Extracting Value from the Internet & Connectivity. The ehealth Colloquium August 21, Jay Toole National Director for ehealth

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1 Extracting Vaue from the Internet & Connectivity The eheath Cooquium August 21, 2000 Jay Tooe Nationa Director for eheath

2 The opportunities avaiabe to todayõs heathcare organizations range from protecting current businesses to reinventing the enterprise Effectiveness & Growth Potentia Gain Efficienc y The Tactica Enterprise Protect the Core Efficiency & Effectiveness The Integrated Enterprise Renew the Core The Reinvented Enterprise Create the The New Core Extended Enterprise ÒChange the RuesÓ Extend the Core ÒPay the Same Game BetterÓ ÒMake it Easier to do BusinessÓ Effectiveness & Growth ÒStay in BusinessÓ Leve of Compexity 2

3 When connectivity, communication, and convenience are integrated, enormous vaue can be created for the consumer. 2

4 DiabetesWe.com is an exampe of an Integrated package to Assist Diabetes Patients Target Market Diabetes sufferers throughout the US who are unsatisfied with the current bricks and mortar offerings and interested in one stop shopping, education and management of diabetes Marketed directy to diabetics Service Components 24 hour on-ine access to and support from physicians, nurses, dietitians and exercies physioogists Personaized medica pans, food pans, exercies pans Personaized on-ine medica record Up-oading of data from diagnostic devices to on-ine medica record, web based toos On-ine treatment monitoring and compiance tracking Abiity to grant patientõs off-ine physician(s) access to web records On-ine access to reevant information (content) On-ine access to diabetes reated commerce Payment $20 per patient per month, paid for by patient Contracting with payers and empoyers? Differentiators Compete treatment/maintenance of affiction from home Weath of educationa and informationa materias avaiabe to subscribers diabeteswe.com website; CGEY Anaysis

5 Beansprout.com connects consumers and providers Target Market Parents of young chidren, pediatricians, and chid care providers Target Market Marketed through partners (pediatricians, chid care providers, teachers, medica societies) Service Components Onine community seeking to connect parents, pediatricians, chidcare professionas, and chid care resources Consumers Faciitation of physician interactions for non-urgent questions/ issues Access to reevant information and commerce (toys, books, chidcare products) Access to chidcare programs and referra agencies Pediatricians Distribution through BeansproutÕs physician finder and physician websites Practice management toos Physician - parent non-urgent interaction Payment Consumer goods company sponsorships Products paid for by purchaser Differentiators Source: beansprout website; CGEY Anaysis By encouraging pediatricians and chidcare providers to buid their own sites, company stands to buid a rea community between doctors, chidcare providers, and parents

6 Internet use by consumers for heath information has growth significanty over the ast 5 years Heath and Medica ÒInfo SeekersÓ On-ine (miions of aduts) On-ine Content Used 30.0 Disease Info 52% One One quarter quarter of of info info seekers seekers join join onine onine support support groups groups One One third third of of info info seekers seekers want want to to order order products, products, services services and and pharmaceuticas pharmaceuticas on on the the Internet Internet Diet & Nutrition Pharmaceuticas Onine Heath Newsetter WomenÕs Heath Fitness 36% 33% 32% 31% 29% ChidrenÕs Heath 15% Source: Cyber Diaogue Survey Estimates Iness Support Group 13% 20% of physicians reguary use the Web Average usage is five days per week Average time spent on the web each week is 4.2 hours with usage anticipated to grow 28% to 5.4 hours within six months Principa reasons for accessing the Web incuded: Š Medica Information 83% Š Trave Information 72% Š Product Information 65% Š Drug Information 57% Š Financia News 56% Source: AMA and Medica Media & Marketing 6

7 Dot-comes have been eaders in information distribution based on customer responsiveness... and are seeking to everage this competency with a move into the service deivery Degree of Interactivity Least advanced Most advanced Phase 1 Static Content Phase 2 ÒCannedÓ Interactive Content Phase 3 Personaization Phase 4 e-medicine Evoution of Services Description Provider Information: ocation, phone numbers, services, quaifications, etc. Consumer medica content: causes of disease, disease progression, standard treatments, etc. Frequenty asked questions (FAQs), search for providers by zipcode or quaification Heathcare assessements, ive ask-a-doc interactions to get questions answered (not e-medicine), tracking of medica conditions in heath-diaries, chats/support groups others with simiar medica conditions Provision of care, inc.disease management using the internet to enabe patientsphysicians/ care givers to communicate and exchange medica data, care pans, etc. Exampes Most heathcare sites Most heathcare sites, e.g OnHeath, WebMD, Panetx, Inteiheath, etc. myasthma.com, mydiabetes.com AmericaÕs Doctor.com, OnHeath.com (nurse connect) Onheath.com - symptom checker Heathgrades.com, doctorquaity.com Diabeteswe.com, Beansprout.com Accordant.com

8 However, Dot-coms are vunerabe because they have thus far faied to penetrate the core of the heathcare system Content aone is no onger sufficient Access to capita is becoming more difficut due to market correction Trying very hard to achieve profitabiity Have revenue modes that are at risk Have offerings that are not sustainabe on a stand aone basis Are strugging in attempts to expand product offerings to incude service

