Michelle Mosolgo, CTO - Healthcare Services & Solutions, Merck & Co. May 5th, 2016

How Digital

Innovation can

Drive Business

Value in Life

Sciences

Global

Healthcarea common problem

http://www.marketwatch.com/health-care/reform/snapshot

OLD WORLD• Physician-centric

• Relying on subject matter experts

• Emphasis on highly specialized care

• Payments largely based on

• fee-for-service model with no

alignment among healthcare

participants

• Focus on innovation, blockbuster,

quantity and convenience of care

delivery

NEW WORLD• Patient-centric

• Leveraging information technologies

• Emphasis on coordination/ integration

• Payment systems focusing on

outcomes, with alignment of incentives

for relevant stakeholders (patients,

payers, providers)

• Focus on risk stratification, case

management, real-world evidence

Innovation = Push BoundariesInnovation = Better Care at Lower Cost yet Still Pushing Boundaries

A Changing Landscape

Digital

Health

http://insights.venturescanner.com/2014/05/06/a-snapshot-of-the-digital-health-landscape/

“The Shifts” / Technology

01 DATA

ANALYTICSEmergent patterns in

healthcare data inform

patient diagnosis and

treatment plans

02 SOFTWARE

INFRASTRUCTURESoftware solutions (such as

EMR’s) facilitate capture

and sharing of healthcare

information.

03 CLINICAL

DECISION

SUPPORTAlgorithms

provide health

recommendations

based on clinical

knowledge and patient

information.

04 MOBILE HEALTHMobile technology and

applications are

increasingly used to

monitor and evaluate

health.

05 CYBER

SECURITY &

DATA PRIVACYIncreasing digitization of

data increases risk and

impact of security

breaches and drives

protection around health

information.

Considerations to Produce

Value

SECURITY &

PRIVACY

THREATS

TRUSTWORTHY

DATA

STANDARD

S & OPEN

SOURCE

HEALTHCARE

DELIVERY

MODEL

GLOBAL

CONCERN

The importance

of protecting

data increases

with more

complete set of

information

about a patient

and increased

access.

Need to

balance

between

privacy and

open access

Patients

consider

information on

the internet as

“truth”…

No verification

of much of the

information on

the web.

Changing

standards can

increase costs -

who is

responsible for

developing and

maintaining

open source

assets?

Will patients

“self diagnose”

problems?

Role of

pharmacies –

will they

become the

“primary care

physician?”

Devices

Virtual access –

will this change

the cost

structure?

Healthcare is a

global concern,

how will it be

affected by

politics?

SECURITY &

PRIVACY

THREATS

Regulations are increasing

HIPAA

Application

Security

Privacy

Consent

Management

Cyber

Security

Medical

Device

TRUSTWORTHY

DATA

“Everyone's an

expert!”

STANDARD

S & OPEN

SOURCE

Devices playing a role in

behavior changes

HEALTHCARE

DELIVERY

MODEL

Consumers are taking

accountability for

health

GLOBAL

CONCERN

Healthcare

in Politicsthe debate

How do you navigate?

01 02 03

04 05

Behavioral Lens on “The Shifts”

CONSUMER

ENGAGEMENT &

EMPOWERMENTPatients are becoming

active participants in their

health.

INTEROPERABILITY

& CONNECTIVITYConsumers are integrating

the ‘Internet of Things’ in all

areas (including health).

COMMUNITY

SUPPORTIncreased use of social

media allows

consumers to quickly

connect.

ACCESSAccess to information,

technology, and

medicine is expanding.

REMOTE CAREAdvances in technology

allow for offline and

remote monitoring of

health.

Provider Portal

Patient Portal

http://digital-day.com/portfolio/premier-physician-services-intranet.aspx

Path to Value Creation

01

02

03

04

PICK A PROBLEM TO SOLVE AND FOCUS

• Disease / Care Coordination

• Collaboration Across Caregivers

DETERMINE WHO YOUR CUSTOMERS ARE – IT WILL MATTER

• Payer

• Providers

• Customers

UNDERSTAND CUSTOMER’S CORE EMOTIONAL NEED

• Virtual

• Devices

• Digital

SELECT WHAT DATA YOU WANT TO MANAGE

• Personal Health Information (PHI)

• Health Information

Final Thoughts

Healthcare Regulations

will continue to be debated

and change – be prepared

to adjust

Value will be based on ability

to prove outcomes

(Health, behavioral and

economic)

Leverage partners –

this is hard to solve

alone

MVP! .. Start small, test and

change quickly

Thank you.