Health IT Summit in Chicago 2014 – “A Decade of Destruction” with Scott Lundstrom, Group Vice...

A Decade of DisruptionScott Lundstrom

GM – IDC Health Insights1

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

Disruption

More than a bump in the road

A significant change in value (Supply)• Cost

• Service / delivery / integration

• Convenience

• Market Consolidation

A significant change in business models (Demand)• Regulation

• Technical Innovation

• Business Innovation

2


Is Health Being Disrupted?

Is the Affordable Care Act really disruptive?

What other disruptive forces challenge us?

How does this play out over the next five years?

3


Disrupting Health

Disrupting health requires deeper changes• 51% of costs from Hospitals and Physicians

• 10% of costs from Drugs

• Long term care growing

• Consumer

Value based initiatives will focus on quality and• Lower cost care delivery

• Lower cost settings of care

6


The Real Disruptors

Industrialization

Business model change

Consumer facing technologies

Organizational Changes

New roles in care delivery

New IT architecture options

7


The Industrial Revolution in Health Industrial markets are value based

Industrial processes are quality managed

First time quality is driven by data

• Process (Lean Six Sigma)

• People

• Technology

Value in Health is outcome driven, and there is tremendous value in tackling outcome variability

To improve clinical and financial outcomes health must be defined beyond clinical and financial terms

8


Business Model Change

We are the last generation of the old system

Community wellness is the new mantra

Risk forces model and process redesign

Care delivery team composition changes

IT products evolve quickly

Integrating clinical, risk, and financial data becomes a

priority

9


New Business Models Drive at least

50% of Healthcare IT GrowthGrowth Areas

• Analytics

• Mobile

• Cloud

• Services

• Population Health Management

• Consumer Engagement

• Consumer “Retail” Sales Model

10

U.S. Provider:

ACO/Medical Home

Ownership Models

Consumer Engagement

Quality–based Payment

Europe:

Focus on sustainability and appropriateness

Maintaining the right level of access and

increased quality while limiting growth in

spending

Renewed focus on key back office

processes, with cloud-based shared

procurement platforms and big data and

analytics for spend management

Asia Pacific:

Private payers enter the

market

Emergence of Personal

health Management


New roles in care delivery

Taking on risk changes

the scope and type of

roles that matter

The “next best action” to

improve health and

reduce cost may not be

clinical

11

Clinical &

Financial

Family support

Behavioral

Fitness

Activities

of Daily

Living Access to

Health

Services

Nutrition

Compliance

Access to Community

Services

Transportation

Equipment

Social

Engagement

Education

Financial

House

Cleaning

Home

Maintenance


Consumer facing technologies

Omni-channel Healthcare

Monitoring and communicating

Next best action

Creating a positive, health focused channel to

improve wellness, access, and outcomes

12


The Four Cs of Consumer mHealth

13

Consume View health-related Web

sites for health and

wellness, plus chronic

conditions

Mobile access test results

and medication history

through portals

and PHRs

Communicate Omni-channel

Alerts and care

gap reminders to consumers

Biometric data and health

status updates to clinicians

Patient adherence

Connect Channel consistency

Integration of mobile with

daily activities

Social media and

healthcare games

Collaborate Care coordination with care

teams

Active management of health

issues through consumer

engagement and incentives

programs

Video chat


More sourcing/less making

• Hybrid dev ops

• Contracting for risk and agility

Analytics as architecture

• Data management

• Governance

Commercialization

• Information / Process as a

service

• Joint ventures, partnerships,

networks

Organizational Changes

14

40%

60%

Building /implementing ITSystems

Governing andManaging IT Systems

n=131Source: IDC's 2013 IT Staffing Survey - Jun 2013

59%

41%

Technical Skills arePrimary Skill Set

Business Skills arePrimary Skillset


New IT architecture options The gross externalization of everything

Virtualized, private cloud is a good starting point

Analytics move from the edge to the platform

Governance, risk, security, and agility drive

many to service providers

Community health requires an open platform

15


Cloud Adoption Across 3 Industries

16

IDC CloudTrack, October 2013n=177 for manufacturingn=153 for healthcareN=81 for government


Driving Towards Triple Aim / Health Reform

Triple Aim

Health Reform

5 Year Horizon

Value of

Transformation

Patient Experience

Cost

Population Health

EHRHIE

Compliance

Competitive

Advantage

Predictive

Reactive

Prescriptive

Da

ta D

riv

en

Now

Value-based

PaymentsDisease

Management

Risk Management

Integrated Care and

Health / Wellness

Accountable

Care

Case

Management

At Risk

Contracting

Population

Health

Care Coordination

Volume-based

Payments

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Contact Information

18

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The Business of Healthcare + Technology

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Scott LundstromGroup Vice President and General Manager

IDC Health Insights

[email protected]

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