Value Propositions in Digital Health - Lean Launchpad UCSF Course

Value Propositions Lean Launchpad: Digital Health

UCSF Entrepreneurship Center October 1, 2013

Abhas Gupta, MD Mohr Davidow Ventures

@abhasguptamd

HC Costs are a BFD

“Healthcare costs will be the preeminent social and political issue of the next decade”

What is Digital Health?

Software Healthcare

+/- Consumers

Venture Profile: Fast to fail, low capital intensity,

highly scalable, +/- regulatory burden

Why now?

Technology Adoption

Data Consumer Reach

Evolving Business Models

ACOsCapitation

Business Model Canvas

Product/Market Fit, Customer Growth, Revenue and Costs, Partnerships and Operations

Broader Context

Competitive Landscape

Regulatory Changes

IndustryTrends

Become your own expert!

Value Propositions

This Week

Next Week

Key Customers

Consumers Employers Providers

Insurers + Government Producers

Learning Loops

Consumers Employers Providers

Insurers + Government Producers

MVP? MVP? MVP?

MVP? MVP?

Hypothesis, Experiment, Data, Insight

Consumers

Convenience Better Quality (perceived)

Lower Costs

Other Factors: Privacy, social, comfort, delight, decision support, outcomes...

Employers

Lower Costs Employee Satisfaction

Productivity

Other Factors: Lower administrative burden, hiring advantages, culture, ...

Work output Engagement Absenteeism

ProvidersWhat is their business model?

Fee-for-Service !

Reimbursement Productivity

... Retention

At-Risk !

Cost Reduction (Outcomes, Technology)

In-Network Productivity

Insurers + Government

Core Business !

Productivity Provider Offerings

Acquisition/Retention Risk Analytics Compliance

!(Self-Insured) Employers

As Fiscal Intermediaries:

Consumers

Producers

Core functions -> Enterprise SaaS opportunities

Pharma, Medical Devices, Cloud-based EMRs

Increase Sales of Existing Business

Enter New Lines of Business

Cost & Risk Reduction

Key Customers

Consumers Employers Providers

Insurers + Government Producers

This Week’s BIG IDEA

Strength ofValue Proposition is proportional to

Pricing!

ROI > Outcomes > Access > Convenience

Looking Ahead

This Week

Next Week

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

agupta@mdv.com

@abhasguptamd

linkedin.com/in/abhasguptamd

kyra.davis@ucsf.edu

@kyradavis

linkedin.com/in/kyradavis

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