Dec. 6, 2017
In his introduction of a panel centered around prescriptive analytics, managing director of GE Ventures Noah Lewis told attendees of the Digital Healthcare Innovation Summit that, “Analytics is one of the most hyped, invested, and yet misunderstood industries,” and he added, “The math in health care has changed, and yet the business models haven’t.”
These statements carry a lot of weight because Lewis specializes in investing in high growth companies in the Series A to growth equity stage in health care IT, digital health, clinical services, and medtech.
Michael Weintraub, CEO of Optum Analytics, explained the three market forces taking place, which are the information highway for the data, the existence of the cloud so data can be accessed at any time, and the behavioral issue since now change is evident, and we are in must-do mode.
“To have the stand-alone systems that don’t connect to the informatics, health care doesn’t have the ability to take on risk to glue all those things together, and everything needs to be connected. It’s not acceptable,” he stated.
Evidation Health CEO Michelle Lemke said, “We are big believers in behavior data analysis and augmented data sets from real-life on a patient-consumer level to figure out when and how much in order to fold these back into the system.”
Mudit Garg, CEO of AnalyticsMD, spent a time working in a hospital helping it improve the workflow. He saw the frontline teams surmounting the insurmountable day in and day out.
“Predictive analytics itself is not enough. Thirty percent chance of this, 40% chance of that. If my GPS were to say 30% chance to take a left, and 40% chance to take a right, I would throw it out the window.” He continued, “We built as a company what is best described as a virtual air traffic control that runs in the background and [is] processing data in real time, predicting what will happen and nudging people.”
Paul Magelli, the CEO of Apervita, says the problem is not on the supply side, but rather the demand side. Today’s hospital CIOs need to provide solutions at a much lower cost and in less time. The time to deploy a solution if you are a CIO has gone from 10 solutions per year to 100 solutions per year and this simply does not scale.
“It is a first and last mile problem,” said Magelli. He added, “The first mile problem is how to get data out of your existing incumbent systems. The problem we see now is how to get three or a dozen different payer systems worth of claims data, and the EHR data, and the other social data or whatever you want to add to it. Do it fast, and get it into the workflow with 100 endpoints. We have a distribution problem. Getting that tremendous wealth from the supply side into the demand side is really the challenge.”
Held on November 2 in Boston, the Digital Healthcare Innovation Summit, chaired by Robert Mittendorff, MD, MBA, of Norwest Venture Partners, and Bill Geary of Flare Capital, brought together leading innovators, investors, and industry executives to share their valuable insights on the future of health care.