| Greetings!
This winter issue of Neo focuses on innovation in health information technology. With as much as $850 billion of waste clogging the healthcare system, according to a recent study by Thomson Reuters (1), technology is our greatest hope for improving efficiency and reducing costs -- and improving care. The pieces in this issue run the gamut from broad, industry-wide analyses to simple but effective tools.
Starting with the big picture, I review The Innovator's Prescription: A Disruptive Solution for Health Care by Clayton M. Christensen, bestselling author of The Innovator's Dilemma, Jerome H. Grossman, M.D. and Jason Hwang, M.D. Distilling ten years of research on how the U.S. system provides and pays for healthcare, this highly readable book offers concrete recommendations on how to restructure the industry to create fertile ground for disruptive innovation.
We welcome two new contributors this month. John Bader works with physicians to integrate new technology in their practices. In "You Can Get There from Here: The Road from Digital Information Products to the EHR," John points to physicians' widespread reliance on complex diagnostic and imaging devices, smartphones and must-have digital content and tools as evidence that they will adopt the electronic health record if it is inexpensive, simple and enduring.
Our other new contributor is Lisa Bodell, CEO of FutureThink, an internationally recognized innovation research and training firm. She looks at how companies are using social media to improve customer and employee relationships in "Building Digital Fluency: How Technology is Re-Shaping Workplace Expectations, and Making Us More Connected, Transparent, Collaborative and Synchronized" in the Beg, Borrow and Steal section. Intended to catalyze innovation by examining how other industries use technology to advance, the section also links to Silicon Alley Insider's list of remote control apps for the iPhone.
Finally, in the New and Noteworthy section, we highlight exciting new products for the mobile electronic health record, eligibility and benefits, diagnostic and procedural coding and physician and dentist discovery.
Questions? Suggestions? Your feedback is welcome.
Read on! Lead on! |
| Book Review
The Innovator's Prescription: A Disruptive Solution for Health Care
By Clayton M. Christensen, Jerome H. Grossman, MD & Jason Hwang, MD |
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Clayton M. Christensen, bestselling author of THE INNOVATOR'S DILEMMA and Professor at the Harvard Business School, partnered with Jerome H. Grossman, M.D., formerly of the Harvard Kennedy School, and Jason Hwang, M.D., an internal medicine physician and strategist at Innosight LLC. Together they spent 10 years studying where the structure of the health care industry breaks down. THE INNOVATOR'S PRESCRIPTION: A DISRUPTIVE SOLUTION FOR HEALTH CARE (McGraw-Hill, 2009) summarizes their findings and recommendations for the changes that will lay the groundwork for the disruptive innovation that will enhance care and reduce costs.
Applying Christensen's previous work on disruptive innovation, THE INNOVATOR'S PRESCRIPTION outlines the components that are essential to making products and services affordable and accessible in the healthcare arena:
1. Technological enabler. Typically, sophisticated technology whose purpose is to simplify, it routinizes the solution to problems that previously required unstructured processes of intuitive experimentation to resolve.
2. Business model innovation. Can profitably deliver these simplified solutions to customers in ways that make them affordable and conveniently accessible.
3. Value network. A commercial infrastructure whose constituent companies have consistently disruptive, mutually reinforcing economic models.
In addition, regulatory reforms and new industry standards "facilitate or lubricate" interactions among members of the new disruptive industry. Christensen, Grossman and Hwang demonstrate how other industries have been transformed by technologies that made their products and services cheaper and simpler. In the health arena, technology is key: it is the vehicle by which molecules and biomarkers can be uncovered, precise diagnoses and sophisticated treatments can be made, and information can be exchanged, aggregated, and studied. Molecular medicine, imaging technologies and ubiquitous connectivity are technological enablers with the greatest promise in the sector. The electronic medical record will link the disparate parties in the industry and, in so doing, reduce errors, reveal patterns in disease, improve treatments, make costs more transparent, speed payments and make care more accessible.
The authors distinguish between intuitive medicine, "where highly trained and expensive professionals solve medical problems through intuitive experimentation and pattern recognition," and empirical medicine, "where data are amassed to show that certain ways of treating patients are, on average, better than others." When diseases are diagnosed precisely and the therapy is predictably effective and standardized, then precision medicine can be delivered. The treatment of most infectious diseases, for example, has shifted from intuitive to precision medicine with the advent of diagnostic techniques that identify the virus, bacterium or parasite that causes the disease.
Christensen, Grossman and Hwang advocate redistributing the delivery of services to solution shops, value-adding process businesses, and facilitated networks in various parts of the healthcare industry.Such specialization, they argue, would simplify and improve services and reduce costs. Solution shops areinstitutions that are "structured to diagnose and recommend solutions to unstructured problems."The value they offer their customers is derived from the intuition, training, analytical and problem-solving skills brought by their employees, and by the sophisticated equipment they use. Payment is fee-for-service. A general hospital is a solution shop where highly-trained people gather and assess data from sophisticated equipment and examinations. They form an hypothesis about the appropriate diagnosis and adjust the treatment in an iterative fashion to find the appropriate one.
