Mhealth: Mobile Technology Poised To Enable A New Era in Health Care
Mhealth: Mobile Technology Poised To Enable A New Era in Health Care
Mhealth: Mobile Technology Poised To Enable A New Era in Health Care
Mobile technology
poised to enable a
new era in health care
Contents “Smart mobile devices and applications, working in
concert with cloud computing, social networking
3 Introduction and big data analytics, will be at the core of global
health care transformation. These transformative
4 Overview
technologies will continue to lead with ways to help
15 Perspective on patients rein in cost, broaden access, change behaviors and
improve outcomes.”
23 Perspective on physicians Pat Hyek
Global Technology Industry Leader
29 Perspective on providers Ernst & Young
39 Perspective on payers
48 Glossary
51 Source notes Note: all monetary references within this report are to US dollars.
Meanwhile, behavioral change and treating patients outside the four walls of traditional
provider institutions have evolved as core to a health care industry vision of treating
patients wherever they are (the third place), 1 while enhancing patient outcomes and
lowering cost. This is where smart mobile technology comes in: its ubiquity (90% of the
world’s population was within reach of a mobile network in 2010)2 and the proven ability
of smartphones and tablets to effect behavioral change have placed smart mobility at the
center of an information technology-enabled vision of health care’s future.
Providers
Patients
Enabling technologies arrive on the scene — offering promises and creating possibilities. For the first time,
the universe of data and traditional IT has the potential to be connected into a health care ecosystem that can
deliver actionable patient-centric information in a timely manner, overcoming the barriers of multiple data silos
across many platforms.
Figure 2: Where we are headed: mHealth value pathway — enabling health care everywhere
Customer-focused
change drivers: Integrated data / actionable information Resulting in:
ª Empowerment ª Better outcomes
ª Collaboration ª Broader coverage
ª Connectivity ª Lower cost
ª Interoperability Patients Physicians Providers Payers Governments Regulators Corporations
ª Risk management
ª Incentives and rewards
Information
services
ª Cloud computing
ª Smart mobility
ª Social networking
ª Big data analytics
The health care vision will be realized when the universe of previously siloed data is standardized by integrating traditional IT with innovative information services.
The result is integrated and actionable information that is private and secure and enables the delivery of health care efficiencies, positive customer experiences,
modified behaviors and improved outcomes everywhere.
A sense of urgency: Although there is debate about the best solutions, there is widespread
agreement that in most developed nations the current health care system is not working,
that it is creating an unsustainable economic burden and that the scope of these problems
gets worse as populations age. This creates a sense of urgency to experiment with mobile-
enabled solutions. Research shows some 125 million Americans already living with one or
more chronic diseases, such as diabetes, heart problems or lung disorders.15
Social networks: From sharing best practices and peer-group support to encouraging and
Core health care change drivers: spreading positive behavioral change, social networks provide information flow and a
platform for patient-centric experimentation and collaboration among physicians. However,
• Cost containment research shows that physicians have so far preferred to avoid interacting with patients via
• Increased access social networks (see page 23, “Perspective on physicians”).
• Better outcomes Successful trials of mobile-enabled health solutions: Though they may not all meet the
requirements of government health regulators, innumerable trials (such as the UK and
Kenyan examples cited previously, various health and wellness applications shown to
positively change lifestyle behavior and other examples cited throughout the remainder
of this report) comprise a mounting body of evidence supporting further adoption of
mobile-enabled health. Most recently, Geisinger Health Plan reported a 44% reduction in
hospital readmissions for congestive heart failure patients, compared with a control group,
in a telemonitoring trial.16
Collaborative care models: Experiments that have begun in collaborative care models,
particularly ACOs, could become a catalyst for accelerating change in current
reimbursement paradigms, thereby helping to drive the mobile health revolution.
The talent challenge: While there are many health care experts and many technology
experts, there are few individuals or even teams with sufficient depth in both arenas to
drive the development of mobile-enabled health care as rapidly as stakeholders would like.
That point is driven home by the university paper mentioned previously, which found that
IT expertise defined the difference between higher or lower hospital operating costs once
EMRs were deployed.
The current system of incentives: While there are many small experiments, health care
reimbursement paradigms in many developed countries still generally don’t accommodate
mobile-enabled care. “This is why even telephone calls — an effective and easy way to make
sure patients are doing okay and adhering to their medication plan, especially in between
the time they are released from the hospital and their next office visit — are grossly
underutilized,” says Dr. Fera.
The bring-your-own-device (BYOD) challenge: While not unique to health care, the
challenges enterprises face in securing sensitive information as physicians, nurses and
other providers bring their own devices to work is a particularly difficult one for health care
organizations. BYOD requires delivering applications that work across multiple platforms
with all the necessary security and privacy protections.
Overregulation: How regulators will treat various types of mobile-enabled applications and
services remains an open question. “If regulators treat too many things as medical devices
“We’re confident that data it will slow development. The viral growth would be interrupted,” explains Chabot. As this
report went to press, the health care and technology industries were awaiting the release of
of high quality is key to
final guidance from the US Food and Drug Administration (FDA) on regulation of certain
owning your future.” health and wellness apps that could add months, if not years, and significant cost to the
Heather Budd development and deployment of mHealth applications.20
Chief Operating Officer
Blackstone Valley Community Health Unknown liability: Given the newness of mobile-enabled health care approaches, the
Care (a federally funded community liabilities involved for different health care organizations are uncertain. This could impede
health center in Pawtucket, RI)19 adoption in certain litigious cultures (e.g., the US) unless blanket indemnification is
established (such as was the case in the UK telemedicine trial).
