Healthcare Revolution

@alexbfair#MEDX

Geekto

Freak to

Hero

@alexbfair#MEDX

Not just any Geeks

And we don’t control anything

Not the PayPal Mafia

We do our jobs and see problems

And Imagine Solutions

Healthcare Innovation is more difficult due to regulations and aversion to adoption

…and predicting Success in Healthcare is difficult…

PROBLEM

which constrains capital, which limits innovation, which makes healthcare less effective

And our solution isn’t usually a widget

@alexbfair#MEDX

It doesn’t usually get sold to consumers (patients)

@alexbfair#MEDX

You generally need an expert to install it

Image courtesy of Policymed.com

And no one, especially the patient thinks they should pay very much for it

And it costs like a billion dollars to do anything

Which YOU have No Say in

NIH Grants, $30.9

Pharma R&D Investment, $49.5

Foundations / SBIR, $3.0

Venture Capital, $8.5

Approximately $100B is Invested to fund Healthcare Innovation in U.S. Annually

Sources of Funding For Healthcare Innovation – 2011 ($B)

Venture Capital

Of the $8.5B invested in 2011, 19% ($1.6 billion) was invested in first or seed round investments and 81% ($6.9 billion) was invested in later stage projects

Of the $8.5B invested in 2011, 14% ($1.2 billion) was invested in healthcare IT investments and 86% ($7.3 billion) was invested in life sciences

Excludes: Angel investments, No detailed backup to foundation capital invested in early stage projects.

Foundations

A variety of foundations offer funding for early stage healthcare innovation, mostly focused around disease groups

In 2011, Susan G Komen For The Cure, one of the larger research funding not-for-profits had 2011 revenue of $358 million, but after fundraising expenses and administrative expenses only spent $283M million on programs (79% margin)

NIH Grants

Largest institutes are the National Cancer Institute which consumes 16% of NIH funding ($5.1 billion) and National Heart, Lung, and Blood Disease which consumes 10% of the NIH funding ($3.0 billion)

NIH budget expected to contract due to government debt pressures and expected decline in national spending

Excludes angel investment; approximates foundations

Because people will die if you get it wrong

But they also die if you don’t try

@alexbfair#MEDX

And we are not powerless

When People Stand UpRevolutions Happen

When citizens get involved and activated, massive change is enabled. Crowdsourcing innovation and Crowdfunding their ideas is changing the world.

What Happens When You Engage Crowds that Care

• Funding – Investors look for traction among KOLs and constituent institutions and patients

• Partners – Where Corporate Innovation Officers shop• Publicity – weekly News Stories and three television

interviews in our first six months• Community – Feedback, Clinical Centers, Trials,

Support, Beta Testers, Distributors, and more

…but this is just the beginning

1. How to Code a Revolution in Healthcare

@alexbfair#MEDX

1: Get a Crazy Idea

…that just might work

@fredtotter

#MEDX

2. Run it by some friends(designers, doctors, programmers, nurses, artists, investors…)

…until you prove it does

3. Ask a crowd that cares to back it

…and they ask a crowd,

…and so on,

…and so on,

…and so on,

And then…

You may actually get a hospital to sign up

But who cares?

Because you already have:

Customers

Partners

and Funding

And who wants a

term sheet?

When you can have a bill of sale?

Fred Trotter/ NotOnlyForDev

• Eight Weeks• $45,011 Raised• 113 Patients, Doctors,

Nurses or Health Care Pros

• 24 Partners• New de facto standard

Partners Step UpCompanies that are partnering with crowdsourced solutions

Over 100 Partnerships Startd

2. Partners Driving Innovation

• Challenges• Open Innovation Programs• Grants• Pitch Days

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Inside

GovtRock

Outside

Cost Per Idea Cost Per Solution

Open vs. Closed

– In-House (2012, Fortune 100 Company)

• 50M cost• 2 outside design vendors• 18 Months

– Open Innovation Challenge CMMI/ CMS

• 8,500+ ideas submitted• 900M offered• 3 Months

– Public Open Challenge: Rock Health:

• 800+ ideas submitted• 1.3 M/ 100K offered

– Outside Customer Challenge• 10K offered• 1,000s of submission from

customers

Dol

lars

@alexbfair#MEDX

Crowdsourcing Innovation

Tech • Crowdfunding• Challenges• Social Media

Awareness• Strategy• Outreach• Design

Operations• Setup• Management• Support

Experts• Optimization• Mentors• Partners

Engagement• Customers• Communities• Live Events

How Your Crowd Drives Crowdfunding with an Open Innovation Ecosystem

EcoSystem

Get Help From: Dr. Howard Luks, Regina Holliday, Sutha Kamal, Kim Whittemore, Eythor Ernstson, Donna Usiskin, Eugene Borukovich, Dr. Jen Dyer, Steve Greene, David Williams RN, Paulo Machado, Dave Chase Fred Trotter, and many more

Mentors get involved, becoming advisors, early adopters, investors, or champions driving our client’s success

Results: Crowds Drive Massive Exposure

Get Help From: Dr. Howard Luks, Regina Holliday, Sutha Kamal, Kim Whittemore, Eythor Ernstson, Donna Usiskin, Eugene Borukovich, Dr. Jen Dyer, Steve Greene, David Williams RN, Paulo Machado, Dave Chase Fred Trotter, and many more

Mentors get involved, becoming advisors, early adopters, investors, or champions driving success

PR

Uber Geeks Get Involved to Power Ideas

3. Power to the Patients!

@ReginaHolliday

#TheWalkingGallery Film• $13,175 in 4 weeks from Doctors,

patients, Medical School Leaders• Film produced and distributed to increase

awareness of Patient perspectives in all communities

Partnership With Patients• $18,165 in 6 weeks from Doctors, Patients,

and Cerner Sponsored in Kansas City• Created a conference to promote Physician /

Patient Partnership

Sarah Kucharski

FMDchat 501c(3) formed to help people suffering from a rare disease @FMDChat

Michael Weiss

• Crohn’s Disease Warrior Patrol 501c(3) formed to help people suffering from Crohn’s, Colitis, and Irritable Bowel Disease

@HospitalPatient

John Accardi (Patient) & Frank Lewis (Engineer)

@LewCardia

Creating the Wave

• Starts with Patients

• Builds with Doctors

• Peaks with Partners

• And you may even get a Hospital to sign up

If you Do it Right, You all Ride the Wave together

Photo courtesy New York Times

How will you Revolutionize

Medicine?

@alexbfair#MEDX

Get Your Hero On

(if you need a cape, please see Regina Holliday in the back)

Thank you for your support and attention

@alexbfair#MEDX