Hacking.Medicine
@ M I T HEALTH EXPERIENCE DESIGN 2012
3/25/2012
ZEN CHU @ACCELMED MIT ENTREPRENEUR-‐IN-‐RESIDENCE
HackingMedicine.MIT.edu
SCALE MEDICINE
SO INCREDIBLY INEFFICIENT
IDEAL FOR ENGINEERS & DESIGNERS
ACCELERATE DATA
EFFICACY OR FAILURE QUALITY & COST
BETTER FASTER CHEAPER
DESIGNERS ARE ESSENTIAL
REPEATABLE PATTERNS HACK BUSINESS MODELS DEFINE EXPERIMENTS
TOOLS NEEDED
WHERE TO FOCUS?
INCENTIVES + $$$$
CHANGING WITH HEALTH REFORM
HACKABLE INTERSECTION OF HIGH TECH & MED TECH
FOLLOW THE MONEY 62% of $2.3 Trillion = Hospitals & Docs 2008
BIGGEST REFORMS
HOSPITALS
PHYSICIAN PRACTICES
ADOPTER ≠ PAYOR UNCOVER THE PERVERSE INCENTIVES
DOCTOR
HOSPITAL
PATIENT
PAYOR
PAYMENT REFORMS & NEW BUSINESS MODELS CAN CORRECT MISALIGNMENTS
MARKET RISK TRUMPS ALL Va
lue
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
TOOLS FOR
MAPPING & HACKING HEALTHCARE
BUSINESS MODELS
BUSINESS MODEL CANVAS CHANNELS ENERGY OF DIVERSE TEAM
BUSINESSMODELGENERATION.COM
CARE DELIVERY VALUE CHAIN
Michael Porter, Tiesberg
HMS INVENTION SCORING TEACH ACADEMICS REAL PRODUCT VALUE
…BUT… HEALTHCARE COMPLEXITY
HEALTH MODEL CANVAS HINTS FOR UNBUNDLING HEALTHCARE BIZ MODELS
SLIDESHARE.COM/MEDICALVENTURES
IDENTIFY KEY ADOPTOR:
PaGent
Specialist/PCP/Nurse
Hospital/Department
Insurer
Payor/Employer
PaGent/DTC
Specialist/Nurse
Hospital
Payor
DISEASE SUB-‐SEGMENTS
NATURAL HISTORY
KEY RISKS/LIABILITIES Regulatory Pro/Cons Reimbursement Codes Health Reform Changes
PERFORMANCE & EFFICACY METRICS Clin Data Cost/Timepoints
VALUE INFLECTION MILESTONES
SUBSTITUTES & COMPETITION
EXECUTION DIFFERENTIATION GO TO MARKET DIFFERENTIATION
Data Accelerants
Regulatory Path
Reimbursement Codes
ACCELERANTS -‐ Tech enablers -‐ Clinical tesGng -‐ PaGent Engagement -‐ DistribuGon
Data Accelerants
Royalty Stacking
Regulatory Compliance Premium
OSTERWALDER CANVAS
BUSINESSMODELALCHEMIST.COM
MAP EACH PLAYER CURRENT BEHAVIORS & SUBSTITUTES
SPECIALISTS GPs NURSES CAREGIVERS PATIENTS
TERTIARY HOSPITAL COMMUNITY HOSPITAL
OUTPATIENT CLINIC DOCTORS OFFICE
RETIREMENT HOME RETAIL CLINIC
PATIENT HOME
CO
ST & C
OM
PLEXITY
WHERE IS THERE A CONSUMPTION VACUUM? BEST WAYS TO IDENTIFY DISRUPTION!
HACKMED PROCESS RIGOROUS CLINICAL PRODUCT DESIGN
1) ASSEMBLE DIVERSE GROUP OF MENTORS ACROSS HEALTHCARE DISCIPLINES BEWARE BLIND SPOTS & BIASES
2) MAP DISEASE CARE DELIVERY VALUE CHAIN 3) MAP EACH PLAYER’S VALUE CANVAS 4) TEST ASSUMPTIONS WITH INTERVIEWS 5) IDENTIFY UNMET NEEDS & PAIN LEVELS 6) BUSINESS MODEL CANVAS FOR EACH SCENARIO 7) DEFINE MIN VIABLE PRODUCT 8) MAP VALUE/VOLUMES/IMPACT VS DISEASES 9) COMPARE MKT SIZES & COMPETITION 10) CHOOSE EXPERIMENTS TO TEST ASSUMPTIONS
... ITERATE…
MIT EXAMPLE -‐ GINGER.IO
MIT EXAMPLE -‐ GINGER.IO
PLEASE HACK HEALTHCARE!
TWITTER @ACCELMED
HACKINGMEDICINE.MIT.EDU @HACKMEDMIT
ADDITIONAL EXAMPLES
Health IT Landscape Follow the Money
PaGent
Employer Hospital
Physician
Insurer
$$
$$$ $$$
Pharm Benefit Manager
MedTech Companies
$ $
Align Employers & Employee/PaGents
PaGent
Employer Hospital
Physician
Insurer
$$
$$$ $$$
Pharm Benefit Manager
MedTech Companies
$ $
Castlight Health
VALUE
Personalized tools to help employees shop for healthcare based on cost, quality & convenience
Bringing cost transparency to health care decisions
Lower healthcare costs by 15-‐30%
HACK
Aligns employees with employer costs
Uses employer data to create master provider cost database
Supply Chain Management
PaGent
Employer Hospital
Physician
Insurer
$$
$$$ $$$
Pharm Benefit Manager
MedTech Companies
$ $
VendorMate
Value
Capture, CredenGal, Monitor
Streamline operaGons & know who’s walking your halls.
Comply with HIPAA, privacy, security
HACK
Free soluGon to hospitals, charged to vendors
Supply chain management
Billing Management
PaGent
Employer Hospital
Physician
Insurer
$$
$$$ $$$
Pharm Benefit Manager
MedTech Companies
$ $