Mobile technologies that have forever changed so many of the ways in which people live,
work and play are now poised to transform their health care, as well. Consumers are urging “Users need not only to
on the arrival of health care everywhere by demanding mobile service from their understand the possibilities
physicians, providers and payers. They already use smart mobile devices to trade stock,
arm and disarm their home security system, buy a car, find the nearest grocer, reserve a of eHealth tools, but they
trip around the world. But to date, they have lacked comparable health care information, also need to feel that they
applications and services. Now they are beginning to bring their increasingly mobile habits have control over how they
to bear in dealings with doctors, hospitals and payers — and in managing their own health.
interact with them.”
Worldwide, 44 million health-related smartphone apps were downloaded in 2011.23 And in European Union eHealth
the US, approximately 30% of survey respondents reported that they “always” or “frequently” Task Force Report32
turn to the internet to find answers to medical questions, with most adding this makes
them better patients.24 Four in 10 US consumers have used social media to find reviews of
treatments or doctors.25 Increasingly, access to this social and online health information is
via smartphones and tablets.26
Smart mobility Ability to do all of the following • China is expected to have the “The first thing we ought to recognize
from anywhere at any time: biggest mobile health market in is that mobile is now part of the
• Communicate with doctors 2017, bringing monitoring and fabric — every day in everybody’s
and hospitals diagnosis applications and life. So if you’re not looking at
• Access health-related information information to a widespread mobile solutions, then you’re not
to research conditions population with poor access really looking at all solutions.”
• Obtain health care from remote to health care.44 Mal Postings, Global CTO — IT Advisory,
Ernst & Young
and underserved communities
• Monitor and manage chronic
disease
• Fitness and wellness programs
and monitoring
Social networking Tap into peer-group knowledge to: • 23% of US internet users living “A fantasy baseball league
• Compare costs of different with chronic conditions have participant making decisions on
providers and physician practices gone online to find others who which players to select has more
• Compare outcomes performance might have health concerns data — by an order of magnitude —
of different providers and similar to theirs.45 than a patient choosing a brain or
physician practices heart surgeon.”
• Obtain peer advice on treatment Charles Kenney, author, The Best
Practice: How the New Quality Movement
and living with chronic conditions
is Transforming Medicine46
Cloud computing Enables: • Some 600 patients participating “It’s about making these powerful
• Delivery of “heavyweight” health in the Radiological Society of applications available on these
care services and information to North America’s Image Share lightweight mobile devices by
lightweight mobile devices project have reported finding leveraging cloud power.”
• Personal health care ecosystems, cloud technology to be a faster, Paul Chabot, Advisory — PI,
Ernst & Young
including secure storage of more efficient way to store and
patient information distribute their medical images.47
Big data analytics Enables: • A new US clearinghouse, “We’ve found that certain search
• Individualized health care services cognizant of patients’ privacy terms are good indicators of flu
• Targeted wellness and prevention concerns, uses a HIPPA-compliant activity. By counting how often we
• Cost comparison of different privacy framework to strip see these search queries, we can
providers patient identification from the estimate how much flu is circulating
data it is analyzing to track in different countries and regions
patterns of care and outcomes.48 around the world.”
Google49
Of course, governments hold many of the fiscal, policy and regulatory levers to set mHealth
in motion, given their responsibilities for health system budgets, economic stability and the
public good. But, “Ultimately, it will be the patient who decides how fast and how far the
system evolves,” says Ed Tomlinson, Advisory — PI, Ernst & Young. “If a patient feels that
an mHealth approach is going to be of benefit, give better health care, less intrusively, less
disruptively, then I can see fairly rapid adoption. If the patient feels that it’s going to be
more intrusive or give them a worse outcome or require them to go out of their way,
then there’s going to be a lot of resistance,” explains Tomlinson.
Privacy and security issues: The issues of privacy and security raise the loudest alarm
bells for patients. Health information exchanges among doctors, clinics and hospitals,
for example, have set off those bells for some patients, who fear their information could
be used to raise their insurance rates, impose unwanted behavioral change or otherwise
expose them to risk. Such concerns reportedly scuttled plans for a US national exchange of
this kind, although there are over 250 smaller exchanges in various stages of development.52
The Information Security and Privacy Advisory Board, meantime, is developing ways to
ensure the security of wireless medical devices and says that, “With increasing connectivity
comes greater functionality and manageability, but also increased risks of both unintentional
interference and malicious tampering.”53 This possibility, which could give pause to anyone
relying on such a device, was made all the more real with recent reports of hacking into
insulin pumps worn by diabetics.54
Health system limitations: It is still true today that few patients have access to their medical
data. In 2009, only about one in every five US physicians used even a basic electronic
health record (EHR) system, a figure that has since risen to 40%.55 Despite years of work
on these systems, in a letter to the US Department of Health & Human Services, the AHA
indicates that delays in making them available still continue.56 Without access to their own
medical data, patients will hardly be in a position to adopt mHealth.
