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

1. TURING CHAOS
INTO OPPORTUNITY
HFMA 2014 Spring Institute
Dr. Michael Burcham
President & CEO
The Nashville Entrepreneur Center
m@ec.co

2. Part 1 | The Current Chaos
HFMA 2014 Spring Institute
05.20.14 | Burcham

3. AN ERA OF UNPRESCEDENTED
OPPORTUNITY
!
• A New era of Consumerism!
• New Financial Models and Insurance Constructs !
• The fusion of Medical and Social Data!
• Explosion of Mobile Technology!
• Shift from Classic B2B | Now B2B2C, C2B & B2C Models!
• Influx of New Entrants in the Industry!
!
!

4. HIGH DEDUCTIBLE PLANS
GO MAINSTREAM!

5. ACA | IMPLEMENTATION TIMELINE

6. AVERAGE DEDUCTIBLES FOR VISITS
ARE INCREASING
Source: PwC 2013 Health & Well-Being Touchstone Survey
In-Network at Out-of-Network Deductibles

7. CONSUMERS ARE DISCOVERING THAT
CONVENIENT CARE IS EFFICIENT CARE

8. INDUSTRY CONSOLIDATION HAS
LED TO HIGHER PRICES | FOR NOW
Source: Irving Levin Associates, 2013
Hospital Deals on the Rise

9. HOSPITAL PRICES REMAIN A
MYSTERY FOR CONSUMERS

10. HOSPITAL READMISSION PENALTIES

11. Part 2 | The New Market Reality
HFMA 2014 Spring Institute
05.20.14 | Burcham

12. …While Expanding the Fitness & Wellness Space
New Players Will Disrupt the $3 Trillion US Health
Economy Drawing Billions from Traditional Players

13. Of the 2013 Fortune 50 Companies, 24 are New
Healthcare Entrants.
Source: Fortune 50, 2013
New entrants will
propel the
Democratization of
Healthcare –
Empowering
Consumers

14. Have you (or someone in your
household) ever sought healthcare
treatment in a retail
clinic?
Would you (or they) go
to a retail clinic
again in the future?
AS HEALTHCARE GOES RETAIL | THERE’S
ROOM FOR GROWTH

15. 35 - 54 YEAR OLDS ARE MOST LIKELY TO
CHOOSE NEW OPTIONS FOR CARE

16. • Diagnostics
• Primary Care
• Online Support
Source: HRI Consumer Survey, December 2013
CONSUMERS | THEY ARE READY TO GET
CARE IN NEW WAYS & IN NEW PLACES

17. MOBILE | THE FUTURE OF HEALTHCARE

18. MOBILE | 2005 vs 2014
2
80% Don’t leave home without
their device
Source:
Google, Our Mobile Planet
2005
2014

19. CONSUMERS TURN TO TECHNOLOGY TO
COMMUNICATE WITH PROVIDERS
How willing would you be to communicate with your doctor, nurse or
caregiver in the following way?

20. More than half of consumers want to shop for healthcare...but
their preferred method of doing so doesn’t exist yet
Source: HRI Consumer Survey, December 2013
OPPORTUNITY | CONSUMERS WANT AN
AMAZON.COM STYLE EXPERIENCE

21. GROWING THE $267 BILLION WELLNESS
AND FITNESS MARKET
Source: HRI Consumer Survey, December 2013

22. 80 Million
Wearable wireless sensors for
fitness and wellbeing by 2016.
Adoption is driven by device availability & new social patterns
that encourage people to record and share fitness data

23. The ideal experience is increasingly being defined by non-clinical
elements, such as convenience, amenities, and customer service.
AN IDEAL EXPERIENCE PROMPTS 34%
OF CONSUMERS TO SWITCH PROVIDERS
Source: PwC 2013 | Customer Experience Radar Research

24. Part 3 | From Chaos To Opportunity
HFMA 2014 Spring Institute
05.20.14 | Burcham

25. 1. FOCUS ON THE BUSINESS MODEL | Base
your business models on generating value in the
New Health Economy.
BUSINESS PRINCIPLES TO TURN
CHAOS INTO OPPORTUNITY
10

26. 2. INNOVATION IS NOT CREATED EQUAL | Aim
for disruptive leaps as customers will reward truly
transformative services. Embrace a fast, frugal,
frequent failure model to quickly develop and test
ideas (think “lean startup”).
BUSINESS PRINCIPLES TO TURN
CHAOS INTO OPPORTUNITY
10

27. 3. TURN THE TABLES | Consider a Consumer-
to-Business (C2B) strategy. Use consumer data
to refine business models, enhance consumer
experience and earn greater loyalty.
BUSINESS PRINCIPLES TO TURN
CHAOS INTO OPPORTUNITY
10

28. 4. ENGAGE RISK MANAGEMENT | Traditional
rules of healthcare still apply. Involve regulatory,
legal and compliance counsel early.
BUSINESS PRINCIPLES TO TURN
CHAOS INTO OPPORTUNITY
10

29. 5. COLLABORATE | Blend the best of Emerging
ventures and incumbents. Fill skill and asset gaps.
BUSINESS PRINCIPLES TO TURN
CHAOS INTO OPPORTUNITY
10

30. 6. BIGGER THAN A WEBSITE | Healthcare’s next
generation consumer is mobile and lives online. It
will take more than a website to thrive in the New
Health Economy.
BUSINESS PRINCIPLES TO TURN
CHAOS INTO OPPORTUNITY
10

