Key Trends, Opportunities, and Challenges in Healthcare IoT Adoption. Sam Salem Gustavo Suarez February 11, 2016
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1 Key Trends, Opportunities, and Challenges in Healthcare IoT Adoption Sam Salem Gustavo Suarez February 11, 2016
2 We are on the threshold of massive explosion of connected things 10 billion devices around the world are currently connected to the Internet, including computers and smartphones The number is expected to increase dramatically within the next decade, with estimates ranging from 50 Billion devices to reaching 1 trillion The Internet of Things has the potential to create economic impact of $2.7 trillion to $6.2 trillion annually by 2025 Source: IBM
3 IoT is revolutionizing healthcare and a tremendous growth opportunity Top 3 ways IoT will change how business operates % 62% Unlock new revenue from existing products/service Inspire new working practices or processes Change or create new business model or strategy of Companies are exploring IoT Of C-suite execs believe failure to adopt IoT will mean getting left behind 36% 400% Growth in sensing, communicating devices Growth in Google search interest The Internet Of Medical Things: Digitization Revolutionizes Respiratory Care Management Forbes FEB 4, 11:12 AM Novartis entered into a partnership with QualComm to incorporate digital technologies in its COPD device, Breezhaler, in January Another U.S. based, FDA-approved digital health technology provider, Propeller health received FDA approval for its system to be used in association with Boehringer Ingelheim s Respimat device and GSK s Diskus device. 3
4 True IoT enables analytics and interface to deliver new levels of value How to create a connected product experience 4 Source: IBM 2015
5 The US regulatory path for digital health is well established 190+ MMAs are approved or cleared. Mobile Medical Applications (MMAs): transform a mobile platform into a regulated medical device connect to an existing device type for purposes of controlling its operation, function, or energy source display, transfer, store, or convert patient-specific medical device data from a connected device 350+ MDDSs are approved or cleared.* Medical Device Data Systems (MDDS): display, store, format or transfer data between devices without altering device function Fresh guidance to ease your path: Design Considerations & Pre-Submission Recommendations for Interoperable Devices Jan 26, 2016 Draft Medical Device Data Systems, Medical Image Storage Devices, and Medical Imaging Communications Devices Feb 9, 2015 Radio Frequency Wireless Technology in Medical Devices August 14, 2013 FDA Clearance of Proteus Ingestible Sensor, expanded for adherence claims July 2, 2015 *359 found when searching FDA listing database for OUG product code (results on Feb 18, 2016) Jan 26, 2016 Draft: Feb 9, 2015:
6 The Connected Health Drivers INCREASING DEMAND Aging Population Chronic Disease Growth Demographics INCREASING COST OF CARE Acute Care Focus Readmissions PAYER OPTIONS Increase premiums/tax Adopt new technologies Drive preventative care HEALTHCARE PROFESSIONAL SHORTAGE Physician Nurse Connected Health has also evolved as an umbrella description covering digital health, ehealth, mhealth, telecare, telehealth and telemedicine. In the US Connected Health has emerged with the three aims of improving access, efficiency, and quality of healthcare. 6
7 Connected Health Consumer Adoption Challenges Source: Rock Health Consumer Survey Data One-quarter of consumers have privacy concerns about using connected health devices A focus shift to user interface design, analytics capabilities and a clearer value proposition is the biggest trend that will drive consumer adoption Source: Tractica Research
8 Physicians View on Connected Health Challenges Source: MedData Group 2015 Source: MedData Group
9 Remote patient monitoring technologies will be essential components to transformative healthcare solutions Sources: Gartner Hype Cycle,
10 A critical path to improving healthcare efficiency is to shift focus from acute care to early intervention Early intervention Opportunities identification 20% of people generate 80% of costs Health status Healthy low risk At risk High risk Early clinical symptoms Healthcare spending Time Early intervention Opportunities identification 70% of US deaths are from chronic diseases Source: IBM 2015 The wireless health market is gaining significant momentum. The global wireless health market is valued at $23.8 billion in 2013 and is expected to reach $59.7 billion by 2018, at an estimated CAGR of 20.2%. Markets and Markets Remote patient monitoring can reduce the cost of chronic disease management by 10-20% by 2025 McKinsey Global Institute 10
11 An IoT Connected Care Platform serves as the foundation for transformative healthcare solutions Chronic disease epidemic Aging in Place Chronic Disease Management Post-Acute Transitional Care Seamless patient experience Digital Hospital Tele-health, Tele-rehab, Tele-radiology Exploding patient data Care Coordination, Patient Engagement (Integration) Coordinated Care Advanced Clinical Decision Support New monetized services with existing clients Outcomebased, patientcentric healthcare Security Analytics, Insights (Intelligence) Foundation (Instrumentation/Interconnection) 360 Holistic Patient View Longitudinal Patient Record Predictive Device Management New markets for existing product categories Inefficient Care Efficient service delivery for existing products Source: IBM
12 There is an explosion in patient data Source: IBM
