Communications Strategies to Raise
Capital and Attract Customers
Lisa Prasad
Managing Director, Global Innovation
Henry Ford Health System
Managing the Barriers to Customer
Adoption
Poised for Digital Transformation
• Healthcare in need of change and digital innovation takes advantage
of capital efficiency trend; cost to get software product to market is in
constant decline and much lower than a device or drug
• Analytics and Ai can reduce/eliminate errors that cost lives and
money; >$17 billion spent on measurable medical errors annually in
US
• IT can reduce the absurd 25% of healthcare costs that are based on
back-office administration
So Why So Slow to Adopt?
Simply, a strong “Yes”
2016 American Medical Association survey yielded high interest and enthusiasm for
digital health tools. 85% want them.
But, it has to:
• Improve work efficiency
• Increase diagnostic ability
• Not reduce face to face time with patient
• Pay them for time spent using the tool
Are Doctors Interested?
Workflows
Noise In the System
Procurement Cycle
Costs
IT Issues
Self Interests
Value Proposition
Validation Plan
Payer Inefficiencies
Adoption Barriers
Hurdle 1: Workflows
• Safety and efficacy are requisites, but not sole needs. Practical fit of solution into
existing care path is critical.
• Who has to be trained, hired? How do I purchase, dispose, respond?
• “I’ll gladly take $1 dollar today over $2 tomorrow” and “Do no harm” are
prevailing mentalities
Hurdle 2: Activation Energy
• New products require energy to activate
• Traditionally, regulatory navigation provided more time for activation
• With emerging digital health, need time to test and implement new solutions
• There are simply too many emerging patient engagement platforms and decision
support algorithms to consider
• And many have over-promised
Hurdle 3: Procurement Cycle
• The sales cycle in hospitals is both, long and disintegrated.
• Health systems are a mosaic of individual hospitals, and hospitals a mosaic of
departments
• While integrated care is the target, most purchasing is made unit by unit.
• Ref CareTrail path
Hurdle 4: Costs
• Theoretical cost savings are rarely considered. Rather “accounted” costs
dominate.
• Accordingly, preventive value propositions (reduction of errors or downstream
costs) not valued as much as they should be.
• Volume-based care still dominates thinking and economics, while value-based
care remains the aspiration
Hurdle 5: IT integration and security
• Once digital solution is viewed as warranting adoption, practical
issues of IT administration, redundancy and security are paramount
• Bugs or system failings are death-knells
• Perceived security risks are critical detriments to young firms.
Hurdle 6: Incumbent self-interests
• The existing corporate players do not want disruption
• Lack of interoperability intentional
• High costs to integrate limit adoption (ref Epic)
Hurdle 7: Practitioner Self-interests
• Automation eliminates jobs in all sectors; not lost of clinicians
• AI for radiology and digital pathology works, but resistance is clear (and logical)
• Automation of triage needed and practical, but it will be fought
• So, “decision support” reigns and this may add costs
• Also, positive self-interest can add features and costs that are not conserved by
the decision makers
Hurdle 8: Lack of value proposition
• Digital firms don’t usually “miss the target”, rather, they do not know what the target
is.
• What are you selling, why would we buy?
• Is it proven to not cause harm to a patient?
• Does it solve a real problem we have today?
• Does it work within our ”system”? (no new protocols, equipment, integration, etc)
• What is the cost / benefit relationship?
• Tech-based firms often underestimate validation protocols
• Definition of “Proof of Concept”
• Lack of understanding risk, cost and current pathways erodes “legitimacy”
• Leads to absurd economic expectations: remember healthcare “profit” is about 2-
3%
Hurdle 9: Lack of validation plan
Hurdle 10: Payer Inefficiencies
• 3rd party Payer System is inefficient in that it adds another hurdle that is a “black
box”
• A “Chicken and an Egg” paradigm ensues
• Payers may cover once utility is demonstrated; coverage and adoption are
needed in order to prove utility.
What Can We Do to Alleviate?
With respect to hospitals
• Partner early
• Align to major current problems
• Focus on system, not product
What Can We Do to Alleviate?
Internally
• Buildout diverse teams
• Utilize retrospective data modeling to reduce costs and conduct
scenario analysis
• Set appropriate expectations internally for time and costs (and garner
investment appropriately)
"If you want to disrupt an
industry [like healthcare],
you have to do it in a non-
disruptive way."
– Sami Inkinen
Thank You!

mHealth Israel_Managing the Barriers to Customer Adoption_Lisa Prasad, Henry Ford Innovation Institute

  • 1.
