Alex Fair: Igniting a Healthcare Revolution
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Transcript of Alex Fair: Igniting a Healthcare Revolution
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