13 Advanced analytics drive far beyond traditional reporting to enable clinical advisory service Prescriptive Foundational Advanced, Predictive BI Reporting Population Analytics Care Optimization Dashboards Clinical data repositories Departmental data marts Enterprise data warehouse Source: IBM 2015 Unstructured analytics Outcomes analytics Streaming analytics Consumer engagement Similarity analytics Evidence-based medicine Personalized healthcare Cognitive Computing 13
14 New service and solution capabilities will be required to deliver connected care solutions Insight-based Engagement Aging in Place Chronic Disease Management Integrated patient monitoring Disease Management Solutions Patient/disease-centric New customers, double-digit growth Outcome-based business model Solution-centric operations Analytics Monitoring & data collection Advanced Clinical Decision Support Clinical Consulting Operational Consulting Preventative Support Diagnostic Product Enhancement Technology/procedure-centric ( niche ) Traditional customers, declining growth Traditional capex business model Efficient services Provider Coordinated Care Solutions Shift to services Traditional customers, single-digit growth Monetized services Hybrid product/service operations Transition to higher value Legacy Internal Operational Capabilities Cloud-enabled Ecosystem Operating Models 14 Source: IBM 2015
15 Wearable applications in healthcare span clinical and operational areas Diagnostic Wellness Remote vital monitoring Sleep/pulmonary monitoring Neuromonitoring Clinical decision support Fitness management Preventative care Aging in Place Therapeutic Operational Pain management Drug delivery Optical assist Surgical assist Pulmonary assist Care delivery Security, access control Pharmacy management Inventory management Training delivery Enterprise related scenarios Personal related scenarios Source: Beecham Research Ltd. & Wearable Technologies AG,
16 Significant challenges confront healthcare wearables Care Coordination, Patient Engagement (Integration) Nice-to-Have Outcome Orientation Behavior Modification Lifestyle Integration Care Integration User Training Importance Critical Base Maturity Optimized Security Analytics, Insights (Intelligence) Analytics/Insights Data Integration/Filtering Data Privacy Data Volume 16 Foundation (Instrumentation/ Interconnection) Source: IBM 2015 Data Streaming Sensor Accuracy Sensor Invasiveness Device Security Power Consumption
17 IoT Wireless Landscape Some important factors in choosing a medical device wireless solution: Range Data Security Power Consumption Data Rates Latency Portable vs Fixed Coexistence/Reliability 17 Source: Texas Instruments 2015
18 Sensors & BLE - Key Drivers in Wearable Growth, ECG New Sensors: Source: IDTechEx 18
19 Sensor Growth in IoT & Wearables Relative market sizes by wearable sensor type in 2020 IoT Enabled Sensors in
20 Wearable Medical Device Sensor Types WEARABLE DEVICES SENSORS and ACTUATORS CONTROLLERS BLE BATTERY FIRMWARE Contact lenses that monitor glucose levels Smart pills that monitor medication intaking behaviors and body response Hearing device to boost hearing Heart rate monitor patch Wrist band that monitors heart beat, blood pressure calories burnt Insole sensor that measures weight bearing, balance, temperature Source: Healthcare and Life Sciences Predictions 2020, Deloitte Center for Health Solutions, 2014 Common Wearable Sensor Measurements HR RR ECG PPG BP SpO2 GSR Blood Glucose Weight Activity Level Position Posture Skin Temp 20
21 Smart Clothing Who uses them today? Sports & Fitness: -Compression apparel with electronic functionality is being increasingly used in both elite and amateur sport. This is the focus of much VC and private investment and commercial growth is accelerating. Healthcare: Wellness: -Linked to Sports & Fitness. Healthcare applications are using similar physiological monitoring techniques applied in the rehabilitative and diagnostic sectors. -Heated apparel has been common for many years, and while it has not reached huge volumes due to technical problems, this sector continues to maintain steady growth. Military: Fashion: -Integration of cabling for data and power communication between equipment offers an excellent value proposition for the soldier. Projects are in development and currently being scaled up. -Technology use in high fashion garments is increasing, but few have produced in large volumes. The interest in this sector is huge but revenue is growing slowly for now. Source: IDTechEx 70% of the market is driven by Fitness/Wellness & Healthcare! 21
22 Connected Health Technology Enabler Flexible Electronics Last hurdle to low cost sensing Devices will be considered disposable, with short life span Main technical challenges still in printing materials & equipment LOW COST Printed Electronics Long switching times Low integration density Large areas Flexible substrates Simple fabrication Extremely low fabrication costs HIGH COST Conventional Electronics Extremely short switching times Extremely high integration density Small areas Rigid substrates Sophisticated fabrication High fabrication costs LOW END HIGH END 22
23 Flexible Electronics Medical and wellness applications Interstitial fluid measurements Continuous measurement (Sodium, Potassium, Glucose, Lactate) Additional possibilities in data capture Wireless communication to smartphone Real-time analytics Real-time advice in dehydration, muscle fatigue, etc. Continuous interstitial measurements on a hospital wrist band, for example, could drive some clinically relevant decisions far faster and cheaper than a traditional central lab blood gas analyzer. Source: Nature, Jan 29, 2016, 23
24 Engage in innovation with us at Jabil Blue Sky Center Thank You! For Additional Information please contact: Nypro booth 2001 Ed Werner Sr. Director of Sales (Nypro)
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