    Communications Strategies toRaise Capital and Attract Customers Lisa Prasad Managing Director, Global Innovation Henry Ford Health System Managing the Barriers to Customer Adoption
  • 2.
    Poised for DigitalTransformation • Healthcare in need of change and digital innovation takes advantage of capital efficiency trend; cost to get software product to market is in constant decline and much lower than a device or drug • Analytics and Ai can reduce/eliminate errors that cost lives and money; >$17 billion spent on measurable medical errors annually in US • IT can reduce the absurd 25% of healthcare costs that are based on back-office administration
  • 3.
    So Why SoSlow to Adopt?
  • 4.
    Simply, a strong“Yes” 2016 American Medical Association survey yielded high interest and enthusiasm for digital health tools. 85% want them. But, it has to: • Improve work efficiency • Increase diagnostic ability • Not reduce face to face time with patient • Pay them for time spent using the tool Are Doctors Interested?
  • 5.
    Workflows Noise In theSystem Procurement Cycle Costs IT Issues Self Interests Value Proposition Validation Plan Payer Inefficiencies Adoption Barriers
  • 6.
    Hurdle 1: Workflows •Safety and efficacy are requisites, but not sole needs. Practical fit of solution into existing care path is critical. • Who has to be trained, hired? How do I purchase, dispose, respond? • “I’ll gladly take $1 dollar today over $2 tomorrow” and “Do no harm” are prevailing mentalities
  • 7.
    Hurdle 2: ActivationEnergy • New products require energy to activate • Traditionally, regulatory navigation provided more time for activation • With emerging digital health, need time to test and implement new solutions • There are simply too many emerging patient engagement platforms and decision support algorithms to consider • And many have over-promised
  • 8.
    Hurdle 3: ProcurementCycle • The sales cycle in hospitals is both, long and disintegrated. • Health systems are a mosaic of individual hospitals, and hospitals a mosaic of departments • While integrated care is the target, most purchasing is made unit by unit. • Ref CareTrail path
  • 9.
    Hurdle 4: Costs •Theoretical cost savings are rarely considered. Rather “accounted” costs dominate. • Accordingly, preventive value propositions (reduction of errors or downstream costs) not valued as much as they should be. • Volume-based care still dominates thinking and economics, while value-based care remains the aspiration
  • 10.
    Hurdle 5: ITintegration and security • Once digital solution is viewed as warranting adoption, practical issues of IT administration, redundancy and security are paramount • Bugs or system failings are death-knells • Perceived security risks are critical detriments to young firms.
  • 11.
    Hurdle 6: Incumbentself-interests • The existing corporate players do not want disruption • Lack of interoperability intentional • High costs to integrate limit adoption (ref Epic)
  • 12.
    Hurdle 7: PractitionerSelf-interests • Automation eliminates jobs in all sectors; not lost of clinicians • AI for radiology and digital pathology works, but resistance is clear (and logical) • Automation of triage needed and practical, but it will be fought • So, “decision support” reigns and this may add costs • Also, positive self-interest can add features and costs that are not conserved by the decision makers
  • 13.
    Hurdle 8: Lackof value proposition • Digital firms don’t usually “miss the target”, rather, they do not know what the target is. • What are you selling, why would we buy? • Is it proven to not cause harm to a patient? • Does it solve a real problem we have today? • Does it work within our ”system”? (no new protocols, equipment, integration, etc) • What is the cost / benefit relationship?
  • 14.
    • Tech-based firmsoften underestimate validation protocols • Definition of “Proof of Concept” • Lack of understanding risk, cost and current pathways erodes “legitimacy” • Leads to absurd economic expectations: remember healthcare “profit” is about 2- 3% Hurdle 9: Lack of validation plan
  • 15.
    Hurdle 10: PayerInefficiencies • 3rd party Payer System is inefficient in that it adds another hurdle that is a “black box” • A “Chicken and an Egg” paradigm ensues • Payers may cover once utility is demonstrated; coverage and adoption are needed in order to prove utility.
  • 16.
    What Can WeDo to Alleviate? With respect to hospitals • Partner early • Align to major current problems • Focus on system, not product
  • 17.
    What Can WeDo to Alleviate? Internally • Buildout diverse teams • Utilize retrospective data modeling to reduce costs and conduct scenario analysis • Set appropriate expectations internally for time and costs (and garner investment appropriately)
  • 18.
    "If you wantto disrupt an industry [like healthcare], you have to do it in a non- disruptive way." – Sami Inkinen Thank You!