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How digital and cognitive technologies can radically lower healthcare cost and raise its benefits Kaveh Safavi MD JD Managing Director – Accenture Global Health Lead
How digital and cognitive technologies can radically lower healthcare cost and raise its benefits
Kaveh Safavi MD JD Managing Director – Accenture Global Health Lead
Healthcare Expenditure Growth Rates Declining Norway’s healthcare expenditure closely mirrors the OECD average
Source: OECD.org
2013 Health Expenditures (per capita)
OECD Average
0 %
5 %
10 %
2003 2006 2009 2012
Norway US OECD Average Health Expenditure Growth Per Capita
$5,862 (8.9% of GDP)
$8,713 (16.4% of GDP)
$3,419 (9.1% of GDP)
-10 %
-5 %
0 %
5 %
10 %
15 %
2001 2004 2007 2010 2013
Rate of NHE growth Rate of GDP growth
Norway’s Healthcare Spending Has Followed GDP
Source: OECD.org
Per
cent
Norway’s health care cost has outpaced inflation by over 75% in the last decade Healthcare Cost Inflation vs. Overall Inflation
0 %
20 %
40 %
60 %
80 %
100 %
2003 2005 2007 2009 2011 2013
Cum
ulat
ive
lnfla
tion
Compound CPI Compound Healthcare Inflation
75%
Source: OECD & Accenture Analysis
Conceptual Rate of Cost Increases: Low vs. High Innovation
Expert Labor Costs are Unsustainable
High Innovation Sector
OECD Average Productivity without labor
Personal service labor cost Consumption
Source: Baumol WJ, The Cost Disease, Yale Univ. Press 2012
Years
Productivity ≠ Efficiency
Without innovation, cost of unit care will grow faster than European GDP due to its reliance on expert labor
Ann
ual C
ost
Gro
wth
Labor Productivity for Non-Manufacturing Industries Compound annual rates of change, 1987-2006
Source: Monthly Labor Review, 2010
“In your own words, how would you define “value” in healthcare? Please be specific (unaided response)
“Value” is Neither Outcomes nor Cost for Patients
Physicians
Patients
Neither Cost or Outcome
Cost Outcome
Not Sure
Cost & Outcome
Cost
Cost & Outcome Outcome
Neither Cost or Outcome
Not Sure
10 20 30 40
Source: Quintiles, The New Health Report 2011
Care and Compassion
Source: FJORD Era of Living Services 2015
What empowers people today will drive expectations and inform services of tomorrow
Virtual Health
• Match supply to demand
• One to many
• Asynchronous
• Augmented experience
Source: Silvercloud
Benefits the already served, not just the underserved
Social Software
Source: www.bigwhitewall.com Wicks, P. et al. Nature biotechnology May 2011
• Business-class social networks
• Self-service platform
• Community created content
• Gaming
Delivers healthcare while increasing self-care and self-service
Technology Makes Care Location Independent
• Overcome physical limitations
• Allow caregiver support at a distance
• Family support at a distance
• Diagnosis and therapy at a distance
Source: ALS proof-of-concept developed by Accenture, Philips, Emotiv, 2014
Medical Alerts
Muscle commands
(EMG)
Mind commands
(EEG)
Connected Lighting Email/Text
“That it will ever come into general use, notwithstanding its value, is extremely doubtful because its beneficial application requires much time and gives a good bit of trouble, both to the patient and to the practitioner because its hue and character are foreign and opposed to all our habits and associations.”
- The London Times 1834
Laennec Stethoscope
Copyright © 2015 Accenture. All rights reserved.
Kaveh Safavi, MD JD +1 312 693 1541 [email protected] @drkavehsafavi
