Harnessing the Power of Technology to Improve Population Health.
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1 Personal Guidance. Positive Change. SM Harnessing the Power of Technology to Improve Population Health. Chris Donovan, Director of Product Strategy WebMD Health Services
2 Agenda Introduction WebMD Overview Health Management Challenges/Trends Technology Innovations Opportunities Questions and Answers 2011 WebMD Health Services Group, Inc. All rights reserved. 2
3 WebMD Health Corp. NASDAQ: WBMD The Most Trusted Brand in Healthcare The leading brand of consumer health information More than 86MM unique visitors each month 1 in every 2 U.S. adults, 95% of all adults seeking health information 5 of top 10 health-related web searches Most trusted consumer brand (Millward Brown) Leading healthcare brand for consumer privacy (TRUSTe) Most recommended by physicians The leading brand of health information for physicians 8 of 10 physicians who write 85% of all Rx s and see 60MM patients per week Over 2MM physician visits each month 1.5 MM CME credits completed per quarter The leading brand of health and benefits management More than 250 clients operating in 30 different industries and sectors Large employers, including 4 of the top 20 Fortune 500 Leading national and regional health plans 4MM active PHR users 6.6MM HQ assessments completed 335,000 annual coaching sessions 2011 WebMD Health Services Group, Inc. All rights reserved. 3
4 Industry Trends 2011 WebMD Health Services Group, Inc. All rights reserved. 4
5 Trends Drive Industries, Healthcare Is No Exception Environmental Trends Technology Demographics Cultural Economics Government Long-term Market Trends Access to Care Healthcare Consumerism Cost of Care Prevention & Wellness Quality of Care Stakeholder Responses Resellers Employer Payer Government Health Systems Short-term 2011 WebMD Health Services Group, Inc. All rights reserved. 5
6 Cost Containment Is A Strategic Issue Healthcare costs are rising rapidly, outpacing income growth and GDP In 2009, U.S. healthcare spending totaled 17% of the GDP, an increase of approximately 7% visà-vis Spending is projected to grow more than 6% annually over the next decade, reaching $4.6 trillion in 2019 and accounting for nearly 20% of GDP 2 Premiums have increased 114% since 2000.Over the same time period, worker contributions grew 147% Centers for Medicare & Medicaid Services (2009) 2. National Health Spending Projections: The Estimated Impact Of Reform Through 2019, 3. Kaiser Family Foundation Employer Health Benefits Annual Survey, 2010, WebMD Health Services Group, Inc. All rights reserved. 6
7 Impactable Costs Continue To Rise The U.S. has seen significant increases in lifestyle-related health risks and chronic conditions > 88% of claims costs are due to an individual s lifestyle, yet only 4% of healthcare dollars are spent on prevention 2 > Chronic conditions affect more than 125 million Americans and this number is projected to increase by more than one percent each year through > $147 billion is spent to treat illnesses related to obesity, 2x what was spent a decade ago. Obesity now accounts for almost 10% of all medical spending 4 Individual lifestyle choices, including those related to smoking, nutrition, weight, exercise, and stress account for 40% of an individual s health status 1 40% 88% and 88% of his/her healthcare claims costs Schroeder, SA. We can do better improving the health of the American people. N Engl J Med 2007;357: Indiana University-Purdue University, Fort Wayne (IPFW) Study, Source: Wu, Shin-Yi and Green, Anthony. Projection of Chronic Illness Prevalence and Cost Inflation. RAND Corporation, October Health Affairs, Annual Medical Spending Attributable To Obesity: Payer-And Service-Specific Estimates, WebMD Health Services Group, Inc. All rights reserved. 7
8 Engagement Is Critical To Success and Continues to be Key Challenge Employers cite lack of engagement as the biggest obstacle to changing employee behavior related to health Source: Selected Findings From the 15th Annual National Business Group on Health/Towers Watson Survey Report Companies were asked to identify their top 3 challenges WebMD Health Services Group, Inc. All rights reserved. 8
9 Evolution of Consumer Healthcare Engagement & Care Coordination Convergence of key transformative technologies Health information exchange / interoperability Data aggregation / data mining Proliferation of advanced mobile devices and networks Technologies are facilitating The creation of highly personalized consumer healthcare resources An improved ability to delivery this information to the consumer, when it s needed most Providing these capabilities will Reduce the complexity of health care / healthcare research for the consumer Drive consumer engagement and behavior change Create a more efficient healthcare system through the emergence of a highly informed consumer 2011 WebMD Health Services Group, Inc. All rights reserved. 9
