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Healthcare EXECUTIVE SUMMARY HEALTHCARE INNOVATION BREAKFAST BRIEFING IN ASIA 2017 Singapore an Economist Intelligence Unit business Healthcare
Executive summary Healthcare Innovation Breakfast Briefing in Asia 2017 Singapore
Healthcare
EXECUTIVE SUMMARY
HEALTHCARE INNOVATION BREAKFAST BRIEFING IN ASIA 2017 Singapore
an Economist Intelligence Unit business Healthcare
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Executive summary Healthcare Innovation Breakfast Briefing in Asia 2017 Singapore
EXECUTIVE SUMMARYIS THINKING SMALL AND TARGETED THE NEXT BIG THING IN HEALTHCARE INNOVATION?
INNOVATING ON ASIA’S HEALTHCARE CHALLENGESThere is diverse market demand even within a single country so multiple differentiated approaches and strategies are needed to support the affordability of healthcare and to engage a variety of healthcare professionals and consumers in local markets.
As Chee Hew, points out, “Approaches that are needed in reimbursed markets such as South Korea and Japan will definitely differ from self-paying markets. Especially in a market like China with 31 provinces, you have to understand the different reimbursement systems, different policies and different hospital structures you are dealing with, which makes it much more challenging. In order
to be profitable, companies need to decide which markets out of the 31 (provinces) to prioritise, and tailor their approach to the market accordingly.”
As the drive to connect directly with end-users to address specific needs intensifies, business models have to evolve.
INTEGRATING CARE AND CONNECTING UP EXPANDED DATA POINTS FOR END-TO-END SOLUTIONSCompanies are working with companies to dream up the future care delivery environment. Japanese medtech company, Sysmex established a joint venture, Medicaroid, together with robotics expert Kawasaki Heavy Industries to produce a robotic operating table. The table
More than half of the world’s population resides in Asia Pacific which is on its way to becoming the second largest medical technology (medtech) market in the world by 2020. The opening presentation by Chee Hew, Senior Principal Consultant at Clearstate, The Economist Intelligence Unit, highlighted how markets and healthcare systems in Asia are changing, and how companies that truly understand and innovate around these core issues can add value to their customers.
“Every innovation has to link back to that drive and goal of us to provide value to our patients.”
Keith Lim Group Chief Value Officer
National University Health System (NUHS)
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Executive summary Healthcare Innovation Breakfast Briefing in Asia 2017 Singapore
makes up one of the two robots that operate on the floor of Tokyo Women’s Medical University Hospital’s Hyper Smart Cyber Operating Theatre, or Hyper SCOT for short, where testing of the Hyper SCOT environment is expected to be completed by the first quarter of 2019. “Together with the hospital, companies are exploring how to collect and integrate data from different medical equipment, how to position surgical tools in the most optimal way, how to coordinate the use of different medical instruments when treating diseases in the surgical setting,” explains Ms Hew.
Companies are getting more involved in creating healthcare delivery spaces which are rich sources of data and information that can help improve care. Siemens has partnered a leading health checkup company, Meinian Onehealth in China to co-establish a medical imaging and diagnostic centre in China. Ms Hew comments that “the idea was that not only for Siemens to provide their imaging equipment and IVD (in vitro diagnostics) devices to the health centre but what’s really important is how they are exploring ways to collect information from these instruments , analyse the data and apply it to bring better solutions.
Like with the rest of the world, hospitals in Asia have to change the way they work to meet both old and new challenges in the system. “Medtech companies are asking how they can work hospitals to provide not just simply a service but really understand and deliver on the value they can provide to patients,” says Ms Hew.
HUMAN-CENTRIC SOLUTIONSReflecting global trends in consumer behaviour, expectations and demands of consumers in Asia are also evolving – albeit with variations across different countries and consumer segments. Medtech companies are responding by offering more differentiated products and services based on the evolving consumer demographics.
Depending on where consumers place value and emphasis in their care experience, companies are innovating in those areas to build brand loyalty among them. Older consumers are starting to
adopt technology and innovations, and applying it to different aspects of their lives. There is a higher willingness to spend more on health, prevention of diseases and wellness as they seek to age well and comfortably. Millennials have come to expect 24/7 on-demand service and convenience, and want more tailored services and experiences. The ability to provide more interactive experiences for the millennial consumer to get a better understanding of the device they are using, and finding innovative ways to use the data collected by the devices to offer more personalised products and services will be key differentiating factors in appealing to millennials. iKang, one of the largest private healthcare providers in China’s preventive health space has recognised the consumer appetite for getting a more thorough understanding and explanation of their medical test results, and for the ability to pick their preferred doctors and tests from a comprehensive menu of options. The provider has responded by launching the iKangCare+ health management platform which will help customers with full interpretation and guidance on their test results. Big data analysis and artificial intelligence integrated within the platform will generate personalised menus for medical tests and screening measures based on the individual’s health record and lifestyle.
