Post on 12-Jan-2017
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A New Generation of Digital Health CustomersALAIN PEDDLEPING AN HEALTH - DEPUTY GENERAL MANAGER ELECT
DISCOVERY - GENERAL MANAGER RESEARCH AND DEVELOPMENT LAB
Owner of the world’s longest-standing scientific health management program
6 million clients Globally
Largest group high-end health insurer in China#1
Share of the mid-end & high-end health insurance marketin China
60%
Largest direct billing hospital network in China
Largest health insurer in South Africa#1
Digital products are disrupting traditional business models
New trendsemerge
Innovative start-ups create disruptivebusiness models
Early adoptersstart embracingthe new models
Advanced incumbentsstart adapting to the new model
Mainstreamcustomersadopt
Tippingpoint
The new normal
Laggardincumbents die
Investment in health related technology, products and start-ups has grown exponentially
SOURCE: Rock Health
Investment doubled since 2013
20% CAGR Forecast to surpass $24
billion by 2020
Digital health start-up funding 2014 vs. 2011 - 13
USD billions
0.9
1.4
1.8
2011 2012 2013
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2011 - 2013 2014
2014$4.1B
$5B
$4B
$3B
$2B
$1B
$0B
Healthcare delivery is being disrupted across the value chain
Population management
Telemedicine
Risk selection
Health and Wellness
Digital tech and devices
Drug adherence
Social support mechanisms
Cloud-based EHR
Marketplaces for providers
23 and me
How relevant are these potential disruptors to health insurance?
Population management
Post-acute care coordination
Combine people, technology and process to reduce re-admission rates
Service Vendor to Payors Flexible model to cater to
wide variety of patient groups
Drug adherence
Medicine management service
Take the hassle out of medication adherence
Novel pharmacy model Improve drug adherence by
as much as 40%
Telemedicine
Telemedicine platform
Uber mode of healthcare seemlessly connecting patients and doctors
Triage health needs
The opportunities for digitally led healthcare innovation in China
20% CAGR Affluent mid-
market growth by
2020
Healthcare spend to reach ~1
trillion USD by 2020
Source: McKinsey macroeconomic model update. (Apri.2012)
Source; MOH; OECD; Euromonitor; China national and city statistical year book; Mckinsey analysis
110 billion USD
investment in digital
healthcare technology by
2020
By 2020 every citizen to have an
Electronic Health Record
Source: BCG modelling and analysis
Source: “National Plan for Health Service System”, China State Council 2015
+15% growth in active
mobile social users
(+ 77 million)
China's rate of diabetes
prevalence is the highest in
the world.
Source: CNNIC, Tencent, Sina, GSMA Intelligence
Source : Journal of the American Medical Association (JAMA) September 2013
2012 2020
20%CAGR
51%MassAffluent
20154.1
20104.1
2020> 6 trillion
Core Financial Business Non-traditional business
Ping An Group is already investing heavily in non-traditional financial service models
Online to offline ecosystem
Food
Entertainment
Housing Transport
Health
Simultaneous development of traditional and non-traditional financial services
Shared platform
Cross and up-selling
InvestmentInsurance Banking
Ping An Health roadmap of opportunities
Guide clients when they seek healthcare (cost, quality and a better customer experience)
Improve the experience of people seeking healthcare in China
Manage costs through disease prevention and disease management
Develop a healthcare systemthat is more contained andefficient
Exploit big data choices, social networks, referral networks, health records, fraud…
1. Client experience
4. Navigation
3. Develop a closed system2. Manage costs
5. Exploit the data
Ping An Health roadmap of opportunities
Guide clients when they seek healthcare (cost, quality and a better customer experience)
Improve the experience of people seeking healthcare in China
Manage costs through disease prevention and disease management
Develop a healthcare systemthat is more contained andefficient
Exploit big data choices, social networks, referral networks, health records, fraud…
1. Client experience
4. Navigation
3. Develop a closed system2. Manage costs
5. Exploit the data
Key unmet needs
1. Improve the experience of people seeking healthcare in ChinaWhat are the key unmet needs and concerns
Access to quality care
Access to information
Child and childbirth related care
Preventive care
Survey question: On a scale of 1 to 5, how satisfied are you with healthcare provision in the public health system? 1 = “not satisfied at all”, 5 = “very satisfied”
3.0
3.1
3.3
3.3
3.3
3.3
3.4
3.5
Accessibility
Price
Service attitude
Environment
Ethics
Hygienic condition
Treatment safety
Physician’s skill
