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  

$   $