Evolving PHR Market 20080617

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    June 13, 2008 Copyright: Chi lmark ResearchFor internal use only, not for distribution

    Evolving PHR Market

    Ana lys is & Tr end s Presented for HHS, AHIC Consumer Empowerment Workgroup

    June 17, 2008

    By: John Moore, Managing Director

    Chilmark Research

    [email protected]

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    Three Take-Aways

    What is Market

    Structure Today How w ill Market

    Evolve

    4 Generations

    Trajectory

    Drivers

    Challenges

    What to Watch

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    PHR Market has Re-ignited

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    Who is Engaging a PHR

    Total Adoption Today:~5-7%

    Consumer Profile: Mid to Upper Class

    Middle Aged

    Working Mothers withMedical Proxy

    Chronic Care & Web-savvy

    Little Adoption AmongHealthy

    Source: Intuit Survey 2005

    Finan cia l Sk in in t h e Gam e

    w i l l Play a Lar ge Ro le

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    Market has Moved to B2B Model

    High Barriers to Entry in Provider Market Employer & Health Plan Markets Similar

    Consumer P lays are Often Legacy

    Primary Market Secondary Market

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    PHR Sponsors

    Not comprehensive

    Not interactive

    Most are tethered

    Clinical & lab data

    Online consultations,

    scheduling, Rx refill

    Trust

    Customer retention

    Workflow

    Lower Readmissions

    Provider

    Trust

    Claims data not clinical

    Most are tethered

    Claims & meds

    HRA & PBM

    Domain expertiseProvider info

    Lower medical losses

    Behavioral change

    Differentiator - CDHP

    Health

    Plan

    Trust

    Incentives requiredMost are tethered

    Health & wellness

    Integrated to HRpackage

    Can be comprehensive

    Lower HC costs

    Increase productivitySupport CDHP

    Employer

    Disconnected - self

    entry

    Low adoption

    Privacy & security

    (-)

    Motivated

    Personal control

    Portable

    Chronic disease

    mgmt

    Care mgmt

    CDHP mgmt

    Consumer

    (+)Motivation(s)Sponsor

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    PHR Market is Highly Fragmented

    Ex t r em e ly D i f f i cu l t t o Cho ose Viab le So lu t ion

    *

    *iPHRs: Internet-based PHR

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    Conten

    t

    1st

    Generation: Isolated

    Valu e: Tr ack & Manage Car e

    Target: End Consumer

    Most 3rd Party PHRsStuck Here

    85% of those

    interviewed

    Adoption Remains Low

    Generic

    Little personalization

    Self-entry

    Only for VERY

    motivated

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    Cont

    ent

    Va lue : Faci l i t a te I n t e ract i on , Prom o t e Hea lt hy Behav io r

    2nd

    Generation: Online w ith Some Data

    Claim

    sor

    Clinical

    Data

    Target: Businesses

    Insurers, Employers,Providers

    Land Rush by Insurers &Employers

    Manage/Lower Risks HRAs, Behaviors, CDHP

    Provider MarketDominated by EMR Vendors

    Customer Retention Communication

    Adoption Highly Variable

    Trust, Perceived Value Incentives often reqd

    Some self-entry required Portability?

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    3

    rd

    Generation: Highly Networked Utility

    Valu e : Rich er Da t a = Rich er Ex per ience

    Target: Consumers

    Exception - Dossia

    Three Dominant Players

    Dossia, Google, HealthVault Utility Service Model

    Perform Heavy Lifting Data Repository

    Multiple sources

    Identification Mgmt

    Security/Privacy

    Market Contraction

    Accelerate Demise of Weak

    Adoption Unknown

    Can They Get the Data?

    Can They Build an Ecosystem? Trust, Value

    Not a PHR, but a Platform:

    Personal Health System (PHS)

    Data

    Data

    App

    s

    Devi

    ces

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    Dossias Utility Model

    Dossia Dat a Serv ic es

    Dossia Dat a Fram ew ork

    Dossia Open API

    EM R

    ProviderMeds Claims Labs Im ages

    Dossia Data Provider Network

    Dossia Ecosystem

    Dossia SIG

    Dossia.OrgBuilt on INDIVOHEALTH

    PHA

    PHA

    PHA PHA

    PHA

    Dossia Certification Prog.

    Dossia Logo Prog.

    Goog le Hea l th & Hea l th Vau l t hav e Sim i lar Mod e ls

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    Successful (PHSs) Will Evolve Into

    Ecosystems

    I f Successful

    Data ConsolidationData liquidity

    Unmatched

    RichnessGame Changing

    Consumer

    Empowering

    Providers

    PHAs

    (PHRs)Researchers

    Insurers

    PHS

    (e.g., Dossia)

    Devices

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    4th Generation: Personal, Actionable, Connected

    Value: Abo u t Me, By Me, W i t h Me, For Me

    Target: All Markets

    Leverage Utility Services

    Now that we have the data

    Market Fragmentation

    Proliferation of Apps & Widgets Serve highly individual needs

    Enable personalized medicine

    Seamless Integration

    SPIME Always on

    Adoption Predicated On

    Liquid Data

    Success of ecosystems

    Consumer Value

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    PHR Evolution Accelerates Adoption

    2008

    Gen 3: Dat a Aggregat ion(Rise o f PHS)

    Gen 4: Personal ,Act ionable, &

    Connec ted

    Gen 2 : Onli ne

    2011

    Gen 1: Isolat ed

    20031992 T ime

    Value

    Adoption

    2000

    (Online)

    20

    1992

    40

    80

    Users

    (Mi l l ions)

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    Moving Ahead:

    Adoption Challenges Remain Data Liquidity

    EMR adoption

    Standards Adoption Policies & Incentives

    Portability

    Trust

    Health Plan, Employer, 3rd Party

    Consumer Apathy/ Indifference

    Education

    Incentives

    Solution Capabilities

    Immature, Disparate

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    Drivers to Overcome Challenges

    Accelerating, Employer-led Initiatives

    Financial Skin

    Consumerism Entering Healthcare Visibility, Education

    Accelerating IT Adoption

    Among Providers

    E-Consultations New Consumer-centric

    Technologies & Tools

    Delivering Radically New Capabilities

    Disintermediation of Care Retail Clinics, Med Tourism, etc.

    W i l l Con su m er Dr i v e Needed Ch ang e?

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    What to Watch Traction of P latform Plays

    Data Sources (agreements)

    E.g., Cleveland-Google, KP-MS Consumer Adoption

    Sub-group types

    Developer Adoption

    Popular apps/ services Market Consolidation

    Rationalization

    Acquisitions

    Employer Successes Demonstrable ROI

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    The world is moving so fast thesedays that the one who says it cantbe done is generally interrupted by

    someone doing it.

    - Harry Emerson Fosdick