5/27/09 Copyright: Chilmark Research

For internal use only, not for distribution1

Consumer/Patient Role

Post Stimulus

or

“Now What Did I Pay For?”

- Joe the Plumber

By: John Moore, Managing Partner

John@ChilmarkResearch.com

5/27/09 Copyright: Chilmark Research

For internal use only, not for distribution2

Chilmark Research

Healthcare Analyst Firm

Founded in 2007

Based in Harvard Square, Cambridge MA

Focus on Consumer-facing Technology

Software (e.g.,PHRs), mHealth, Biometrics &Health Clouds

Services Include

Market Research

Strategic Analysis & Guidance

More Info @: www.ChilmarkResearch.com

5/27/09 Copyright: Chilmark Research

For internal use only, not for distribution3

Three Take-Aways

Consumer MacroTrends

Stimulus & theConsumer

Consumer Demands& Needs PostStimulus

5/27/09 Copyright: Chilmark Research

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Macro Trends: Consumer Healthcare

EscalatingCosts

InformationAccess

CareFragmentation

Healthcare Beginswith Search

Top 4 Activity AcrossDemographics

Wisdom of CrowdsShare Experiences,Lessons Learned

“Expert” ContentNo Longer ClinicianOnly

Disintermediation of CareRetail, Corp. Clinic, Med Tourism, Online/Virtual

Financial CostsFalling onConsumers

HDHPs More thanTripled in 4yrs

Small BusinessesDiscontinuingCoverage

Largest Contributorto PersonalBankruptcy Filings

5/27/09 Copyright: Chilmark Research

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Consumer Engagement Still Low

Meager 3.3% Use aniPHR

Greatest use amongchronically ill & mothersw/ children

PHR Use Concentratedin Provider-basedPHRs

Trust, Data, Value

Tethered, littleconsumer control

Will EHR Adoption Drive Deeper Engagement?

5/27/09 Copyright: Chilmark Research

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Stimulus Funding Focus is Clinicians

Over $36B for EMRAdoption

Create Digital PHI

Minimum $300M for HIEs

Aggregate Digital PHI

Consumers’ Post- Stimulus Value Rests with Meaningful Use

5/27/09 Copyright: Chilmark Research

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Meaningful Use in Three Parts

eRx

Electronic Prescribing

Quality Reporting

Collect & Submit Quality Metrics

Metrics, TBD

Information Exchange

Exchange Records to Facilitate Care Coordination

How & with whom TBD

5/27/09 Copyright: Chilmark Research

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Making Meaningful Use Meaningful

eRx“Let me request that refill online and pick it up onway home from work.”

Physician-enabled eCommunication

Quality Reporting“Just how good is the hospital I use?”

Need Public Reporting - Ease of Comparison

Information Exchange“Let’s coordinate care together.” Patient-Physician

Tools to Facilitate

Portability of Records (PHI)

Go mobile, biometrics, communication

Effective, Efficient Consumer-Centric Care

5/27/09 Copyright: Chilmark Research

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Consumer Role Post-Stimulus

Digital Records & ControlLiquid Data/PHI Create Demand for PHRs

Data is crux of PHR & clinical data gold standard

Quality DataDrive Engagement Decisions

Increasing Demand for Pricing Data

Quality+Pricing=Value

PersonalizationTurning Data into Guidance & Action for Health,Wellness, Prevention

Risk factors, family history, genetics, PHI

Consumers will Seek Out “Digital Practice”

5/27/09 Copyright: Chilmark Research

For internal use only, not for distribution10

“Convergence” Consumer in ControlPersonal, Actionable, Connected

Value: About Me, By Me, With Me, For Me

5/27/09 Copyright: Chilmark Research

For internal use only, not for distribution11

Final Thoughts…

Relinquishing Control

Who Owns & Controls the Data?

HIPAA Insufficient

Denial of Coverage is the Issue

HIT Stimulus May be Wet Cement

Aggressive Schedule

Incentives Focus on Technology, Not Behaviors

Difficult to Chip-out Later