulting involves the use of technology and expertise to improve the efficiency, quality, and overall delivery of healthcare services. It encompasses a range of services, including the implementation and optimization of healthcare information systems, digital transformation, cybersecurity, data analytics, telehealth solutions, and more. Healthcare technology consultants work with healthcare organizations, such as hospitals, clinics, and healthcare providers, to help them adopt and leverage technology effectively
Rethinking Health Plan Business Models for the Emerging On-Demand Digital Eco...Cognizant
Even as on-demand healthcare platforms disrupt the industry, they create possibilities for new value propositions, partnerships and business models that will further reshape the cost and delivery of care.
KEY Points of Leicester travel clinic In London doc.docxNX Healthcare
In order to protect visitors' safety and wellbeing, Travel Clinic Leicester offers a wide range of travel-related health treatments, including individualized counseling and vaccines. Our team of medical experts specializes in getting people ready for international travel, with a particular emphasis on vaccines and health consultations to prevent travel-related illnesses. We provide a range of travel-related services, such as health concerns unique to a trip, prevention of malaria, and travel-related medical supplies. Our clinic is dedicated to providing top-notch care, keeping abreast of the most recent recommendations for vaccinations and travel health precautions. The goal of Travel Clinic Leicester is to keep you safe and well-rested no matter what kind of travel you choose—business, pleasure, or adventure.
DECODING THE RISKS - ALCOHOL, TOBACCO & DRUGS.pdfDr Rachana Gujar
Introduction: Substance use education is crucial due to its prevalence and societal impact.
Alcohol Use: Immediate and long-term risks include impaired judgment, health issues, and social consequences.
Tobacco Use: Immediate effects include increased heart rate, while long-term risks encompass cancer and heart disease.
Drug Use: Risks vary depending on the drug type, including health and psychological implications.
Prevention Strategies: Education, healthy coping mechanisms, community support, and policies are vital in preventing substance use.
Harm Reduction Strategies: Safe use practices, medication-assisted treatment, and naloxone availability aim to reduce harm.
Seeking Help for Addiction: Recognizing signs, available treatments, support systems, and resources are essential for recovery.
Personal Stories: Real stories of recovery emphasize hope and resilience.
Interactive Q&A: Engage the audience and encourage discussion.
Conclusion: Recap key points and emphasize the importance of awareness, prevention, and seeking help.
Resources: Provide contact information and links for further support.
Cold Sores: Causes, Treatments, and Prevention Strategies | The Lifesciences ...The Lifesciences Magazine
Cold Sores, medically known as herpes labialis, are caused by the herpes simplex virus (HSV). HSV-1 is primarily responsible for cold sores, although HSV-2 can also contribute in some cases.
Rate Controlled Drug Delivery Systems, Activation Modulated Drug Delivery Systems, Mechanically activated, pH activated, Enzyme activated, Osmotic activated Drug Delivery Systems, Feedback regulated Drug Delivery Systems systems are discussed here.
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A feeding plate is a prosthetic device used for newborns with a cleft palate to assist in feeding and improve nutrition intake. From a prosthodontic perspective, this plate acts as a barrier between the oral and nasal cavities, facilitating effective sucking and swallowing by providing a more normal anatomical structure. It helps to prevent milk from entering the nasal passage, thereby reducing the risk of aspiration and enhancing the infant's ability to feed efficiently. The feeding plate also aids in the development of the oral muscles and can contribute to better growth and weight gain. Its custom fabrication and proper fitting by a prosthodontist are crucial for ensuring comfort and functionality, as well as for minimizing potential complications. Early intervention with a feeding plate can significantly improve the quality of life for both the infant and the parents.
Michigan HealthTech Market Map 2024. Includes 7 categories: Policy Makers, Academic Innovation Centers, Digital Health Providers, Healthcare Providers, Payers / Insurance, Device Companies, Life Science Companies, Innovation Accelerators. Developed by the Michigan-Israel Business Accelerator
Trauma Outpatient Center is a comprehensive facility dedicated to addressing mental health challenges and providing medication-assisted treatment. We offer a diverse range of services aimed at assisting individuals in overcoming addiction, mental health disorders, and related obstacles. Our team consists of seasoned professionals who are both experienced and compassionate, committed to delivering the highest standard of care to our clients. By utilizing evidence-based treatment methods, we strive to help our clients achieve their goals and lead healthier, more fulfilling lives.
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Gemma Wean- Nutritional solution for Artemiasmuskaan0008
GEMMA Wean is a high end larval co-feeding and weaning diet aimed at Artemia optimisation and is fortified with a high level of proteins and phospholipids. GEMMA Wean provides the early weaned juveniles with dedicated fish nutrition and is an ideal follow on from GEMMA Micro or Artemia.
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GEMMA Wean is available in 0.1mm, 0.2mm and 0.3mm. There is also a 0.5mm micro-pellet, GEMMA Wean Diamond, which covers the early nursery stage from post-weaning to pre-growing.
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1. Equity Research
Industry Analysis
Fall 2013
The Digital Healthcare Roadmap
The Four Stages of Healthcare Digitization: The Nexus of
Digital Healthcare Technology and Health Information
Management
Digital Healthcare Sector
Steve Rubis
(202) 778-4780 ● rubiss@stifel.com
2. Digital Healthcare 1 Industry Analysis — Fall 2013
Table of Contents
Preface 2
The Four Stages of Healthcare Digitization 3
Unlocking the Value of Data 8
The Demographic Trends Driving Digital Healthcare
and Why Investors Should Pay Attention 14
The Accelerators of Digital Healthcare Innovation 27
Qualcomm Life 28
Rock Health 31
StartUp Health 32
Healthbox 33
Blueprint Health 34
Digital Healthcare Technology Industry Overview 35
Many Exciting Opportunities and Many Ways to Invest 39
Clinical Back-Office and Clinical Front-Office 41
Analytics 46
Health and Wellness/Gamification 48
Medical Devices (Sensors/Monitoring/Imaging) 51
Diagnostics/Genomics/Clinical Trials 53
Provider Information/Insurance/Education 54
Fitness 56
Diabetes 58
Cardiovascular Diagnostics/Sensors 59
Telehealth 60
Conclusion: Who Leverages Digital Healthcare and Investment Potential? 62
Important Disclosures and Certifications 63
Stifel does and seeks to do business with companies covered in its research reports. As a result,
investors should be aware that the firm may have a conflict of interest that could affect the
objectivity of this report. Investors should consider this report as only a single factor in making
their investment decision.
All relevant disclosures and certifications appear on pages 63 and 64 of this report.
3. Digital Healthcare 2 Industry Analysis — Fall 2013
Preface
What is Digital Healthcare? We believe digital healthcare companies are engaged in the pursuit of
leveraging technology to transform all aspects of healthcare. Digital healthcare technology companies
specifically look to leverage Internet and mobile technology to improve healthcare by providing networks
with interoperability and providing mobility to the clinic. At the same time, digital healthcare companies
are leveraging these technologies to incentivize consumers to engage and take ownership of their health.
What is Health Information Management? We define health information management as the
maintenance of health records by pen and paper or digitally in hospitals, physician offices, health
departments, and insurance companies. In our view, electronic medical records (EMRs) and electronic
health records (EHRs) are creating the basic digital foundation needed to create a fully integrated digital
healthcare eco-system.
What are the Four Stages of Healthcare Digitization? In our view, digital healthcare technology and
health information management are converging to create a digitized healthcare system. We believe that
convergence will move the focus of healthcare digitization from building a foundation to an integrated eco-
system that drives reduced healthcare costs through the value of analytics. In our view, there are four
stages of healthcare digitization, which we describe below.
Stage 1 – Digitizing the Clinical Back-Office (enterprise systems solutions). We believe Stage 1
consists of building the basic digital infrastructure for healthcare. We believe the focus of Stage 1
revolves around companies developing technology around EMRs/EHRs, revenue cycle management
(RCM), and pharmacy benefit management, essentially digitizing the back-office infrastructure of a
doctor‟s office or hospital. Stage 1 solutions are often enterprise-type systems and do not always
exhibit robust interoperability between disparate systems.
Stage 2 – Digitizing the Clinical Front-Office and Back-Office (Internet and mobile solutions).
We believe Stage 2 consists of developing and implementing digital healthcare technologies that
involve the patient (e.g., wireless monitoring, health and wellness tracking, et al.). In our view, the
commonality among Stage 2 companies is a focus on leveraging the web, mobile, and the cloud to
create interoperable solutions, provide mobility to the clinic, as well as facilitating consumer
engagement in healthcare decisions.
Stage 3 – Integration. We believe integration consists of healthcare IT companies and digital
healthcare companies uniting through partnerships or acquisitions to create a complete eco-system
(closed loop of patient, provider, and healthcare organization/institution). We believe interoperability
and mobility will allow healthcare to transform outcomes and cost of care by unlocking the value of
data.
Stage 4 – Monetization. We believe monetization consists of unlocking the value of healthcare data
via analytics to all participants in the healthcare industry (e.g., healthcare IT companies, digital
healthcare companies, managed care organizations, and even pharmaceutical companies).
Where Are We Now in Terms of the Four Stages? We believe the digital transformation of healthcare is
currently in Stage 1 and the beginning of Stage 2. Clinician adoption of EMR/EHR technology illustrates
that the basic digital foundation is in place. In our view, the development of digital healthcare technologies
is driving the next stage of development by striving for interoperability of systems, mobile solutions, and
engaging patients in healthcare decisions and processes.
Our Thesis. We believe the digital transformation of healthcare will occur in four stages. In our view,
current efforts remain focused on building out the necessary technological infrastructure to drive
digitalization. We believe that digital healthcare technology will provide the catalyst for the digitalization of
healthcare to move from the foundation stage to the integration stage, which is characterized by
interoperability of disparate systems and solutions. Digital healthcare technology is engaging patients with
their healthcare, providing the necessary foundation to drive healthcare costs lower in the future. In our
opinion, the creation of a fully integrated digital healthcare system will lead to the ability to unlock the
value of healthcare data in order to drive down costs of care throughout the system.
4. Digital Healthcare 3 Industry Analysis — Fall 2013
The Four Stages of Healthcare Digitization
We believe the digitization of healthcare represents an important secular investing theme that will play out
over the next decade. The promise of healthcare digitization lies in the possibility of driving reduced
healthcare costs. We note that McKinsey estimates that digital healthcare technology may drive $300
billion to $450 billion in cost savings annually. In our view, these estimates represent the potential
associated with the digitization of healthcare. We believe that the digitization of healthcare remains in the
very early stages and the current focus lies in building the digital foundation (digitizing the clinical back-
office and clinical front-office). Once all constituents of the healthcare industry (clinicians, hospitals, and
patients) are digitized, then new technological solutions leveraging mobile and other new technologies
born out of digitization should move healthcare toward the goal of significant cost reductions.
In our view, healthcare digitization will develop through four stages. The focus of Stage 1 is developing a
basic digital infrastructure that moves the clinical back-office (medical records, billing, et al.) from pen and
paper to digital. Stage 2 will be driven by the development of new digital healthcare technologies that
leverage the wireless infrastructure digitizing the clinical front-office (communication with patients,
scheduling, monitoring, diagnostics, et al.). The focus of Stage 2 is on developing wireless healthcare
solutions leveraging mobile technology (smartphones and tablets) that allow patients and clinicians to
better understand healthcare issues. In our view, an important aspect of Stage 2 lies in driving consumer
adoption and closing the digital healthcare eco-system. We believe without patient buy-in, the digitization
of healthcare will likely begin and end with the clinical back-office.
