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Healthcare 2020: Disrupt, Transform and Collapse
Uncover the trends driving growth and innovation
© 2014 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
March 18, 2014
Today’s Presenters
Reenita Das
Partner, Senior Vice President , HealthcareSiddharth Saha
Research Director – Medical Technologies
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Venkat Rajan
Principal Analyst
Natasha Gulati
Senior Industry Analyst – Connected Health
Where are the Biggest Opportunities in Healthcare?
What are the Main Challenges towards Leveraging this Potential?
Reenita Das
Focus Points for Today’s Panel Discussion
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Agenda:
� Business Model Disruptions
� Care Delivery Disruptions
� Technology Disruptions
Poll Question
Which healthcare industry disruptor is your organization most focused on innovating around?
Big Data & Analytics
New Care Delivery and Payment Mechanisms
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Novel Business Models for Positioning of Services & Products
Consumer/ Patient Engagement Platforms
Entry of Non-Healthcare Companies
Business Model Disruptions
Are you Reinventing Your Business Model?
Yesterday Tomorrow?
Reinventing the routineReinventing the routine
Shift from hardware to serviceShift from hardware to service
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Embrace changeEmbrace change
Modular Device DesignModular Device Design
Overhaul the supply chainOverhaul the supply chain
Deconstructing the ‘Buzz’ Terms: Which one will Transform the Industry?
Big DataBig Data
E-HealtheHealth Value for Many
Aging in Place
It is critical to deconstruct what is the underlying problem to be solved, and to what degree and scale certain new business models and technologies can be employed in addressing those.
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Cognitive AnalyticsCognitive Analytics Internet of ThingsInternet of Things
Consumer centricity
E-Commerce E-Commerce
employed in addressing those.
Where Will You INNOVATE?
What could the world of healthcare look like in the future?
What changes are threats?
What opportunities will result from the changing environment?
What is your game plan?
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Performance
Technologies
Markets
Customers
CollapseConverge
Partnerships
Value Finance
Delivery
Process
Brand Customer Experience
Channel
Business Model
ServiceSolutions
Unmet Needs
Efficiency
Overhaul legacy infrastructure through novel
logistics platforms
Innovating Strategies Across All Business Functions
Leverage partners for strategy and
scale up
Supply ChainDistribution
Model
Leverage innovative care providers
globally for strategic partnerships
Provider Partnerships
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Operational management
services for targeted care settings align with value based
purchasing schemes
Service Models
Cloud based design and rapid
prototyping tools foster more
collaborative innovation models
Research & Development
Creating an Ecosystem – Bringing the Apple Business Model to Healthcare
• New entities are entering the healthcare space with a direct to consumer play.
• Traditional healthcare competitors focused on pure clinical services are conceding potentially a
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Source: 9to5Mac, Mark Gurman
conceding potentially a multi billion dollar market place.
• Buy building a ‘playground’, Google, Apple, and others create avenues for unique developers and innovators to introduce wellness solutions.
Care Delivery Disruptions
The Motivation for Change Differs Across Stakeholders
� Avoid paying for unnecessary services
� Control waste & abuse
� Help me and my family become and remain healthy
� The overall experience matters
� Peace of mind – anytime, anywhere
Suppliers –Changing the value proposition
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� Get paid for outcomes not services rendered
� Facilitate innovative care models
PATIENTS
PROVIDERS
PAYORS
POLITICIANS
� Stay in office while balancing the budget
� Make health care affordable and conveniently accessible
Change Requires New Skills and Competencies
Payors
Care provider organizations
Salaried employment
Operating healthcare exchanges (Private & Public)Leveraging the analytics revolution
Disease management based payment modelsQuality of care incentives and penaltiesConsolidation
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Salaried employmentInformation overloadPhysicians
Individual responsibilitySelf pay burdenPatients
Feature and clinical based market positioning verse workflow and econometric value based positioning.
