Artificial Intelligence, Machine Learning & Blockchain What do they mean for the Healthcare Supply Chain?

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1 Artificial Intelligence, Machine Learning & Blockchain What do they mean for the Healthcare Supply Chain? Presenters: John Bass, Founder & CEO, Hashed Health Chris Holt, Leader, Global Healthcare, Amazon Business

2 Artificial Intelligence, Machine Learning & Blockchain What Do They Mean for the Healthcare Supply Chain? Presenters: Chris Holt, Leader, Global Healthcare, Amazon Business

3 Artificial Intelligence A system or service which can perform tasks that usually require human intelligence, such as visual perception, speech recognition, decision-making or translation

4 What is Machine Learning? Machine Learning are methods and systems that Adapt based on recorded data Predict new data based on recorded data Optimize an action given a utility function Extract hidden structure from the data Summarize data into concise descriptions Machine Learning are not methods and systems that Can yield Garbage-In-Knowledge-Out Perform good predictions without data modeling & feature engineering Avoid the curse-of-dimensionality Are a replacement for business rules they augment them!

5 The Challenge For Artificial Intelligence: SCALE Data

6 The Challenge For Artificial Intelligence: SCALE Data Training

7 The Challenge For Artificial Intelligence: SCALE Data Training Prediction

8 The Challenge For Artificial Intelligence: SCALE Data PBs of existing data Aggressive migration New data created on AWS Training Prediction

9 The Challenge For Artificial Intelligence: SCALE Data Training PBs of existing data Aggressive migration New data created on AWS Tons of GPUs Elastic capacity Pre-built images Prediction

10 The Challenge For Artificial Intelligence: SCALE Data Training Prediction PBs of existing data Aggressive migration New data created on AWS Tons of GPUs Elastic capacity Pre-built images Tons of GPUs and CPUs Serverless At the Edge, On IoT Devices

11 The Promise Of Artificial Intelligence: INNOVATION New Features for Existing Products

12 The Promise Of Artificial Intelligence: INNOVATION New Features for Existing Products New Experiences and Product Categories

13 The Promise Of Artificial Intelligence: INNOVATION New Features for Existing Products New Experiences and Product Categories Breakthrough Advances

14 Common use-cases of Machine/Deep Learning Predictive Maintenance Fraud Detection Personalisation Cyber Threat Prediction Computer Vision Processing Human Emotion Analysis Sensor Data Analysis Personal Assistants Flight Path Analysis Natural Language Understanding

15 Early Detection of Diabetic Complications Leading cause of blindness in adults Catch it early enough: prevented 90% of time Source: AWS

16 Skin Cancer Detection At Physician-Levels (or better) Source: AWS

17 Source: AWS FDA-Approved Medical Imaging

18 Source: AWS Autonomous Driving Systems

19 Real Time, Per Pixel Object Segmentation Source: AWS

20 Centimeter-accurate positioning Source: AWS

21 Computational Knowledge Engine Source: AWS

22 Pinterest Visual Search

23 Pinterest Lens

24 Recommendations & Ranking At Netflix Personalized ranking, page generation, search, similarity, ratings In 140 new countries, simultaneously

25

26 What is driving Healthcare? Competition and changing reimbursements More and more data to Analyze Precision Medicine and Genomics Bundled Payments / Value Based Reimbursement Population Health (Chronic and Comorbid) Increase Patient Safety and Patient Satisfaction Joint Commission HCAPS Improve Hospital Efficiency Charge Capture and MS-DRG Decreasing readmissions Regulatory Compliance HIPAA, and PCI

27 What is on the hospital CIO s mind? Managing and Securing a growing Tsunami of Data Constantly evolving Cyber Security Healthcare is complicated, the average hospital is managing hundreds of applications (many are patient facing Tier 1 applications) The impact of analytics and data visualization Interoperability w/ ACOs, HIEs mean new integration points, more data Growing number of clinical and business applications Growing number of backlog of projects and department requests Increasing need to access applications at the point of care Technology influencing safety, and the customer experience Regulatory compliance Limited Capital budget, doing more with less

28 What makes Healthcare IT so Complicated? Admitting (patient access) Ambulatory care BioMed Cardiology Case management Communications Emergency department Environmental services (housekeeping) Finance Human resources Infection control Information services (systems) Laboratory Laundry and linen Materials management Medical records (HIM) Nuclear medicine Nursing Nutritional services (dietary) OR Pharmacy Quality assurance/utilization review (QA/UR) Physical plant (facilities mgt) Physician services Radiology (medical imaging, x-ray) Rehabilitation services Respiratory therapy Safety Security Social work Volunteer services Etc.