• How can we make mHealth apps ever easier and more engaging to use?
• How can we make medical devices work seamlessly with patients’ smartphones
and/or make smartphones themselves do some of the jobs now performed by
medical devices?
• How can we create applications that provide real-time comparative information to assist
patients in negotiating costs with their physicians?
Physicians have always had to be accessible — so they have been rapid adopters of the
latest in mobile technology. Years ago, answering services and call centers were the “Strong mobile security and
gatekeepers that could get your message to the doctor, if your emergency warranted it. patient privacy standards are
Then came beepers and, later, the first wave of voice-only mobile phones. Today, physicians
needed before physicians will
are rapidly adopting smartphones and tablet computers (for example, one research house
says 81% of US physicians use smartphones).60 be comfortable using evolving
patient-centric medical
But it’s still early in the adoption of smart mobile technology for health care, or what
International Data Corporation (IDC) calls “clinical mobility,”61 and there is a wide range of information ecosystems.”
mHealth uses for physicians. These begin with basic telehealth applications that provide David Kahan
voice or SMS access to medical advice from remote areas (with many examples in the Advisory — ITRA
developing world), and simple appointment-scheduling apps. More transformative uses Ernst & Young
have begun to appear as well, such as mobile telemetry apps that constantly gather and
transmit a person’s vital statistics in real time, or mobile e-prescribing apps. Still very rare
are emerging mobile collaboration apps that will eventually enable simultaneous real-time
access to the latest medical data, patient history and specialist video consultations.
The value of advanced clinical minimally trained Sky Care franchisees and For all these reasons, mobile device
mobility apps intermediately trained Sky Health Centre adoption statistics show rapid uptake
A true story from cardiologist franchisees. Mobile phones enable the among physicians.
Eric J. Topol, M.D., published in an article lesser-trained franchisees to send patient
by the American Medical Association information via text message to remote • An April 2011 poll of 5,490 primary care
(AMA), illustrates why mobile technology medical experts in urban centers, who and specialist physicians found 27% owned
is emerging today as a game changer for “make a diagnosis and then send a text tablet computers, a rate five times higher
physicians. During a cross-country flight, message back with a recommended than the general population — just one
he was brought to a passenger “in obvious prescription or a course of action.”63 year after the introduction of the iPad.66
trouble.” Typically, according to the article,
“Dr. Topol would have had to make an Smart mobility brings the potential of • Approximately 80% of 115 medical residents
educated guess and hope he could take health IT (HIT) to life in a Chicago hospital said their tablets
care of the patient until the plane landed. Stories such as these strike to the heart of made them more efficient, saving roughly
This time, though, he pulled out his why clinicians are rapidly adopting mobile an hour each day and often enabling
iPhone, and with an app that produces technology, even though they have long treatments and prescriptions to be
an electrocardiogram, he determined that been viewed “as computer-phobic Luddites, ordered earlier than they otherwise would.67
the patient was having a heart attack. The slow to adopt and benefit from health IT.”64
plane made an emergency landing while Mobility — and the easy usability of • 76% of small- to medium-sized physician
paramedics waited on the ground to take smartphones and tablets — has “caused and dental practices in a January 2012
the patient directly to surgery.”62 physicians to view health IT adoption as survey said they planned to buy tablets
something they want to do, as opposed to in the next 12 months.68
Simpler applications are significantly something they are being forced to do,”
improving medical care in rural areas of the according to another AMA article.65 For
developing world. An example is World example, it has caused many physicians to
Health Partners in India. This for-profit view EMRs more favorably by enabling
health care business has networks of instant mobile access to EMR data.
Smart mobility Enables real-time, anytime, • 76% of small- to medium-sized “The realm of ‘mobile’ health, with
anywhere: US physician and dental practices the proliferation of smart apps and
• Access to patient information surveyed in January 2012 integrated, connected devices, soon
• Access to medical information planned to buy tablets in the to have elements of ‘artificial
databases next 12 months.69 intelligence’ to enhance prevention,
• Better ability to monitor tracking and compliance will have
chronically ill patients the biggest impact and ability to
• Higher revenue potential (e.g., improve outcomes at a lower price
can see more patients per day) in the next decade.”
and lower administrative costs Dr. Daniel Kraft, Medical Chair,
Singularity University70
(i.e., through find-a-doctor or
automated scheduling apps)
Social networking • Enables physician-to-physician • 87% of US physicians use social “If an outbreak occurs, transmission
collaboration media for personal purposes; of information about it can occur
• Provides rapid learning 67% use it professionally.71 worldwide in seconds [on social
environment media]. From a public health
• Enables patient-physician perspective, that’s an extremely
collaboration powerful tool.”
• Enables rapid dissemination Westby Fisher, M.D., Clinical Associate
Professor of Medicine, Pritzker School of
of public health information
Medicine, University of Chicago72
• Creates better informed, more
connected patients — with
impacts both good and bad
Cloud computing Provides platform for: • One company used the cloud to “The digital world — the internet and
• Collaboration integrate context-aware voice the cloud and supercomputing and
• Participation in health recognition into its EHR offering, social networking — is breaking
information ecosystems enabling doctors to fill out the medicine out of its cocoon. It’s a
• Hosted EHRs patient record by speaking words superconvergence we’ve seen in
• Advanced capabilities not into a mobile device.73 other walks of life but not in the
possible on local devices health and medical sphere.”
