Hacking Healthcare Business Models
ACCELERATE DATA: Traditional medicine and physicians cannot scale to deliver high-quality healthcare. New technologies and models of care are key enablers to drive better health outcomes at lower cost. The proof will be in the data, but traditional research and clinical testing yield painfully slow results. Medical knowledge comes from carefully accelerating Data -- traditionally pre-clinical and human experimental data -- either to prove or disprove whether new technologies, medicines, processes or incentives are actually superior. Today, researchers and patients can capture, aggregate and communicate new types of data, yielding faster insights and patient impact. HACK HEALTHCARE: Medicine needs more Hackers -- clever engineers and designers to re-architect healthcare systems and invent new technologies. Some areas of healthcare are not hackable and must prove experiments down a traditional plodding path. However, health professionals and engineers can accelerate medical innovation across many diseases by applying techniques from high technology to healthcare. Borrowing philosophies from Silicon Valley and MIT for rapid product design, lean startup methodologies, workflow re-engineering, novel data collection, big data analysis, and info publishing can accelerate data generation.
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Hacking Healthcare Business Models
- 1. Hacking.Medicine @MIT HEALTH EXPERIENCE DESIGN 2012 3/25/2012 ZEN CHU @ACCELMED MIT ENTREPRENEUR-‐IN-‐RESIDENCE HackingMedicine.MIT.edu
- 2. SCALE MEDICINE SO INCREDIBLY INEFFICIENT IDEAL FOR ENGINEERS & DESIGNERS
- 3. ACCELERATE DATA EFFICACY OR FAILURE QUALITY & COST BETTER FASTER CHEAPER
- 4. DESIGNERS ARE ESSENTIAL REPEATABLE PATTERNS HACK BUSINESS MODELS DEFINE EXPERIMENTS TOOLS NEEDED
- 5. WHERE TO FOCUS? INCENTIVES + $$$$ CHANGING WITH HEALTH REFORM
- 6. HACKABLE INTERSECTION OF HIGH TECH & MED TECH
- 7. FOLLOW THE MONEY 62% of $2.3 Trillion = Hospitals & Docs 2008 BIGGEST REFORMS HOSPITALS PHYSICIAN PRACTICES
- 8. ADOPTER ≠ PAYOR UNCOVER THE PERVERSE INCENTIVES DOCTOR PATIENT HOSPITAL PAYOR PAYMENT REFORMS & NEW BUSINESS MODELS CAN CORRECT MISALIGNMENTS
- 9. MARKET RISK TRUMPS ALL Largest Risks Must Market Risk Reimbursement Be Addressed & De- Physician & Patient Adoption Risked Up Front Packaged Solutions Before Funding Value Regulatory Risk Safety & Efficacy Management Risk Investors & Companies Willing to Take These Risks Technology IP Risk Time
- 10. TOOLS FOR MAPPING & HACKING HEALTHCARE BUSINESS MODELS
- 11. BUSINESS MODEL CANVAS CHANNELS ENERGY OF DIVERSE TEAM BUSINESSMODELGENERATION.COM
- 12. CARE DELIVERY VALUE CHAIN Michael Porter, Tiesberg
- 13. HMS INVENTION SCORING TEACH ACADEMICS REAL PRODUCT VALUE
- 15. HEALTH MODEL CANVAS HINTS FOR UNBUNDLING HEALTHCARE BIZ MODELS DISEASE SUB-‐SEGMENTS NATURAL HISTORY ACCELERANTS IDENTIFY KEY ADOPTOR: -‐ Tech enablers PaGent/DTC -‐ Clinical tesGng PaGent -‐ PaGent Engagement Data Accelerants KEY RISKS/LIABILITIES -‐ DistribuGon Specialist/PCP/Nurse Regulatory Pro/Cons Specialist/Nurse Reimbursement Codes Hospital/Department Health Reform Changes Insurer Hospital Payor/Employer PERFORMANCE & EFFICACY METRICS Clin Data Cost/Timepoints Payor Data Accelerants VALUE INFLECTION MILESTONES Royalty Stacking Regulatory Path Regulatory Compliance Premium SUBSTITUTES & COMPETITION Reimbursement Codes EXECUTION DIFFERENTIATION GO TO MARKET DIFFERENTIATION SLIDESHARE.COM/MEDICALVENTURES
- 16. OSTERWALDER CANVAS BUSINESSMODELALCHEMIST.COM
- 17. MAP EACH PLAYER CURRENT BEHAVIORS & SUBSTITUTES TERTIARY HOSPITAL COST & COMPLEXITY SPECIALISTS GPs COMMUNITY HOSPITAL NURSES OUTPATIENT CLINIC CAREGIVERS DOCTORS OFFICE PATIENTS RETIREMENT HOME RETAIL CLINIC PATIENT HOME WHERE IS THERE A CONSUMPTION VACUUM? BEST WAYS TO IDENTIFY DISRUPTION!
- 18. HACKMED PROCESS RIGOROUS CLINICAL PRODUCT DESIGN 1) ASSEMBLE DIVERSE GROUP OF MENTORS ACROSS HEALTHCARE DISCIPLINES BEWARE BLIND SPOTS & BIASES 2) MAP DISEASE CARE DELIVERY VALUE CHAIN 3) MAP EACH PLAYER’S VALUE CANVAS 4) TEST ASSUMPTIONS WITH INTERVIEWS 5) IDENTIFY UNMET NEEDS & PAIN LEVELS 6) BUSINESS MODEL CANVAS FOR EACH SCENARIO 7) DEFINE MIN VIABLE PRODUCT 8) MAP VALUE/VOLUMES/IMPACT VS DISEASES 9) COMPARE MKT SIZES & COMPETITION 10) CHOOSE EXPERIMENTS TO TEST ASSUMPTIONS ... ITERATE…
- 19. MIT EXAMPLE -‐ GINGER.IO
- 20. MIT EXAMPLE -‐ GINGER.IO
- 21. PLEASE HACK HEALTHCARE! TWITTER @ACCELMED HACKINGMEDICINE.MIT.EDU @HACKMEDMIT
- 23. Health IT Landscape Follow the Money Pharm Benefit MedTech Manager Companies $ $ Employer $$$ Insurer $$$ Hospital $$ PaGent Physician
- 24. Align Employers & Employee/PaGents Pharm Benefit MedTech Manager Companies $ $ Employer $$$ Insurer $$$ Hospital $$ PaGent Physician
- 25. Castlight Health VALUE HACK Personalized tools to help Aligns employees with employees shop for employer costs healthcare based on cost, quality & convenience Uses employer data to create master provider cost Bringing cost transparency database to health care decisions Lower healthcare costs by 15-‐30%
- 26. Supply Chain Management Pharm Benefit MedTech Manager Companies $ $ Employer $$$ Insurer $$$ Hospital $$ PaGent Physician
- 27. VendorMate Value HACK Capture, CredenGal, Monitor Free soluGon to hospitals, Streamline operaGons & charged to vendors know who’s walking your halls. Supply chain management Comply with HIPAA, privacy, security
- 28. Billing Management Pharm Benefit MedTech Manager Companies $ $ Employer $$$ Insurer $$$ Hospital $$ PaGent Physician