29 Transformations Track Artificial Intelligence, Machine Learning, and Blockchain What Do They Mean for the Healthcare Supply Chain? Presenters: John Bass, Founder & CEO, Hashed Health LinkedIn: Find Resources & Join the Conversation at

30 Faculty Disclosure The faculty reported the following financial relationships or relationships to products or devices they or their spouse/life partner have with commercial interests related to the content of this CE activity: John Bass - Ownership interests: HCA and Medtronic

31 Blockchain Chronological Shared Immutable Market- Focused Development Platform The Blockchain is a time-stamped registry that securely records & shares transactions / events / data across a network. Public or private records are linked using cryptography, creating an immutable record of events that can be used to enforce business rules ( smart contracts ) across a market without a third party governor. It is a transformative new way of developing products at the market level. Blockchain represents a spectrum of technologies that power distributed networks.

32 The world s first blockchain is called

33 Bitcoin proved: by moving trust to the software we change how digital assets are transacted across value chains.

34 The world s second blockchain is called Ethereum opened the door to digital assets & a new wave of innovation.

35 Blockchain: The Internet of Value www www 2.0 www 3.0 Primary focus information reputation value Primary unit search / links likes assets Dominant Platform Google Facebook? Gartner: $3T by 2030

36 When Do You Use A Blockchain? 1. Market Level, multi-constituent process 2. Trust 3. Transparency 4. Alignment of incentives

37 digital health assets + enterprise businesses + decentralized health infrastructure Medical Records Claims Products/Supplies Health Services Patients Data Identity Clinical Trials

38 Two Levels of Value / Complexity 1. Immutable Shared Ledger Move trust to the protocol Overcome limitations of current infrastructure (ex. claims built for volume, fiat currency not programmable) 2. Smart Contracts: Programmable Value Transfer / Tokenization Reduce administrative burden Connect payments and benefits / incentives Create new applications on top of shared, market-level data structures

39 Blockchain Enabler: New Business Models Example: Decentralized exchange / marketplace Tokenized digital assets are created List asset on the Exchange for consumers Creates a rational, decentralized market for trading Allows for innovation on the buy & sell side Creates a foundation for smart value-exchange innovation & automation Imagine a day when health care delivery in the United States functions the way other parts of our economy do drive quality and cost-effectiveness with information, competition and genuine choice. Alex Azar, HHS Secretary 3/6/18

40 Blockchain Enabler: IoT, AI, ML: Example: IoT / devices as trusted actors in the supply chain Create / Register device Authenticate as trusted source Record to ledger Wallets & smart contracts Use Cases: Track & Trace Wellness Contracting Oracle M2M / DAO

41 New Pricing & Contracting Models Programmable Value Transfer: Creating a relationship between payments & real-world activities Examples: Proof of Service Proof of Outcome Dynamic Pricing Episodic Value-Based Contracting / Value-Based Payments fundamentally reorient how Medicare and Medicaid pay for care, and create a true competitive playing field where value is rewarded handsomely. Alex Azar, HHS Secretary 3/6/18

42 Other Supply Chain Use Cases of Interest at Hashed: EDI Decentralized Master Data Management Shared Ledgers Between ERPs / EHRs Inventory Sharing Device Lifecycle

43 What Success Looks Like: The Challenge & The Opportunity Business Model Technical Model Finding this is hard (but your future may depend on it) Network Governance Structure

44 The Healthcare Innovator s Dream Come True! Create new infrastructure designed for trust, transparency & incentive alignment in healthcare Create new business models designed for adoption / network effects Create new economies Create new value chains & markets Create new actors in markets

45 Lead or Follow? Business Model Technical Model Governance Structure Meaningful Innovation Market Structure Readiness Culture

46 Thank You! Presenters: John Bass, Founder & CEO, Hashed Health LinkedIn: Find Resources & Join the Conversation at

47

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