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MOBILE HEALTHConsumer “Truths” Requiring Consideration

Leigh Ann Ruggles

Director, Strategy & Business Development

Verizon Mobile Health Solutions

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What won’t YOU leave home without?

Keys Wallet Smartphone

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. . . would you reconsider?

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Truth #1: Addicted to Mobile

of people say theycouldn’t go a single day withouttheir mobile device in hand.

Source: http://www.nydailynews.com/life-style/addicted-phones-84-worldwide-couldn-single-day-mobile-device-hand-article-1.1137811#ixzz2k3lzd8cu

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2005 2006 2009 2010 2011 2012 2014E2007 2008 2015E2013E

Desktop PCs Notebook PCs

Smartphones TabletsSource: Kleiner Perkins Caufield Byers

People are Accessing Technology in aDifferent Way

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People and Providers Are Using ThisTechnology

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Mode of Use Matters

Source: Pew Internet & American Life Project SmartPhone Ownership Update September 2012

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Truth #2: The Quantified Self

Seven in ten (69%) U.S. adultstrack a health indicator forthemselves or a loved one.

Source: http://mobihealthnews.com/20040/pew-most-us-adults-track-health-data-but-few-use-digital-tools/>#sthash.L3CCQnhj.dpuf

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Engagement Beyond Wellness AppsOnavo AppRank™ Top iPhone Apps: Top 50 iPhone Apps for Healthhttps://insights.onavo.com/top-apps/Health%20&%20Fitness

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Truth #3: More than Carrots and Sticks

Congrats! Youhave unlocked anew superfood!

Geotargeting

QR codes

Social Networking

GamificationSweepstakes

Instant Win

Contests

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mHealth Market is Entering a New Phaseof Growth

Trial Phase

First solutions; pilots andproof of concepts

Commercialization Phase

More solutions; newbusiness models; focus onhealth-interested people

and companies

Integrated Phase

Integrated with treatmentplans; insurancereimbursement

We’re entering theCommercialization Phase

NOW

Approximately 100,000 mHealthapps are listed in 62 app stores withthe majority being general healthand fitness trackers. About 85% of the

apps target consumers.

Top 10 mHealth apps include 4million free and 300,000 paiddownloads per day.

In five years, mHealth apps will beon 1.7 billion smartphones andtablets.

The main revenue will come notfrom app purchases but fromadditional hardware (sensors) andservices.

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Truth #4: Consumer Trust is Required

SECURITY IS JOB #1

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Truth #5: Omnichannel Expectations

Hospital

Drug Store

RemoteMonitoring

SmartPhoneApp

Video Consult

WellnessTracking

Rx

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Summary: What Consumers Need to TrulyUnlock the Magic of Digital Health

• Mobile must be the center of any strategy

• If the right tools are offered, consumers will engage Apps, sensors, wellness devices are proof

• Need more than carrots and sticks Must be rewarding and entertaining

• Security is a top priority Trust will not come easy

• Must deliver seamless, consistent experience Omnichannel interaction is the expectation

15Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

APPENDIX

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The Perfect StormPromise of delivering healthcare cost-effectively via Mobile fuelsopportunities

Increasing Acceptance of MobilityMacro Forces Influencing Healthcare

1

2

Payment for telemedicine.

Apps as tools for efficiency, patient engagement3

4

Health Plans

$850M+ in mHealth VC funding in 2012

Investments and innovation from large medical devicecompanies, telcos, and startups

Investors

5,000+ Health and Wellness smartphone apps today(for end users and caregivers)

56% smartphone penetration by 2014.

Consumers

80%+ physicians use a smartphone.

Need for collaboration and coordinated care delivery

Providers

1

2

Demand for greater access to health informationIncreased emphasis on wellness,personalization, and engagement

3

4

Consumerism of Healthcare

Aging population &rise of chronic diseasesShortage of physicians/nurses

Increased Utilization & Access Challenges

Exploding Healthcare Costs per CapitaCost shift to consumers

Growing Affordability Crisis

Health IT mandates to drive lower costs.Shift from volume to value

Government Reforms & Role of IT

4 Initiated National Broadband Plan/ incentives for HIT adoption

FCC will act on recommendations of mHealth Task Force

Government

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• The requirement for new models of staffing, scheduling and care coordination,especially for services that involve remote monitoring

• Legal liability, licensing and accreditation, especially when services are deliveredacross jurisdictional boundaries

• FDA Guidelines

• Coming to grips with ambiguous funding source – provider, payer, consumer

• Finding benefits that more than offset the additional networking and service costs

• Financial justification and incentives — most healthcare systems do not rewardclinicians for keeping patients well (or less sick), only for treating them when theybecome sick

Pot Holes Along the Way

Clinical / Admin& Legal Issues

UndefinedBusiness Model

MarketReadiness

• Moving beyond early adapter consumers to mainstream

• Medical device companies becoming more proficient in networking technology

• Standards slowly converging to enable “plug and play”

Despite promising benefits, mHealth faces obstacles to becoming mainstream

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Demographics

Source: Pew Hispanic Center http://www.pewhispanic.org/2013/03/07/closing-the-digital-divide-latinos-and-technology-adoption/

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SmartPhones: Not Just for Gen Yanymore…

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