In Stage 3, companies will begin to integrate developments achieved in Stage 1 and Stage 2; at this point
we believe companies will focus on how to close the eco-system in terms of their respective business
models. Lastly, in Stage 4, constituents will begin to focus on driving meaningful analysis off of the vast
data created by digitized healthcare. We believe Stage 4 represents the greatest opportunity for the
digitization of healthcare, but also represents the least defined opportunity, as we remain in the early
stages of healthcare digitization. In Exhibit 1, we provide a diagram that explains our framework, “The
Four Stages of Healthcare Digitization.”
Exhibit 1: The Four Stages of Healthcare Digitization Explained
Investment Area(s)Beneficiaries
Technological
Focus
The Four Stages of Healthcare Digitization
Stage 1
• Digitizing the Clinical Back-Office
Stage 2
• Digitizing the Clincial Front-Office
Stage 3
• Integration
Stage 4
• Monetization
EMRs/EHRs
RCMs
PBMs
CROs
Digital
Healthcare
Combines
Stage 1 and
Stage 2
Entire Healthcare
SupplyChain
Clinicians
Hospitals
Consumers
Clinicians
Closes the
Eco-system by
Integrating
Stage 1 and Stage 2
Constituents
Focus on
Leveraging
the Value of
Data
Healthcare IT Companies
Digital Healthcare Companies
In Stage 3, we believe Healthcare IT
companies will acquire Digital Healthcare
companies. Additionally, Digital Healthcare
companies will become IPO candidates
The Entire Eco-system:
Healthcare IT
Digital Healthcare Technology
Managed Care Organizations (MCO)s
Pharmaceuticals
Source: Stifel
Stage 1 – Digitizing the Clinical Back-Office. Stage 1 of healthcare digitization focuses on building a
digital infrastructure that allows clinicians (doctors, nurses, healthcare providers), hospitals, and other
healthcare organizations to move operations from pen and paper into the digital era, bringing medical
records, billing procedures, pharmacy management, and other relatively basic tasks online. Investment
opportunities in Stage 1 are for the most part healthcare IT companies focused on providing EMR/EHR
5. Digital Healthcare 4 Industry Analysis — Fall 2013
technology to healthcare, but also include companies focused on revenue cycle management, pharmacy
benefit management, and even contract research organizations. As clinicians become more comfortable
with digitization over time, we believe workflow will become more efficient and clinicians will become more
receptive to leveraging more complex digital healthcare solutions. We note that Government stimulus
represents a major catalyst driving Stage 1 as the Health Information Technology for Economic and
Clinical Health (HITECH), part of the American Recovery and Reinvestment Act (ARRA) of 2009,
authorized $22 billion in incentives to drive the modernization of health information technology systems.
Stage 2 – Digitizing the Clinical Front-Office. In Stage 2, the digitization efforts focus not only on the
clinical back-office, but also the clinical front-office. We believe Stage 2 digitization is about closing the
digital healthcare eco-system through interoperability, mobility, and consumer engagement. The focus of
Stage 1 is digitizing basic clinical back-office tasks that will likely result in more efficient clinician workflow.
In our view, Stage 1 does not involve using digital technology to transform patient care or provide
technological solutions that allow patients an easier time of tracking their own health. Really, the focus of
Stage 2 digitization lies in leveraging wireless technology (smartphones and tablets) to develop digital
healthcare solutions that allow patients to not only better understand their health, but also allow them to
make behavioral adjustments to their health. In our view, this stage represents the beginning steps for
healthcare leveraging digital technology to drive reduced healthcare costs. We note that Stage 2
digitization is being driven by multiple catalysts: (1) the Affordable Care Act, which shifts the focus of
healthcare decisions to consumers/patients, and (2) the proliferation of wireless technology and high
adoption rates among consumers and physicians. The convergence of these two catalysts has led to the
development of myriad companies focused on attacking different areas of healthcare through digital
technology.
Stage 3 – Integration. We believe Stage 3 represents the creation of a fully integrated digital healthcare
eco-system, which includes clinicians, hospitals, and patients. In Stage 3, companies will focus on ways
to integrate the digitized clinical back-office and the digitized clinical front-office. The goal of integration
will be to provide more complex solutions that help lead to reduced healthcare costs throughout the
system. We believe the integration of Stage 1 and Stage 2 will provide the necessary technological tools
for Accountable Care Organizations (ACOs) and other healthcare organizations to truly better understand
their patient populations, leading to improved healthcare outcomes and reduced costs.
Stage 4 – Monetization. We believe Stage 4 represents the Holy Grail of healthcare digitization as it
represents monetizing the value of data through reduced healthcare costs. In Stage 4, the integrated
digital healthcare tools of Stage 3 allow numerous constituents to analyze large data sets in order to drive
better understanding of patients and their health, in turn leading to lower costs. According to a recent
McKinsey & Company study, the promise of integrating digital healthcare and analytics may lead to an
estimated $300 billion to $450 billion in cost savings for the U.S. healthcare complex.
Where Are We in Terms of the Four Stages?
In terms of the Four Stages of Healthcare Digitization, we believe that we are in the early development
phase of Stage 1 and Stage 2. In terms of Stage 1 – Digitizing the Clinical Back-Office, we believe that
digitization remains low, as according to HIMSS roughly 80% of clinicians are using a component of a
basic EMR/EHR, and less than 40% of clinicians are using a more complex integrated EMR/EHR
solution. In our view, these statistics suggest that the digitization of the clinical back-office remains a
developing theme. At the same time, we believe that innovative digital healthcare technologies are
beginning to hit their stride. Technology companies are conducting clinical trials testing wireless devices
(e.g., Qualcomm Life testing devices from Asthmapolis and Zephyr) in order to understand the possible
impacts digital healthcare technology may have on care outcomes. We believe that wearable computing,
especially devices focused on tracking health data, seem to be one of the more well developed areas of
digital healthcare. Also, we believe there are companies already working to monetize healthcare data,
most notably managed care organizations (MCOs) with a health data analytics function.
6. Digital Healthcare 5 Industry Analysis — Fall 2013
We believe numerous companies are participating in the continued digitization of healthcare. In our view,
some participants are focused on a single stage of digitization. Companies participating in healthcare
digitization range from healthcare IT companies to digital healthcare companies, to technology companies
and managed care organizations, as well as pharmaceutical companies. At the same time, some
companies are starting to extend their focus to other stages (e.g., EMR/EHR companies integrating digital
healthcare technologies into their platforms (Athenahealth‟s acquisition of Epocrates or Aetna‟s
acquisition and integration of iTriage)). We believe that companies focused on creating integrated
solutions across all stages of digitization are best positioned to capitalize on the ongoing digitization of
healthcare. Below we provide a breakdown of companies participating and companies that are possible
beneficiaries of digitization by stage and focus.
The first stage of healthcare digitization, in our view, focuses on digitizing the clinical back-office. We
define the clinical back-office as tasks associated with health information management (e.g., medical
records, billing, revenue cycle management, or essential tasks not associated with direct influence of care
outcomes). The solutions and technologies that are digitizing the clinical back-office are aimed at
generating a more efficient infrastructure. Companies participating in Stage 1 likely fall into one of four
categories: EMR/EHR providers, revenue cycle management providers, pharmacy benefit managers,
logistics, or contract research organizations. We provide a list of prominent public and private companies
that we believe are participants in Stage 1 digitization in Exhibit 2.
Exhibit 2: Key Companies Participating in the First Stage of Healthcare Digitization ($ in millions)
EMRs / EHRs Ticker
Market
Cap
Revenue Cycle
Management (RCM) Ticker
Market
Cap
Pharmacy Benefit
Managers (PBM) Ticker
Market
Cap Logistics / Misc. Ticker
Market
Cap
Athenahealth ATHN $3,956.1 MedAssets MDAS $1,422.1 BioScrip BIOS $779.5 Owens & Minor OMI $2,153.2
Cerner CERN $16,023.2 HMS Holdings HMSY $2,103.9 ExpressScripts ESRX $53,346.3 Omnicell OMCL $807.6
Allscripts MDRX $2,565.9 Accretive Health AH $904.6 Walgreens WAG $46,739.9 Merge Healthcare MRGE $250.1
Greenway Medical GWAY $474.5 Quality Systems QSII $1,264.5 CVS/Caremark CVS $72,019.3
Computer Programs and Systems CPSI $638.2 Premier, Inc. Private Catamaran Corp CTRX $11,471.6
Epic Private
eClinicalWorks Private
M*Modal Private
MEDITECH Private
Stage 1: Digitizing the Clinical Back-Office: EMRs / EHRs / RCMs / PBMs / Logistics / Misc.
Source: Company documents, FactSet, and Stifel
The second stage of healthcare digitization, in our view, focuses on digitizing the clinical front-office. We
define the clinical front-office as essential tasks in a clinician‟s workflow aimed at driving a healthcare
outcome (e.g., monitoring, tracking information, et al.). We believe an essential component of digitizing
the clinical front-office consists of bringing patients into the fold. In our view, innovative companies
focused on developing digital healthcare technologies seek to solve a healthcare issue through
wireless/mobile technology, but also recognize that patient participation is vital to reducing costs. Both
public and private companies are participating in Stage 2 with public company participants being Internet
healthcare focused companies, large technology companies, and even diagnostic companies. Innovative
private digital healthcare companies are focused on a myriad of topics: medical records, analytics,
diagnostics, wearable computing, health and wellness, et al. We provide a list of prominent public and
private companies we believe are participants in Stage 2 digitization in Exhibit 3.
7. Digital Healthcare 6 Industry Analysis — Fall 2013
Exhibit 3: Key Companies Participating in the Second Stage of Healthcare Digitization
($ in millions)
Company Ticker
Market
Cap Company Ticker
Market
Cap Company Ticker Company Ticker
WebMD WBMD $1,667.0 Vocera VCRA $450.9 Jawbone Private Sotera Wireless Private
eHealthinsurance EHTH $513.8 Streamline Health STRM $92.1 Castlight Health Private Prodea Systems Private
Google GOOG $292,918.6 iRobot IRBT $966.3 PracticeFusion Private RedBrick Health Private
Apple AAPL $452,631.4 Nuance NUAN $6,101.1 AirStrip Technologies Private Healthline Networks Private
Samsung 005930.KS $163,245.0 Model N MODN $337.9 23andMe Private CareCloud Private
Medidata Solutions MDSO $2,434.8 Illumina ILMN $9,902.1 MedSynergies Private Glumetrics Private
Healthstream HSTM $933.6 Orasure OSUR $287.4 ZocDoc Private Kareo Private
c8Medisensors Private Audax Health Private
FitBit Private Oscar Private
Blue Health Intelligence Private Kinnser Software Private
Withings PrivateHumedica (Owned by UnitedHealth)
Stage 2: Digitizing the Clinical Front-Office and Clinical Back-Office (Interoperability/Mobile/Consumers)
Source: Company documents, FactSet, Rock Health, StartUp Health, and Stifel
The third stage of healthcare digitization, in our view, focuses on integrating the technological advances
in digitizing the clinical back-office and clinical front-office. Participants in this stage seek to build
platforms that provide innovative solutions aimed at changing clinical outcomes, but also providing the
essential digital backbone needed to do so. We believe that large technology companies, diagnostic
companies, and even managed care organizations are early participants in this stage of digitalization. We
provide a list of select prominent public companies we believe are participants in Stage 3 digitization in
Exhibit 4. First, we list Qualcomm (QCOM: $68.02, not covered) because of its significant efforts to
build a digital healthcare eco-system through its Qualcomm Life subsidiary. Alere (ALR: $31.98, not
covered) represents a medical diagnostics company working to integrate diagnostics, health monitoring,
and information technology solutions in one eco-system. Dexcom (DXCM: $26.67, not covered)
represents a medical device company focused on developing glucose monitors integrated with a software
platform that facilitates data communication between patients and doctors. In terms of healthcare IT
companies, we list Athenahealth (ATHN: $107.36, not covered) because of its acquisition of Epocrates,
Cerner (CERN: $46.70, not covered) as it begins to focus on leveraging the value of data, and
Allscripts (MDRX: $14.41, not covered) because of its focus on population health management, and
acquisitions of digital healthcare companies dbMotion and Jardogs. We include United Health (UNH:
$74.06, Buy, covered by our colleague Tom Carroll), Aetna (AET: $65.11, Buy, covered by Tom
Carroll), and WellPoint (WLP: $87.29, Buy, covered by Tom Carroll), as each of these managed care
organizations operates an analytics organization, and these organizations have started to collaborate with
other healthcare constituents to leverage the value of data.