For Chinese citizens, access is as much a concern as cost
Source: 2012 McKinsey patient survey on healthcare services, expenditures and service
Access is a major concern
#1service employees want:
specialist appointment booking
Source: PAH Health and benefits survey 2015
Client needs Time CostDistance
Ping An Good Doctor is the access point addressing the no 1 issue
health queries per day
>100 000 registered users
> 20 000 000
Significant investment in technology and people
Full-time familydoctors
1000
Contracted doctors
50 000
7 / 24 / 365
+ ConsultationsText |Video | face-to-face
+ Interpretation of reports+ Follow up phone calls+ 1000+ health checkup centers+ 2500+ Partner hospitals
Access to specialists
Specialists5 000 + From 3A hospitals across China
+ Online appointment set-up+ One click calling
Access to medication
+ Online consultation with pharmacists
+ Delivery within 2 hours in Shanghai
common drugs2 000
+ Expert advice from doctors and Health Stars
+ Interpretation of health check-up and other diagnostic reports
+ Personalized push of customized contents
Expert advice
Ping An Health roadmap of opportunities
Guide clients when they seek healthcare (cost, quality and a better customer experience)
Improve the experience of people seeking healthcare in China
Manage costs through disease prevention and disease management
Develop a healthcare systemthat is more contained andefficient
Exploit big data choices, social networks, referral networks, health records, fraud…
1. Client experience
4. Navigation
3. Develop a closed system2. Manage costs
5. Exploit the data
Disease prevention and disease management
Lifestyle choices can cause disease Chronic disease in China
4main risk factors
4main risk factors
60%Of all deaths
worldwide
LE
AD
TO
RESPONSIBLE FOR
1 Currently, 200 000 people die from smoking-related diseases every year
From 2000 to 2040 Estimated 200% increase in deaths from cardiovascular disease
Source; China Ministry of Health research foundation interview 2012Aging, Health, and Chronic Conditions in China and India: Results from the Multinational Study on Global AGEing and Adult Health (SAGE)1 Paul Kowal, Sharon Williams, Yong Jiang, Wu Fan, P. Arokiasamy, and Somnath Chatterji. National Academies Press (US); 2012.
In 2010 the number of people with diabetes is estimated to be more than 92 million, with another 148 million pre-diabetic
Physical activity improves mortality and health
Source: Internal Discovery Analysis Source: Vitality and DHMS member data
Mortality rate q(x) Impact of improvement in physical activity (Mortality rate)
Relative hospital cost per patient
1 2 3
-48%
-60%
Active
Inactive
Inactive
-55%-17%
Inactive Low Medium High
Vitality engagement
Source: Internal Discovery Analysis
Physical activity triggers a healthy lifestyle
Did not exerciseStarted exercising
Buy more HealthyFood
Undertake Preventative
measures
Undergo Screenings
Do more online assessments
Uplift in overall engagement
+16%23%
26%43%
Improvement in points after becoming physically active
79%
Source: Internal Discovery Analysis
Chronic disease management
+ Customized by expert doctors
+ Hundreds of health care plans
+ Daily reminders
+ Effective incentive mechanism
Ping An Health roadmap of opportunities
Guide clients when they seek healthcare (cost, quality and a better customer experience)
Improve the experience of people seeking healthcare in China
Manage costs through disease prevention and disease management
Develop a healthcare systemthat is more contained andefficient
Exploit big data choices, social networks, referral networks, health records, fraud…
1. Client experience
4. Navigation
3. Develop a closed system2. Manage costs
5. Exploit the data
3. Develop a more contained and efficient healthcare systemVertical integration through technology
Online to offline
2013 2015-16 2018 2018+2015
4. Guide clients to quality healthcare that’s also cost-effective
Electronic health records
Value
No
. of
pro
vid
ers
Potential impact of managed
referrals
Impact of guidance & infoDifferences in provider costs
5. Exploit data to reduce costs, improve quality and the customer experience
Electronic health records Dynamic underwriting
Age
RiskTraditional
Dynamic
The power of networks
The health insurance company of 2020
Selecting the best clients
Access to quality care
Managing choice of providers
Keeping people healthy
Fraud management
Aiding choice
Convenient and seamless
experience
Reducing out-of-pocket
costs
Enabling personal
health management C
OM
BIN
E T
EC
HN
OLO
GY
A
ND
DA
TA
Some thoughts and insights along this journey
1. Different skills, people and focus
2. Fail fast, learn quickly
3. Capture value everywhere
4. Your disruptive competitor is out there
5. New partnerships…