(e.g., voice-to-text translation) Eric J. Topol, M.D.74
Big data analytics Enables: • athenahealth, Inc., AT&T and “You’re going to start to see this
• Better patient-based outcomes the Massachusetts Institute of sort of big data effort on several
using diagnostic decision-support Technology’s H@cking Medicine [health care] fronts — partly because
information delivered via mobile magazine sponsored a “Health of supercomputing capabilities that
devices 2.0 Code-a-thon” in May 2012 we haven’t had until recently and
• Personalized medicine to showcase the potential of big also because of wireless devices
• Customized medical plans based data analytics in health care.75 that are increasingly being used to
on patient type of service transmit data.”
(e.g., face-to-face, email, remote) David Haussler, Director of the Center for
Biomolecular Science and Engineering,
UC-Santa Cruz76
Decision-making insight: The anecdote provided by Dr. Topol may represent the most
important accelerator: the ability for a physician to gain immediate diagnostic insight from Core health care change drivers:
a mobile tool, including access to patient record information, whenever and wherever they
are. “Mobile access to medical records, test results and real-time vital signs translates into • Cost containment
a direct improvement in treatment and outcomes,” says Paul Chabot, Advisory — PI, • Increased access
Ernst & Young. “From what I have seen among our health care clients, physicians are very
excited. They are asking for new mobile solutions and are very eager to start using them.” • Better outcomes
Anytime, anywhere collaboration: Another direct impact is that mobile devices can enable
information sharing that eliminates the time-consuming fax-and-phone-call process
physicians have traditionally used to collaborate. “As ACOs and other pay-for-performance
business models proliferate, the requirement for collaboration among physicians will
increase, so the value of mobile technology will increase as well,” says Chabot.
The mobile-social connection: Smart mobile devices tend to enable greater use of social
networks, and personal use of both mobile and social networks tends to drive subsequent
professional use. Indeed, 87% of approximately 4,000 US physicians surveyed in August
2011 said they used social networking sites for personal purposes and 67% said they used
them professionally.77 The same study said physicians primarily used physician community
sites for professional purposes, and tried to avoid patient interaction when using social
networks for personal purposes. However, “the genie is out of the bottle,” and two-way
doctor-patient communication via social networks is likely to evolve.78
Fear of litigation: In the August 2011 study mentioned on page 25, 73% of the 4,000
physicians responding listed “concerns about liability” as a top issue holding them back
from interacting with patients online (including mobile) — more than any other factor.79
Security and privacy: Protecting patient privacy was the second-biggest concern holding
back physician interaction with patients online in that August 2011 study, cited by 71% of
respondents. Solutions are available, but not in the kind of universal, standardized way that
inspires widespread confidence.80
Payment models must change: While the Progressions report describes a multitude of
experiments involving new incentives and reimbursement methods for remote care, these
are still only experiments — often only in rural areas where access is problematic — and
“Lack of reimbursement, haven’t been fully adopted yet.
concerns regarding patient
Data interoperability: To be most useful, physicians’ mobile apps must be able to integrate
privacy and fear of litigation data from multiple disparate sources to support rapid decision-making, and allow clinicians
are the three main factors to change the data and reflect those changes back to the source. But much of the needed
holding back physicians in the data is currently stored in multiple incompatible databases. A related issue is interoperability
among physicians’ mobile platforms. “If a physician’s mobile software doesn’t support the
US from more rapidly pursuing platforms of all the other doctors he or she is collaborating with, it may not be worth the
remote care via mobile devices.” physician’s investment,” says Ponder.
Dr. Bill Fera
Advisory — PI, Health Care Access to aggregated data: Further, while mobile EMRs make it possible for physicians to
Ernst & Young access their patient data, it’s not clear how individual practices will gain access to aggregated
data or the insights made possible by analysis of such data.
• Physicians have demonstrated a natural desire for mobility given their busy
schedules and ever-increasing demands on their time. How can we innovate with
technology to allow physicians to see more patients, more efficiently; enable data
analytics to support them; and yet reduce concern over patient privacy and fear
of litigation?
• Physicians are pragmatic — they won’t change easily without seeing tangible value.
How can we meet their expectations with demonstrable return on investment and mobile
user interfaces that make information intuitive, fast and easy to grasp?
• There aren’t enough doctors in the world. Can we build applications or services
that empower remote access, including empowering lower-level clinicians to perform
at higher levels through mobile-delivered information or real-time collaborations
with experts?
Hospitals are beginning to expand medical services beyond their four walls and out into
the populations they serve — pulled by mounting health care demand, pushed by public “To capture the opportunities
policy and powered by new technology megatrends, particularly smart mobility and social
made possible by big data
networking. As the cornerstones of community health care, hospitals are being turned to by
patients, governments and payers alike to help lead a global transformation to health care analytics, providers will have to
everywhere, with lower cost, greater access and better outcomes. The vision before them: overcome existing data silos,
expanding medical information and services to “the third place,” as Ernst & Young’s such as separate systems for
Progressions report puts it.83 In other words, beyond the hospital doors to wherever the
patient happens to be, thus paving the way for healthier lifestyles, fewer “heads in beds”
admissions, ER, cardiology, etc.
and patients empowered to better manage their own conditions in response to today’s It requires an integrated
worldwide epidemic of chronic diseases aggravated by aging populations and the rapidly enterprise view.”
growing health care demands of the developing world.