10 Technology Advancing Health Management 2011 WebMD Health Services Group, Inc. All rights reserved. 10
11 Technology is Enabling New Channels of Communication and Driving Personalization 2011 WebMD Health Services Group, Inc. All rights reserved. 11
12 Data Interoperability: Leveraging Robust Consumer Data Profiles to Drive Engagement Facilitating data exchange between providers and with consumers is a highpriority market requirement. Driving toward the emergence of a health information ecosystem via data interoperability. Enabling the creation of robust consumer data repositories, including clinical sources. Applying data mining to drive the creation of highly personalized consumer resources. Delivering personalized resources to the consumer via multi-modal engagement channels (i.e. online, mobile, SMS, etc ) WebMD Health Services Group, Inc. All rights reserved. 12
13 Data Interoperability: Availability, Consolidation and Use of Consumer Information 2011 WebMD Health Services Group, Inc. All rights reserved. 13
14 Biometrics: Empirical Data Gathering To Better Assess Individual and Population Health Objective, timely health information via onsite/at-home screening solutions that identify/quantify health risks Assesses key health/wellness indicators including: > Blood Pressure (High, Low and / or Normal) > Cholesterol / Lipids (HDL and LDL) > Body Mass Index (BMI) > Blood Glucose / Blood Sugar 2011 WebMD Health Services Group, Inc. All rights reserved. 14
15 Biometrics: Tools and Self-Monitoring Device Integration Creates Accountability Progress tracking provides the foundation for personalized feedback and accountability Home devices include: > Scale > Accelerometer > Glucometer > Mobile Devices Devices allow for system-driven messaging based on Tracker use and progress Health Coaches can view into Trackers for more meaningful coaching discussions 2011 WebMD Health Services Group, Inc. All rights reserved. 15
16 Consumer Guidance: Healthcare Research is Complex; Consumers Need Guidance Percentage of Individuals that are willing to pay for resources that rate physicians and hospitals million U.S. adults go online for health information every day; 22 percent of adults are frustrated by the lack of information or by their inability to find what they were looking for 1 When faced with a health decision, consumers do not know what questions to ask, where to find information and all the decision points to consider 2 Consumers need help filtering through available data to get to the information required to make better decisions. 1. Pew Internet and American Life Project: Online Health Search /2009 Survey of Health Care Consumers: Key Findings, Strategic Implications; Paul H. Keckley, PhD and Laura L. Eselius, PhD 3. PwC Health Research Institute, "The New Gold Rush: Prospectors Are Hoping To Mine Opportunities From the Health Industry 2011 WebMD Health Services Group, Inc. All rights reserved. 16
17 Consumer Guidance: Solutions Support Decisions From The Point of Enrollment To The Point Of Care Health plan selection Provider selection/comparison Hospital selection comparison Treatment cost estimation Medication advice and comparison How much will that procedure cost me out of pocket? Are there any generics available for my new prescription? Which hospital near me has done the most ACL repair procedures? Which health plan is the best fit for my family s needs? What primary care providers are in my area and affiliated with my health plan? 2011 WebMD Health Services Group, Inc. All rights reserved. 17
18 Consumer Guidance: Transforming Decision Support Tools should simplify consumers quest to be informed Provide virtual guidance across a broad spectrum of healthcare applications Remove the silos in decision support to provide a unified, complete, guided experience that empower people as health care consumers Leveraging benefit information to personalize the experience to Me 2011 WebMD Health Services Group, Inc. All rights reserved. 18
