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How Technology is Changing the Health Care Marketspace
Mark Scrimshire b: ekive.blogspot.come: [email protected]/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