Zac Jiwa - Joshua Rosenthal, PhD - Bryan Sivak - Fred Trotter

Government is releasing lots of data*

* Expertly captained by

Need market to adopt – use to create valueCf. Weather & Geo-Location data

Thanks, government!

Context

Exit

Exit w/ Good Multiple

Idea

Prototype

Funded

1 %*

1 %*

1 %*

1 %*

*Health Care Start Ups fail at astounding,

disproportionate rates

1x Rev

Most ‘Successes’, Aren’t

Measuring Value Creation

Measuring Value Creation

User Guide (ALT)

Consultants /Professional Services,

Providers

SaaS-baseddata / analytic

platforms

Measuring Value Creation

Health care has not done so well

“Just wait ‘till next year Financial Services & Energy!”

In this race vs. other verticals

EasyHard

LowBiz Value

HighBiz Value

?

?Most:Cool TechComplex Data

Figure out how to create value from tech / data

Start with Biz Problem, figure out data / tech

Comp Sci. Interests

VC / Accelerator

Public DataBig Data

Challenge: Starting Hard with Cool Tech

*Direct-to-Consumer Note: People don’t like to pay out of pocket for something they don’t like to do or don’t want to know about

Challenge: Direct to Consumer Apps

Speaking at a major health care conference near you

Challenge: Fluff in nice suits

I have better engineering / architecture

Hmm, ‘fixing the pipes’ was not the answer

Challenge: Noise from Tech

I have better design & experience

Hmm, the pretty colors on my social app didn’t stop me

Challenge: Bubbles (design)

My data is bigger than yours Hmm,this fixation indicates...

Silly boys

Challenge: Buzz (cf. big data)

* Source: Dartmouth Atlas for Unwarranted Variation

*

Challenge: Perverse Incentives

Perverse Incentives: Fee for ServicePayers aggregate – but some have not historically been “health care”

“Actually, I make more money off of bad drivers.”*

(Read w/ accent)

* Note:Affordable Care Act changes this

Cf. Medicare Advantage

Some Hospitals/Providers may historically generated revenueby filling rooms*

Keep patients away?!?

I was trying to book you for an extra night!

* Note:Affordable Care Act changes this

Cf. Medicare Advantage

Perverse Incentives: Fee for Service

Perverse Incentives: Disrupting Status Quos

David Wennberg, MDRowdMap Advisory Board

Open Health Data Outperforms Claims and Electronic / Personal Health Records, & Devices for Risk & Cost

Challenge: Interpretation of Data

Causal?

Then again… Maybe there’s something to it?

Challenge: Interpretation of Data

A new Prescription?

= Live to be 126 years old?

Then again… Maybe there’s something to it?

Review

Health Care Start Ups fail at astounding,

disproportionate rates

FAIL

OPEN SOLUTION - CONNECT DATA TO BIZ MODEL

Solution: NEW INCENTIVESGovernment Announces Sun-setting of Fee for Services

Government Announces New Pay-for-Value Models

OPEN SOLUTION - CONNECT DATA TO BIZ MODEL

New Government Released Referral Data(Patient flows between PCPS, specialists, hospitals and post acute centers)

Dartmouth Atlas for Unwarranted Variation(Decades of research and data on unwarranted variation by condition and geography to keep things apples-to-apples for comparisons, hence “Unwarranted” in the name)

New Government Released Performance Data (Individual providers, groups, hospitals and post acute centers including the new part B&D)

Provider Pattern Intensity Profiles and Risk Readiness for every provider, hospital, post acute center in the US. All preloaded with no IT.

Solution: NEW DATAAffordable Care Act data to determine Risk-Readiness of Providers / Networks

If Dr. Berlin had same ratio as Dr. Milan:• His decompression rate would drop from

6.01 to 0.436 per patient.• Which translates to 2,608 fewer

decompressions per year.• At an average cost of $332 per

decompression, this represents potential savings of over $850K

If Dr. Berlin's decompression to fusion rate were average for orthopedic surgeons:• He would have 1629 fewer

decompressions for a potential savings of $540K.

For every 10 back fusions Dr. Berlin* does 103 decompressions

For every 10 back fusions Dr. Milan* does 2 decompressions.

OPEN SOLUTION - CONNECT DATA TO BIZ MODEL

OPEN SOLUTION - CONNECT DATA TO BIZ MODEL

Answering the Open Challenge:Connecting Open Data to an Meaningful Business Model

DIY it!

Guide: http://tinyurl.com/l2nxvw9

Sources: http://tinyurl.com/ko7jnfa

Game: http://tinyurl.com/kspxr4e

As held at: