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How Technology is Changing the Health Care Marketspace

Mark Scrimshire b: ekive.blogspot.come: mscrimshire@gmail.comt/a/s: ekivemark

May, 2008 Remember June 14th

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“There is so much still to be done” -Tim O’Reilly, We 2.0 Expo

“Then why are still just throwing sheep?” -Health Industry attendee, We 2.0 Expo

There are four changes driving the Health Care industry

PAY FOR PROVIDER PERFORMANCE

RISE OF THE INDIVIDUAL CONSUMER

PUBLIC POLICY AND THE UNINSURED

TECHNOLOGY EVOLUTION

Its time to take the Red Pill…IT IS TIME TO TAKE THE RED PILL...

AND FACE A NEW REALITY

The industry is on the brink of massive structural change. A change we must embrace. The “Long Tail” signifies a

relentless drive towards control placed in the hands of the consumer

The “Long Tail” of health care is consistent with the CareFirstvision of extending the reach ofhealth care to more people

B-2-B

B-2-C

C-2-B

Google, Microsoft,Yahoo, IBM

Financial ServicesCompetitors

Cost BaseProfit

Products / Customers

Revolution Health

The Personal Health Record (PHR) is strategically important & the customer should want to own itGoogle, Microsoft and IBM recognize this and are spending billions to address Health Care

Web businesses understand the importance of data

Industry powerhouses on the web control a hard to re-create data set

Amazon – Enriched media catalogueGoogle – Search indexeBay – Seller reputations

The PHR is the next major battleground and will influence the dynamics of the entire health sector

Who will the consumer trust?Will consumers let their PHR be held hostage by a provider?

Major players are already promoting their PHR solutions

The customer will want easy control

Real efficiency in the market place comes from keeping people healthy - not from treating their illnesses.

People need knowledgeand insight to make effective life choices

“I am aperson..not apatient”

If we think in terms of patients then we are out of touch with the market

The Internet industry know the value of massive data volumes and social conversations

The healthcare industry has to learn how to leverage the massive amounts of clinical data together with demographic information to gain new insights into health and disease management

The Internet industry has proven how passionate community members can be more knowledgeable than general practitioners

Social networks are a valuable tool that the medical profession must learn to tap into in order to deal with less common diseases

Transforming the user experience has many facets, after all users don’t really want our existing services.

Demand for Knowledge

“A sample of US-based health insurers' portals reveals emphasis on self-service functionality, with little knowledge dissemination to create a broadly appealing customer experience. Few of the portals currently offered to customers by payers have readily available medical decision-making tools or brand-differentiating features.”

Rising Expectations

“Health insurance portals that reflect an emphasis on self-service without enhancing knowledge transfer will not meet customers' increasingly sophisticated expectations of online experiences. Integrating these two value elements will enable health insurers to map portal design to strategic goals.”

Essential to Have IT and Business Alignment

“Organizational realignment and fundamental changes in IT philosophies are needed to move beyond a tactical healthcare insurance solution map. Failure to recognize the limitations of the new solution map's alignment of IT resources and business processes will imperil future growth and profitability.”

"most brand web sites may not matter in 2012" - STEVE RUBEL

THE BOTTOM LINE…

WE HAVE TO MEASURE OURSELVES AGAINST THE BEST OF THE WEB WE HAVE TO MORE OPENLY SHARE INFORMATION WE HAVE TO PUT OURSELVES IN THE SHOES OF OUR STAKEHOLDERS WE HAVE TO MOVE WELL BEYOND THE TRANSACTION

- GARTNER

“I AM A PERSON..NOT A

PATIENT”

SIMPLE STRUCTURED HUMAN AND MACHINE

READABLE DATA FORMATS

SECURE BUT OPEN ACCESS DELEGATION

SECURE EXCHANGE OFUSERID AND ASSOCIATED

INFORMATION

The Health Care industry can learn from the grass roots Internet - Simple and Open is best and fastestThe Data Portability movement with its focus on OpenID, OAuth and microformats is showing the way to open but secure data exchange.

Data Portability grew out of the need to allow data to move between social networks. These standards help enable access and the sharing of common data and relationships.

The Health Care industry has the same challenges - on a massive scale.

The Personal Health Record can be considered another facet of personal information, albeit one with strong privacy and security issues associated with it.

The volume of health related information will drive records in to electronic form and communication between all parties will move to an electronic medium too.

OAUTHQuickTime™ and a decompressor

are needed to see this picture.

We can no longer measure ourselves against our own industry

The Consumer experience benchmark is set by the best service experience regardless of industry

The rise of the Consumer willdrive structural change in the healthcare industry

“NO ONE IS HAPPY WITH THE AMERICAN HEALTH-

CARE EXPERIENCE TODAY. IT IS AN

EXPENSIVE, COMPLEX SYSTEM TO WHICH

PEOPLE RESORT ONLY WHEN A PROBLEM HAS

GROWN THREATENING.“

BUSINESSWEEK

“WHY I STARTED REVOLUTION HEALTH”

POSTED ON 08:53AM (EST) ON 2006-12-21AFTER LEAVING AOL, I THOUGHT LONG AND

HARD ABOUT WHAT I SHOULD DO NEXT.  I FELT THAT HEALTH CARE WAS IN DIRE NEED OF

TRANSFORMATIVE CHANGE, AND DECIDED TO BUILD ANOTHER COMPANY THAT COULD BE A CHANGE AGENT, WITH THE GOAL OF SHIFTING

POWER INTO THE HANDS OF PEOPLE THEMSELVES.   

I SEE THIS AS A BUSINESS OPPORTUNITY, TO BE SURE, AND WE'RE AIMING TO BUILD REVOLUTION

HEALTH INTO A MAJOR COMPANY.  BUT I ALSO SEE THIS AS AN OPPORTUNITY TO DO SOME

GOOD, BY TACKLING A HEALTH CARE SYSTEM THAT IS A MESS, IN THE WAY I KNOW BEST: BY BUILDING A COMPANY THAT CAN CHANGE THE

WORLD.

STEVE CASE, EX-AOL TIME WARNER

This area is at the epicenter of Health Care Change

An important change in Health Care transformation is placing people at the center“Health partners for life”

Treating “people not patients”

A collaborative approach to health and wellness

Structuring incentives to encourage preventative health practices and optimal treatments

Openly share data to encourage widespread adoption of new methods

Engage the community

Healthcare is a politically charged issue

We have to engage the community in conversations on the subject

Conversations already happen whether we are involved or not

Supporting Providers to deliver effective service

Pay for quality service

The move to an electronic health care industry is inevitable. The question is how long will it take.The challenges faced by the industry are bigger than any single company can solve alone

All parts of the industry and the consumer stand to gain by working together

An open approach that leverages Internet industry practices will create an environment that is more familiar for consumers

The Health Care industry has to engage in the conversations that are taking place about the industry

Open conversation is necessary to develop trust. The Health Care industry is not trusted by its customers leaving it exposed to powerful new entrants that have learned how to engender trust

“HOW CAN THE PUBLIC LEARN TO TRUST THE POWERFUL, IF THE POWERFUL DOESN’T TRUST THE PUBLIC”

Continue the conversation...

June 14, 2008

Villa Julie College, Owings Mills MD

MD