Alex Fair: Igniting a Healthcare Revolution
- 3. Not just any Geeks
- 4. And we don’t control anything Not the PayPal Mafia
- 5. We do our jobs and see problems
- 7. Healthcare Innovation is more difficult due to regulations and aversion to adoption …and predicting Success in Healthcare is difficult… PROBLEM which constrains capital, which limits innovation, which makes healthcare less effective
- 8. And our solution isn’t usually a widget @alexbfair#MEDX
- 9. It doesn’t usually get sold to consumers (patients) @alexbfair#MEDX
- 10. You generally need an expert to install it Image courtesy of Policymed.com
- 11. And no one, especially the patient thinks they should pay very much for it
- 12. And it costs like a billion dollars to do anything
- 13. Which YOU have No Say in NIH Grants, $30.9 Pharma R&D Investment,$49.5 Foundations/ SBIR, $3.0 Venture Capital,$8.5 Approximately $100B is Invested to fund Healthcare Innovation in U.S. Annually Sources of Funding For Healthcare Innovation – 2011 ($B) Venture Capital Of the $8.5B invested in 2011, 19% ($1.6 billion) was invested in first or seed round investments and 81% ($6.9 billion) was invested in later stage projects Of the $8.5B invested in 2011, 14% ($1.2 billion) was invested in healthcare IT investments and 86% ($7.3 billion) was invested in life sciences Excludes: Angel investments, No detailed backup to foundation capital invested in early stage projects. Foundations A variety of foundations offer funding for early stage healthcare innovation, mostly focused around disease groups In 2011, Susan G Komen For The Cure, one of the larger research funding not-for-profits had 2011 revenue of $358 million, but after fundraising expenses and administrative expenses only spent $283M million on programs (79% margin) NIH Grants Largest institutes are the National Cancer Institute which consumes 16% of NIH funding ($5.1 billion) and National Heart, Lung, and Blood Disease which consumes 10% of the NIH funding ($3.0 billion) NIH budget expected to contract due to government debt pressures and expected decline in national spending Excludes angel investment; approximates foundations
- 14. Because people will die if you get it wrong
- 15. But they also die if you don’t try @alexbfair#MEDX
- 16. And we are not powerless
- 17. When People Stand Up Revolutions Happen When citizens get involved and activated, massive change is enabled. Crowdsourcing innovation and Crowdfunding their ideas is changing the world.
- 18. What Happens When You Engage Crowds that Care • Funding – Investors look for traction among KOLs and constituent institutions and patients • Partners – Where Corporate Innovation Officers shop • Publicity – weekly News Stories and three television interviews in our first six months • Community – Feedback, Clinical Centers, Trials, Support, Beta Testers, Distributors, and more …but this is just the beginning
- 19. 1. How to Code a Revolution in Healthcare @alexbfair#MEDX
- 20. 1: Get a Crazy Idea …that just might work @fredtotter #MEDX
- 21. 2. Run it by some friends (designers, doctors, programmers, nurses, artists, investors…) …until you prove it does
- 22. 3. Ask a crowd that cares to back it
- 23. …and they ask a crowd,
- 24. …and so on,
- 25. …and so on,
- 26. …and so on,
- 27. And then… You may actually get a hospital to sign up But who cares?
- 28. Because you already have: Customers Partners and Funding
- 29. And who wants a term sheet? When you can have a bill of sale?
- 30. Fred Trotter/ NotOnlyForDev • Eight Weeks • $45,011 Raised • 113 Patients, Doctors, Nurses or Health Care Pros • 24 Partners • New de facto standard
- 32. Partners Step Up Companies that are partnering with crowdsourced solutions Over 100 Partnerships Startd
- 33. 2. Partners Driving Innovation • Challenges • Open Innovation Programs • Grants • Pitch Days
- 34. - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 Inside Govt Rock Outside Cost Per Idea Cost Per Solution Open vs. Closed – In-House (2012, Fortune 100 Company) • 50M cost • 2 outside design vendors • 18 Months – Open Innovation Challenge CMMI/ CMS • 8,500+ ideas submitted • 900M offered • 3 Months – Public Open Challenge: Rock Health: • 800+ ideas submitted • 1.3 M/ 100K offered – Outside Customer Challenge • 10K offered • 1,000s of submission from customers Dollars @alexbfair#MEDX
- 36. Tech •Crowdfunding •Challenges •Social Media Awareness •Strategy •Outreach •Design Operations •Setup •Management •Support Experts •Optimization •Mentors •Partners Engagement •Customers •Communities •Live Events How Your Crowd Drives Crowdfunding with an Open Innovation Ecosystem EcoSystem
- 37. Get Help From: Dr. Howard Luks, Regina Holliday, Sutha Kamal, Kim Whittemore, Eythor Ernstson, Donna Usiskin, Eugene Borukovich, Dr. Jen Dyer, Steve Greene, David Williams RN, Paulo Machado, Dave Chase Fred Trotter, and many more Mentors get involved, becoming advisors, early adopters, investors, or champions driving our client’s success Results: Crowds Drive Massive Exposure
- 38. Get Help From: Dr. Howard Luks, Regina Holliday, Sutha Kamal, Kim Whittemore, Eythor Ernstson, Donna Usiskin, Eugene Borukovich, Dr. Jen Dyer, Steve Greene, David Williams RN, Paulo Machado, Dave Chase Fred Trotter, and many more Mentors get involved, becoming advisors, early adopters, investors, or champions driving success PR Design Copy BizDev Partners IP Strategy SoMe Legal Capital Events Uber Geeks Get Involved to Power Ideas
- 39. 3. Power to the Patients! @ReginaHolliday
- 41. #TheWalkingGallery Film • $13,175 in 4 weeks from Doctors, patients, Medical School Leaders • Film produced and distributed to increase awareness of Patient perspectives in all communities Partnership With Patients • $18,165 in 6 weeks from Doctors, Patients, and Cerner Sponsored in Kansas City • Created a conference to promote Physician / Patient Partnership
- 42. Sarah Kucharski FMDchat 501c(3) formed to help people suffering from a rare disease @FMDChat
- 43. Michael Weiss • Crohn’s Disease Warrior Patrol 501c(3) formed to help people suffering from Crohn’s, Colitis, and Irritable Bowel Disease @HospitalPatient
- 44. John Accardi (Patient) & Frank Lewis (Engineer) @LewCardia
- 45. Creating the Wave • Starts with Patients • Builds with Doctors • Peaks with Partners • And you may even get a Hospital to sign up If you Do it Right, You all Ride the Wave together Photo courtesy New York Times
- 47. Get Your Hero On(if you need a cape, please see Regina Holliday in the back) Thank you for your support and attention @alexbfair#MEDX