Post on 25-Jul-2015
CbusineZCorporate venturing in health insurance
J. de Groot
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Introduction
Drs J.G.B. de Groot
Joep.de.groot@cz.nlJgbdegroot
Currently: board of CbusineZ
Past: DSM and Managing partner The Essence Consulting
Experience in venturing:- Set up 6 companies as a managing director
- Served on 26 boards as a (non-)executive director
- Involved in > 40 M&A deals
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Index
Our environment
The goal of CbusineZ is to change the behaviour of the healthcare system
Cases:Hearing aidsBenchmarkingeMental HealthCommunication platform
Corporate Venture OfficeOrganisation and alignmentStaffCVM: expert system for monitoring & portfolio management
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The cost of healthcare have risen sharply
Rise cost of hospitalcare in Netherlands last 5 year
Cost increase in AWBZ (elderly care) in 10 year
30 %
to 20 mrd €
66 %
to 21 mrd €
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In 1970:
72 year
In 2020there are3,3 mln 65+
Life expectancy has risen
LINH, RIVM,
+3
And will increase the coming years
65+ in 2010:
2,5 mln
This will lead to an increase in the number of
elderly people
Baby in
2010: 83jr
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We live longer.... But not always healthy...
LINH, RIVM,
50% doesn’t exercise enough
40% over weight15% obesity
27% smokes
Unhealthy lifestyle is an important reason for chronicle illness
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463.000569.000
1.1 mln
1.2 mln
Because of higher life expectancy & unhealthy lifestyle the number of chronically ill will rise
Depression COPD Diabetes heartcondition
Can you imagine what this means for care delivery?
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Index
Our environment
The goal of CbusineZ is to change the behaviour of the healthcare system
Cases:Hearing aidsBenchmarkingeMental HealthCommunication platform
Corporate Venture OfficeOrganisation and alignmentStaffCVM: expertsystem for monitoring & portfolio management
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The goal of CbusineZ is to change the
behaviour of the health care system
Medical outcomes
Costs
Customer satisfaction
Our goal is to set up or create ventures that changes the
system and thereby improving quality or reducing cost
We set up ventures that improve “the game”
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Collective services
unclog
missing
Setting up a missing ‘function’ in the value chain
Examples:BenchmarkingeMental healthSelf management tools
“unclog” the system by introducing a best practice or low cost option
ExamplesHearing aidsH&S serviceDisease mngt IT system
Collective servicesServices that require critical mass and are above an institution own interest
Examplescontracting and invoicing eplatformNationwide informal care initiativeCare purchasing for cities
unclogMissing
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The venture can be small, but the effect on
healthcare and CZ can be substantial
New venture
Venture with limited profitability
Substantial effect on costs or driver for enhancing
purchasing function
Example Effect
VECOZO Largest administrative data platform (contracts, invoices)
Reduction on FTE in backoffice
Psy HealthDirect
eHealth treatments for depressions, fear, burnout
Reduced cost of interventions and improved purchasing
To create tipping point in policy related areas we
use the Minimal Required Energy strategy
12We assemble the minimal needed set of partners:For competences and/orlaunching customers
Product &services 1.0
Implement and proof to the healthcare sector that the innovation is succesful
Expand step by step
Include new partners and (often) open up the governance structure
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Index
Our environment
The goal of CbusineZ is to change the behaviour of the healthcare system
Cases:Hearing aidsBenchmarkingeMental HealthCommunication platform
Corporate Venture OfficeOrganisation and alignmentStaffCVM: expertsystem for monitoring & portfolio management
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Hearing aids: yearly € 20 mln potential
savings... But how to open up the market?
Prices could be slashed in half
A completely closed market
1250
525
Our analysis showed that hearing aids could cost less then 50% of the 2012 price
The market was strictly divided and attempts to break the power in the past had been punished by market leaders
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Having the info and a credible threat to existing
players CZ succeeded in the purchasing project
1 2
We set up Tonen (a hearing aid service):- Better quality (at home)- Low price (€ 500)
Hard to find a supplier
offer
Purchasing project
Reduce suppliers
Use Tonen price as reference
Even the largest suppliers reduced their prices with 40-45%
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To open up the € 6 billion black box we
started a benchmark initiative
Mental Health was a complete black box
6 billion
Health care insurers became responsible for purchasing mental health services
A sector of 6 billion... No one had a clue on outcomes!
CbusineZ, the 3 large health insures and a VC started KZN a benchmark initiative
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Using MRE strategy the sector was
forced/seduced into cooperating
A BV (“ltd”) with 5 shareholders
Modern, ‘new’ mental health institutions as customers
Sector very resistant to idea of ROM and benchmarking
A foundation with a board of patients, mental health and healh insurers
The whole sector participates
Sector can improves its
performance and health insure can purchase based
on value
Professionals still hesistating
Using eHealth a depression can be treated just as
effectively with half the cost and time
vv Using eHealth
3 Face tot Face + an ehealth
program
Of
eHealth programm &
coaching on telephone
cost: ca € 300 - € 400
g Current depression treatment
1st line 8 conversations
€ 560
2nd line: 8-12 conversations
€ 1200+
Same effectSame effect
55% of patients
would prefereHealth
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We introduced a JV to remove the barriers for
the usage of eMental Health
Adaption of eMental Healht
Prices of eHealth were to high
Tarrifs for treatment not high enough
Knowledgde on how to use eHealth was low
JV with mental health provider
Lower prices
Change policy to stimulate eHealth
Invested in JV and changed the policy
By removing the barriers and promoting we now see a, carefull, upscale of the usage of eHealth
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eLabs create mental health interventions in co creation using gaming techniques
The eLabs are corporations. The members are mental health institutions and Cbusinez.