Exhibit 4: Key Companies Participating in the Third Stage of Healthcare Digitization ($ in millions)
Company Ticker Market Cap Company Ticker Market Cap Company Ticker Market Cap
Qualcomm QCOM $116,683.3 Athenahealth ATHN $3,956.1 United Health UNH $75,296.8
Alere ALR $2,614.5 Cerner CERN $16,023.2 Aetna AET $24,227.4
Dexcom DXCM $1,903.6 Allscripts MDRX $2,565.9 WellPoint WLP $26,096.3
Stage 3: Integration: Technology Integrators and Analytics
Source: Company Documents, FactSet, and Stifel
8. Digital Healthcare 7 Industry Analysis — Fall 2013
The fourth stage of healthcare digitization, in our view, focuses on unlocking the untapped value of
healthcare data through monetization. We believe the participants and beneficiaries of Stage 4
encompass a wide range of industries and constituents ranging from healthcare IT companies to
technology companies to pharmaceutical companies. Any company extracting value from healthcare data
or providing services to reduce healthcare costs through better outcomes or more targeted advertising, et
al., is a participant in this stage.
While we believe there are many participants and possible beneficiaries of healthcare digitization, we
believe there are companies at risk of disintermediation. First, we believe the greatest risk is posed to
companies focused on solutions that target either just the clinical back-office or just the clinical front-
office. Companies that do not extend their focus to understanding the possible opportunities associated
with integrating current technologies with new digital healthcare innovations will likely be (1) acquired, (2)
disintermediated, or (3) become irrelevant.
Additionally, we believe the wearable computing space, specifically those companies focused on tracking
health data, e.g. FitBit, Jawbone, Withings, et al., may disintermediate global-branded consumer weight-
loss services companies. Wearable computing companies are combining social networking with wearable
computing to allow consumers to more easily track their fitness, health, and even weight, as well as
allowing consumers to compete against one another. Lastly, these companies are analyzing consumer
data inputs in order to provide feedback on how to make the healthiest choices in real-time.
Now we attempt to better understand the potential value of healthcare data and the potential cost savings
that healthcare data may provide in the next section of this report, Unlocking the Value of Data.
9. Digital Healthcare 8 Industry Analysis — Fall 2013
Unlocking the Value of Data
The ultimate potential for digitizing healthcare lies in the ability to drive reduced costs. The U.S.
Government has committed significant stimulus dollars via HITECH/ARRA to be used for updating
healthcare information technology infrastructure. We believe these efforts are building the foundation for
the further digitization of healthcare. Additionally, the Affordable Care Act (ACA) is shifting the focus of
healthcare decisions to the consumer, which is serving as a catalyst to drive the development of digital
healthcare technology solutions focused on the clinical front office. What remains untapped is the
potential value locked in the massive data sets generated throughout the healthcare supply chain. In our
view, the “Holy Grail” of healthcare digitization lies in reducing healthcare costs through data and
analytics.
We believe several government initiatives are helping drive the digitization of healthcare, including the
HITECH Act, the Health Data Initiative (HDI), and the Affordable Care Act. In our view, the goals of these
programs align well with our Four Stages of Healthcare Digitization framework. Through the HITECH Act,
the government funding has created an impetus for healthcare professionals to adopt electronic medical
record technologies, in turn creating a foundation for further digitization. Through the Health Data Initiative
and Affordable Care Act, the government is providing the impetus for the healthcare industry to create a
foundation for digitized data and analytics, which we believe represents a significant catalyst for the
continued development of digital healthcare technologies.
In Exhibit 5, we provide a summary of these key government programs, as well as their key provisions
and potential outcomes. First the HITECH act provides $22 billion worth of incentives for providers to
adopt and utilize electronic health technology and records. The Health Data Initiative, launched in 2010,
and now known as the Health Data Consortium, represents a public-private partnership made up of 17
organizations. The Health Data Initiative aims to help Americans understand health and healthcare
performance in their communities, and ultimately facilitate improvement. Lastly, the Affordable Care Act
focuses on bringing affordable care to consumers and brings roughly 30 million new patients under
coverage. We believe the Affordable Care Act makes numerous provisions that will help further
development of a digitized data and analytics eco-system for healthcare.
Exhibit 5: Summary of Key Government Programs Driving Healthcare Digitization
• Enables new payment models
• Provides new ways for patients and providers to engage
• Reduces medical errors
• Increases use of latest research and evidence
• Patients can compare provider value
• Providers can better evaluate appropriate use of drugs and
treatments
• Manufacturers can optimize R&D
• Insurers can design more engaging programs
• Organizations can distill quality information and create
products to inform consumers
• Enables coverage for about 30 million more patients
• Providers focus on outcomes, perform newer unneeded
activities
• Reduces reimbursement for readmissions • Providers increase productivity
• Eliminates reimbursement for hospital-acquired infections • Demand for hospitals declines
• Supports patient-centered medical homes • Patients become sensitive to value
• Creates Accountable Care Organizations (ACOs)
• Moves toward paying for full episodes of care rather than fee
for service
HITECH Act:
Health Data
Initiative:
Affordable Care
Act:
• Provides incentives for use of electronic health technology and
records
• Releases government health data into the public sector
Initiative Provisions Potential Outcomes
Source: Castlight Health, HITECH Act (www.healthit.gov), Health Data Initiative (www.hhs.gov), and the Affordable Care Act (www.hhs.gov)
In our view, the HDI initiative and the ACA provide a major catalyst for moving towards a fully integrated
digital healthcare eco-system. The HDI initiative “liberates” health data allowing innovators and
developers across the country to tap into data sets from CMS, CDC, FDA, and NIH, in order to drive
10. Digital Healthcare 9 Industry Analysis — Fall 2013
innovation. Information provided by HDI includes clinical care provider quality information, nationwide
health service provider directories, databases of the latest medical and scientific knowledge, consumer
product data, community health performance information, government spending data, et al. A major focus
for HDI has been on making existing data machine-readable, downloadable, and application
programming interface accessible, while protecting privacy. Furthermore, HDI sponsors innovation using
its library of data sets through numerous events as well as its annual Health Data Initiative Forum (Health
Datapalooza).
We note that the ACA also makes several provisions for a digitized data and analytics eco-system for the
improvement of healthcare. While the ACA focuses on expanding the insured population by more than 30
million, the ACA also makes numerous provisions focused on building an integrated digitized data and
analytics eco-system. Several sections of the ACA represent provisions for the development of data and
analytics applications for healthcare; we highlight a few of the provisions below:
Section 3013 – Quality Measure Development. This section sets the standards for measuring
performance and improvement of population health or of health plans, providers of services, and
other clinicians in the delivery of health services.
Section 3022 – Medicare Shared Savings Program. This section outlines the establishment of
Accountable Care Organizations (ACOs).
Section 4302 – Understanding Health Disparities. Data Collection and Analysis. The section
calls for healthcare programs to enhance their data collection and data reporting in order to
reduce disparities.
Section 6301 – Patient-Centered Outcomes Research. This section sets guidelines for
comparative clinical effectiveness research and establishes a Patient Center Outcomes Research
Institute (PCORI).
Section 10305 – Data Collection; Public Reporting. This section calls for a strategic framework
for public performance reporting.
Section 10332 – Availability of Medicare Data for Performance Measurement. This section
calls for the creation of qualified entities; establishes qualifications for using Medicare claims data
for analysis.
A major provision of the ACA revolves around the development of Accountable Care Organizations. The
Centers for Medicare and Medicaid defines ACOs as: groups of doctors, hospitals, and other health care
providers, who come together voluntarily to give coordinated high quality care to their Medicare patients.
These organizations exist to drive lower healthcare costs, improve the quality of outcomes, and improve
the care experience. ACOs achieve these goals through payment models that reward quality care
coordination and quality outcomes. We believe a key component of ACO success will be the use of data
and analytics.
In January 2013, McKinsey published a study entitled “The „big data‟ revolution in healthcare:
Accelerating value and innovation,” which analyzed the possible impact of data analysis on the healthcare
industry. The report estimates that unlocking the value of data in healthcare might lead to between $300
billion and $450 billion in savings compared to the $2.6 trillion baseline U.S. healthcare costs as of 2010.
In Exhibit 6, we illustrate the estimated savings scenarios based on five focus areas: health tracking,
coordinated care, best provider, accountable care, and digital healthcare. Health tracking, which consists
of patients taking control of their health through tracking and behavioral change, is estimated to drive
between $70 billion and $100 billion in savings. The coordinated care category, which represents a fully
integrated digital healthcare organization, is estimated to drive between $90 billion and $110 billion in
savings. The best provider category, which focuses on ensuring patients always see the highest quality
provider and provider of best fit, is estimated to drive between $50 billion and $70 billion in savings. The
accountable care category, which consists of tying provider reimbursement to performance, is estimated
to drive savings between $50 billion and $100 billion. Lastly, the digital healthcare category, which
consists of leveraging new technologies to improve healthcare, is estimated to drive between $40 billion
and $70 billion in cost savings.
11. Digital Healthcare 10 Industry Analysis — Fall 2013
Exhibit 6: The Potential of Unlocking the Value of Healthcare Data
$70
$90
$50 $50
$40
$-
$20
$40
$60
$80
$100
$120
Health
Tracking
Coordinated
Care
Best Provider Accountable
Care
Digital
Healthcare
EstimatedSavings($billions)
Estimated Cost Savings: Low Estimate
$100
$110
$70
$100
$70
$-
$20
$40
$60
$80
$100
$120
Health
Tracking
Coordinated
Care
Best Provider Accountable
Care
Digital
Healthcare
EstimatedSavings($billions)
Estimated Cost Savings: High Estimate
Total Estimated Costs Savings
(Low Estimate) = $300 Billion
Total Estimated Costs Savings
(High Estimate) = $450 Billion
Source: American Diabetes Association, American Hospital Association, HealthPartners Research Foundation, McKinsey Global Institute, National Bureau of
Economic Research, U.S. Census Bureau
While we believe that the potential of unlocking healthcare data remains untapped, we do believe there
are examples of companies that are working on unlocking the value of data. We provide a few examples
of these companies below.
At the most basic level, we believe companies such as WebMD (WBMD, $33.09, Buy) and competitors
are analyzing vast consumer data sets to drive more efficient healthcare advertising. These companies
have been able to develop robust mobile app eco-systems, creating a stickier user experience across
their platforms. A consumer using mobile apps makes the platform a daily or weekly destination in order
to track health data, whereas before a consumer might visit once every few months. The stickier user
experience has led to the development of vast consumer data sets regarding demographics and other
health-related information. The data can then be analyzed in order to drive better ad targeting, as well as
more efficient marketing ROI. We believe the use of general healthcare-like data to drive more efficient
advertising represents an early step toward unlocking the value of healthcare data.