Putting human-centric thinking to creating solutions can also be a way to broaden the spectrum of customers whose needs your solution can meet. Samsung is working with South Korea’s Gangnam Severance Hospital to develop a virtual-reality-based diagnosis and treatment programme for mental health conditions with the goal of commercialising the care model in 2018. “One of the key challenges of growing a business is: how do you expand your sources of revenue. What’s interesting is that the program is first implemented in hospitals, dementia centres and schools before being expanded to homes, says Ms Hew.
In the following section, The Economist Intelligence Unit and a panel of healthcare executives take a closer look at how companies and hospitals are strengthening their synergies and partnerships to innovate care delivery.
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Executive summary Healthcare Innovation Breakfast Briefing in Asia 2017 Singapore
PANEL DISCUSSIONCO-CREATING INNOVATIVE SOLUTIONS FOR BETTER CARE
WHAT SHOULD YOUR APPROACH TO INNOVATION BE?Relentless innovation is what has ensured the continuing relevance of companies like Philips and Johnson & Johnson (J&J) after more than
one hundred years since they were first founded. “Technology has the potential to disrupt our industry, but healthcare transformation isn’t short-term work – we have repeatedly reinvented ourselves, over the course of a century, and see
‘Innovation’ can sometimes sound like a hazy and elusive concept. Through the perspectives of a panel of healthcare executives, they discuss innovation in healthcare on more concrete terms, and share how they think healthcare companies and providers can co-create fresh approaches to healthcare delivery.
Moderator:
Ivy Teh, Global Managing Director, Clearstate, The Economist Intelligence Unit (Healthcare)
Panellists:Amkidit Afable, Director, Go-to-Market Strategies; Business Model Innovations, Johnson & Johnson Fernando Erazo, Head, Healthcare Informatics and Population Health Management, Philips ASEAN PacificKeith Lim, Group Chief Value Officer, National University Health System (NUHS)Eugene Fidelis Soh, Chief Executive Officer, Tan Tock Seng Hospital; Chairman, Centre for Healthcare Innovation
“I think we are on the journey to move into a population-based approach in our healthcare delivery model. Technology will need to catch up with the shift. Today, technology is highly transactional in nature. I think the technology of the future will have a stronger social aspect to it – technology that is interactive, communicates and is tied to the human behavior in accessing health and social care.”
Eugene Fidelis Soh Chief Executive Officer, Tan Tock Seng Hospital
Chairman, Centre for Healthcare Innovation
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Executive summary Healthcare Innovation Breakfast Briefing in Asia 2017 Singapore
healthcare innovation as a long-term journey” says Mr Erazo, as he shares Philips’ ongoing journey in integrating and adapting different solutions and data to bring a seamless way of engaging different patients and healthcare professionals.
Mr Afable offers a view of how J&J is innovating on its core business, “We are transforming ourselves from being a healthcare company to be a health company. And this is about going into the chain at an earlier stage by managing health from a preventive aspect, and integrating that with the curative aspect.”
Perhaps more importantly, innovation must happen at the level of the healthcare system. “With healthcare capacity and financing constrained at the moment, we need new models before being able to deliver integrated care,” says Mr Afable.
The Centre for Healthcare Innovation (CHI) Co-Learning Network was launched in 2016, with 21 partners including the National Healthcare Group, and partners in Thailand and New Zealand to help design a sustainable healthcare system for Singapore. Dr. Soh who chairs the CHI Network shares how they have taken a systems approach to innovation to redesign care and future jobs in healthcare, and to enable technology to be used to create conditions where change can be sustainable.
The Centre for Healthcare Innovation (CHI) Co-Learning Network was launched in 2016 as an open community of practice with 21 partners including local and overseas centres for innovation in health systems, agencies and academia. A new building in HealthCity Novena in 2019, will house CHI’s innovative spaces, living lab, simulation lab and learning facilities. Dr. Soh who chairs the CHI Co-Learning Network shares how they take a systems approach to innovation to redesign care and future jobs in healthcare, enabled by technology. Workforce transformation will be key to the sustainability of healthcare going into the future.
“Healthcare in Singapore is not going to sustainable in the present model of what we are doing right now. We cannot continue to pay under a fee-for-service model , we need to move on to a pay-for-performance model in order to ensure that our patients are getting the best quality care at a rationalised cost,” says Dr Lim who is leading the value-drive outcome initiative for the National University Health System (NUHS) cluster of hospitals.
The starting point for approaching innovation can be found in the huge volume of data from monitoring the quality of care of every condition treated at NUHS. Hard data showing the variances in care quality and cost across NUHS helps the cluster to identify areas where innovation is needed, and avoiding the trap of innovating for the sake of it.
MOVING FROM TRANSACTIONAL TO RELATIONAL MODELSThe realisation that collaboration and engagement on broader, and deeper levels, have to happen on many fronts has hit home with both healthcare companies and providers.