The interventions are created in co creating between patients, care professionals and Serious Game designers
- Autisme- Addiction- Psycho trauma
Video based training for skill for autism patients
‘quest for a better life’
VECOZO is the platform that facilitates communication between institutions and health insurer
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Healthcareprovider
Healthcareprovider
Healthcareprovider
Health insurer
Health insurer
Health insurer
VECOZO:
Reduction in back office costAt providers and HI
Being the the Facto standard there are not many doublings or data incompatiblities in the Netherlands
CbusineZ portfolioJan 2015
voorheen
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Index
Our environment
The goal of CbusineZ is to change the behaviour of the healthcare system
Cases:Hearing aidsBenchmarkingeMental HealthCommunication platform
Corporate Venture OfficeOrganisation and alignmentStaffCVM: expertsystem for monitoring & portfolio management
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CbusineZ organisation: the elements have to
aligned
Organisation
Culture
Process & Tools
Finance
People
Strategy
CorporateVentureOffice
Position in the CZ organisation:
at board level
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BoardCZ
Marketing
Healthcareprocurement
Sales
Customerservice
Declarationservices
Staff
BoardCbusineZ
LegallyCbusineZ is a separate legal entity with its own board
FunctionallyTo the CZ organisation the CZ-CbusineZ board present themselves as one
So CbusineZ is organised at C-level
CSF
CbusineZ organisation structure
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Executive board
Arno van Son Joep de Groot
Ria Yap
Business managers
Gertjan van Rossum
Investment managersSupport
Angelique Bonte
Stephan Hulsbergen
Freek van Gerwen Berry MortierJeroen Nugteren
Finance
Lianneke Mol
Myrthe van HoekCarolien Oppeneer
Legal Intern
Nicole van Loy
CbusineZ network: CbusineZ, Venture managers and CZ innovators
CbusineZ event:(Every 3 months)
Deal flow
Presentation on relevant topic(eg strategy, innovation lessons from Jobs)
Thought provoking topic:(eg design, serious game)
Networking
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CbusineZ organisation: the elements have to
aligned
Organisation
Culture
Process & Tools
Finance
People
Strategy
CorporateVentureOffice
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CbusineZ attracts employees from CZ and
‘reprograms’ them
Venture
Opera
CbusineZ
Investment managers
Venture manager
Consultant
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1
2
3
2
3
Intensive coaching program: from “corporatee” to innovator
Attitude- Results Instead of process- Don’t tell me why it can’t be
done, tell me what you need- Connect instead of protect
Skills- Focus, focus, focus- PRISMA (problem solving)
Speed- Enourmous acceleration
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CbusineZ organisation: the elements have to
aligned
Organisation
Culture
Process & Tools
Finance
People
Strategy
CorporateVentureOffice
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The CVO needs a formalised process and tools
0.IdeaGeneration
1.Screenlead/idea
3.DevelopmatureVenture
2.1 New Venture
2.2 ParticipationM&A
BP Start up Scale up ExpansionExit Venture
4.Exit Venture
Deal Flow Strategic Goal Map Portfolio Mngt
Portfolio Mngt
Venture Mngt
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Deal flow list facilitates progress by transparency
and killing projects that won’t progress
Simple list withVentures & projects with their status and milestone deadline
Managers want to show progress
The deal flow makes the progress transparent.
Managers want to show progress to the board and the rest of the CbusineZ community
Facilitates killing projects
Corporate habit:We have invested a lot of effort in this project, so it would be a shame to stop now...
Kill and kill early!Ventures/projects that won’t progress are killed!
“Don’t be temped to let it simmer”
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Create a Strategic Goal Map… enhance it with every phase and use it for monitoring
1. Market Map
2a. Strategic goal for the parent2b. Needed results
3. Business goals for the Venture
4a. Needed links with the parent4b. Needed links with other Ventures in the portfolio
5. JV partner selection and abilities
to be transferred
Strategic Goal Map
Establish the strategic goals the company wants to achieve with this venture
Detail needed business results, needed links & partners
The Strategic Goal Map is needed to monitor the Venture and to organise the links with the parent
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We had no tool to analyse organisational maturity and to coach the venture director
How good are the ventures in the portfolio?
How can we help ventures to progress to the next phase?
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We review on 13 aspects to get a complete picture
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Based on literature, experience and case study we devoloped our own rules set
Venture management literature
Subject literature
Experience
Cases
CbusineZ Venture ManagementHeuristic rules set
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Per phase, per subject categorie 3-5 questions are developed (total :350)
CASEWhat do
you think?
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Thank you for your attention and have fun venturing