We note that wearable computing technology companies are focused on driving consumer health
engagement, but also utilizing data to provide health behavior advice. Companies such as Fitbit,
Jawbone, and Withings are developing a suite of smart-devices that allow consumers to better track their
health and fitness. Providing consumers the ability to track their health information creates large data sets
and allows these companies to leverage analytics to provide feedback to consumers. Each of these
company‟s device suites not only collects a consumer‟s health information, but also uses that information
to provide feedback, allowing the consumer to make optimal health choices.
Additionally, there are several companies in the managed care space working to better monetize and
understand healthcare data. We note that managed care providers United Health, Aetna, and WellPoint
each operate their own analytics division. United Health‟s OptumInsight provides technology, consulting,
and analytics solutions to different stakeholders throughout the healthcare system. Aetna‟s ActiveHealth
provides population health management solutions in order to help manage healthcare costs. We note that
ActiveHealth‟s MyActiveHealth personal health record is integrated with its consumer-facing mobile app
iTriage. Lastly, WellPoint‟s Healthcore provides clinical outcome research services to health plans,
pharmaceutical companies, and government agencies. We believe each of these entities shows that
significant value lies in analyzing and understanding vast healthcare data sets to drive reduced
healthcare costs.
12. Digital Healthcare 11 Industry Analysis — Fall 2013
Exhibit 7: Real Life Examples of Leveraging Healthcare Data
Pharma and Payors
Employers and
Employees
Tracking Employees Health and Wellness Drive Benefit Costs Lower
Blue Cross Blue Shield of
California
Nant Health
AstraZeneca
Well Point's HealthCore
CVS/Caremark
Use HealthCore and AstraZeneca Clinical
Trial Data to more efficiently allocate
R&D spending
WebMD
Conducting studies to determine the most effective and
economical treatments for chronic illnesses and other
common diseases
Constituents Partners What Are They Working On Goal
Payors and Providers
Developing an integrated technology system allowing
doctors, hospitals, and health-plans to deliver more
coordinated and personalized evidence-based care.
Performance Improvement
Source: McKinsey & Company, and Stifel
In Exhibit 8, we provide a diagram of who we believe are the key constituents of digital healthcare. In our
view, constituents include consumers, digital health technology providers, healthcare IT companies,
managed care organizations, and biopharmaceutical companies. The commonality among these
constituents is that each entity has the opportunity to extract value from innovation in digital healthcare
technology. Consumers are able to better track their daily activities, allowing consumers to more easily
adopt healthy habits and healthy lifestyles. Digital healthcare technology companies are able to provide
innovative mobile apps and devices that foster healthier lifestyles and life choices for consumers. The
opportunity for healthcare IT companies lies in integration of these innovative technologies. We believe
that integrating these consumer-focused technologies allows healthcare IT companies to go beyond
digitizing the undigitized medical records by providing a more efficient, convenient, and interactive
healthcare experience for consumers and physicians. We believe the integration of consumer-focused
digital healthcare technology will also unlock value to managed care organizations and biopharmaceutical
companies. First, MCOs will be able to utilize the vast amounts of consumer- and physician-generated
data to better understand their patient populations, which should help drive costs down. Lastly,
biopharmaceutical companies will be equipped to better target possible consumers of drugs, leading to
greater marketing efficiency and likely better patient outcomes.
Exhibit 8: Key Constituents of Healthcare Data
Physicians Technology Companies Healthcare IT companies
Healthcare Professionals Digital Healthcare Companies Managed Care Organizations
Patients Pharmaceutical Companies
Constituents of the Digital Healthcare Ecosystem
Source: Stifel
13. Digital Healthcare 12 Industry Analysis — Fall 2013
We provide a diagram of what we believe to be a representation of the digital health eco-system in
Exhibit 9. The eco-system consists of the key constituents we identified in Exhibit 8, but also includes
technology companies and digital healthcare companies. In our diagram, Qualcomm Life‟s 2Net Hub
represents the center of the eco-system. The hub allows several digital technology companies to leverage
3G technology, providing mobile solutions to physicians and patients. Entities like WebMD are working
with technology providers such as Qualcomm Life and other digital technology providers to aggregate
data across several different devices to help patients better understand their health. We believe this
portion of the network offers significant promise to healthcare IT companies, MCOs, and even
biopharmaceutical companies. In our view, leveraging consumer-facing digital healthcare technologies
shifts electronic health records from a nice technological advancement to an essential innovation that
truly drives value through the healthcare chain through cost reductions. We believe this extends even
further to MCOs and ACOs, as these entities should be able to better analyze and understand health
risks with those patients they cover.
Exhibit 9: The Digital Healthcare Eco-System
Source: Company documents, and Stifel
We believe the crux of digital healthcare lies in the continued development and leverage of mobile
technologies. In our view, the ways in which WebMD and other online health information companies use
mobile in their business models can be applied to the digital healthcare industry. Both WebMD and other
online health information companies operate consumer- and physician-facing portals for health
information that combine both the PC-based Internet and mobile devices to deliver information. We
believe the development of an integrated multi-screen PC/mobile app eco-system represents an essential
component of success for online health information companies.
14. Digital Healthcare 13 Industry Analysis — Fall 2013
In Exhibit 10, we provide a diagram of what we call the Mobile Virtuous Circle, which describes the value
and how WebMD and other online health information companies leverage mobile eco-systems. These
companies have developed their own eco-system of mobile apps and data trackers that allow consumers
to further customize how they interact with their own health. The apps these companies have built allow
for customization and allow consumers to track some form of health data. In turn, the ability to track
health data makes the app “sticky”, driving increased and more frequent consumer engagement. At the
same time, user engagement and data input creates a large database of information, which can then be
analyzed and monetized. Given these companies are predominantly advertising driven, the data analysis
can be used to prove out ROI metrics to biopharmaceutical advertisers and consumer products
companies. We believe the mobile Virtuous Circle extends to all digital healthcare companies as they
seek to monetize data and reduce costs.
Exhibit 10: The Mobile Virtuous Circle
Consumers Use
Eco-System to
Track Health Data
Mobile Eco-
System
Becomes
Destination
Large Data
Set
Develops
Company
Drives
Value Via
Data
Analysis
Mobile App
Eco-System
Created
Source: Stifel
The promise of digitized healthcare lies in analyzing data in order to drive cost of care reductions. We
believe that as healthcare professionals and hospitals continue to build out a digital foundation, new,
more complex digital healthcare technology solutions will emerge. In our view, healthcare IT companies,
managed care organizations, and even pharmaceutical companies will utilize these technologies to
analyze data in order to extract value throughout the healthcare industry. Next, we review the
technological and demographic trends driving the shift toward digital healthcare technologies.
15. Digital Healthcare 14 Industry Analysis — Fall 2013
The Demographic Trends Driving Digital Healthcare and Why Investors Should Pay Attention
We believe the adoption of digital healthcare among clinicians and consumers remains in the early
stages. The ubiquity of Internet access and usage among Americans and increasing proliferation of
mobile devices (smartphones and tablets) has created an environment rife for adoption of digital
healthcare. Clinicians exhibit a high rate of adoption of mobile technology, which we believe is
significantly higher than mainstream America. Despite high adoption rates, we believe that the utility of
digital health technology among clinicians remains untapped, as utilized technologies are for the most
part focused on performing the simplest of tasks (drug information and medical research).
At the same time, we believe consumer adoption of digital healthcare remains nascent, but we believe
consumers/patients exhibit a strong appetite for digital solutions to their healthcare problems.
Consumers/patients seem to be digitally engaged across all age groups, as well as gender. Currently,
consumers/patients exhibit an appetite for digital health information via the online channel. While
consumer/patient adoption of mHealth remains relatively low, we believe that adoption trends will improve
as more meaningful solutions for healthcare problems are introduced, and note that demographic trends
(high adoption among Millennials and Generation X‟ers) further support improving adoption trends.
The ubiquity of Internet access and mobile connectivity continues to grow in the United States and
globally. We estimate Internet penetration in the United States to be roughly 87% as of 2012 (Exhibit 11).
Additionally, estimates from Nielsen Online and The Pew Internet & American Life Project suggest that
smartphone penetration and tablet penetration are roughly 56% and 34% in the United States as of 1H13,
respectively. In our view, these trends are providing the foundation for the development of digital
healthcare technologies, and have set a foundation for widespread adoption of digital healthcare
solutions. We believe digital healthcare remains in the early innings of development and adoption, as we
believe adoption trends will continue to grow, and digital healthcare solutions are in the early stages of
development with the expectations that a plethora of new solutions and business models will be
introduced over time.
Exhibit 11: Internet Usage Has Become Ubiquitous in the U.S.
2007 2008 2009 2010 2011 2012
301.2 304.1 306.8 309.4 311.6 313.85
212.1 220.1 227.7 239.9 245.2 273.8
70% 72% 74% 78% 79% 87%
U.S. Population
U.S. Internet Users
% Penetration
60%
65%
70%
75%
80%
85%
90%
95%
100%
0.0
50.0
100.0
150.0
200.0
250.0
300.0
2007 2008 2009 2010 2011 2012
U.S.InternetUserPenetration
U.S.InternetUsers(millions)
U.S. Internet Users and Penetration 2007 to 2012
U.S. Internet Users % Penetration
Source: Internet World Stats, ITU, Nielsen Online, and U.S. Census Bureau
16. Digital Healthcare 15 Industry Analysis — Fall 2013
While Internet usage has become ubiquitous as 87% of Americans now have access to the Internet, we
believe that smartphone and tablet usage will continue to increase over the next several years. In Exhibit
12, we illustrate mobile computing device penetration for the 2009 to 1H13 period. Between early 2009
and early 2013, we estimate that smartphone penetration in the United States has nearly tripled, no doubt
driven by the innovative iPhone and Android devices. Additionally, we note that tablet penetration among
Americans has increased more than 10 times between 1H10 and 1H13. Current estimates from Nielsen
Online and the Pew Internet & American Life Project suggest that smartphone and tablet penetration
among Americans stands at an estimated 56% and 34%, respectively. Over time, we believe that these
devices will prove to be invaluable to changing healthcare in the United States and abroad.
Exhibit 12: Mobile Device Adoption Continues to Ramp in the U.S.
Devices 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13
Smartphone Penetration 16% 19% 21% 26% 35% 45% 46% 47% 56%
Tablet Penetration 0% 0% 3% 5% 8% 10% 18% 25% 34%
0%
10%
20%
30%
40%
50%
60%
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13
UserPenetration(%)
U.S. Mobile Computing Device Penetration 1H09 to 1H13
Smartphone Penetration Tablet Penetration
Source: Nielsen Online, and Pew Internet & American Life Project
We believe clinician adoption of digital technologies (smartphones and tablets) will play an important role
in the digitization of healthcare. If mobile technologies are prevalent among mainstream Americans, then
clinicians and physicians represent power users of mobile technologies. Mobile technology adoption
among physicians appears to be significantly higher than for mainstream America. According to
Manhattan Research‟s “Taking the Pulse 2012” survey, smartphone and tablet adoption among
physicians stood at 85% and 62%, respectively, as of 1Q12 (Exhibit 13). A more recent survey from
Epocrates suggests that adoption rates may be higher and the survey estimates that smartphone and
tablet adoption among physicians will be 94% and 85%, respectively, by 2014 (Exhibit 14).
