Health IT Summit in Chicago 2014 – “A Decade of Destruction” with Scott Lundstrom, Group Vice President, IDC Health Insights

1. A Decade of Disruption
Scott Lundstrom
GM – IDC Health Insights
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Disruption
 More than a bump in the road
 A significant change in value (Supply)
• Cost
• Service / delivery / integration
• Convenience
• Market Consolidation
 A significant change in business models (Demand)
• Regulation
• Technical Innovation
• Business Innovation
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Is Health Being Disrupted?
 Is the Affordable Care Act really disruptive?
 What other disruptive forces challenge us?
 How does this play out over the next five years?
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Disrupting Health
 Disrupting health requires deeper changes
• 51% of costs from Hospitals and Physicians
• 10% of costs from Drugs
• Long term care growing
• Consumer
 Value based initiatives will focus on quality and
• Lower cost care delivery
• Lower cost settings of care
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The Real Disruptors
 Industrialization
 Business model change
 Consumer facing technologies
 Organizational Changes
 New roles in care delivery
 New IT architecture options
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The Industrial Revolution in Health
 Industrial markets are value based
 Industrial processes are quality managed
 First time quality is driven by data
• Process (Lean Six Sigma)
• People
• Technology
 Value in Health is outcome driven, and there is
tremendous value in tackling outcome
variability
 To improve clinical and financial outcomes
health must be defined beyond clinical and
financial terms
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Business Model Change
 We are the last generation of the old system
 Community wellness is the new mantra
 Risk forces model and process redesign
 Care delivery team composition changes
 IT products evolve quickly
 Integrating clinical, risk, and financial data becomes a
priority
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New Business Models Drive at least
50% of Healthcare IT Growth
Growth Areas
• Analytics
• Mobile
• Cloud
• Services
• Population Health
Management
• Consumer
Engagement
• Consumer “Retail”
Sales Model
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U.S. Provider:
ACO/Medical Home
Ownership Models
Consumer Engagement
Quality–based Payment
Europe:
Focus on sustainability and appropriateness
Maintaining the right level of access and
increased quality while limiting growth in
spending
Renewed focus on key back office
processes, with cloud-based shared
procurement platforms and big data and
analytics for spend management
Asia Pacific:
Private payers enter the
market
Emergence of Personal
health Management

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New roles in care delivery
 Taking on risk changes
the scope and type of
roles that matter
 The “next best action” to
improve health and
reduce cost may not be
clinical
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Clinical &
Financial
Family support
Behavioral
Fitness
Activities
of Daily
Living Access to
Health
Services
Nutrition
Compliance
Access to Community
Services
Transportation
Equipment
Social
Engagement
Education
Financial
House
Cleaning
Home
Maintenance

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Consumer facing technologies
 Omni-channel Healthcare
 Monitoring and communicating
 Next best action
 Creating a positive, health focused channel to
improve wellness, access, and outcomes
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The Four Cs of Consumer mHealth
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Consume
 View health-related Web
sites for health and
wellness, plus chronic
conditions
 Mobile access test results
and medication history
through portals
and PHRs
Communicate
 Omni-channel
 Alerts and care
gap reminders to consumers
 Biometric data and health
status updates to clinicians
 Patient adherence
Connect
 Channel consistency
 Integration of mobile with
daily activities
 Social media and
healthcare games
Collaborate
 Care coordination with care
teams
 Active management of health
issues through consumer
engagement and incentives
programs
 Video chat

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 More sourcing/less making
• Hybrid dev ops
• Contracting for risk and agility
 Analytics as architecture
• Data management
• Governance
 Commercialization
• Information / Process as a
service
• Joint ventures, partnerships,
networks
Organizational Changes
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40%
60%
Building /
implementing IT
Systems
Governing and
Managing IT Systems
n=131
Source: IDC's 2013 IT Staffing Survey - Jun 2013
59%
41%
Technical Skills are
Primary Skill Set
Business Skills are
Primary Skillset

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New IT architecture options
 The gross externalization of everything
 Virtualized, private cloud is a good starting point
 Analytics move from the edge to the platform
 Governance, risk, security, and agility drive
many to service providers
 Community health requires an open platform
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Cloud Adoption Across 3 Industries
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IDC CloudTrack, October 2013
n=177 for manufacturing
n=153 for healthcare
N=81 for government

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Driving Towards Triple Aim / Health Reform
Triple Aim
Health Reform
5 Year Horizon
Value of
Transformation
Patient Experience
Cost
Population Health
EHR
HIE
Compliance
Competitive
Advantage
Predictive
Reactive
Prescriptive
DataDriven
Now
Value-based
PaymentsDisease
Management
Risk Management
Integrated Care and
Health / Wellness
Accountable
Care
Case
Management
At Risk
Contracting
Population
Health
Care Coordination
Volume-based
Payments

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Contact Information
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Join me and your peers and the conversations in our
IDC Health Insights Community
The Business of Healthcare + Technology
http://idc-insights-community.com/health
Scott Lundstrom
Group Vice President and General Manager
IDC Health Insights
slundstrom@idc.com
https://www.facebook.com/
IDCResearch
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