Mark Vreeland
It is a difficult role for hospitals to play — especially in the US, where “volume, not value, Advisory — PI, Health Care
is rewarded,” according to a multisector task force report produced by the Ewing Marion Ernst & Young
Kauffman Foundation.84 The report states: “What providers provide is not accountability for
a patient’s overall health but individual procedures, each separately coded and paid for —
which is a bit like buying a car one part at a time, without regard to how it drives.”
Health care everywhere models Cost is a rising issue for difficult choices between the up-front
challenge providers In the meantime, even though lower cost costs of mHealth innovations and their
New US policies attempt to flip that pay-for- and better outcomes have been urgent US promise of long-term cost reductions,”
service model, and have already begun priorities for years, costs are still rising at a notes Kenny O’Neill, Advisory — PI,
introducing value-based payment models faster rate than outcomes are improving.86 Ernst & Young.
that, in part, seek to keep individuals out of The average US hospital stay plus follow-up
expensive hospital facilities. The trade-offs costs $17,988.87 This, despite the fact that Cost-quality trade-offs are emerging in
are not lost on hospital administrators, competition is mounting, as the very developing regions
who do not necessarily see their finances definition of “health care provider” In developing countries, there is yet
improving as a result. Even as hospitals continues to evolve — ranging from the another set of trade-offs. On the one hand,
automate processes, pilot mHealth options established hospital, pharmaceutical and “Developing countries don’t have the
in their communities and implement EMR medical device companies up to and mature hospital infrastructures you find in
systems in the spirit of health care including more urgent care centers, retail the US or Western Europe — but they do
everywhere, “savings from these programs walk-in clinics, drugstore health care have mobile technologies and consumers
have the potential to be realized mostly by wings,88 outpatient surgical centers,89 who are actually more savvy using mobile
the payer if new financial arrangements are mobile medical vehicles, boutique in some ways. They can leapfrog the rest of
not established,” according to the AHA.85 To (sometimes, physician-owned) hospitals, the world,” says Catherine Zhou, Advisory —
the extent that the health care everywhere extended care facilities, community centers Customer Insight & Analytics, Ernst & Young.
movement does successfully migrate care and other nongovernmental organizations According to the World Health Organization,
beyond the four walls of traditional (NGOs). however, “Health systems worldwide are
providers, these providers will be challenged under increasing pressure to perform under
to reimagine how they do business. While cost is lower in the rest of the world, multiple health challenges, chronic staff
it is still a major issue for most countries. shortages and limited budgets, all of which
“In the UK, a national budget crisis makes makes choosing interventions difficult.”90
Smart mobility Ability to expand beyond hospital • Monitoring services (e.g., for “When I think about the biggest
walls to: chronic disease management) impacts, I think patient reminders …
• Partner with patients in fitness will account for 65% of the global the supply chain … and then online
and wellness programs mHealth market by 2017. digital records, where the high
• Handle administrative matters • Diagnosis services payoff will be vaccination coverage.
• Share EMRs (e.g., telemedicine and health ... Of course, because it’s new
• Treat patients at home call centers for isolated areas) technology, we should let a
• Monitor post-operative patients will account for 15%. thousand ideas blossom.”
• Monitor and manage chronic • Treatment services Bill Gates, Co-Chair,
Bill & Melinda Gates Foundation101
disease (e.g., adherence to medication
• Reach remote and underserved schedules)will account for 10%.100
communities
Social networking Establish real-time interactive • Nearly 1,200 hospitals across “Have #lupus? Be sun smart. UV
communications to: America have added some form rays can trigger a
• Engage more effectively with of social media, be it Facebook, flare.http://bit.ly/IldE6H
patients Twitter or blogs, to their #ArthritisAction #MayoClinic”
• Share knowledge and experience communications efforts.102 A tweet from the Mayo Clinic
with peers
• Market services
Cloud computing Enables: • Some 2,000 US hospitals and “Health IT is the foundation for a
• Delivery of “heavyweight” health 41,000 doctors have received truly 21st century health system
care services and information to $3.1 billion in federal incentive where we pay for the right care, not
lightweight mobile devices payments for ensuring just more care.”
• Networking with other hospitals, meaningful use of EHRs.103 Kathleen Sebelius, Secretary,
US Department of Health and
physicians, clinics, payers
Human Services104
• Sharing EMRs with patients
Big data analytics Enables: • The Seton Healthcare Family “We don’t want to take the intuition
• Establishing patterns of behavior hospital system in Texas learned and clinical decision-making out of
in patient populations from data analytics last year that the process. We want to facilitate it.”
• Individualizing health care a bulging jugular vein is a strong — Nicholas Morrissey, a surgeon at New
York-Presbyterian Hospital106
services and easily observed — predictor
• Developing preventive care that someone admitted for
• Understanding outcomes of congestive heart failure has
various types of interventions a higher chance of future
readmission.105
• In what ways can big data analytics • How can cloud-based services facilitate
be applied to help pharmaceutical patient monitoring or remote device
companies identify patterns from large programming?
volumes of biometric data that suggest
not only new treatments, but also the • Will the consumerization of medical
best treatments for patients? devices create an opportunity for us to
leverage mHealth platforms to build
• How can we improve social networks products and services that compete with
among physicians, clinicians and medical device companies?
pharmaceutical companies so that they
contribute to identification of new
therapeutic regimes, faster product
development and lower development
costs — all while maintaining individual
patient privacy and security?