Medical device companies
Lean Operations Innovations: Glitz Will Not Matter
• It intends to open new hospitals and attain a figure of 30,000 beds in the upcoming
5 years. It is mounting into specialty hospitals as well like orthopedics, dental and
cancer. Expansion plans outside of India include APAC and North America.
• Narayana Health’s cost for an open heart surgery is USD $2,000. The hospital
Despite a business model targeting low income
patients, Narayana Health recognizes high profit
margins (7.7% after tax).
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• Narayana Health’s cost for an open heart surgery is USD $2,000. The hospital
charges $2,400 to the patient, compared to $5,500 charged at an average private
hospital in India. Cost in the United States is $100,000 to the payor.
• Lean Innovations Examples
• Streamlined Management of Staff
• Cloud Services for Care Coordination
• Smart Operations Management
• Building Construction Innovations
• Bundled Purchasing
Bending the Cost Curve, Not Just the Payment Curve
Mitigate the cost of the operator:
• Identify means to perform high end care (tests, diagnostics, treatments) with lower personnel resource burden. Can be facilitated through innovative staffing, automation/robotics,
Specialists
General Practitioners / Hospitalists / Internal Medicine
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artificial intelligence platforms.
• Push care into settings with lower infrastructure costs
Nurses
Patient Self Management
Re-organization of Care Provision Models
Lower Variety
Higher Volumes
Supply Chain Efficiencies at Point of Care
Values of services/tools driven by:
• Cost of care
• Procedure times
• Errors/Complications
• Streamline workflow
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Focus on Clinical Care
Analytics Driven
OperationsManagement
• Streamline workflow
• Streamline technology
Technology Disruptions
Steeper Innovation Curve for Pharma and Life Sciences
FromBlockbuster
To Niche Buster
• Companion diagnostics• Companion drugs• Personalized medicine beyond oncology• New biomarkers like CTCs• miRNA based therapeutics
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Liver-on-Chip + Kidney-on-Chip + Heart-on-Chip + Lung-on-Chip = Body-on-Chip
How will 3-D Printing Change R&D and Manufacturing?
Rapid Prototyping
Artificial Models for Treatment Planning
3D Printing Factories
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In Hospital Manufacturing
Bioprinted Organs for Implantation
Bioprinted Organs for Testing
Facial Reconstruction
Custom Fitting Consumables
What is the Impact of Digital Hospitals on Different Stakeholders in the Eco System?
Paperless Does Not Mean Digital……………
What then Does a Digital Hospital Focus on?
• Singular focus on enhancing patient experience
• IT systems integrated with devices and
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• IT systems integrated with devices and equipment, such that it allows real-time information capture, action and exchange
• Reduced or eliminated “sneaker time”
• Automation of all non-core activities
Mobile Healthcare Payments Turning into a Reality
Mobile Insurance & Payments
Next-Gen mobile payments will allow:
• Simple swiping of your mobile phone to pay for hospital and pharmacy bills
• Online payment for medical registration as well as access to health records
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Mobile Apps Subsidized by Providers
well as access to health records
• Collaboration between providers and payers to facilitate copay and coinsurance at the point of service
• Collaboration between payers and wellness companies to facilitate real-time rewards for healthy behavior
What Should be Your Next Strategic Move?
How is this Relevant to Me/My Organization?Leveraging tools to assess risks and strategies
TrendRisk Score
(1-10)
Aspects of BusinessImpacted
Healthcaredigitization
Strategies Ability to Execute
Cost to Execute
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Execute Score(1-10)
Execute
Next Steps
Develop Your Visionary and Innovative SkillsGrowth Partnership Service Share your growth thought leadership and ideas or
join our GIL Global Community
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Join our GIL Community NewsletterKeep abreast of innovative growth opportunities
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For Additional Information
Reenita Das
Partner
Healthcare
(408) 857-9386
Venkat Rajan
Principal Analyst
Healthcare
(210) 247-2427
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Natasha Gulati
Senior Industry Analyst
Healthcare,
+603 6204 [email protected]
Siddharth Saha
Director of Research
Healthcare
+44 (0) 207 343 8347