In Exhibit 13, we provide an illustration of physician adoption of mobile technology (smartphones and
tablets) for the 2001 to 2012 period. Physician adoption of smartphones more than doubled between
2001 and 2012, whereas physician adoption of tablets has doubled in roughly a year. Based on
Manhattan Research‟s “Taking the Pulse U.S. 2012” survey of 3,015 practicing physicians across the
U.S., roughly 85% of physicians utilize a smartphone and 62% utilize tablets. We expect adoption to
increase further over the coming years as new technologies are tested and proven in terms of monitoring
chronic diseases, diagnostics, health and wellness, and data analytics. In our view, as new digital
healthcare solutions are validated, mobile devices will become an essential part of a physician‟s daily
workflow.
17. Digital Healthcare 16 Industry Analysis — Fall 2013
Exhibit 13: Historical Adoption Trend for Physicians and Mobile
2001 2004 2007 2009 2010 2011 2012
30% 40% 50% 64% 72% 81% 85%
35% 62%
Mobile Device
Smartphone
Tablet
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2001 2004 2007 2009 2010 2011 2012
UserPenetration(%)
Physician Adoption of Mobile Technology 2001 - 2012
Smartphone Tablet
Source: Manhattan Research, “Taking the Pulse U.S. 2012”, 1Q12
According to Epocrates “2013 Mobile Trends Report: Maximizing Multi-Screen Engagement Among
Clinicians”, adoption of mobile technologies among clinicians will increase significantly in 2014. The
survey queried 1,063 healthcare professionals regarding their usage of mobile devices and likelihood of
mobile device usage over the next 12 months, illustrated in Exhibit 14. The survey illustrates the already
high digital engagement among clinicians, as the overwhelming majority of respondents are multi-screen
users (PC, smartphone, and tablet). According to the survey, roughly 82% of respondents will be multi-
screen users by 2014.
Exhibit 14: Clinician Adoption of Mobile Devices Continues to Increase
99%
78%
34%
28%
100%
86%
53%
47%
100%
94%
85% 82%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Computer Smartphone Tablet Digital HCP
MobilePenetration(%)
Clinicians' Adoption Of Mobile
2012 2013 2014E
Source: Epocrates 2013 Mobile Trends Report: Maximizing Multi-Screen Engagement Among Clinicians
18. Digital Healthcare 17 Industry Analysis — Fall 2013
Additionally, the increasing appetite for multi-screen solutions among clinicians is not limited to a few
indications, but rather extends across many healthcare professional focus areas, including clinicians
focused on chronic health, general practitioners, nurse practioners, as well as physician assistants. In
Exhibit 15, we provide an illustration of current adoption rates and expected future adoption rates for
several types of clinicians. We think as doctors become more connected across mobile devices, they will
begin to accept new digital healthcare technologies. In turn, we believe this will lead to increased
consumer usage of digital healthcare technologies and applications. Physician comfort should lead to
broad acceptance of mobile solutions, which should help further increase consumer adoption of more
advanced digital healthcare solutions.
Exhibit 15: Clinician Mobile Adoption Extends Across Several Categories
59%
54%
48%
44%
40%
30%
84%
88% 85%
77% 77% 76%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Oncology Cardiology Primary Care Psychiatry Nurse
Practitioner
Physician
Assistant
MobilePenetration(%)
Mobile Adoption By Clinician Focus
2013 2014E
Source: Epocrates 2013 Mobile Trends Report: Maximizing Multi-Screen Engagement Among Clinicians
Not only are clinicians adopting mobile technology more so than mainstream society, but also clinicians
are utilizing mobile technologies in their daily workflow as well. In Exhibit 16, we provide an illustration of
physician usage of smartphones and tablets in their daily workflow based on the “Wolters Kluwer Health
2013 Physician Outlook Survey” conducted in April 2013, which queried 300 physicians. The survey
found that eight of 10 physicians are using smartphones and six of 10 physicians are using tablets.
According to the survey, smartphone and tablet usage seems to make up about 25% or less of a
physician‟s workday.
In our view, these estimates seem low, and likely do not reflect physician usage of these tools outside of
work hours. We note that the “Epocrates 2013 Mobile Trends Report: Maximizing Multi-Screen
Engagement Among Clinicians” found that smartphone usage can account for upwards of 40% of a
typical clinician‟s time at work. Additionally, the report found that nurse practitioners and physician
assistants were the predominant users of mobile devices during the workday. Additionally, the study
found that clinicians‟ usage of mobile devices dominated the hours of 5 P.M. to 5 A.M., suggesting that
mobile devices currently do more to extend the clinician workday.
19. Digital Healthcare 18 Industry Analysis — Fall 2013
Exhibit 16: Physicians’ Usage of Mobile During the Workday
51-75% of day
8%
76-100% of day
11%
26-50% of day
14%
No usage
21%
1-25% of day
46%
Smartphone Usage (iPhone, Android, et al.)
51-75% of day
4%
76-100% of day
7%
26-50% of day
13%
1-25% of day
37%
No usage
39%
Tablets (iPad, Kindle Fire, et al.)
Source: Wolters Kluwer Health 2013 Physician Outlook Survey, April 2013
We note that physicians are using mobile in a variety of ways to aid their daily workflow. In Exhibit 17, we
illustrate how physicians are using mobile devices based on the “Wolters Kluwer Physician Survey.”
According to the survey, physicians typically use mobile devices for looking up drug information, medical
research, and evidence-based clinical reference tools at the point of care. Other workflow uses for mobile
seem to be dictated by form factor, as more physicians use tablets to access medical records/data (think
large screen size), or more physicians communicate with patients via smartphone than tablet. In our view,
the survey really only provides details on some of the most basic usage of mobile in a physician‟s daily
workflow. We believe the promise of mobile for physicians lies beyond the uses reflected in Exhibit 17.
We note that entities such as Qualcomm Life are actively partnering with hospitals to test mobile medical
devices and applications that go beyond basic physician uses of mobile. In our view, the physician use of
mobile reflected in Exhibit 17 illustrates how clinician adoption of digital healthcare technologies remains
in the very early stages.
Exhibit 17: What Physicians Are Using Mobile Devices for in Their Workflow
13%
24%
43%
17%
50%
63%
20%
55%
9%
12%
17%
33%
42% 43% 44%
72%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Other Reimbursement /
Billing
Medical Records /
Data
Communication
w/ Patients
Evidence-Based
Clinical Reference
Tools at Point of
Care
Medical Research Communication
w/ HCPs
Drug Information
Respondents(%)
Mobile Device Uses
Tablets Smartphone
Source: Wolters Kluwer Health 2013 Physician Outlook Survey, April 2013
20. Digital Healthcare 19 Industry Analysis — Fall 2013
In Exhibit 18, we go one step further and analyze how clinicians use mobile applications in their daily
workflow based on the “2
nd
Annual HIMSS Mobile Technology Survey”, which queried 180 healthcare
professionals. We find it striking that the majority of mobile application usage remains focused on the
most basic healthcare functions: viewing patient information and viewing non-protected health information
(non-PHI). We note that between 45% and 55% of respondents are using mobile apps for moderately
complex functions such as clinical notifications, tracking work lists, education/training, and collecting
patient data at the bedside. Less than 40% of respondents are using mobile apps for complicated
healthcare functions such as patient data analysis and monitoring patient data from medical devices, and
less than 25% of clinicians are referring patients to mobile apps. In our view, the potential of digital
healthcare remains untapped, as clinicians continue to underutilize mobile apps for the most part. We
expect that clinicians will begin to use mobile apps for more complex healthcare functions over the next
few years, and that clinicians referring patients to mobile apps will increase significantly as well.
Exhibit 18: How Clinicians Are Using Mobile Applications in Their Daily Workflow
23.9%
26.7%
34.4%
34.4%
37.8%
37.8%
38.3%
45.0%
45.0%
46.1%
51.7%
64.4%
65.0%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Refer Patients to the Use of Apps for Health-Related Items
Capture Visual Representationof Patient Data
Monitor Data from Medical Devices
Secure CommunicationRegarding Patients
Analysis of Patient Data
E-prescribing
Use Bar Code Reader on Mobile Device
Collect Data at the Bed Side
Use for Educational / Training
Tracking Work Lists
Clinical Notifications
Look Up Non PHI Health Information
View Patient Information
Clinicians' Use of Mobile Apps in Workflow
Source: 2nd Annual HIMSS Mobile Technology Survey, sponsored by Qualcomm Life
In our view, the adoption of electronic medical records and electronic health records represents the
foundation of developing a digitized healthcare system. At the most basic level, the adoption and
implementation of EMRs and EHRs provide clinicians a basic familiarity with digitized healthcare that will
help clinicians accept technological advances in the healthcare space. In Exhibit 19, we provide an
illustration of EMR/EHR system adoption among office-based physicians in the United States according
to the Healthcare Information and Management Systems Society (HIMSS). Based on the survey, an
estimated 72% of office-based physicians were using some form of EMR or EHR. Additionally, the survey
estimated that roughly 40% of office-based physicians were using a basic EHR system (patient history
and demographics, patient problem lists, physician clinical notes, comprehensive list of patients‟
medications and allergies, computerized orders for prescriptions, and ability to view laboratory and
imaging results electronically). While the significant acceptance of some form of EMR/EHR suggests
mainstream adoption of digital healthcare, the much lower 40% penetration of basic EMR/EHR systems
suggests there is room to improve. We believe that as office-based physicians increase their adoption of
basic EMR/EHR systems, clinicians‟ comfort with developing digital healthcare technologies will increase.
21. Digital Healthcare 20 Industry Analysis — Fall 2013
Exhibit 19: Clinician Adoption of EMR and EHR Technology
18.2% 17.3% 17.3%
20.8%
23.9%
29.2%
34.8%
42.0%
48.3%
51.0%
57.0%
71.8%
10.5% 11.8%
16.9%
21.8%
27.9%
33.9%
39.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E 2012E
EMR/EHRPhysicianPenetration(%)
Office-Based Physicians with EMR/EHR Systems
Any EMR/EHR Basic System
Source: CDC/NCHS, National Ambulatory Medical Care Survey, 2001 - 2012
In Exhibit 20, we analyze EMR/EHR adoption trends by looking at the HIMSS Analytics Electronic
Medical Record Adoption Model (EMRAM). The data in Exhibit 20 looks at EMR/EHR adoption rates
across healthcare organizations according to the eight stages of adoption according to HIMSS Analytics.
According to HIMSS Analytics, the EMRAM represents an eight-step process that allows a healthcare
organization to track their level of EMR adoption compared to other healthcare organizations. Adoption
stages range from Stage 0, where EMR integration remains nearly non-existent, to Stage 7, where the
entire healthcare organization has integrated EMR technology. Additionally, ambulatory-focused
healthcare organizations can track their progress using the Ambulatory Electronic Medical Record
Adoption Model (A-EMRAM).
We believe the data provided in Exhibit 20 further illustrates how the digitization of clinicians and
healthcare organizations remains focused on the digitization of the most basic core functions. We believe
the digital healthcare companies focused on EMRs/EHRs, health and wellness, diagnostics, analytics,
sensors, and telehealth will ultimately drive EMRAM adoption higher. Introducing new, innovative, and
meaningful digital healthcare solutions should provide an impetus for further digitization.