9 Heathcare providers Are Not Yet Fiing Consumer Needs Tertiary Secondary Primary Industria Age Medicine Professiona Care Information Age Heathcare Professiona Care Unrecognized Individua sef-care Friends and famiy Sef-hep networks Professionas as faciitators Professionas as partners Professionas as authorities 48% of on-ine users express interest in communicating with their doctors via emai, but ony 3% are doing so Among those onine users who express interest in using doctor web sites, 29% said they woud be ikey to switch doctors to do so The connected consumer demands fu information and 24/7 access consumers want sef service options that aow them to schedue appointments, create personaized information fiter, pre-registration, check account status ÒThis type of consumer demand threatens to competey change the heath care distribution chain. The industry has never had to dea with customers directy-the Internet makes this an imperative.ó New York, PRNewswire 4

10 Customer Disconnect is Common in Heath Care Heath Care Organizations are Chaenged by Deteriorating Patient Reationships Due to the Quaity of Customer Service Interactions, the Lack of Consistent Experiences, and the Limitations Imposed by Isands of Information Pan Benefits Appointments Bis Registration/Eigibiity Who do I contact? How many cas do I have to make? Don t ask me. I have the same issues. Resuts They can t find my information? Do I have to expain over and over? Prescriptions Patient/Member Community Physician

11 Heathcare providers have the opportunity to transform their businesses and become/remain the center of the emerging Connected Heathcare market Connected Heathcare Market The Internet and other system toos provide the opportunity for heathcare providers to create connectivity between patients, the community, physicians and payors resuting in a virtua environment where the Heathcare provider is the center of the Connected Heathcare Market Business and Trading Partners Cinica Community Human Resources Community Heathcare Provider Patient and Consumer Community 11

12 A Stakehoder-Based Business Mode Creates Burring Boundaries and Virtua Communities Connected web of suppier and payor reationships that supports provider and consumer portas, and interna operations seamessy. Provider porta that integrates a cinica, business and research/ education needs for the cinica community. Business and Trading Partners Heathcare Provider Cinica Community Human Resources Community Patient and Consumer Community Intranet that provides one stop access to interna information, processes and knowedge management Consumer porta that integrates into a singe offering, a consumer heath reated needs. 12

13 How Patient/Consumer Access and Patient Care Wi be Transformed? Increased emphasis on customer service Driven by their experiences in other industries, consumers wi expect more convenient access via the Internet, teephone, fax and kiosk to seect physicians, emai care givers, schedue appointments, view ab resuts and refi prescriptions. Changes in patient acquisition and retention Consumers wi become more invoved in seecting providers, and wi make decisions based on ease of access to information, abiity to conduct basic transactions 24/7 and knowedge of outcomes and perceived quaity of care. Administrative efficiency and effectiveness By connecting patients, payors, physicians and heath care systems in an Internet and CRM enabed environment, significant savings can be achieved whie driving higher customer satisfaction.

14 How Patient/Consumer Access and Patient Care Wi be Transformed? Connected Care Patients, speciaists, community physicians wi be connected in an Internet enabed environment with rea time access to the patient s medica record. Care management via video & audio inks, remote patient monitoring and Internet based second opinions and speciaty consutations wi increase. Personaized heath offerings New offerings wi emerge which are taiored to ifestye, with more emphasis on quaity of ife and weness. Services and products that encourage patients to participate in the panning, preventative care, ife stye adjustment and genera management of their heath wi become more prevaent. Emergence of Regiona Disease Portas Singe points of contact for consumers/patients wi be created around major disease categories, which wi offer access to eading speciaists via connected care, ecommerce connections to reated products and services, detaied information, etc. Offerings extended into retai heath care Offerings wi be extended to incude additiona products and services that consumers pay for out-of-pocket. For exampe, a new mother coud be offered a convenient package of support services and products reated to supporting the baby s first year of ife.

15 The opportunities avaiabe to today s heathcare organizations range from protecting current businesses to reinventing the enterprise Effectiveness & Growth Potentia Gain Efficienc y The Tactica Enterprise Protect the Core Efficiency & Effectiveness The Integrated Enterprise Renew the Core Stay in Business The Reinvented Enterprise Create the The New Core Extended Enterprise Change the Rues Extend the Core Pay the Same Game Better Make it Easier to do Business Effectiveness & Growth Leve of Compexity 15

16 Internet enabed capabiities have the abiity to enhance current processes, or transform the heath care deivery mode Protect the Core Extend the Core Create the New Core Enhanced customer service Singe view of customer Sef service for scheduing, referras etc Physician Directory Trusted Heath Information Provider-Patient Communication Provider based Connected Care Remote Monitoring Resuts Reporting On-ine disease management Prescription fi / refi econsuts and on-ine 2nd opinions Regiona or Disease Oriented Portas Deveopment of new, consumer oriented heath offerings Channe Deveopment Patient based connected care

17 Extracting Vaue from the Internet & Connectivity The eheath Cooquim August 21, 2000 Jay Tooe Nationa Director for eheath