Hospitals’ in-house mobility: Clinicians typically use 6.4 different mobile devices daily
within hospitals, by one account — primarily mobile point of care solutions on laptops,
tablets and “workstations on wheels.”117 These will increasingly expand outside the hospital
as well.
Consumer and physician demand: Easy-to-use mobile apps have improved consumers’ lives
in many areas, and they’ve begun to demand the same from health care. The Kauffman
Foundation report describes health care frustrations: “Running the gauntlet of specialists,
and tests and hospitals and offices, patients feel like mice in a maze of someone else’s
(or, worse, no one’s) devising, with little real responsibility for or control over the system of
which they are part.”118 As a result, health care consumers are increasingly turning to social
media and a host of new fitness, wellness and health applications on their smartphones
and tablets (see page 15, “Perspective on patients”), and hospitals are finding patients’
expectations mounting in these online settings. Likewise, physicians are finding valuable
utility in smart mobile devices (see page 23, “Perspective on physicians”). And all of this is
creating an environment to enable pharmaceutical and medical device companies to explore
new mHealth-related devices and drug compliance regimens.
Government policy and incentives: In the US, for example, initiatives such as the Medicare
and Medicaid EHR Incentive Programs use rewards (and by 2015, penalties) to advance
the meaningful use of EMRs shared across health care settings. The incentives contributed
to a 14.2% growth in US sales of EHRs in 2011, to $17.9 billion119 — and EHRs are
increasingly mobile-enabled.
Competition: Technology companies are all-too familiar with the importance of first-mover
advantage. Competition from early-moving providers as well as from software companies
offering mHealth apps is likely to spur more providers to adopt quickly. “An early mover
Core health care change drivers: edge might be going to software providers already in such lower-barrier markets as fitness
applications, and to telecom operators, internet service providers (ISPs) and cable companies,
• Cost containment who can reach into every home and wallet with their networks,” explains Tomlinson.
• Increased access Lower drug-development cost: Big data analytics and cloud collaboration hold the
• Better outcomes promise of reducing the typical drug development cost, estimated at $1.3 billion and a
10- to 15-year time-to-market.120
Business models: Hospitals are making big changes, whether merging horizontally or
vertically, developing networked niche specialties such as cancer care or otherwise “Given constrained staffing
rethinking their current business model in the transitioning health care market — all of at many providers, the
which will take time.
clinicians’ fear is that
Unknown liability: Technology changes of the scope imagined by the adoption of mHealth technology will add to their
carry risk, and the newness of mHealth means those risks are not yet well understood. workload without delivering
Hospitals’ risk-averse nature is only reinforced by the prevalence of malpractice litigation,
any benefit. Mobile devices
at least in the US.
that don’t complement clinical
Regulatory uncertainty: Pharmaceutical companies, medical device makers and technology practice and become business
companies moving into the mHealth app market — for example, as smartphones morph into as usual will add to the
diagnostic and remote monitoring devices — face uncertainty about which apps and devices
will and will not be regulated.
workload and slow adoption.”
Kenny O’Neill
Workflow and usability: “For the clinicians, there’s always a question around workload: Advisory — PI
‘Is this going to create more work in my daily job?’” says O’Neill. For example, telehealth Ernst & Young
units have to be integrated into the existing clinical pathways for treating a targeted
disease. “Given constrained staffing at many providers, the clinicians’ fear is that
technology will add to their workload without delivering any benefit. Mobile devices that
don’t complement clinical practice and become business as usual will add to the workload
and slow adoption,” O’Neill suggests.
Data integration issues: Hospitals typically have disparate and disjointed data silos across
departments, and the automated sharing of information across health care providers has
been slow to advance. This kind of sharing will be essential to the success of mobile access,
transparency of information and data mining in the interest of patient-centric care.
Lack of transparency: Hospitals have been slow in easing patient access to information, in
part because of these data integration issues and technology limitations — but compounded
by the medical practice’s sometimes inaccessible technical and legalistic language and
paternalistic posture toward the patient. The AHA stirred significant controversy with an
April 2012 letter to the US Department of Health & Human Services asking that pending
federal requirements for patient portals be scaled back, if not eliminated.121
Device complexity: On average, consumers give up on new electronics items after only
20 minutes of trying. mHealth devices will need to be simplified for consumer acceptance
to scale.122
• Provider clinicians need universal access to patient and medical information. How can
we help providers accelerate toward the goal of system-wide access to all patient and
medical information for all clinicians who need it?
• Providers are re-imagining themselves in the health care everywhere paradigm. How can
we leverage technology innovation to help them profitably deliver health care services
beyond the four walls of the hospital?
• There’s a serious shortage of talent knowledgeable about both health care and
technology. What can we do to extend IT expertise to providers?