19 Mobile: The Impact of Mobile on Healthcare The availability of newer phones and faster networks are making the mobile channel an optimal platform for driving consumer engagement. Providing highly personalized health resources to the consumer on-the-go will empower them to make better health care decisions and drive improvements in care delivery. Sample uses: o Receiving text messaged for care alerts, medication reminders, lifestyle program reminders, etc. o Receive personalized news based on the consumer s health history. o Share health information with providers and others. o Tracking observations of daily living, such as weight, exercise, nutrition, etc ) WebMD Health Services Group, Inc. All rights reserved. 19
20 Mobile: A Growing Need in Healthcare 78% of US is interested in mobile health solutions. (Wireless Health: State of the Industry Year-end Report Dec 09 MobiHealthNews) 89% of people with wireless Internet access seek health information online. (The Mobile Difference Pew Internet & American Life Project -3/09) 500 million people will be using mobile health applications in 2015 (Global Mobile Health Market Report Nov 10 research2guidance ) Wireless and mobile delivery is not only redefining healthcare, but is streamlining its delivery and consumption within various settings making it faster, more accurate and cost effective. Source: TripleTree, mhealth Report Q WebMD Health Services Group, Inc. All rights reserved. 20
21 Mobile: Impact and Why It Matters Smart phones will surpass personal computers as consumers internet access device of choice mobile technology simply cannot be ignored. Smartphones > Total PCs Source: Morgan Stanley 2011 WebMD Health Services Group, Inc. All rights reserved. 21
22 Mobile: Creates Engaging, Relevant Experiences Mobile-unique technology holds the potential to be more engaging than personal computers, resulting in a more highly-utilized solution. An untethered form factor used in wellness-relevant situations e.g., while walking, eating, at a gym, standing on a scale, at a medical provider facility, etc. Text messaging/push notification that lets information find users, rather than waiting for users to find information. Geo-location capability to locate the nearest medical provider, find the closest lowest-cost pharmacy, etc. Scanning, camera, bar code rendering and accelerometer functionality for services unmatched by computers WebMD Health Services Group, Inc. All rights reserved. 22
23 Social Media: Continued Growth and Popularity Key reasons for leveraging external social networks: > Social networks and blog sites account for 23% of Americans time spent on the Internet, more than twice the time of the #2 category. > Nearly 4 in 5 active Internet users visit social networks and blog sites > Americans spent more time on Facebook than any other web site 2011 WebMD Health Services Group, Inc. All rights reserved. 23
24 Social Media: Drives Meaningful Health Conversations WebMD views social networking enabled via social media as offering important health/wellness benefits: Creation of communities of others like me. Initiation of encouragement, social influencing & accountability from friends/family. Ability to address a motivational sense of competition, gain bragging rights. Access to information from trusted sources e.g., expert-based health information. Helping others by sharing information. Drives higher health/ wellness tool utilization, increased engagement 2011 WebMD Health Services Group, Inc. All rights reserved. 24
25 The Opportunity 2011 WebMD Health Services Group, Inc. All rights reserved. 25
26 The Opportunity: New Technologies Will Aid in Delivering More Cost-Effective Health Interventions Technology can be leveraged to: Continue shift towards culture of health & wellness Facilitate the emergence of health information ecosystem Engage the consumer to be an active participant in their health & wellness Create highly personalized resources that drives better consumer decision making Enable easy, ubiquitous access to the information(i.e. mobile) Activate social support networks to enable peer-to-peer support WebMD Health Services Group, Inc. All rights reserved. 26
27 What Does This Mean for Health Management? The payoff Creating more informed health care consumer population Increasing self-management of chronic & behavioral based conditions Driving reductions in impactable health care costs Improving consumer s quality-of-care Facilitating the emergence of a healthier population Substantial impact health care cost / inflation trends 2011 WebMD Health Services Group, Inc. All rights reserved. 27
28 2011 WebMD Health Services Group, Inc. All rights reserved. 28
29 For More Information Visit us online at 2011 WebMD Health Services Group, Inc. All rights reserved. 29
30 Personal Guidance. Positive Change. SM 2011 WebMD Health Services Group, Inc. All rights reserved. 30
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