Exhibit 20: HIMSS Analytics EMRAM Adoption Trends
2%
10%
19%
15%
35%
9%
4%
7%
1% 1%
5%
1%
10%
27%
5%
50%
0%
10%
20%
30%
40%
50%
60%
Stage 7 Stage 6 Stage 5 Stage 4 Stage 3 Stage 2 Stage 1 Stage 0
EMRAdoptionBasedonHIMSS
AnalyticsDatabase(%)
EMR Adoption Model (EMRAM) Trends 2Q13
EMRAM A-EMRAM
Source: HIMSS EMR Adoption Model (EMRAM)
22. Digital Healthcare 21 Industry Analysis — Fall 2013
We believe consumer adoption of digital healthcare technology represents an important and necessary
step toward the digitization of healthcare. As we note in our framework, Four Stages of Healthcare
Digitization, the ultimate goal of healthcare digitization is to drive the cost of care lower. Fundamentally,
we believe that the only way to truly reduce healthcare costs is to include consumers/patients, as they
ultimately have the final say in whether or not they choose to live a healthy lifestyle or not. Given the
importance of the consumer/patient population, we believe it is worthwhile to review how these
constituents are using digital healthcare currently.
In our view, consumer/patient adoption of digital healthcare remains in the early stages of development.
Nevertheless, we believe that consumers exhibit a strong appetite for digital healthcare solutions. In our
view, consumer/patient usage of digital healthcare, much like clinicians, remains focused on the simplest
solutions and significant opportunity exists to further develop digital healthcare capabilities. Lastly, we
believe that investors should think not “if”, but “when” in terms of consumer adoption of digital healthcare.
We believe that current trends suggest that as consumers/patients exhibit a strong appetite for digital
healthcare solutions, adoption trends should improve over time as digital healthcare solutions move
beyond weight-related and information-focused apps to more complex solutions. Additionally, we believe
that consumer/patient adoption trends benefit from demographics, as both Millennials and Generation
X‟ers exhibit a high proclivity for technology, which should in turn translate into interest in meaningful and
useful digital healthcare apps.
In Exhibit 21, we provide a breakdown of online health-related search trends for American adults based
on a survey from the Pew Internet & American Life Project. According to the survey, roughly 72% of
respondents stated they had performed an online health-related search query in the last 12 months,
whereas in 2010, roughly 66% of respondents had never done an online health-related search query.
Additionally, most American adults searching for health-related information online are focused on a
specific disease or medical problem, or a certain treatment or procedure. We believe American adults‟
online health-related search activity illustrates a strong appetite to engage with better understanding their
healthcare, as well as engaging new digital healthcare technology solutions. We believe that as digital
healthcare technologies begin to tackle more complex issues, more adults will be engaged digitally with
their healthcare.
Exhibit 21: American Adults Go Digital in Order to Understand Their Health
11%
12%
14%
15%
16%
16%
19%
20%
25%
27%
43%
55%
72%
0% 20% 40% 60% 80%
Reduce Healthcare Costs
Pregnancy
Caring for an Aging Relative / Friend
Test Results
Drug Safety / Recalls
Advertised Drug
Food Safety / Recalls
Other Health Issues
Health Insurance, includingMedicare and Medicaid
Weight Loss / Control
Certain Medical Treatment / Procedure
Specific Disease or Medical Problem
At Least One of the Topics Below
Online Health Search Trends
Source: Pew Internet & American Life Project, “Health Online 2013,” January 15, 2013
23. Digital Healthcare 22 Industry Analysis — Fall 2013
We believe that the digitization of healthcare benefits from demographics, specifically the high proclivity
for technology among younger generations, which should help drive consumer adoption of digital
healthcare technology over time. In Exhibit 22, we provide a look at online health-related search queries
of American adults by age group. Overall, online health-related search queries skew toward younger
generations as expected, but we note that all age groups exhibit a high proclivity for online health-related
searches. Specifically, more than 70% of respondents aged 18 to 64 performed an online health-related
search query in the last 12 months and more than 50% of respondents over the age of 65 had performed
an online health-related search query as well. More importantly, when looking at online health-related
search queries regarding specific diseases, medical problems, medical treatments, or procedures,
engagement among older populations increases significantly. Based on the Pew survey, more than 39%
of respondents aged 18 to 64 performed an online health-related search query regarding a specific
disease or medical problem, and of those 65 and older 36% of respondents had performed a similar
search query. We believe these results illustrate the basic fact that consumers/patients turn to digital
channels to better understand their health, as well as to find healthcare solutions.
Exhibit 22: Profile of Online Health-Related Search Queries by Age Group
0% 20% 40% 60% 80%
Other Health Issues
Reduce Healthcare Costs
Pregnancy
Caring for an Aging Relative / Friend
Test Results
Advertised Drug
Drug Safety / Recalls
Food Safety / Recalls
Health Insurance, includingMedicare and Medicaid
Weight Loss / Control
Certain Medical Treatment / Procedure
Specific Disease or Medical Problem
At Least One of the Above Topics
Online Health Searches By Age
65+ 50-64 30-49 18-29
Source: Pew Internet & American Life Project, “Health Online 2013,” January 15, 2013
In Exhibit 23, we look at the demographics of online health-related search queries among American
adults by gender. According to the Pew survey, online health-related search queries are well utilized by
both men and women, as 72% of all respondents reported conducting an online health-related search
query in the last 12 months. The results also found a striking difference between male and female usage,
as 65% of males had performed an online health-related search query, but 79% of females had
performed similar queries. As one drills down into specific topics, the results suggest that women are
more engaged with their health through digital channels. We believe the high usage rates among both
men and women further suggest our belief that consumers/patients remain interested in increasing their
usage of digital healthcare technology.
24. Digital Healthcare 23 Industry Analysis — Fall 2013
Exhibit 23: Profile of Online Health-Related Search Queries by Gender
0% 20% 40% 60% 80% 100%
Other Health Issues
Reduce Healthcare Costs
Pregnancy
Caring for an Aging Relative / Friend
Test Results
Advertised Drug
Drug Safety / Recalls
Food Safety / Recalls
Health Insurance, includingMedicare and Medicaid
Weight Loss / Control
Certain Medical Treatment / Procedure
Specific Disease or Medical Problem
At Least One of the Above Topics
Online Health Searches By Gender
Women Men
Source: Pew Internet & American Life Project, “Health Online 2013,” January 15, 2013
According to a Brookings Institute study from May 2012, roughly 75 million individuals (roughly 30% of the
U.S. population) had used mobile phones for health information and apps in 2012. Despite seemingly
strong adoption, a recent study from Ruder Finn suggests that American adoption of mHealth apps
remains nascent. According to Ruder Finn‟s “mHealth Report,” only 16% of all respondents accessed
mHealth apps regularly (at least once a week), which is about one-fourth the amount of respondents
accessing social media and games via mobile regularly (Exhibit 24). The Ruder Finn survey also found
several reasons as to why consumers do not use mHealth apps: 27% reported no need, 26% preferred to
talk to a clinician in person, 11% expressed privacy concerns, 9% said mHealth apps were not useful,
and 7% were unaware of mHealth apps (Exhibit 24). We believe consumers‟ lack of mHealth app usage
will dissipate over time as clinicians become more digital and new innovative mHealth apps are
introduced.
Exhibit 24: Mobile App Consumption Among American Adults
0% 10% 20% 30% 40% 50% 60% 70% 80%
Do Not Use
Other
Health/Healthy Living
Hobbies
Travel
Sports
Shopping
News
Games
Social Media
Consumer Mobile App Usage
Tablet Smartphone All
Source: Ruder Finn, “mHealth Report,” March 2013
25. Digital Healthcare 24 Industry Analysis — Fall 2013
Despite the fact that mHealth app usage seems low, consumers/patients seem to exhibit a high degree of
interest in using mHealth apps. According to the Ruder Finn survey, more than 50% of respondents ages
18 to 44 were highly likely to adopt mHealth technology (Exhibit 25). Additionally, those with chronic
health conditions and families seem to have a higher interest in adoption of mHealth solutions. We
believe the survey findings illustrate that adoption is not a question of “if”, but “when” consumer/patient
adoption of mHealth will go mainstream. As new digital healthcare solutions are tested, proven, and
introduced to society, we believe that consumers will likely embrace digital healthcare solutions that can
solve complex healthcare needs, especially if these solutions can be integrated to make daily life easier.
Exhibit 25: American Adults Show High Interest in mHealth Solutions
42%
59%
42%
53%
31%
31%
40%
54%
52%
65%
0% 10% 20% 30% 40% 50% 60% 70%
No Children
Has Children
No Chronic Condition
Has a Chronic Condition
65+
55 to 64
45 to 54
35 to 44
25 to 34
18 to 24
Likelihood of mHealth Adoption
Source: Ruder Finn, “mHealth Report,” March 2013
In Exhibit 26, we illustrate consumer mHealth app usage trends according to the Ruder Finn “mHealth
Report.” According to the survey, more than 40% of respondents are using mHealth apps for what we
believe represents basic functionality (e.g., health and wellness, fitness, weight-loss, and general health
information). We believe the list of functions the survey queried for further illustrates the opportunity for
new and innovative uses in the future. We believe that the significant adoption of mHealth for the most
basic health and wellness functions highlights the potential of digital healthcare adoption for more
complex healthcare issues. In our view, consumers/patients will adopt strong digital healthcare
technologies that allow better management of their healthcare.
Exhibit 26: The Potential of mHealth Apps Remains Significant
1%
4%
7%
9%
9%
10%
13%
23%
41%
46%
48%
48%
49%
0% 20% 40% 60%
Smoking Cessation
Other Health Info
Private Medical Provider
Medication Reminder
Health Education (Children)
Sleep Aid / Monitor
Advice on Long-term Medical Conditions
Apps to Acces Magazines, et al.
General Health Info
Nutrition
Fitness / Training
Calorie Counter
Healthy Eating
Consumer mHealth App Usage
Source: Ruder Finn, “mHealth Report,” March 2013
26. Digital Healthcare 25 Industry Analysis — Fall 2013
In Exhibit 27, we illustrate areas where consumers believe health apps can be introduced to improve
patient care. We note that less than 50% of respondents had an opinion that health apps can improve
patient care. Consumer/patient responses identified access to test results, monitoring, and patient health
records as the greatest areas for mHealth apps to improve patient care. Again, we believe that survey
results show that consumers remain focused on digitization of basic opportunities.
Exhibit 27: Areas Health Apps Can Improve Patient Care
11%
13%
18%
21%
24%
26%
30%
33%
42%
0% 10% 20% 30% 40% 50%
Lifestyle / Healthy Living Advice Sent to Patients
Apps Will Not Improve Care
Virtual Consultations for Remote Patients
Text Message Updates from GP's and Surgeons
Mobile Devices to Record Data
Real-Time in-Home Monitoring Data
Patient Health Records
Monitoring Devices That Send Alerts
Access to Test Results
Health Apps for Improving Patient Care
Source: Ruder Finn, “mHealth Report,” March 2013
We note that both clinicians and consumers/patients are utilizing mobile apps to better understand health
issues. In Exhibit 28, we provide an illustration of consumer health app growth between February 2010
and April 2012. According to mobi health news, there were 13,607 consumer health apps available for
Apple‟s iPhone as of April 2012. Additionally, Exhibit 28 provides a breakout of these 13,607 consumer
health apps available for Apple‟s iPhone by category as of April 2012.
Exhibit 28: The Proliferation of Consumer Health Apps
118
226
271
336
493
665
694
739
962
1,111
1,415
1,915
2,207
2,455
0 500 1,000 1,500 2,000 2,500 3,000
PHR
Medication…
Smoking Cessation
Emergency
Sleep
Calculator
Chronic Conditions
Mental Health
Women's Health
Strength Training
Stress & Relaxation
Diet
Cardio
Other
Consumer Health Apps by Category: April 2012
2,993
5,081
8,924
13,607
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
Feb 2010
Aug 2010
Jul 2011
Apr 2012
Consumer Health Apps Growth: February 2010 to April 2012
Source: mobi health news, “An Analysis of Consumer Health Apps for Apple’s iPhone 2012,” July 2012
27. Digital Healthcare 26 Industry Analysis — Fall 2013
In Exhibit 29, we provide a list of major fitness apps and their reported number of downloads as of
August 2013. According to mobi health news, MyFitnessPal exhibited the greatest amount of downloads
at 40.0 million, and Endomondo exhibited the least amount of downloads at 16.0 million. The list compiled
by mobi health news reflects those app developers that report downloads and user metrics regularly. We
note the list omits both Fitbit and Jawbone, as these companies do not regularly update their user
metrics.
Exhibit 29: Fitness Apps Show Strong Consumer Traction
16.0
18.0
18.0
18.0
20.0
22.5
40.0
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0
Endomondo
Runtastic
MapMyFitness
Nike+
Azumio
RunKeeper
MyFitnessPal
Major Fitness Apps > 16 Million Downloads
Source: Company documents and mobi health news, August 2013
We believe that Stage 1 and Stage 2 of healthcare digitization are occurring concurrently, and remain in
the very early stages of development. The high levels of adoption associated with the Internet,
smartphones, and tablets has set a solid foundation for the digitization of healthcare to move forward.
Clinicians exhibit significantly higher mobile adoption rates than consumers/patients, but clinician
digitization remains focused on basic functions. While consumer/patient adoption of the Internet for
understanding health issues remains high, consumer/patient adoption of mobile for understanding health
remains relatively low. We believe that digital healthcare innovation in areas such as analytics,
diagnostics, health and wellness, medical records, sensors, and telehealth will help drive increased
adoption among clinicians and consumers/patients. In our view, digital healthcare innovation will continue
to provide new and compelling solutions to complex healthcare problems, which should help clinicians
and patients better manage health outcomes. Over time, we expect that digital healthcare technology
innovation will drive the integration of the digital clinician and digital patient over the next few years. Next,
we explore the important entities responsible for driving digital healthcare innovation forward.
28. Digital Healthcare 27 Industry Analysis — Fall 2013
The Accelerators of Digital Healthcare Innovation
We believe several digital healthcare accelerators and technology companies are driving the
development of Stage 2 (digital healthcare adoption and development) and subsequent shift into Stage 3
(integration). Since 2011, several digital healthcare-focused accelerators have emerged to help digital
healthcare focused startups get up and running. We note that these accelerators typically provide
startups with seed capital typically around $20,000, significant back-office resources, mentoring, and
advice from extensive expert networks. In return, startups provide the accelerator with an equity stake
typically between 2% and 10%. In this section, we provide a summary description of these accelerators,
as well as one hybrid called Qualcomm Life.
In Exhibit 30, we provide a timeline illustrating the development of digital health accelerators between
2005 and 2011, which comes from the California HealthCare Foundation. The timeline highlights the
convergence of three major trends, which have led to the successful emergence of health accelerators.
Since 2006, the U.S. Government has placed significant emphasis on facilitating the digitization of
healthcare. Second, venture capital models have evolved from simply providing capital in exchange for
equity to providing startups a wider suite of mentoring and business development solutions to go along
with modest capital investment. Lastly, the proliferation of digital and mobile devices has been
exponential since the introduction of innovative devices, e.g., iPhone and iPad. The convergence of these
three trends has led to a proliferation of entrepreneurs focused on solving healthcare problems by
developing digital solutions.
Exhibit 30: The Development of Health Accelerators: 2005 to 2011
HealthCare
Accelerators
Digital / Mobile
ONC
Established 1st Health 2.0
Conference
ARRA
ACA
Health
Accelerators
Emerge
Facebook at 1
million users
iPhone
Launched
App Store
Introduced
iPad
Launched
Y Combinator
Founded
TechStars,
Seedcamp
Excelerate Labs,500 Startups, TechStars
Boston
2005 2007 2009 2011
Source: California HealthCare Foundation, “Greenhouse Effect: How Accelerators Are Seeding Digital Health Innovation,” February 2013
ARRA stands for American Recovery and Reinvestment Act
ACA stands for Affordable Care Act
Below we provide summaries regarding Qualcomm Life and important digital healthcare accelerators
including Rock Health, StartUp Health, Healthbox, and Blueprint Health. Other healthcare technology-
focused accelerators include NY Digital Health Accelerator, StartX Med, and TigerLabs Health. We
note that several technology companies working on digital healthcare solutions include Apple (AAPL,
$498.22, Buy, covered by Aaron Rakers), Intel Ventures (INTC, $22.67, Buy, covered by Kevin
Cassidy), Nuance (NUAN, $19.66, Hold, covered by Tom Roderick), IBM (IBM, $183.03, Buy,
29. Digital Healthcare 28 Industry Analysis — Fall 2013
covered by David Grossman), et al. We realize that our list may omit some entities and fully expect this
list of entities to grow significantly over time.
Who Is Qualcomm Life?
Qualcomm Life is a subsidiary of Qualcomm focused on helping healthcare companies solve their
wireless medical device connectivity issues. The primary focus of Qualcomm Life is to develop a wireless
health eco-system based on the Qualcomm Life 2net Hub device. Rick Valencia serves as Vice President
and General Manager of Qualcomm Life. Don Jones serves as Vice President, Global Strategy and
Market Development for Qualcomm Life. James Mault serves as Vice President and Chief Medical Officer
for Qualcomm Life. Qualcomm Life is a subsidiary of Qualcomm and is based in San Diego, California.
More information can be obtained at the company‟s website www.qualcommlife.com.
What is the Qualcomm Life 2net Platform? The eco-system consists of wireless medical device solutions
integrated on Qualcomm Life‟s 2net Platform, analytics for aggregating medical device data, and
facilitates interoperability between different devices. The Qualcomm Life 2net Hub sits at the nexus of the
eco-system and facilitates 3G and 2G connectivity with wireless medical devices, and is an FDA Class I
medical device. Entities focused on healthcare services or disease management can leverage the
platform to treat a patient remotely via various medical devices from eco-system partners.
The 2net Platform business model consists of facilitating wireless healthcare solutions via its managed
network of digital healthcare technology services. Secondly, the 2net Platform is working to develop
solutions for biometric data aggregation and further data analysis. Lastly, the company provides
application support to its eco-system partners.
We note that the Platform‟s partner eco-system consists of three types of companies: (1) wireless medical
device companies, (2) healthcare services companies, and (3) healthcare payers. According to
Qualcomm Life, these companies can then connect with the platform through four gateways: (1) a
standalone FDA-listed external device (2net Hub), (2) medical devices with an embedded cellular
component, (3) medical data sent from mobile phones, and (4) service platform integration between the
medical grade 2net Platform to an eco-system partner via application programming interfaces (APIs).
Exhibit 31: Qualcomm Life Key Developments
February 2012
November 2012 Launces 2net Hub in Europe with Telbios and Cystelcom as its first customers
Announces additional partnership and expands 2net Hub to Canada
Announces WebMD partnership
Acquires HealthCircles and expands 2net Hub to Scandanavia with Infogosoft, e-
mergency, and Viewcare A/S as its first customers
August 2013 Announces investment in Fitbit
March 2013
May 2013
July 2013 Announces first wireless health care customer in France: MEDECIN DIRECT
Date Event
Announces investment in AirStrip Technologies and additional partnerships
December 2012
Qualcomm forms the Qualcomm Life subsidiary and launches $100 million venture fundDecember 2011
Qualcomm Life Development Timeline
Source: Company documents
30. Digital Healthcare 29 Industry Analysis — Fall 2013
Qualcomm Life Announces Partnership with WebMD. In March 2013, Qualcomm Life and WebMD
announced a partnership focused on enabling consumers to access and manage wireless health data
across an array of fitness, wellness, and medical devices. The goal of the partnership is to make
biometric data available, actionable, and relevant to consumers in order to help consumers better
manage their health and fitness. Furthermore, the partnership allows for integration of the Qualcomm Life
2net Hub with various WebMD offerings, ultimately providing consumers and physicians a connected
healthcare experience. Most importantly, the partnership establishes an open eco-system of digital health
apps and third-party devices across various disease categories and lifestyle interests. We believe this
represents an integral partnership for the future success of both Qualcomm Life and WebMD. In our view,
the open app eco-system allows WebMD to better personalize health offerings, possibly extend its mobile
advertising reach to additional devices, and provides Qualcomm Life with a meaningful aggregation
platform for consumers to track their health data flowing through the 2net Hub eco-system.
Qualcomm Life Acquires HealthyCircles. In May 2013, Qualcomm Life announced the acquisition of
HealthyCircles, which marked a shift for Qualcomm Life into front-end software. We believe the
acquisition provides important new capabilities for Qualcomm Life‟s 2net eco-system that further
entrenches Qualcomm Life at the forefront of developing digital healthcare technologies. HealthyCircles is
a care coordination management platform providing enterprise clients with private-label branded web,
mobile, and multi-lingual solutions and services. The company was founded in order to address the
shifting reimbursement landscape under the Affordable Care Act (ACA). HealthyCircles provides services
addressing hospital readmission reduction, care transitions, home health monitoring and management,
Accountable Care Organizations, and Patient-Centered Medical Homes (PCMH). The acquisition allowed
Qualcomm Life to combine its 2net Hub and HealthyCircles to capture new data sets focused on
medication history, lab data, care teams, and self-assessment data.
Qualcomm Life Launches Clinical Trial in San Diego to Test Digital Healthcare Technology for
Treatment of Children’s Asthma. Recently, Qualcomm Life and partner Rady Children‟s Hospital-San
Diego announced the launch of a digital healthcare technology clinical trial focusing on children with
asthma. The clinical trial will test digital healthcare technology from Asthmapolis and Zephyr, as well as
the Qualcomm Life 2net Hub. Fifty participants between the ages of seven and 17 will be selected, as
the project seeks to understand the correlation between time and location, as well as patient health
indicators (heart rate, respiratory rate, and activity) in order to better individualize asthma treatment. Each
participant will receive a 3G-enabled testing kit consisting of two Asthmapolis sensors used to track
inhaler usage, a Zephyr BioPatch used to track heart rate, respiratory rate, and activity, as well as a
Qualcomm Life 2net Hub. Additionally, parents and patients can track health information via Asthmapolis‟
mobile apps and patient dashboard. Physicians can access patient data via the ZephyrLIFE Home portal
to view wireless contextualized vital sign data.
Scripps Wired for Health Trial Tests Digital Healthcare Technology, Including the Qualcomm Life
2net Hub. In July, the Scripps Translational Science Institute (STSI) launched its Scripps Wired for Health
Trial. STSI will select trial participants from its employee population with a focus on employees and family
members that have generated high healthcare costs during the 2012 plan year. The clinical trial will test
digital healthcare technology from several companies; some devices include Sanofi’s IBG Blood
Glucose Meter, Withings Blood Pressure Monitor, and the AliveCor Heart Monitor with each device
being linked via Qualcomm Life’s 2net Hub. Participants in the wireless device group will also test
Qualcomm Life‟s HealthyCircles Care Orchestration Engine, an enterprise platform designed for care
coordination and management.
Qualcomm Life and Palomar Health launch Google Glass Incubator. Qualcomm Life and Palomar
Health launched an incubator, based in San Diego, California, to evaluate the application of wearable
computing in medicine. The incubator will focus on assessing the medical benefits of Google Glass in
both consumer and clinical applications with a focus on improving biometric data and wireless health
management. Research and development efforts will focus on (1) augmented reality guided clinical
applications, (2) user experience paradigms for clinical navigation of complex data, (3) physiological
monitoring, (4) genomic information mapping, and (5) consumer-oriented health and wellness
applications. Additionally, the incubator will leverage Qualcomm Life‟s HealthyCircles orchestration
engine, which facilitates communication between doctors, EHRs, and biometric medical devices.