31. 7. CONSUMER CENTRIC | Evaluate everything
from operating hours to availability of clinicians via
digital devices to transparency of pricing and
quality – through the Eyes of the Consumer.
BUSINESS PRINCIPLES TO TURN
CHAOS INTO OPPORTUNITY
10

32. 8. DO WHAT MATTERS MOST | Carefully
evaluate whether to chase commodity revenue or
develop new revenue models anchored on core
capabilities. Invest in new ones.
BUSINESS PRINCIPLES TO TURN
CHAOS INTO OPPORTUNITY
10

33. 9. THINK VALUE | Challenge traditional thinking
in healthcare – focus on the customer, who wants
and needs change and is critical to enabling it.
BUSINESS PRINCIPLES TO TURN
CHAOS INTO OPPORTUNITY
10

34. 10. EMPHASIZE QUALITY | Match or beat
incumbents on quality by using innovative
approaches such as virtual networks of experts for
second opinions.
BUSINESS PRINCIPLES TO TURN
CHAOS INTO OPPORTUNITY
10

35. Part 4 | A Few Local Favorites
HFMA 2014 Spring Institute
05.20.14 | Burcham

37. The Online Patient Self-Scheduling Solution

38. of online consumers are comparison shopping
on 2+ hospital websites before accessing care.
64% |

39. $112,824
Opportunity cost of losing one
hospital website visitors

40. IASIS Healthcare
ü Started InQuicker
partnership with 3
EDs in 2012
ü 13 IASIS sites
now have
scheduling in ED,
Urgent Care, and
Physicians’
Clinics

41. 35% vs. 29%
Commercially
Insured
$21,665,785
InQuicker
program ROI
RESULTS

42. +

43. Less Noise | More Signal

44. THE COMMUNICATION PROBLEM
Super-Sized Health Systems have a fragmented approach to internal
communications leading to confusion, loss of information and
decreased engagement.

45. AN ELEGANT SOLUTION
A Communication
Management Systems and
Mobile App that strengthens
and streamlines internal
communications.

46. Why It Matters
Engaged staff are 50% more
likely to show an attitude of
genuinely caring about patients
than non-engaged staff.
Hospitals with above median
HCAHPS scores report 37% high
operating income.
Towers Watson, 2013

47. Product Features

48. Core Functionality
Pulse
Surveys
Calendar
Integration
Interest
Management
Push
Notification

51. Time Matters in Cardiac Care
Josh Nickols, PhD MBA
Chief Executive Officer
6.7 Deaths
in the US
313 Deaths
Worldwide

52. Cardiology
ECG Technician
Most ECG systems
print on thermal paper
ECG USE REMAINS WIDELY UNCHANGED

53. CARE PROVIDERS ARE IN NEED OF A SOLUTION
Faxing Scanning Phone Camera
Cell phones and Faxes are SolutionsBandAid

54. CELLPHONES AND EMAIL
CREATE PROBLEMS FOR HOSPITALS
Unreadable
ECG tracings
Violations of
healthcare law
70% loss of
tracings
Unsigned reports:
Medicare fraud

55. CURRENT ECGS DON’T FIT THE PRESENT
MODEL OF HEALTHCARE
Obsolete within 24 months
Delays through hospital
server systems
Relatively immobile
ECG devices and data
systems are expensive

56. 1”
INVISIONHEART ECG
- Small and Highly Portable
- Higher Resolution than Conventional ECGs
- Accessibility

57. InvisionHeart

58. 10
MINUTES
ECG OVER-READ SERVICES

63. Part 5 | An Entrepreneurial Mindset
HFMA 2014 Spring Institute
05.20.14 | Burcham

64. • Search
• Big Data
• Indoor Mapping
• Online Scheduling
• Near Field Communication
• Mobile Diagnostics
• Connected Devices
• Wearable & Embedded
Technologies
• Wellness Apps
• Virtual Visits | Telemedicine
• Mood Detection
• Gesture Recognition
• 3d Printing & Bio-Printing
WHAT IS IMPACTING HEALTHCARE
CONSUMER BEHAVIOR?

65. Source: The New Multi-Screen World Study | Google, August 2013
CONSUMER CHOICE IS OFTEN MADE
IN CONTEXT OF TIME & ACCESSIBILITY

66. MULTI-CHANNEL LIFE
MOST CONSUMERS HAVE A
Customers

67. EMPLOYERS
SEARCH
PROVIDERS
SERVICE VENDORSA
HEALTH PLANS
APP MAKERS
Customers
AROUND THE CONSUMER
HEALTHCARE STAKEHOLDERS ARE ALIGNING
You are competing with
every other type of
healthcare entity for “shelf
space” with the consumer.

68. WHY AREN’T HOSPITAL MARKETERS DOING THIS?

69. Two-way communication with consumers. Digital
engagement is part of corporate DNA
Analytics integrated into business, standardization,
data driving behavior modification of consumers
Lean Startup mindset for new ideas | strategic
partnerships driving innovation & service lines
Focus on value and centered around consumer,
close to home, through digital devices
Business
Models
Consumer
Engagement
Data Driven
Design
New
Innovation
THERE IS NOT BETTER TIME TO TURN
CHAOS INTO OPPORTUNITY THAN NOW