a glimpse into the future business and technology of mhealth
DESCRIPTION
M-Health -some insights on Mobile Health from the Mobile World Congress 2011TRANSCRIPT
WORKING DRAFTLast Modified 2/10/2011 11:53:36 PM Eastern Standard TimePrinted 10/02/2011 13:11:02 W. Europe Standard Time
WORKING DRAFTLast Modified 14/02/2011 13:30:24 W. Europe Standard TimePrinted 2/11/2011 9:32:35 AM Pacific Standard Time
H lth A Gli i t thmHealth: A Glimpse into the Future Business and Technology
f H l hof mHealth
Alessio Ascari, Lisa EllisMcKinsey & Company
February 14th, 2011
CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of McKinsey & Company is strictly prohibited
… demand is strong …Need is there…
% respondents indicating “extremely” or “very” interested
Significant interest in mHealth products
2005 2030 2050Projected healthcare spend as percentage of GDP
Healthcare spend - increasingly unsustainable
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Phone doctor 68
26
57USA 15 25
15 22
37
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26
Korea 6
Sweden 10
10
15
15
22
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Printed 10/02
Drug delivery 58
3014
Mortality rate per 1 000 populationLack of access to basic healthcare
2/2011 13:11:02
Health watch 593635
Mortality rate per 1,000 population
221
4005x mortality
3635
IndiaBrazilUSA
221152
78
LatamWestern AsiaAfrica1
McKinsey & Company | 21 Excludes South Africa
LatamWestern Europe
AsiaAfrica1
… and the business model works… Technology is available…
Disguised example business case P & L▪ Mobile phone
penetration
▪ Smartphone
Telecom 67%
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▪ Smartphone adoption in mature markets
▪ Existing
>30%
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▪ Existing technologies adequate
1:53:36 PM
Printed 10/02EBITDep-EBITDAOpexRevenue
Medical Devices
▪ Glocaps
▪ SIM Pill
2/2011 13:11:02
Our work has indicated a positive NPV
EBITDepreciation
EBITDAOpexRevenue▪ Bluetooth BP monitor
Our work has indicated a positive NPV for mHealth services, with some even
providing double digit returnsSoftware▪ Triage algorithms
in use
M di l
>10 years
McKinsey & Company | 3
▪ Medical apps on the iTunes store> 5000
…no wonders pilots are sprouting around the world NOT EXHAUSTIVE
Integrated care solution with
Vitaphone: 24-hour healthcare monitoring and ECG analysi
Remote chronic disease care
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solution, with web-based health manager
Chronic DiseaseRemote Mgmt
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Health watch for
Innovative emergency response model
Health tips and Q&A via SMS 1:53:36 P
MP
rinted 10/02
watch for epilepsy children Remote advice
and mobile care solution
Audio and visual alerts
SMS-based Drug authentication
Remote triage/referral 2/2011 13:11:02
HIV/AIDS awareness via SMS
Patients in rural areas connected SMS
vaccination planning reminders
authentication (partnering with Telcos)
Prevention of drug shortages
mHealthinfo
g
Real-time weighing and diagnosis
Medication adherence solution
via SMS
Remote doctor i i
via satelliteremindersdrug shortages
Healthcare k t i i
McKinsey & Company | 4SOURCE: McKinsey presentation from the 2010 World Economic Forum (WEF) in Davos
diagnosis solution services in Bangladesh & Pakistan
worker trainings
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So what is stopping H lth f 1:53:36 PM
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mHealth from taking off?
2/2011 13:11:02
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A complex ecosystem with multiple stakeholders playing critical roles and with economic incentives not always aligned
1
Regulators
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Payor Healthcare storage/ analytics
server
MNO service
1:53:36 PM
Printed 10/02Device
MNO server
Authentication/Encryption
2/2011 13:11:02
Device Manufacturer Remote
monitoring deviceData
transmission
server
Data collection
Intervention
McKinsey & Company | 6
Patient Physician
Shared standards and regulations not always in place2
Adoption
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Railways
?Tipping Standards and 1:53:36 PM
Printed 10/02
?point regulations
2/2011 13:11:02
3D Digital MediaTime
McKinsey & Company | 7
3 Above all, the cultural change required for several parties involved
. . . toFrom
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Where are we i ? 1:53:36 P
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going?
