Digitalization in Healthcare
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1 Digitalization in Healthcare Dr. Balazs Szathmary, Innovation Health Partners Dutch-German Health Conference Wednesday, September 5 th, 2018 Sint Antonius Ziekenhuis, Utrecht 1
2 My background Education Computer science, Biology and Health Economics (Germany /UK) Work experience IT specialist (Marienkrankenhaus, Bergisch Gladbach) Product manager for HIS software (Aescudata, now CGM) Consultant (Impact Management Consulting) Project Leader (The Boston Consulting Group) Leader EMEA Healthcare Industry Business Unit (Oracle) Global Vice President Healthcare Solutions (Ascom) Partner (Innovation Health Partners) COO Service GmbH) Memberships 2
3 Introducing IHP Project development: Strong partners and sustainable concepts Project management: Results-oriented implementation Strategy: Successful market entry support Events: Interesting topics and contacts Research: Connecting theory to practice 3
4 Our network Ministries / public health Public insurance Private insurance Associations Providers Pharma & MedTech IT & ehealth companies Consulting 4
5 We work with many ehealth players CARDIOGO GET READY Source: IHP 5
6 Digitization does not wait and is very fast 6
7 Digitization drives disruptive innovation 7
8 So where is digitization in healthcare? ehealth Card/ Infrastructure Disease & Case Management Telemedicine Digitization in healthcare is lagging behind most other industries 8
9 IT spendings per industry IT spendings per industry in % of turnover Source: Gartner Benchmark Analysis,
10 and in hospitals Hospital IT budget as % of operating expenses 6% 5% 4% 3% 2% 1% 5,0% 3,8% 2,9% 1,7% 0% US NL DK D Souerce: HIMSS Europe Database,
11 Nordics, Spain and NL in front Souerce: Resesarch2Guidance 11
12 IT spendings seem to correlate with HC quality European Health Consumer Index (EHCI), 2017 Criteria 1. Patient rights and information 2. Accessibility 3. Outcomes 4. Range and reach of services 5. Prevention 6. Pharmaceuticals Source: Europe Health Consumer Index,
13 ehealth bears lot of opportunities Increased quality and efficiency of HC services Avoidance of duplicate examinations Faster access and improved interpretability of information More sound decisions Optimized processes Greater transparency of performance, thus timely and better control options Better (location-independent) access to health services Involvement of patients in decision-making (empowerment) Improved education and training "Through the consistent use of ehealth solutions in the German healthcare sector, EUR 39 billion (12% of the statutory health insurance costs) can be saved." PWC study,
14 Why does the ehealth rocket not take off? HC system/market Complex federal structure Divergent interests per sector Not enough financial pressure Lack of political will IT challenges Many different (old) IT systems Missing standards and interoperability Legal aspects Data protection requirements Unclear international guidelines Economical aspects No reimbursement from the 1 st HC market Lack of business models Difficult investment climate Patients/public Negative publicity Divergent patient interests Deficient patient autonomy Lack of openness for technology and innovation 14
15 Complexity of the German & Dutch HC systems Source: Verena Vogt, TU Berlin: Struktur des deutschen Gesundheitswesens; Promising Primary Care Practice Models: A Case study from The Netherlands 15
16 Innovations start to reach even Germany.. 79% 43% Size and estimated growth of the German mhealth Mrd % 2 of Germans use the Internet to research for health related information of German patients would change their physician to get access to their medical record electronically Source: Young Lions Gesundheitsparlament, Accenture, A.T. Kearney 16
17 Selected ehealth companies in Germany Source: healthbytes.de 17
18 Selected ehealth companies in the Netherlands Source: Dr. Hempel Digital Health Network - 25 Innovative digital health, ehealth, mhealth startups in Netherlands 18
19 Evolution or revolution? Evolution First health market - public health insurance companies Strongly regulated by law, particularly the financial structures Controlled by existing institutions and organisations National industry, products and services Focus on enhancing the efficiency of established processes Connection between businesses Systematic, classical approach Clear rules, methods and structures Evidence-based, organic development Revolution Second health market - self payers, private health insurance companies Free health market economy International industry, innovative products and services Driven by patients interests and insured people Digitization for development of new processes and methods B2B, B2C, C2C, social networks Cooperation in network structures Flexible and open structures Disruptive and innovative breakthroughs 19
20 Suggestions not to miss the ehealth train Payers Start with small pilots quickly Address your innovative, ehealth savvy insured population Request economical and clinical evidence Don t try to integrate solutions into your core processes Providers Consider ehealth as strategic advantage rather than a cost factor Cooperate with startups they often offer their solutions for free/at very low cost during test/reference phase ehealth companies Look out in the market for innovative partners Offer risk-sharing models Consider internationalization early (though a tough challenge) 20
21 Thank you very much for your attention! Should you be interested in our services, please feel free to contact us Dr. Balazs Szathmary Innovation Health Partners GmbH Unter den Linden Berlin Mobile: Office: Fax:
22 Self-determined living in a home that takes care of you
23 We address the mega-trends Demographic change Living alone at old age Digitalization / Smart Home Urbanization Lack of skilled employees
24 Elderly living at home alone.. Forgetting about the stove Not taking the needed medication Leaving the door open Leaving the water running Falling down Leaving the window open Check-up vital signs Getting lost on the way home There is an ever increasing need for concepts, which allow elderly people to live safe and self-determined at their homes as long as possible.
