Tennessee HFMA Conference | Turning Chaos Into Opportunity

TURING CHAOS INTO OPPORTUNITY

HFMA 2014 Spring Institute Dr. Michael Burcham President & CEO The Nashville Entrepreneur Center [email protected]

Part 1 | The Current Chaos

HFMA 2014 Spring Institute 05.20.14 | Burcham

AN ERA OF UNPRESCEDENTED OPPORTUNITY

!•  A New era of Consumerism!•  New Financial Models and Insurance Constructs !•  The fusion of Medical and Social Data!•  Explosion of Mobile Technology!•  Shift from Classic B2B | Now B2B2C, C2B & B2C Models!•  Influx of New Entrants in the Industry!!!

HIGH DEDUCTIBLE PLANS GO MAINSTREAM!

ACA | IMPLEMENTATION TIMELINE

AVERAGE DEDUCTIBLES FOR VISITS ARE INCREASING

Source: PwC 2013 Health & Well-Being Touchstone Survey

In-Network at Out-of-Network Deductibles

CONSUMERS ARE DISCOVERING THAT CONVENIENT CARE IS EFFICIENT CARE

INDUSTRY CONSOLIDATION HAS LED TO HIGHER PRICES | FOR NOW

Source: Irving Levin Associates, 2013

Hospital Deals on the Rise

HOSPITAL PRICES REMAIN A MYSTERY FOR CONSUMERS

HOSPITAL READMISSION PENALTIES

Part 2 | The New Market Reality


…While Expanding the Fitness & Wellness Space

New Players Will Disrupt the $3 Trillion US Health Economy Drawing Billions from Traditional Players

Of the 2013 Fortune 50 Companies, 24 are New Healthcare Entrants.

Source: Fortune 50, 2013

New entrants will propel the

Democratization of Healthcare –

Empowering Consumers

Have you (or someone in your household) ever sought healthcare

treatment in a retail clinic?

Would you (or they) go to a retail clinic again in the future?

AS HEALTHCARE GOES RETAIL | THERE’S ROOM FOR GROWTH

35 - 54 YEAR OLDS ARE MOST LIKELY TO CHOOSE NEW OPTIONS FOR CARE

•  Diagnostics •  Primary Care •  Online Support

Source: HRI Consumer Survey, December 2013

CONSUMERS | THEY ARE READY TO GET CARE IN NEW WAYS & IN NEW PLACES

MOBILE | THE FUTURE OF HEALTHCARE

MOBILE | 2005 vs 2014

2

80% Don’t leave home without their device

Source: Google, Our Mobile Planet

2005 2014

CONSUMERS TURN TO TECHNOLOGY TO COMMUNICATE WITH PROVIDERS

How willing would you be to communicate with your doctor, nurse or caregiver in the following way?

More than half of consumers want to shop for healthcare...but their preferred method of doing so doesn’t exist yet


OPPORTUNITY | CONSUMERS WANT AN AMAZON.COM STYLE EXPERIENCE

GROWING THE $267 BILLION WELLNESS AND FITNESS MARKET


80 Million

Wearable wireless sensors for fitness and wellbeing by 2016.

Adoption is driven by device availability & new social patterns that encourage people to record and share fitness data

The ideal experience is increasingly being defined by non-clinical elements, such as convenience, amenities, and customer service.

AN IDEAL EXPERIENCE PROMPTS 34% OF CONSUMERS TO SWITCH PROVIDERS

Source: PwC 2013 | Customer Experience Radar Research

Part 3 | From Chaos To Opportunity


1. FOCUS ON THE BUSINESS MODEL | Base your business models on generating value in the New Health Economy.

BUSINESS PRINCIPLES TO TURN CHAOS INTO OPPORTUNITY 10

2. INNOVATION IS NOT CREATED EQUAL | Aim for disruptive leaps as customers will reward truly transformative services. Embrace a fast, frugal, frequent failure model to quickly develop and test ideas (think “lean startup”).


3. TURN THE TABLES | Consider a Consumer-to-Business (C2B) strategy. Use consumer data to refine business models, enhance consumer experience and earn greater loyalty.


4. ENGAGE RISK MANAGEMENT | Traditional rules of healthcare still apply. Involve regulatory, legal and compliance counsel early.


5. COLLABORATE | Blend the best of Emerging ventures and incumbents. Fill skill and asset gaps.


6. BIGGER THAN A WEBSITE | Healthcare’s next generation consumer is mobile and lives online. It will take more than a website to thrive in the New Health Economy.