Value-added process businesses take broken or incomplete things and turn them into more nearly complete things of higher value. Processes and equipment enable VAP businesses to standardize their products and services, delivering high quality at lower cost. Medical procedures that occur after a definitive diagnosis are VAP processes. Fees are based on outputs and, because the outcome is predictable, often are guaranteed. Examples include the prescription of antibiotics by a nurse practitioner after a rules-based diagnostic test reveals strep throat at MinuteClinic, or LASIK surgery at an eye surgery center.
Finally, in value networks, people exchange things with each other in networks, and money is made by those who facilitate the operation of the network. Revenue comes from membership fees. PatientsLikeMe.com and WebMD are examples of businesses that are creating facilitated networks for patients with chronic diseases and making money by keeping people healthy.
Currently, these business models are often blended and blurred, making the calculation of costs and pricing an inexact art at best. By dis-integrating the delivery of products and services, they can be routinized and made simpler and more widely available.
The authors examine the parts of the healthcare system that are particularly dysfunctional or otherwise inhibit the delivery of care, and apply the framework of disruptive innovation to identify where improvements can be made. The reimbursement system, information technology, pharmaceutical and medical device industries, and medical education are in immediate need of reform, they conclude, in order for innovation to occur. They lay out how dis-integration in these sectors ought to take shape.
In addition, Christensen et al. spell out important changes to regulation and standards that will facilitate innovation. These reforms include changing how the National Institutes of Health evaluate research proposals; revising reimbursement formulas and policies; improving insurance for the poor and enabling employers to create incentives for healthful behavior among their employees; modifying the scope and mission of clinical trials; adjusting licensure and certification so there are enough accredited people to deliver precision medicine; and creating a developmental and regulatory environment that is supportive of disruptive innovation, instead of deregulating the industry.
THE INNOVATOR'S PRESCRIPTION is an impressive work that presents an exhaustive framework to overhaul a complex and troubled healthcare industry. It demonstrates how a sector whose structure is the result of tradition and historic events, whose solutions have been cobbled-together, often in self-serving ways, must disentangle itself. Doing so will spark innovation, improve care, reduce costs and widen margins. With stimulus funds and the pending healthcare bill, the healthcare industry is poised to make important changes, many aligned with the vision of Christensen, Grossman and Hwang. It won't be easy. It is necessary. |
| You Can Get There from Here: The Road from Digital Information Products to the EHR
by John Bader |
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Healthcare IT is a hot button topic these days among physicians. There is an irony to this that is lost least on physicians themselves, who are well aware of their traditional reputation as technophobic. This stereotype has long been inaccurate (since when is an MRI low-tech?) but has been given a fresh airing over the past year by the well-publicized reluctance of physicians to embrace the use of Electronic Health Records (EHRs). Far fewer than one in ten physicians (1) or hospitals (2) use a fully-functioning EHR despite increasingly well-documented evidence that properly implemented systems can improve patient care and lower costs. This on top of pressure from a looming Federal requirement to begin using EHRs, backed by a reimbursement carrot of nearly $20 billion of funding from the American Recovery and Reinvestment Act of 2009 and a nearly unquestioned popular belief that more medical technology is better. What gives? Physicians have been avid users of new technology in hospitals for decades, as any pause to consider the progress of the battle against myriad diseases will attest. Consistent with this past, many individual physicians say they are willing to use new technology, provided it is simple to use, isn't too expensive and won't become obsolete too quickly. For example, the percentage of physicians using smartphones such as the iPhone and Blackberry in their clinical work is estimated as high as two-thirds (3), far greater than the 15% or so smartphone use in the general population. The favorite physician smartphone by far is the iPhone, preferred for its ease of use and the size and quality of its screen. So, what's the problem with EHRs, a technology that physicians appear to love to hate? It is that so many physicians find them the exact opposite of what they want: complex and time-wasting, expensive and of uncertain longevity in the fast-changing world of software technology. Now that physicians actually will be required to use them, the chorus of complaints has risen to a high enough pitch that politicians have begun smelling political opportunity, notably Chuck Grassley (R-Iowa) a powerful senior Senator. He has written two letters to major EHR vendors and hospitals over the past several months, the last pointedly demanding answers about how overly complex, badly designed EHRs might actually be harming patient safety (4). Some observers see this type of scrutiny as the leading edge of EHR regulation. Away from the EHR ferment, hundreds of thousands of physicians go about their jobs every day using innovative, web-based technology that they swear by. What do they like? Below is a short list of applications many physicians wouldn't go without. Not surprisingly, all of them are simple to use, save time over the traditional way of doing things and are inexpensive. All are available not only on the web but also on smartphones. The services typically charge a monthly or annual subscription fee. In practice, many individual physicians never see a bill because the relatively small cost is borne by their practice, hospital or residency training program. The best known of these new services is Epocrates, a drug reference that physicians young and old swear by because