Can mHealth Become a Profitable Business? How and When? 03

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Can mHealth Become a Profitable Business?How and When?

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  • 1. 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.All other marks contained herein are the property of their respective owners.

2. Can mHealth be a profitablebusiness?Perspectives from a leading carrierChris Hill, VPAT&T Mobility Enterprise SolutionsFeb 14, 2011 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners 3. US healthcare costs are rising US healthcare costs As percent of US GDP 17.6 16.216.6 Global healthcare costs expected to13.813 8 reach ~$6T>3x 12.3 Out of all countries, US spends the 9.1 91most, at $2.5T $2 5T 7.2 Peer countries spend less as a % 5.2 of GDP: Germany, 10.5% Canada, 10% France, 11.2% 19601970 19801990200020072008 2009SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health StatisticsGroup; U.S. Department of Commerce, Bureau of Economic Analysis3 2011 AT&T Intellectual Property. All rights rights reserved. AT&T, the AT&T and all otherother AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. 2010 AT&T Intellectual Property. All reserved. AT&T, the AT&T logo logo and all AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All othermarks contained herein are the property the property of their respective owners. All other marks contained herein are of their respective owners 4. Excessive costs can be addressed bymHealthPain points Possible mHealth solutionsOverutilization Care payments based on Remote care monitoringof careprocedures, not outcomes Replace high-cost services (face-to-high cost(face toface physician visits) with lower Incomplete access to patientcost mHealth monitoring medical records Limited incentives to curb the use of careInefficiency of Lack of comparative data tothe system benchmark provider performance Mobile EMRs I h Inherent expense of multiple-tf lti lMobilize patient medical records for payor system easy data access High provider bad debt Healthcare communications Low hospital efficiencies (e.g.Improve co-ordination of care poor ER throughput)through mobile healthcarecommunications Unequal geographical distribution of top physiciansPatient Hi h i id High incidence of unhealthyfh lth mHealth Diseasebehavior behavior (e.g., smoking, diet)Management, Medication Ineffective wellness care andAdherence, Wellness disease managementUtilize mobility tools/ technologies to provide on-demand always-on on-demand, clinical coaching4 2011 AT&T Intellectual Property. All rights rights reserved. AT&T, the AT&T and all otherother AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. 2010 AT&T Intellectual Property. All reserved. AT&T, the AT&T logo logo and all AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All othermarks contained herein are the property the property of their respective owners. All other marks contained herein are of their respective owners 5. Industry watchers believe mHealth couldgrow significantlyEstimated size of US market for mHealth$B Opportunity areasCAGR (2009-2014)>$4.7B>$4 7BHealth and fitness 62%~$0.5Bsoftware ~$0.5BMobile health info/ 62% ~$0.2B$0 2B EMR Mobile medical ~$0.5B30% equipment ~$1.1BIn-Hospital RFID p 17% Telemedicine35%>$1.1B ~$0.5B mPERS 10% ~$1.2B Remote monitoring 28% services 20092014Industry watchers expect significant growth, but so far, mHealth take-off has yet to occurSOURCE: Information compiled from Juniper Research 2010, CSMG research 2010, Mobihealth news 2010, California Healthcare Foundation 20105 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.All other marks contained herein are the property of their respective owners. 6. mHealth market take-off limited bya number of challenges Example >6,000 healthcare and fitness apps of which only 200+ areProfusion ofenterprise backedproducts Difficult for healthcare enterprise customers (providers, payors) todistinguish winners from me toos Current solutions are not plug-and-play; each has their ownFragmentedproprietary back-end/ platformsolutionsDo not cover the full extent of care (linking patient, device, wirelessapplication, d t algorithms, clinical i t li ti data lith li i l interventions) ti ) Unclear which standard will prevail (e.g., Zigbee vs. LP Bluetooth,CompetingANT+ etc.)standardsUnclearCurrent solutions targeted at providers (hospitals/ physicians) whobusinessb i are slow adopters due to reimbursement issues or direct-to-issues,consumers (patients) who have low appetite for out-of-pocketmodelsexpenses6 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.All other marks contained herein are the property of their respective owners. 7. Deliberate AT&T mHealth product strategy to address these challengesCurrent challenges AT&T mHealth strategic guiding principles Scan industry for best of breed solutions/ vendors toProfusion of scale-up and bring to marketproducts Develop end-to-end turn-key solutions that include clinicalFragmented software/ algorithms, hosting, security, care, billing etc.solutions Go beyond smartphones with cross-carrier solutions that cross carrier work on 70-80% of installed phonebase Create mHealth platform for common plug-and-playCompetingsolutions that will work with a variety of connectivitystandardsstandards (e.g. Zigbee, ANT, Bluetooth) and legacy devices (e.g. USB-enabled blood-pressure cuffs)Unclear Run validation pilots where we work with marquee customers to jointly test for outcomesbusiness Focus on Medical Value with solutions chosen to drivemodels medical cost reduction, not to drive d t / voice trafficdi lt d titt d idata/ i t ffi 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.All other marks contained herein are the property of their respective owners. 8. AT&T mHealth priority areasPriority AT&T Mobility mobility healthcare AT&T Enabled Healthcare Solutions1 E2E mobile patient care Disease Management, Medication Adherence, Remote Care, Wellness, Tools for Clinical Trials2 mHealth infrastructure mHealth platform, Mobileize EMRs, Healthcare Communications, Secure tablets etc.AT&T assetsSecurity, Hosting, Connectivity, Connected Devices , Provisioning, Billing, Care, Kitting, Deployment 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.8 All other marks contained herein are the property of their respective owners. 9. 9 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.All other marks contained herein are the property of their respective owners. 10. 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.All other marks contained herein are the property of their respective owners. 11. 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.All other marks contained herein are the property of their respective owners. 12. 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.All other marks contained herein are the property of their respective owners.