7. CONSUMER CENTRIC | Evaluate everything from operating hours to availability of clinicians via digital devices to transparency of pricing and quality – through the Eyes of the Consumer.


8. DO WHAT MATTERS MOST | Carefully evaluate whether to chase commodity revenue or develop new revenue models anchored on core capabilities. Invest in new ones.


9. THINK VALUE | Challenge traditional thinking in healthcare – focus on the customer, who wants and needs change and is critical to enabling it.


10. EMPHASIZE QUALITY | Match or beat incumbents on quality by using innovative approaches such as virtual networks of experts for second opinions.


Part 4 | A Few Local Favorites


The Online Patient Self-Scheduling Solution

of online consumers are comparison shopping on 2+ hospital websites before accessing care. 64% |

$112,824 Opportunity cost of losing one hospital website visitors

IASIS Healthcare

ü  Started InQuicker

partnership with 3 EDs in 2012

ü  13 IASIS sites now have scheduling in ED, Urgent Care, and Physicians’ Clinics

35% vs. 29%

Commercially Insured

$21,665,785

InQuicker program ROI

RESULTS

Less Noise | More Signal

THE COMMUNICATION PROBLEM

Super-Sized Health Systems have a fragmented approach to internal communications leading to confusion, loss of information and

decreased engagement.

AN ELEGANT SOLUTION

A Communication Management Systems and Mobile App that strengthens and streamlines internal communications.

Why It Matters

Engaged staff are 50% more likely to show an attitude of

genuinely caring about patients than non-engaged staff.

Hospitals with above median

HCAHPS scores report 37% high operating income.

Towers Watson, 2013

Product Features

Core Functionality

Pulse Surveys

Calendar Integration

Interest Management

Push Notification

Time Matters in Cardiac Care

Josh Nickols, PhD MBA Chief Executive Officer

6.7 Deaths in the US

313 Deaths Worldwide

Cardiology

ECG Technician

Most ECG systems print on thermal paper

ECG USE REMAINS WIDELY UNCHANGED

CARE PROVIDERS ARE IN NEED OF A SOLUTION

Faxing Scanning Phone Camera

Cell phones and Faxes are Solutions BandAid

CELLPHONES AND EMAIL CREATE PROBLEMS FOR HOSPITALS

Unreadable

ECG tracings

Violations of healthcare law

70% loss of tracings

Unsigned reports: Medicare fraud

CURRENT ECGS DON’T FIT THE PRESENT MODEL OF HEALTHCARE

Obsolete within 24 months

Delays through hospital server systems

Relatively immobile

ECG devices and data systems are expensive

1”

INVISIONHEART ECG

- Small and Highly Portable - Higher Resolution than Conventional ECGs - Accessibility

InvisionHeart

10 MINUTES

ECG OVER-READ SERVICES

Part 5 | An Entrepreneurial Mindset


•  Search •  Big Data •  Indoor Mapping •  Online Scheduling •  Near Field Communication •  Mobile Diagnostics •  Connected Devices

•  Wearable & Embedded Technologies

•  Wellness Apps •  Virtual Visits | Telemedicine •  Mood Detection •  Gesture Recognition •  3d Printing & Bio-Printing

WHAT IS IMPACTING HEALTHCARE CONSUMER BEHAVIOR?

Source: The New Multi-Screen World Study | Google, August 2013

CONSUMER CHOICE IS OFTEN MADE IN CONTEXT OF TIME & ACCESSIBILITY

MULTI-CHANNEL LIFE MOST CONSUMERS HAVE A

Customers

EMPLOYERS

SEARCH

PROVIDERS

SERVICE VENDORSA

HEALTH PLANS

APP MAKERS

Customers

AROUND THE CONSUMER HEALTHCARE STAKEHOLDERS ARE ALIGNING

You are competing with every other type of

healthcare entity for “shelf space” with the consumer.

WHY AREN’T HOSPITAL MARKETERS DOING THIS?

Two-way communication with consumers. Digital engagement is part of corporate DNA

Analytics integrated into business, standardization, data driving behavior modification of consumers

Lean Startup mindset for new ideas | strategic partnerships driving innovation & service lines

Focus on value and centered around consumer, close to home, through digital devices

Business Models

Consumer Engagement

Data Driven Design

New Innovation

THERE IS NOT BETTER TIME TO TURN CHAOS INTO OPPORTUNITY THAN NOW

Tennessee HFMA Conference | Turning Chaos Into Opportunity

Healthcare

Transcript of Tennessee HFMA Conference | Turning Chaos Into Opportunity