Health care payers around the world are prodigiously experimenting with mobile devices,
applications and programs as they strive to improve the health of their populations, better “The payers have a real financial
manage chronic disease, extend health care access and lower cost. This is true whether the
stake in keeping you healthy.
payer is a government, a government-backed insurer, a private insurer or an employer. But
in general, their use of mHealth technology is just beginning. After all, these are vast and So they’re taking the lead
complex systems, many of which are already struggling to reinvent themselves in a “pay- now … in order to identify the
for-performance” paradigm after having optimized their large bureaucracies over the best behaviors to encourage.”
course of many decades for the “pay-for-service” approach. In other words, they’re striving
Scott Ponder
to switch from being treatment-focused to being oriented around prevention, whether
Advisory — PI, Health Care
preventing a rehospitalization of a chronically ill patient or preventing a healthy individual
Ernst & Young
from ever needing care in the first place.
Pay-for-performance can lead to greater “The payers have a real financial stake in
customer engagement — enabled in part keeping you healthy,” says Scott Ponder, “We have invested heavily
by mobile technology Advisory — PI, Health Care at Ernst & Young. in a service-oriented
Payers’ emerging prevention orientation “So they’re taking the lead now in terms of
means they’re interacting directly with analytics, population management and
architecture as part of our
consumers about far more than just paying chronic disease management in order to business model and that
or denying claims. In this new paradigm, identify the best behaviors to encourage has allowed us to bring a
payers have financial incentive to educate and the best ways in which to express
lot of things to the web,
health care consumers to help foster that encouragement,” Ponder explains.
healthier lifestyle choices, directly That interaction can come in the form of to mobile and handheld
encourage healthy behaviors and better a mobile application. And increasingly, technology. The health
monitor chronically ill patients to avoid according to Ernst & Young’s Progressions care system is difficult to
costly hospitalizations. And payers are report, it comes as part of a more holistic
experimenting with smart mobile devices health care approach than has been
navigate, so we have been
as a key mechanism for such interaction traditional for payers. building tools that make it
because of their easy usability (which easier for customers to
simplifies access), their ubiquity in the
interact with the system.”
developed world and, in developing regions,
their ability to reach people beyond the Mark T. Bertolini
electric grid. Chairman, CEO and President
Aetna125
Social networking Tap into public-domain information to: • “Aetna’s use of a social media “The transformation of health
• Accelerate innovation time-to- platform to gather and refine care is going to require behavioral
market ideas helps iterate innovation change, primarily by the consumers
• Deliver messages encouraging concepts quickly, uncovering of health care but also on the part
healthy lifestyle choices questions and new ideas that of those who deliver and pay for
• Identify new treatment could take months through health care. And I’m convinced that
approaches traditional processes. In addition the action of social media over
• Identify potential fraud to internal crowdsourcing, Aetna mobile networks will become one
also applies its platform to of the ‘silver bullets’ for enabling
collecting customer feedback, that behavioral change.”
ensuring ready access to Paul Chabot, Advisory — PI,
Ernst & Young
outside-in perspectives.”
Forrester Research135
Cloud computing Provides platform for: • UnitedHealth Group subsidiary “We’re going to make collaboration
• Health information ecosystems Optum announced an open-cloud possible in ways it is certainly not
for secure data sharing platform to allow developers possible today.”
• Applications promoting to create and host health care Andy Slavitt, Executive Vice President,
Optum137
behavioral change applications that enable multiple
• Mobility for claims processing, doctors and hospital networks
fraud and duplication identification to coordinate patient care.136
Big data analytics Yields: • Blue Cross Blue Shield Association “On the big data side, there is a big
• Predictive modeling of best spun off its data intelligence unit, question mark. The major health
treatment practices Blue Health Intelligence, into an care stakeholders are struggling
• Better identification of providers independent company in part to with how to deal with the large
and practices with best patient help make its data available to volumes of data that mHealth is
outcomes more industry stakeholders.138 going to create, how to analyze it
• Decision-making insights all and how to share the insights
• Personalized treatments • WellPoint said it plans to use that emerge.”
• Personalized wellness and IBM’s Watson big data technology Dave Nichols,
Americas IT Transformation Practice Leader,
prevention to help suggest treatment options
Ernst & Young
• Improved fraud detection and diagnoses to doctors.139
Lower facility costs: Realizing the health care everywhere vision through mobile and other
remote care technologies should lower facility requirements and related costs.
Figuring out the right approaches to all these issues is likely to slow mHealth adoption.
However, this inhibitor has an opposite “potential accelerator”: successful approaches to “Most developed countries are
the big data challenges are likely to unlock value that could dramatically accelerate mHealth spending a disproportionate
technology adoption.
amount of their GDP on health
To help address the data challenge, insurers have begun to partner with or acquire data care — and it’s increasing and
analytics technology companies. US-based Humana, for example, acquired 12-year-old health it’s not sustainable. In many
analytics company Anvita Health in December 2011 for an undisclosed amount.142 And of those nations, it’s the
three US insurers agreed to partner with analytics company Lumeris, Inc. to acquire claims
management software as a service (SaaS) company NaviNet, Inc., in the expectation of government that is paying for
enabling deeper analytical insights, including recommendations and alerts for medical health care and has the most
clinicians.143 Interestingly, Lumeris is part of a trio of companies started or invested in by incentive to manage those
renowned technology venture capitalist John Doerr and his brother (a physician) as part
of a long-term experiment to apply information technology in a pay-for-performance health
costs.”
care paradigm.144 The others are a US health insurer and a health care software provider. Ed Tomlinson
Advisory — PI
IT talent challenge: As explained in the “Overview,” having IT know-how combined with Ernst & Young
knowledge of health care process and procedure is critically important to a health care
organization’s efficiency and, as a result, its costs. The shortage of such savvy talent is
likely to hold back mHealth adoption.
