H@cking Medicine

@hackmedmit

Zen  Chu  Entrepreneur  In  Residence  

MIT  Entrepreneurship  Center  

entrepreneurship.mit.edu  

Invited  Hacker:  Ed  Park  CTO,  COO  athenahealth  

Healthcare  hack  resul?ng  in  $1.5B  valua?on  

Create  the  ecosystem  and  programs  for    MIT  &  Harvard  Health  Science  Technology    

students  to  learn  &  rapidly  hack  the    

unique  needs  &  challenges  in    

medical  technology  development  by  

collabora?ng  with  clinical  &  domain    

experts  around  the  world  

H@cking Medicine

WHY  HACKING  MEDICINE?  

MIT  Hacking  Culture  Provoca?ve  

Include  Life  Science  Outsiders  

MIT  IS  THE  PLACE  

Engineering  Leadership  Entrepreneurial  Culture  

Boston  Medical  Industrial  Complex  

Large  Successful  Examples  

MIT  Strengths  Map  To  MedTech  Trends  

Focus  @  Interface  of  IT  &  Devices  

BUT…  HEALTHCARE  IS  COMPLEX  

MIT  MedTech  Educa?on  Students  Need  to  Taste  the  Essen?al  Process  

Teching  materials  already  exist  for  validated  engineering-­‐driven  methodology  Stanford’s  BioDesign  Program  

Fragmenta?on  &  Scalability  Challenges  Geography,  Specialty,  Disease  State  

700  Payers  

5700  US  Hospitals  

>4000  Medical  Product  

Companies  

Negotiated Payments & Pricing Among Each Player & Region

Health  IT  Landscape  Follow  the  Money  

Pa?ent  

Employer   Hospital  

Physician  

Insurer  

$$  

$$$  $$$  

Pharm  Benefit  Manager  

MedTech  Companies  

$   $  

Pharma  Companies  

US  Healthcare  Spending  2007  $2.3  Trillion,  15.2%  GDP  

Hospital Care

Physician Services

Pharma

Nursing Homes

Admin Costs

Other Devices, Diagnostics Pharmacy, etc

Source: PHRMA Annual Report 2008

TIME  IS  RIGHT  TO    HACK  HEALTHCARE  

Costs  Drive  Reform  Incen?ves  Changing  

Infotech  meets  Healthcare  

Business  Model  Hacks  

HackingMedicine.mit.edu

@hackmedmit

CALL  TO  ACTION  Momentum  Building  

Be  a  Part  of  It!  

Fall  2011  Conference  @  MIT  

Student  Leaders  

Fantas?c  Mentors  

BACKUP  &  EXAMPLES  

Health  IT  Landscape  Follow  the  Money  

Pa?ent  

Employer   Hospital  

Physician  

Insurer  

$$  

$$$  $$$  

Pharm  Benefit  Manager  

MedTech  Companies  

$   $  

Pharma  Companies  

Align  Employers  &  Employee/Pa?ents  

Pa?ent  

Employer   Hospital  

Physician  

Insurer  

$$  

$$$  $$$  

Pharm  Benefit  Manager  

MedTech  Companies  

$   $  

Pharma  Companies  

CASTLIGHT HEALTH

Supply  Chain  Management  

Pa?ent  

Employer   Hospital  

Physician  

Insurer  

$$  

$$$  $$$  

Pharm  Benefit  Manager  

MedTech  Companies  

$   $  

Pharma  Companies  

Billing  Management  

Pa?ent  

Employer   Hospital  

Physician  

Insurer  

$$  

$$$  $$$  

Pharm  Benefit  Manager  

MedTech  Companies  

$   $  

Pharma  Companies  

athenahealth

Hacking  New  Business  Models  

NEW  MODEL          EXAMPLE  

•  Prac?ce  Management    athenahealth  

•  New  Workflows      e-­‐Prescribing          •  Collec?ve  Knowledge    Sermo  Social  Network  

•  Direct  to  Consumer    iPhone  Disease  Management  

•  Outsourcing        O2i  Teleradiology  •  Decentraliza?on      In  Home  Tes?ng/Monitoring  

•  Pay  4  Performance      Cerner  •  Bundling          Episode-­‐Based  Pricing  

Priori?ze  By  Rapid  Hackability  &  Data  

Start  With  Hackable  MedTech  Easy  to  test  tracHon  

Low      Hackability              High  

Regulated

 Regula?

on  UNregulated   Direct  to  Consumer  

Professional  Consumables  Clinical  Data  &  Quality  Required  

Convenience  &  Produc?vity  

Opportunis?c   MIT  Start  Here  Health  Info  Tech  Big  data  &  cloud  services  Sensors  Imaging  analysis  Hospital  supply  chain  management  Wellness  apps  Health  social  media  

Consumer  devices  No/few  medical  claims  

Simple  solu?ons  for  HC  workers,  MDs  Gene?c  analysis  &  counseling  Hospital  supply  chain  management  Students  can  focus  on  clin  workflow  No/few  regulatory  requirements  

Healthcare  Is  More  Complex  Get  students  to  learn  the  methodology  

Valu

e

Time

Market Risk Reimbursement

Physician & Patient Adoption Packaged Solutions

Regulatory Risk Safety & Efficacy

Management Risk

Technology IP Risk

Largest Risks Must Be Addressed & De-Risked Up Front Before Funding

Investors & Companies Willing to Take These Risks

© zen@acmedx.com

Regulatory  Is  Cri?cal…  But  demands  clinical  &  domain  exper?se  

Clinically  Disrup?ve