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Digital Health Disruption – Consumerization Transforms Healthcare Dirk Lammerts, CEO myNEXT August 2015

Digital Health Disruption - Consumerization Transforms Healthcare

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Digital Health Disruption –Consumerization Transforms Healthcare

Dirk Lammerts, CEO myNEXTAugust 2015

Increasing Percentage of GDP is Spent on Healthcare

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000 U.S. National Health Expenditures per Capita 1990-2022

Source: Kaiser Family Foundation, March 2013

2© 2015 myNEXT LLC

Medical Knowledge Has Evolved –In Some Areas Behavior Has Changed for the Better

U.S. trend in adult cigarette smoking

1965: 42.4%1970: 37.4%1975: 37.1%1980: 33.2%1985: 30.1%1990: 25.5%1995: 24.7%2001: 22.8%2005: 20.9%2010: 19.3%

Source: CDC: Trends in Current Cigarette Smoking Among High School Students and Adults, United States, 1965–2011

3© 2015 myNEXT LLC

In Other Areas We Have Known Better for 50 Years: The Risks of Elevated Cholesterol

Source: TIME Magazine: Medicine: The Fat of the Land, January 13, 1961

“A remarkable substance,” says Dr. Keys, "quite apart from its tendency to be deposited in the walls of arteries.”

“Readings of the number of milligrams of cholesterol in the blood, which seem to have value in predicting heart attacks, are becoming as routine as the electrocardiogram, which can show that the heart has suffered a symptomatic attack.”

1961: Dr. Ancel Keys on cholesterol

4© 2015 myNEXT LLC

But Consumers/Patients Still Ignore the Facts

Source: Pittman DG et al.: Adherence to Statins, Subsequent Healthcare Cost, and Cardiovascular Hospitalization. Am. J. Cardiology March 2011 (epub)

2011: Reality check

32%Non-adherence to statins

$4.1 billionIncrease in U.S. healthcare cost from statin non-adherence nationwide

90,000Additional CV-related hospitalizationsfrom statin non-adherence in the U.S.

1961: Dr. Ancel Keys on cholesterol

5© 2015 myNEXT LLC

Heart Attacks Often Strike Without Warning

Jerry Garcia (musician)Age 53

During stay at a drug rehabclinic in Novato, CA

Not living the healthiest lifestyle

Tim Russert (journalist)Age 58

While working in his office at NBC News in Washington, D.C.

No warning signs in cardiac stress test two months earlier

James Gandolfini (actor)Age 51

In his hotel room during a vacation in Rome, Italy

No known cardiovascular history

6© 2015 myNEXT LLC

Digital Health – A New Paradigm After Decades of Biology-Driven Innovation

1920s

Antibiotics

1950s

Vaccines

2000s

Genomics

2010s

Digital health

7© 2015 myNEXT LLC

We Need to “Digitize the Body”

Car Phone Human

400+ on-board sensors750MB/s data processedin Google self-driving car

10+ on-board sensors*4 radios

0 on-board sensorsAnnual checkup (maybe)

*: iSight camera, FaceTime camera, Touch ID, Multi-Touch display, GPS, microphone, barometer, three-axis gyro, accelerometer, proximity, ambient light

8© 2015 myNEXT LLC

… and Complement Brick-and-Mortar Solutions Through Novel Sensor, Mobile, Analytical Technologies

Clinical ECG system Polysomnography machine

AliveCor ECG LARK sleep monitor

Brick-and-mortar solution

Consumer solution

• Expensive ($000s)• Expert use only• Stand-alone•Only at institutions•Only during “opening hours”

• Affordable ($99)• Consumer & expert use• Connected & integrated• Anywhere• Any time

9© 2015 myNEXT LLC

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

… and Replace Outdated Technology: Last Industry Dominated by Fax Machines & Live Communication

Source: “2012 National Physicians Survey”, Little Blue Book/Sharecare

Physician-to-physician Physician-to-patient

10© 2015 myNEXT LLC

… and Bridge the Divide Between Consumers/Patients and Healthcare Systems

Physicians can’t monitor or manage patients at home• Physicians don’t have access to

patients’ data outside the hospital• Physicians don’t have efficient or

effective mechanisms to influence their patients at home

Consumers can’t play an active role in their health• Patients don’t have access to their

own medical data• Patients don’t have access to

devices to measure relevant data (with exception of glucose, BP)• Patients don’t have the knowledge

to choose the right level of medical specialization• Patients don’t have the tools to

transact healthcare services like for food, travel, or financial services

11© 2015 myNEXT LLC

Ice factory in town(put ice harvestersout of business)

Disruptive Innovation Consumerizes Industries –The Same is Happening in Healthcare Now

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Ice 1.0(1805)

Ice 2.0(1868)

Ice 3.0(1913)

Ice harvesting(winter months only –and you need a lake)

Refrigerator at home(put the ice factoryout of business)

Concept credit: Guy Kawasaki

© 2015 myNEXT LLC

Wireless BP monitor

Posture/back health device

Consumer Wearables & Devices Digitize the Body

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Glucose sensing contact lens

Personal ECG monitor

Smartwatch with HR sensor

Biometric sensor platform

Activity/sleep tracker

Continuous glucose monitor

Asthma inhaler monitor

Respiratory monitor & coach

Hydration sensor

© 2015 myNEXT LLC

Innovative Tools & Marketplaces Make Healthcare Directly Accessible for Consumers

14© 2015 myNEXT LLC

Even Medical Research Gets Consumerized

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• “Taking research out of the lab and into the real world”• Apple ResearchKit launched in March 2015 to recruit

iPhone users for medical research• Initial lineup of five apps (cardiovascular, diabetes,

Parkinson’s, asthma, breast cancer)• Stanford University researchers recruited 11,000

participants for their “MyHeart Counts” cardiovascular study within 24 hours – this would traditionally have taken 1 year and 50 medical centers

ResearchKit

© 2015 myNEXT LLC

A Vision for a Digital Future of Health

The Digitized BodyWhen every organ has an IP address and data is instantaneously sent to and processed in the cloud

Data AnalyticsWhen algorithms provide insights and guidance for maintaining and improving health and wellness

Consumerization of HealthcareWhen tools & information to manage their own health become accessible and affordable for consumersMarketplaces for HealthWhen a marketplace economy in healthcare empowers consumers to transact their own health

Effortless and meaningful engagementWhen technology disappears, our environment becomes intelligent, and push notifications alert us as needed

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© 2015 myNEXT LLC

Dirk LammertsCEO [email protected]@dlammerts