Businesses will need to question their existing models of how they interact with other entities and individuals in the healthcare ecosystem. One example mentioned by the panel was the practice of drug companies having medical representatives wait outside doctors’ clinics to hawk a product. “It is no longer about those traditional quality measures or key performance indicators that are the legacy of ‘fee-for-service’ transactional models of care; we now involve patients and their families, enabling care team conversations with their specialists, GPs and community health workers, bringing everyone together into a stronger, patient-centered model,” says Mr Erazo.
Deeper and more comprehensive partnerships between healthcare companies and providers to co-create solutions are what both sides want. “Co-creation where both sides will experiment and serve as a hub for other players, and other industries to join in,” suggests Mr Afable. For Dr Soh, a sandbox
“It’s outdated to think that innovations in quality of care are exclusive to developed markets while emerging markets remain solely focused on innovating access to affordable care. There is increasing interest and clear evidence that emerging markets are leap-frogging in quality of care, too.”
Fernando Erazo Head, Healthcare
Informatics and Population Health
Management Philips ASEAN Pacific
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Executive summary Healthcare Innovation Breakfast Briefing in Asia 2017 Singapore
and an open community of practice will create a safe environment for industry and providers to learn and work.
TRANSCENDING TIME AND SPACE IN TOMORROW’S HEALTHCARE MODELSOffering a thought-provoking understanding of healthcare in terms of time and space – where today’s healthcare model focuses on episodic interactions (its time dimension) and is facility-centric (its space dimension), Dr Soh shares how he thinks the model should evolve.
“Today’s model is very much about episodic interactions, and we need to move that to a relationship-based model. Healthcare also needs to move from its facility-centric delivery model where people go to primary, secondary or tertiary care centres for different type of medical services, to a patient-centric approach, where care follows the patient. We need to redesign care from the current primary-secondary-tertiary model to a more integrated acute-standard-complex model,” says Dr Soh.
Philips is already expanding care beyond the facility-centric model and into the workplace. One example shared by Mr Erazo is Philips’ partnership with CXA, an employee wellness platform that integrates Philips’ health technology solutions to help its clients’ employees to better manage their health.
WE’VE GOT A SOLUTION, NOW WHO IS GOING TO PAY FOR IT?“What we are seeing in healthcare right now is the ability to predict diseases and pave the right intervention points before it happens. But in understanding and identifying these intervention points, we need to clearly demonstrate the value and longer-term benefits with stakeholders,” says Mr Afable.
While personalised medical care is what we look forward to in the future, most countries will not begin providing coverage for new medical technologies such as genetic testing unless governments can be convinced with data and evidence that they help to avoid higher costs for the country. “I think in Singapore at least, we are becoming more concerned about the incremental
cost-effectiveness and how important certain technologies are,” says Dr Lim. The sentiment is common in many other countries where the healthcare costs are straining its financing systems.
Bundled payments that have been implemented in the US and by certain private health insurers, could soon be rolled out in countries in Asia. Having an innovative device that improves the quality care is not enough to get the device adopted if it busts the cost of a bundle.
RESPONSIBLE INNOVATIONIn a survey conducted by The Economist Intelligence Unit on the biggest hurdles to healthcare innovation, ethical issues came ahead as the biggest concerns for respondents in Asia, after regulatory and technical challenges.
Both companies and governments will face a big challenge in tackling ethical challenges that comes with commoditising health innovations such as genetic testing, which could be used in controversial ways such as to exclude individuals with certain health profiles from healthcare coverage.
PREDICTING THE NEXT TEN YEARS“Learning how to use the data collected to drive healthcare – that’s going to be biggest challenge for healthcare,” says Dr. Lim.
Data is already giving us the ability to predict disease before it happens. “One of the major things data is enabling is the shift towards preventive care,” says Mr. Afable.
Fragmentation in healthcare challenges our ability to use data more constructively. Collaboration between various stakeholders and industries outside of healthcare will be critical in bringing forward and sustaining innovations in healthcare.
For further information about the issues raised in this executive summary please contact us at [email protected]
“Because of fundamental challenges in healthcare delivery, many innovations and new business models will come from emerging markets.”
Amkidit Afable Director, Go-to-Market
Strategies; Business Model Innovations
Johnson & Johnson
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Executive summary Healthcare Innovation Breakfast Briefing in Asia 2017 Singapore
AcknowledgmentsWe would like to thank all individuals who have contributed to the report.
Contributors in alphabetical order:
Amkidit Afable, Director, Go-to-Market Strategies; Business Model Innovations, Johnson & Johnson
Fernando Erazo, Head, Healthcare Informatics and Population Health Management, Philips ASEAN Pacific
Keith Lim, Group Chief Value Officer, National University Health System (NUHS)
Eugene Fidelis Soh, Chief Executive Officer, Tan Tock Seng Hospital; Chairman, Centre for Healthcare Innovation
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Healthcare
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