mHealth:Disruption at our Doorstep

Andy Levien – CEO & co-founder Ubi

Diagnostics

…..leading practitioners of the old order

become the victims of disruption, not the

initiators of it. But …leaders of existing

systems can take the lead in disruption

themselves……it always proves to be an

extraordinary growth opportunity.*

* The Innovators Prescription; Clayton Christensen, 2009

Our choice:

Victim or growth leader?

Market headlines

• Aging of population

– Global population over 60 to double in percentage by 2050 to

22% and nearly triple in absolute terms

– US population over 60 to double from 62M to 124M by 2050

• In the US, treatment of chronic diseases, notably

CHF/CHD, COPD, and diabetes account for nearly

75% of annual health spending or nearly $1.7trillion

• FDA just releases long awaited mobile health

guidelines for comment July 19th

• Move to outpatient setting, homecare and personalized

medicine as means to improve outcomes and reduce

cost

Proprietary Information

Market trends driving mHealth

Proprietary Information

Source: Business Insights Feb 2011

New care models

New customers & payment models

6

New self pay market?•Phone apps

•mHealth

•Telemedicine

•Connect to

EHR/PHR systems

•Connections to the

old order?

Transfer of payment

risk to provider•Accountable care and

wellness organizations

•Healthways new entrant

•Some in the old order

may migrate?

XIBM Global Business Services report, March 2011 “The future of connected health devices – Liberating the Information Seeker”

“MOBILE HEALTH, Who Pays?” by ATKearney for GSMA, Feb 2011

Finding opportunities - seeking leaders

• New payment systems and care models will be the

economic vehicle to drive innovation

• Integrated data systems (EMR,EHR, PHR) become

repository for much richer data sets from connected

diagnostic and therapeutic systems, cradle to grave

• Connected network of devices from hospital to clinic to

office to home

– mHealth will be huge driver, sorting out regulatory requirement

will be a challenge

– Massive innovation in devices to fill the gap between

hospital/clinic and home

– New entrants will be naïve to medical device market

– The leaders of the old order will drive consolidation

7

Questions to audience

• Which of the old guard will drive device disruption or not?• Med Device leaders

• Diagnostics Imaging:GE, Seimens, Phillips

• Fluid diagnostics

• Therapeutic

• Pharma

• Emerging vs developed markets• Consider that emerging economies do not have the fixed infrastructure of

the developed world, yet massive increase in demand for cost effective healthcare

• Who are possible new leaders or partnerships (or consolidations)

• Telecoms and cable providers (i.e. Verizon Health VC fund, Comcast?)

• EHR/EMR providers

• Microsoft and/or will Google come back

• Big pharma and diagnostics companies

• Others?