2/2011 13:11:02
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Healthcare 2015: our vision for the near future
Patient calls caregiver at his/her convenience any time of day/week as soon as symptoms begin
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soon as symptoms begin
Physician speaks to patient over phone relying also on data from ast Modified 2/10/2011 11
Physician speaks to patient over phone, relying also on data from biometric sensors (m-stethoscope, smartphone-based ultrasound, etc.)
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Printed 10/02
SMS reminders ensure that patient takes medicine as prescribed; can report side effects, etc. in real time
2/2011 13:11:02Patient can be monitored remotely and advised if conditions worsen or if lifestyle elements negatively impact the situation
Patient can access global medical expertise in a connected world
McKinsey & Company | 10
The core mHealth contributors to the vision
Remote Doctor Services
Doctors / specialists triage and offer medical advice to patients or healthcare professionals
Remote Health Monitoring
Providers remotely monitor chronically-ill patients and manage treatments accordingly
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p pover the phone / video
p g g y
D h i i d li I f i / H l h & W ll ff i
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Drug authentication and compliance Patients check drug authenticity and health workers monitor medication prescription remotely
Information / Health & Wellness offeringsPatients and health workers access information repositories directly
1:53:36 PM
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remotely
Centralized resource scheduling Assisted-care support
2/2011 13:11:02
Mobile and automated workflow applications will enable real-time scheduling and notification to improve system utilization
Frail and elderly patients will receive optimized home-based care
Telediagnostics
Patients from remote locations will be able to get a diagnosis from the best specialists far
Electronic/mobile Health Records
Clinical and administrative data will be stored in a centralized data repository
McKinsey & Company | 11
get a diagnosis from the best specialists far away
in a centralized data repository
Three mHealth services will be widespread, leveraging core eHealth enablers
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Remote doctor services
Remote health monitoring
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▪ Addresses ~80% of world population
▪ Works with existing
▪ Addresses ~70% of HC costs
▪ Enhances providers
▪ Easy to launch
▪ Minimal 1:53:36 PM
Printed 10/02
Works with existing technology
▪ Proven business model
Enhances providers value proposition
▪ Improves lifestyle as well as costs
investment▪ Compliment
ary to other services 2/2011 13:11:02
SMS based servicesSMS-based services
Centralized resource scheduling
El t i h lth d
McKinsey & Company | 12
Electronic health records
mHealth benefits
Social and lifestyle
Macroeconomic
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Social and lifestyle
▪ 150,000 lives saved per year
▪ 2 5 Million DALY saved per year
▪ US$200 Bn per year of savings in healthcare systems costs through RHM
▪ (example OECD+BRIC) ast Modified 2/10/2011 11
▪ 2.5 Million DALY saved per year
▪ (example sub-Saharan Africa)
1:53:36 PM
Printed 10/02
Financial
▪ Double digit EBIT margin at steady 2/2011 13:11:02
▪ Double digit EBIT margin at steady state
▪ Increased customer loyalty resulting in reduced customer churnreduced customer churn
▪ New revenue streams and players
McKinsey & Company | 13
mHealth provides a market opportunity for a variety of players REMOTE DOCTOREXAMPLE
Mobile operators
Details follow
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Healthcare service providers Systems integrators
1:53:36 PM
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Device OEMs Software vendors
McKinsey & Company | 14
Mobile operators: core assets to leverage and potential roles to play
ConnectivityAssets
▪ Proven micro billing infrastructure
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▪ Proven micro-billing infrastructure
▪ Reliable communication channels
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Hosting / Billing
▪ Authentication and secure storage
▪ Distribution channels close to end 1:53:36 PM
Printed 10/02
Distribution channels close to end users
▪ Experience with both B2C and B2B 2/2011 13:11:02
Experience with both B2C and B2B
▪ Brand recognition critical for launching new innovative services
mHealth services
▪ Trusted relationships with regulators and governments
McKinsey & Company | 15
services
Thank youW
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WORKING DRAFTLast Modified 2/10/2011 11:53:36 PM Eastern Standard TimePrinted 10/02/2011 13:11:02 W. Europe Standard Time
WORKING DRAFTLast Modified 2/10/2011 11:53:36 PM Eastern Standard TimePrinted 10/02/2011 13:11:02 W. Europe Standard Time
WORKING DRAFTLast Modified 2/10/2011 11:53:36 PM Eastern Standard TimePrinted 10/02/2011 13:11:02 W. Europe Standard Time