ehealth-strategien im Wettbewerb: Erfolgsfaktor oder schmückendes Beiwerk? ehealth Kongress Darmstadt, 17 Oktober 2014
Health care is in the middle of a perfect storm Changing demographics Unmet needs 1.5 billion over-65s by 2050 700 billion spent on chronic disease in EU Unsustainable growth in health care spending 14% of GDP by 2060, up from 6.2% in the 00s Health care reforms Cost containment initiatives Pricing pressures on the industry Page 2
How are different health care stakeholders responding to this shift? Information companies Employers Payers Pharmacies Life sciences Food Co Telcos Social media Consumer electronics Retailers HIT Co Providers Medtechs Distributors Page 3
By forming a new health ecosystem, with the patient at the centre HIT companies Payers Medical technology companies Social media companies Patient data Financing Risk sharing Remote care Telecom companies Community engagement Diagnostics Families & friends Social support Connectivity Employers Information companies Health literacy Providers Medical expertise Nutrition Functional Foods Self-managed patient Access Behavioral change Counseling Drugs Efficacy insights Life sciences Pharmacies Food companies Retailers Consumer electronics Page 4
The pace of change is accelerating 3-5 years ago Today 3-5 years from now Early debate, uncertainty about move to value Most people had never heard of big data Wearable technologies were novelties Much data (on cost, quality, relationships, clinical trials etc) was opaque Sweeping reforms in US, Germany, France, UK, others all based on value Growing number of analytics initiatives with large amounts of diverse data Increasingly common; Unobtrusive, noninvasive; payers starting to pay Transparency (apps, govt. initiatives, industry responses) Pay for performance and specialty drug prices put pressure on drug cost increases Real-world data, prescriptive analytics: less ability for pharma s to control the message Drugs increasingly compete with non-drug interventions Transparency scrutiny, pressure. Trust is a source of competitive advantage Page 5
59% of business decision-makers use customer generated data for customer insight 80% of organizations are in the early stages of big data initiatives Big data is expected to boost global retail and manufacturing revenues by $325 billion Every minute 208,300 photos are uploaded to Facebook 79% of businesses believe that big data will boost revenue Every minute 350,000 Tweets are posted on Twitter 71% of executives are not concerned that customers may start to restrict the use of personal information 70% of consumers are never happy for companies to share their personal data 49% of consumers say that they will be less willing to share personal information in the next five years The volume of data will exceed to 40 zettabytes by 2020
The patient-centric information exchange: Health care everywhere Healthcare Analytics Portable Medical Devices Wearable Devices Consumerized medical devices Patient Medicalized consumer products Telehealth Online Communities Mobile Apps Page 7
Inefficiency is a major driver in better use of data One-third of US health care spending is wasted every year Unnecessary services Administrative costs Inefficient delivery of care Inflated prices Fraud Failure to prevent disease US$750 billion Source: Institute of Medicine Report (September 2012) Page 8
Connecting a complex network Patients Providers Corporations Payers Authorities Wellness & prevention Patient information Integrated health care information platforms Patient records Health information exchanges (HIEs) Increased health care access Empowered patient Individual treatment Home care Health care analytics Digital assistants Health care anywhere propositions Cost-effective treatment Information integration services Mobile health care devices Cost-effective health care Reimbursement strategy Fraud detection Health care analytics Health insurance exchange (HIX) National health records Compliance Cloud and connectivity: Information flow between the stakeholders is key to ensure better outcomes Page 9
Data are being used in creative ways to address behavioural issues Non-adherence leads to US$290 billion in direct and indirect health costs annually 13% of total US health care expenditures Pfizer/Keas Pfizer uses Keas platform to develop personalized online care plans for users. Keas website motivates employees with points, badges, and feedback from co-workers 50% Decrease in at-risk patients Novartis Get On Track Educational material, customized lifestyle plans and reminders to help hypertension patients manage their conditions. 31% Improved adherence vs. not enrolled Page 10
The path to navigating data complexity Pooling data Purchasing data Partnerships to share data, co-develop insights Creating the full picture Algorithms to match data, even without identifier information Breadth (more variables) matters more than depth (more patients) Identifying the data that matters 80/20 rule Driving timely interventions Behavioral interventions Predictive analytics What-if experiments Not just correlation causality Prescriptive analytics Page 11
Europe Examples of e-health Initiatives Europe 2012: Launch of ehealth Action Plan 2012-2020 Roadmap to empower patients and healthcare workers, to link up devices and technologies, and to invest in research towards the personalised medicine of the future United Kingdom 2011: ehealth Strategy 2011-2017 launched 3 million lives (3ML) campaign use of telecare and telehealth technology for improving the lives of at least three million people over the next five years; expected to save GBP1.2bn a year. France 2010: Development Plan for the Digital Economy In 2010, France invested EUR 3 m for telematic projects; reimbursement of telemedicine services is at the same levels as those for in-person visits Germany 2010: National ehealth Initiative launched Use of electronic health card and telematics infrastructure; for 2014 Health Minister has announced ehealth law Spain 2009-2012: Sanidad en Linéa program Investment of 196 million to support projects, such as digital medical records, eprescribing, the doctor s appointment system Italy 2012: Launch of egov2012 action plan ehealth with a budget allocation of EUR329 million is included as a key pillar Page 12
Government-led digital health integration in Germany Mega trends and market opportunities Government drives health integration German government ehealth program Health reform (DRGs, Mega GMG) trends Large ehealth deals Application integration Large-scale service operation Industrialization of hospitals Standardization of clinical processes Evolution of chains Concentration on core business Standardization and integration of health insurers Evolution of standardized IT systems Claims management becomes key in coping with health care complexity Conservative business Hospital transformation CIS, SAP implementation BPO / ITO deals Health insurance transformation SAP platform in health insurance Health data management Integrated care Page 13
Continue the conversation Christian Egle Partner Healthcare Advisory Lead Ernst & Young GmbH Tel +49 6196 996 21226 Mobile +49 160 939 21226 Email christian.egle@de.ey.com Progressions 2014 Navigating the payer landscape Health care industry report Voyage to value Beyond borders 2014 Global biotech report Unlocking value Pulse of the industry 2014 Medical technology report Differentiating differentiation Page 14