31. Digital Healthcare 30 Industry Analysis — Fall 2013
Qualcomm Life Invests in Fitbit. In August 2013, Qualcomm Life announced an investment in Fitbit
through its Qualcomm Life venture fund. The Fitbit investment marks the ninth such digital healthcare
investment made by the Qualcomm Life Fund in 1.5 years.
Strategic Partners. We believe Qualcomm Life is at the forefront of developing a highly functional
wireless network for digital healthcare companies. The Qualcomm Life wireless eco-system consists of
more than 100 companies and ranges from universities to startups to publicly traded healthcare
technology companies such as Greenway Medical (GWAY, $15.95, not covered) and WebMD. We
provide a summary of Qualcomm Life‟s eco-system partners in Exhibit 32.
Exhibit 32: Qualcomm Life’s Eco-system Partners
Ximed
Zeo, Inc.
Zephyr
Viewcare A/S
VRI
WebMD
Wireless-Life Sciences Alliance
Withings
Worrell Inc.
Telcare
Telsano
Trapollo
Tri-City Medical
U.S. Preventive Medicine, Inc.
Venture Manufacturing
Santech Health
Scripps Health
Sensei
Sotera Wireless, Inc.
Sweetwater Health
Telbios SpA
Predictably Well
Preventice
Radish Systems
Rady's Children's Hospital and Health Care
Rock Health
S3 Group
Omron Healthcare, Inc.
Open mHealth
Orange Business Services
Perminova
PMD Exports, Inc.
Polymap Wireless
MD Revolution
Messe Dusseldorf GmbH
mHealthAlert
Microsoft HealthVault
MIR - Medical International Research
Monitored Therapeutics
myHealthAccount
Nonin Medical, Inc.
Noom, Inc.
NurseBuddy
Infogosoft
Ingram Micro
Integron
Ion IT Group
Jointly
Lifetime Health Diary
HealthyCircles
Heart To Heart Network
HelloHealth
HMM Group
IDG
Independa, Inc.
Greenway Medical Technologies
Happtique
Health Companion, Inc.
Health Founders
Health Numeric
HealthSaaS, Inc.
FitLinxx
ForaCare, Inc.
Geneva Healthcare
Get Real Health
GlobalLogic
goBalto, Inc.
Diversinet Corp
e-mergency
Elbry's
Entra Health Systems
ERT
FatSecret
CellTrust
Ceretec, Inc.
ChoiceMMed
Citrusbyte
CleverCap
Connected Care Solutions
Continua Health Alliance
ConversePoint
Dexcom, Inc.
Digifit, Inc.
AT&T Mobility
Aventyn, Inc.
BodyMedia, Inc.
Cambridge Temperature Concepts
Care Technology Systems
Case Western Reserve University
American Heart Association
American Stroke Association
American Telemedicine Association
ANT+
Apsora
Asthmapolis
Qualcomm Life Eco-system Partner Companies
A&D Medical
ActiveCare
Advanced Warning Systems, Inc.
Agile Edge Technologies, Inc.
AirStrip
AliveCor, Inc.
Source: Company documents, Qualcomm Life
In Exhibit 33, we provide a summary of Qualcomm Life‟s investments that comprise the Qualcomm Life
Fund. We note that the Qualcomm Life Fund portfolio consists of nine interesting digital technology
startup companies.
Exhibit 33: Qualcomm Life Portfolio Company Summary
Source: Company documents, Qualcomm Life
32. Digital Healthcare 31 Industry Analysis — Fall 2013
Rock Health
Rock Health is a non-profit seed accelerator for digital health startups. The accelerator boasts a strong
network of startup executives, industry executives, and venture capital investors. Halle Tecco serves as
the Chief Executive Officer and was a co-founder of Rock Health. Sarah Pollet is the Chief Operating
Officer, and oversees the daily business operations of Rock Health. Nate Gross serves as Medical
Director and was a co-founder of Rock Health. Rock Health is headquartered in San Francisco; additional
information can be found at the accelerator‟s website www.rockhealth.com.
Structure and Focus. The accelerator is exclusively focused on digital healthcare startups in the concept
stage or early stages of development (pre-VC). Typical startups selected for the accelerator are
developing software or hardware products for consumers and/or enterprise customers. Residencies last
four months and include a demo day with roughly 15 startups per class. Startups can elect to receive
funding in the form of a $100,000 convertible note. Terms of the note vary by the startup‟s maturity, and
startups can still participate in the accelerator without accepting investment.
Strategic Partners. Rock Health benefits from several strategic partners ranging from venture capital
investors to the government to technology providers, see Exhibit 34.
Exhibit 34: Rock Health’s Strategic Partners
Source: Company documents, Rock Health
In Exhibit 35, we provide a summary of Rock Health‟s current portfolio companies. We note that Rock
Health‟s current portfolio consists of 58 interesting digital technology startup companies.
Exhibit 35: Rock Health Portfolio Company Summary
Source: Company documents, Rock Health
33. Digital Healthcare 32 Industry Analysis — Fall 2013
StartUp Health
StartUp Health is a national academy for health and wellness entrepreneurship. StartUp Health Academy
provides health and wellness innovators with a structured curriculum to help build a sustainable long-term
growth business in the healthcare sector. The Academy‟s goal is to help 1,000 Health Transformers
(entrepreneurs) build sustainable growth businesses over the next decade. Steven H. Krein serves as the
Chief Executive Officer and was a co-founder of StartUp Health. Unity Stoakes serves as President and
was a co-founder of StartUp Health. Howard Krein, M.D., Ph.D. serves as StartUp Health‟s Chief Medical
Officer. StartUp Health is headquartered in New York City. More information can be found at the
Academy‟s website www.startuphealth.com.
Structure and Focus. The accelerator is “stage” agnostic, but presents itself as “grad-school” for
startups, whereas incubators are “undergrad.” The curriculum lasts 12-36 months and is focused on
customer development in order to build sustainable long-term growth businesses in healthcare. The first
class consisted of 24 companies and the second class will consist of nearly 75 companies. The
accelerator provides infrastructure, resources, and services to entrepreneurs focused on building
sustainable growth businesses in healthcare. StartUp Health receives between 2% and 10% of equity in
the entrepreneur‟s company with a cost of 6% to 7% of equity for early-stage startups.
Strategic Partners. StartUp Health benefits from several strategic partners ranging from venture capital
investors to the government to technology providers, see Exhibit 36.
Exhibit 36: StartUp Health’s Strategic Partners
Government PartnersScholarship Partners Perk Partners Advisor Partners StartUp Community
Source: Company documents, StartUp Health
In Exhibit 37, we provide a summary of StartUp Health‟s current portfolio companies. We note that
StartUp Health‟s current portfolio consists of 40 interesting digital technology startup companies.
Exhibit 37: StartUp Health Portfolio Company Summary
StartUp Health Portfolio Current Companies
Source: Company documents, StartUp Health
34. Digital Healthcare 33 Industry Analysis — Fall 2013
Healthbox
Healthbox offers an accelerator program for healthcare technology entrepreneurs focused on stimulating
innovation, and enabling entrepreneurial success through a collaborative, global ecosystem in order to
drive change in healthcare. Healthbox is focused on early-stage high-potential healthcare technology
startups addressing meaningful industry challenges. Promising healthcare technology startups can
receive resources, support, and a network to enable rapid development and growth through the
Healthbox accelerator program. Nina Nashif serves as Chief Executive Officer and founded Healthbox.
Yechiel Engelhard serves as Entrepreneur in Residence. More information can be found at the
accelerator‟s website www.healthbox.com.
Structure and Focus. The Healthbox accelerator program typically lasts four months, and includes a
demo day, as well as one to two classes per year. Accelerator classes typically consist of 10 companies
and are based in one of five cities: Chicago, Boston, London, Jacksonville, or Nashville. Startups receive
$50,000 in seed capital, as well as a wide range of resources and support. We note that startups benefit
from particularly close ties with BlueCross BlueShield Venture Partners.
Strategic Partners. Healthbox benefits from several strategic partners ranging from venture capital
investors to healthcare IT to technology providers, see Exhibit 38.
Exhibit 38: Healthbox’s Strategic Partners
Source: Company documents, Healthbox
In Exhibit 39, we provide a summary of Healthbox‟s current portfolio companies. We note that
Healthbox‟s current portfolio consists of 43 interesting digital technology startup companies.
Exhibit 39: Healthbox Portfolio Company Summary
Source: Company documents, Healthbox
35. Digital Healthcare 34 Industry Analysis — Fall 2013
Blueprint Health
Blueprint Health is an accelerator program geared toward healthcare companies seeking help to find
customers and capital. The program lasts three months and the majority of the startups‟ executives must
commit to work from Blueprint‟s New York headquarters. The foundation of the program is access to a
network of more than 150 healthcare entrepreneurs, investors, and industry executives. Blueprint Health‟s
headquarters are in New York City. More information can be obtained at the accelerator‟s website
www.blueprinthealth.org. Startups receive $20,000 in cash, as well as over $50,000 in perks, which
include legal, hosting, human resources, public relations, and other services. In return for these perks and
resources, startups must provide a 6% equity stake to Blueprint Health.
Strategic Partners. Blueprint Health benefits from several strategic partners ranging from venture capital
investors to healthcare IT to technology providers. According to the Blueprint Health website, the
accelerator program benefits from partnerships with insurance companies (eight total), hospitals (12
total), healthcare IT companies and startups (31 total), biopharmaceutical companies (two total), and
venture capital firms (22 total), see Exhibit 40.
Exhibit 40: Blueprint Health’s Strategic Partners
New York Presbyterian
Montefiore Hospital
Partners Healthcare
Johns Hopkins Hospital
University of Pennsylvania
Health System
Greenwich HospitalRobert Wood Johnson
University HospitalCedars Sinai Medical
Center
Mayo Clinic
United Healthcare
Cigna
Premera
BCBS
Regence BCBS
Aetna ZocDoc
Phressia
ShapeUp
Keas
Alliance Health
Activate Networks
Happtique
MedHelp
Community Health Systems
Ascension Health
Kaiser Permanente
HealthiNation
Definity Health
Eliza
Liazon
Cerner
Healthcare IT / Startups
Vitals
Teladoc
Zeel
Patients Like Me
Founder Collective
Google Ventures
Health Enterprise Partners
Heritage Group
Highland Capital Partners
Aberdare Ventures
Bessemer Venture Partners
Cardinal Partners
Edison Ventures
Essex Woodlands
FirstMark Capital
Epocrates
Medivo
Sermo
HLM Venture Partners
InterWestKleiner Perkins Caufield &
Byers
Milestone Venture Partners
Mohr Davidow Ventures
Decision Resources
Massive Health
Health 2.0
Zeo
Objective Health
Kaplan Health
Biopharmaceuticals Venture Capital
Union Square Ventures
OrbiMed
Blueprint Health's Strategic Partners
Physic Ventures
Psilos
Rho Ventures
Safeguard Scientifics
WebMD
Allscripts
Insurance Partners Hospital Partners
Humana
Well Point
Pfizer
Johnson & Johnson
Simplee
Red Brick Health
Source: Company documents, Blueprint Health
In Exhibit 41, we provide a summary of Blueprint Health‟s alumni portfolio companies. We note that
Blueprint Health‟s alumni portfolio consists of 39 interesting digital technology startup companies.
Exhibit 41: Blueprint Health Alumni Portfolio Company Summary
Blueprint Health Alumni Portfolio Companies
Summer 2013 Winter 2013 Summer 2012 Winter 2012
Source: Company documents, Blueprint Health