it is simple to use, answers basic but critical questions about medications and saves time over the thick drug reference book they traditionally stuffed into their lab coat pockets. Physicians say Epocrates's greatest strengths are the pill pictures it provides and the speed and accuracy of its information updates on new and existing medications. The service comes in several flavors ranging from free to $299 per year. Another application many physicians wouldn't do without is UptoDate, a very simple, web- and mobile-based clinical information resource that does one thing: gives answers to the questions physicians have daily about caring for their patients. The service saves physicians time because it replaces the traditional phone call (or perhaps email) to colleagues, a process that in many cases is now considered too slow and cumbersome. UptoDate's answers are considered credible because they come from a large editorial board of fellow physicians as well as peer-reviewed medical journals. The service charges an annual subscription ranging from about $200 to $1,500 depending on the number of users. Then there is Medscape, a WebMD property that is a physician favorite. Online since the mid-1990s, Medscape is used by many physicians as their go-to site for specialty-specific clinical information and news. Its voluminous content helps physicians stay on top of important developments in their specialties, saving them from the traditional medical journal reading for which they no longer have time. Medscape's wide-ranging offerings compete with many of the more narrowly-focused services such as Epocrates and UptoDate and, even if many physicians feel they outclass it, MedScape has one advantage - it's free.
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| New and Noteworthy Technology |
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Ever on the lookout for snappy new features, functions and content on the web and mobile platforms, I came across several attention-grabbing technologies in clinical, payment processing, coding and consumer spaces. With ZocDoc, consumers can find a doctor or dentist who is on their health plans, located nearby and has available appointments. Allscripts Remote gives clinicians simple tools for interacting with patients' health records anywhere, anytime. CORE demonstrates that parties all across the healthcare value chain can surmount their own interests and come to agreement on a standard that can maximize payor payments and reduce associated costs by cutting down on denials of payment. Search ICD-9 (and soon, ICD-10) enables physicians to maximize payor reimbursements by using the most precise codes.
First I consider ZocDocand from a product development perspective, exploring how it can be expanded and developed, applied to other audiences, and enhanced with additional functions and content. This is followed by other promising technologies with impressive combinations of inspiration, functionality, design and navigability:
ZocDoc -- find a doctor or dentist appointment and book online, instantly. We've all been in the situation where we need to find a new provider -- when we move to a new town or have children, for instance. Depending on how extensive one's network is, this can be dealt with in a couple of phone calls or an email blast. Yet, one's confidence in the results tends to be in direct proportion to the effort expended -- the easier the process, the more reliable the outcome. But even with the referral in hand, one still doesn't know whether the doctor or dentist accepts one's health/dental plan or has an open appointment in a reasonable timeframe. These questions require a call to the doctor's office. ZocDoc addresses all these needs by enabling users to search for doctors and dentists by zip code and insurance plan. Search results list contact information, hospital affiliations, medical school, patient-generated ratings, and the ability to select an open appointment and book it online.
Going forward, I would like to see ZocDoc offer more information on the providers, such as disciplinary actions and mortality rates. Knowing if one's friends and acquaintances have been to the providers under consideration would raise confidence in the search results. A TurnTo or FaceBook app could solve that mystery. Finally, physicians in small to medium practices typically refer patients to specialists whom they know personally -- from medical school or the hospitals where they have admitting privileges. Rarely do they know what insurance, if any, the specialist accepts. If ZocDoc centralized provider information in a provider directory it would be an attractive product to license to physician order entry software vendors. The directory would allow clinicians to make more informed referrals.
AllScripts Remote -- this sleek, simple app for the Apple iPhone or iPod Touch, BlackBerry or Windows Mobile device enables clinicians remotely to control their Allscripts Enterprise patient electronic health records.
CORE -- launched by the Council on Affordable Quality Healthcare, CORE (Committee on Operating Rules for Information Exchange) operating rules give healthcare providers access to eligibility and benefits information before or at the time of service using the electronic system of their choice for any patient or health plan.
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Mendelsohn Consulting is a New York-based consulting firm specializing in digital product development in science, technology and medicine. We work with clients to achieve top-line growth through innovation.
Cordially,
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| Beg, Borrow and Steal: How Other Industries Innovate |
| Throughout history, innovators have adopted and modified the ideas of others to suit their own needs. This Beg, Borrow and Steal section looks at how other industries are using consumer-oriented technology to improve their products and services. What can the healthcare industry learn from their examples? |
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Find and book Zipcar rentals. Monitor your burglar alarm and security cameras. Adjust your TV or DVR ... all using iPhone remote control apps. See the full list of how to manage your life from afar in Silicon Alley Insider's "25 Things You Can Remote Control with Your Phone." |
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