Hacking Medicine at MIT.edu

H@cking Medicine

@hackmedmit

Zen Chu Entrepreneur In Residence

MIT Entrepreneurship Center

entrepreneurship.mit.edu

Invited Hacker: Ed Park CTO, COO athenahealth

Healthcare hack resul?ng in $1.5B valua?on

Create the ecosystem and programs for MIT & Harvard Health Science Technology

students to learn & rapidly hack the

unique needs & challenges in

medical technology development by

collabora?ng with clinical & domain

experts around the world

H@cking Medicine

WHY HACKING MEDICINE?

MIT Hacking Culture Provoca?ve

Include Life Science Outsiders

MIT IS THE PLACE

Engineering Leadership Entrepreneurial Culture

Boston Medical Industrial Complex

Large Successful Examples

MIT Strengths Map To MedTech Trends

Focus @ Interface of IT & Devices

BUT… HEALTHCARE IS COMPLEX

MIT MedTech Educa?on Students Need to Taste the Essen?al Process

Teching materials already exist for validated engineering-‐driven methodology Stanford’s BioDesign Program

Fragmenta?on & Scalability Challenges Geography, Specialty, Disease State

700 Payers

5700 US Hospitals

>4000 Medical Product

Companies

Negotiated Payments & Pricing Among Each Player & Region

Health IT Landscape Follow the Money

Pa?ent

Employer Hospital

Physician

Insurer

$$

$$$ $$$

Pharm Benefit Manager

MedTech Companies

$ $

Pharma Companies

US Healthcare Spending 2007 $2.3 Trillion, 15.2% GDP

Hospital Care

Physician Services

Pharma

Nursing Homes

Admin Costs

Other Devices, Diagnostics Pharmacy, etc

Source: PHRMA Annual Report 2008

TIME IS RIGHT TO HACK HEALTHCARE

Costs Drive Reform Incen?ves Changing

Infotech meets Healthcare

Business Model Hacks

HackingMedicine.mit.edu

@hackmedmit

CALL TO ACTION Momentum Building

Be a Part of It!

Fall 2011 Conference @ MIT

Student Leaders

Fantas?c Mentors

BACKUP & EXAMPLES

Health IT Landscape Follow the Money

Pa?ent

Employer Hospital

Physician

Insurer

$$

$$$ $$$


MedTech Companies

$ $

Pharma Companies

Align Employers & Employee/Pa?ents

Pa?ent

Employer Hospital

Physician

Insurer

$$

$$$ $$$


MedTech Companies

$ $

Pharma Companies

CASTLIGHT HEALTH

Supply Chain Management

Pa?ent

Employer Hospital

Physician

Insurer

$$

$$$ $$$


MedTech Companies

$ $

Pharma Companies

Billing Management

Pa?ent

Employer Hospital

Physician

Insurer

$$

$$$ $$$


MedTech Companies

$ $

Pharma Companies

athenahealth

Hacking New Business Models

NEW MODEL EXAMPLE

•  Prac?ce Management athenahealth

•  New Workflows e-‐Prescribing •  Collec?ve Knowledge Sermo Social Network

•  Direct to Consumer iPhone Disease Management

•  Outsourcing O2i Teleradiology •  Decentraliza?on In Home Tes?ng/Monitoring

•  Pay 4 Performance Cerner •  Bundling Episode-‐Based Pricing

Priori?ze By Rapid Hackability & Data

Start With Hackable MedTech Easy to test tracHon

Low Hackability High

Regulated

Regula?

on UNregulated Direct to Consumer

Professional Consumables Clinical Data & Quality Required

Convenience & Produc?vity

Opportunis?c MIT Start Here Health Info Tech Big data & cloud services Sensors Imaging analysis Hospital supply chain management Wellness apps Health social media

Consumer devices No/few medical claims

Simple solu?ons for HC workers, MDs Gene?c analysis & counseling Hospital supply chain management Students can focus on clin workflow No/few regulatory requirements

Healthcare Is More Complex Get students to learn the methodology

Valu

e

Time

Market Risk Reimbursement

Physician & Patient Adoption Packaged Solutions

Regulatory Risk Safety & Efficacy

Management Risk

Technology IP Risk

Largest Risks Must Be Addressed & De-Risked Up Front Before Funding

Investors & Companies Willing to Take These Risks

© [email protected]

Regulatory Is Cri?cal… But demands clinical & domain exper?se

Clinically Disrup?ve