25 Why was nobody successful so far? Smart Home Provider AAL/ Emergency Provider Overwhelming & fragmented market Lack of end-to-end support Lack of sustainable business models
26 The platform Service bundling Platform Hybrid financing Sensors Software User Services Partners, distribution channels, financiers
27 company functions Central platform One stop shop Contracting all partners Hybrid financing Securing technology Data analysis Marketing & Sales Development of new services
28 Our stakeholders People and their relatives Real-estate Welfare services Public services Medical insurances Assisted living, nursing home Stakeholder Enterprises Insurance Emergencycall centers Hospitals, doctors etc.
29 Benefits for customers and partners(1/2) Real Estate Inventory revaluation Reduction of empty apartments Energy efficient building monitoring Local authority / Welfare service Saving of co-payment costs for nursing homes if citizen is unable to pay Reduction of empty apartments in the city (relevant of apartments owned by local authority) Health Insurance Marketing Improved care for insured persons Cost savings (costs for home care less expensive vs. nursing homes) Nursing homes, assisted living Marketing Staff can concentrate on value added care vs. routine Expanded services Social welface Extend emergency call portfolio Supporting implementation of Bundesteilhabegesetz (integration of citizens with disability into everyday life)
30 Benefits for customers and partners(2/2) Municipal utilities Customer loyalty Extension of service portfolio Possible combination with Smart Metering Enterprises Improved work-life (here: home care) balance of employees Productivity loss reduction Improved employee commitment Insurances Savings less damage events Possibility to create new combined insurance packages Marketing Users and relatives Improved patient safety Less stress for relatives Costs savings (delayed nursing homes admission) Hospitals and doctors Efficient and location independent consultation Option to care for lack of medical specialists Improved patient relationship
31 We cover the whole value chain Consulting+ Marketing + Sales Installation + Maintenance Operator (HW, SW) Emergency calls Technical and Concierge Services PLATFORM Coordination, contracting, interfaces, data management Service Partners
32 Individual configuration 40 sensors can be used for your home Individual escalation for every situation Home station communicates w/ - sensors via and - data center via Typical installation includes 6-10 sensors for a monthly fee of EUR
33 Easy installation and maintenance Bitte messen Sie Ihren Blutdruck. Easy installation Acustic signals Receiving pictures Huge Display Turn off alarm by touch Mobile notifications
34 Escalation options Passive or active emergeny notifications Does not have to be an emergeny you can also book concierge services Software routes call to correct recipient 24/7 call center receives call and decides on appropriate service Notification via call/mail/text Either emergency services or concierge services can be booked SLAs are defined for every process
35 Hybrid financing models Example 75,00 / Month Real-Estate Health Insurance User/Relatives 25% 50% 25%
36 The first Summary PROPHEALTHTECH offering Our USPs Addressing mega trends (demographic change, urbanization, digitization, lack of employees) and a large/quickly growing market First wall-to-wall offering (HW & services)/one-stop shop with experienced partners Leveraging multiple go-to-market approaches (B2B, B2B2C, B2C), financing models and sales channels Valuable platform with upsell potential for additional services (health, e- commerce, etc.) No competitors so far
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