Historically adversarial relationship: Even though financial incentives are aligning to motivate
payers to act to improve the health of their members, past interactions with patients and
physicians have often involved claims or reimbursement disputes. Says Aloha McBride,
Ernst & Young Advisory — PI, Government & Public Health Sector Leader: “Even though I
see insurance companies assigning nurse case managers to support members, whether in
just finding a primary care doctor or managing a chronic illness, the patients sometimes
find it difficult to develop a trusting, open relationship with their insurer.” Continued lack of
trust could slow patients’ and physicians’ adoption of mHealth solutions offered by payers.
Current incentive/benefits system: Payers are experimenting with health and wellness
apps, but current reimbursement payments for mobile or remote care are largely limited to
remote rural areas. The transformation of that system of incentives from pay-for-service
to pay-for-performance is likely to take time and, therefore, slow mainstream adoption of
mHealth technology. Similarly, benefits explanations that appear arcane to consumers are
likely to hold back the speed of adoption; payers would do well to simplify these, thus
increasing information transparency.
Regulatory and liability unknowns: Likewise, where regulators decide to draw the line
about what constitutes a medical device is likely to have a big impact — which, if any, of
the many apps being offered by payers will ultimately be regulated? For now, the lack
of definitive guidance is an inhibitor. Likewise, barring tort reform or a specific liability
moratorium for mHealth technology, uncertainty surrounding legal liabilities involving
mHealth technology is an inhibiting concern.
“For the most part, insurers have been adopting mHealth technologies in
isolation from the provider,” notes Dr. Bill Fera, Advisory — PI, Health Care,
Ernst & Young. “The next step is to collaborate with providers to make
the services more powerful. Studies show that patients don’t always trust
their health plan as much as doctors to provide these kinds of services,
so working in conjunction with the provider community should enable a
lot more ‘buy-in’ from the patient community,” he notes.
• Payers have large databases of patient and medical information. How can we
leverage big data analytics capabilities to help payers transform their data into
valuable insights?
• Payers are in the midst of transformational business model change from pay-for-service
to pay-for-performance. How can we leverage technology innovation to accelerate — and
ease — this difficult and complex transition?
• In certain regions, payers and providers have begun vertically integrating. How can our
solutions help to better enable these alliances and organizational integrations?
And he may not have to. With 13,000 apps And as our Life Sciences colleagues say
“To make the health care already available for the iPhone alone,146 it’s in their latest Progressions report: “Move
everywhere vision of the clear that the mobile technology needed for quickly. Time is not on your side. Don’t
transformative innovation leading to health underestimate the pace of change.”
future work will require many care everywhere is already here. And as
technology megatrends working this report has described, the technology However, culture, governments and
in concert. It’s not just a cloud industry’s exponential change engine is institutions generally take much longer to
already focusing on technology innovations change than technology does to innovate.
thing, or a big data thing, or a that could lead to better health outcomes, But after decades of wrestling with
social networking thing or even broader access and lower cost. It’s doing so escalating costs and increasing demand,
a mobile thing. It is all of these not just altruistically, but also for profit — they, too, appear ready for change. In fact,
because that’s where value-creation lies. they’re already in motion — driven from the
things working together.”
See our “mobile-medical frontier” sidebar top down by stakeholders like governments
Dave Nichols (page 47) and consider that, with one and from the bottom up by patients. Today,
Americas IT Transformation Practice Leader notable exception, each of the science- the very sustainability of current models of
Ernst & Young fiction-sounding items described is already health care is being challenged by provider
here. As for the one exception, we don’t and payer alike. Patient-centric health care
think it will be long before a team claims the information ecosystems are beginning to
$10 million X prize for inventing a real-life emerge, incentive systems are beginning to
version of Star Trek’s tricorder. change, public-domain genome databases
are being established and “collective impact
alliances”* are starting to form.
*Collective impact alliances are small ecosystems of health care stakeholders partnering together to drive toward a
(relatively) narrowly defined common goal — at least when compared with the monumental task of remaking the
entire global health care industry.
“We need a Khan Academy for doctors: captivating 15-minute videos on genomics, on wireless
sensors, on advanced imaging, on health information systems. These things can revive the
excitement they felt as premeds, when they first decided to go into this field. If we can get
practicing physicians up to speed and really inspired, maybe we won’t have to wait a generation.
I shudder to think about waiting 10 to 20 years for this transformation to occur.”
Eric J. Topal, M.D.
Co-Founder and Vice Chairman
West Wireless Health Institute147
Considerations
For further information on this topic, download Ernst & Young’s Progressions report from the
EY Insights mobile app or go to www.ey.com/progressions
Progressions is Ernst & Young’s annual report on the global life sciences industry. Its 2012 edition,
titled The third place: health care everywhere, presents the challenges and solutions of life sciences
companies as the epicenter of the health care system shifts from the hospital and doctor’s office to
wherever the patient happens to be.
This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a
substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global
Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result
of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.