Top 10 healthcare disruptors
Modern Healthcare has recently released its top 100 most influential people in healthcare for 2018. We take a look at the top 10 which have fully disrupted the healthcare sector.
Larry Merlo - President and CEO, CVS Health
With $184.8bn in net revenues for 2017, President and CEO of CVS Health, Larry Merlo has disrupted the business by bringing on board new technologies and partnerships to cater towards more consumer-driven patient, focused care.
As vertical integration continues to grow apace, companies are looking to source ways to maintain supply chain costs through increased acquisitions. The company’s acquisition of health provider Aetna will provide opportunities for significant negotiating power in the reducing costs for payers and patients, and enable the development of personalised solutions and improved patient outcomes.
Dr Stephen Klasko - President and CEO, Thomas Jefferson University and Jefferson Health
Transforming health and education, Thomas Jefferson University and Jefferson Health has become one of the fastest growing health institutions in the US. Dr Klasko is a formidable figure in the industry, publishing a number of influential texts, and has also developed the Center for Advanced Medical Learning and Simulation, a medical simulation training centre.
Focusing on the need to overhaul healthcare education, both for consumers and for workers, Dr Klasko has previously stated: “Healthcare and higher education cannot rely on yesterday’s thinking in today’s world. Now, it’s time to start taking the steps necessary to truly transform healthcare in America.”
Dr Rod Hochman - President and CEO, Providence St. Joseph Health
With 51 clinics and 829 clinics, faith based, not-for-profit provider Providence St. Joseph Health supports a growing ageing population by blending traditional services, such as home health visits and supportive housing facilities with new innovative technologies to make patient care convenient, affordable and accessible to all.
Led by Dr Hochman, the organisation provides services across seven western states, and is transforming its outdated digital infrastructure, as well as investing in genomics and population health. Additionally, Providence St Joseph Health has contributed $100mn to provide exceptional mental health facilities, fully promoting its efforts in enhancing the health and wellbeing of its patients.
Dr Marc Harrison - President and CEO, Intermountain Healthcare
Working in a number of senior level roles at the infamous Cleveland Clinic across the US and Abu Dhabi, Dr Harrison joined Utah based Intermountain Healthcare in 2016. The non-for-profit health system houses a multitude of specialisms, delivered across over 185 clinics.
This year, the provider has partnered with Ascension, SSM Health, Trinity Health and the Veterans Affairs Department in the US by launching their own drug company to reduce the escalating cost of healthcare for US citizens, exploring digital tools such as telehealth along the way.
Dr David Feinberg - President and CEO, Geisinger Health
One of the largest healthcare organisation’s, serving over three million residents, Geisinger Heath supports 30,000 employees across its campuses and research centres. Its health plan also serves close to 600,000 citizens.
Working alongside 2,500 providers, it has embedded a world-class integrated delivery system across its operations, spanning 13 hospital campuses. Led by Dr Feinberg, Geisinger Health continues to embrace new digital tools, working alongside players such as Apple to deliver operational efficiency.
Known within the industry for establishing population health platform, Springboard Health, as well as patient-focused tools ProvenExperience and MyCode, Dr Feinberg has been a key figure in the organisation’s recent partnership with Merck to launch two innovative, web-based workflow solutions to further improve health outcomes.
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Tim Cook – CEO, Apple
Alongside Amazon’s CEO, Jeff Bezos, Apple CEO, Tim Cook has become one of the most respected digital leaders of all time.
This year, Apple has been making significant waves within the healthcare industry. From launching its own healthcare clinics for employees, to launching a Health Records API for developers and researchers, the company has expanded its reach within consumer healthcare, developing and sharing tools for healthcare organisations to deliver improved, patient-led services.
Bruce Broussard - President and CEO, Humana
Leading health insurance company Humana, President and CEO, Bruce Broussard is facing increased competition from competitors such as Anthem and Walmart to deliver increasingly vital products and services.
Acquiring Kindred Healthcare for $4bn, the move follows on from CVS Health’s $69bn deal to acquire rival Aetna, where the business will look to deliver world-class homecare services to reduce the rising number of acute patient admissions. With this in mind, the company has also partnered with Walgreens to launch new retail clinics.
Joining Humana in 2011, Broussard has been responsible for the creation of an integrated care delivery model, focusing on improving the wellbeing of patients whilst lowering healthcare costs through digitisation.
3. Jeff Bezos - Chairman and CEO, Amazon
Known to be competitive and ruthless in driving success at Amazon, Bezos is a major disrupter.
The company’s strong reputation and determination to succeed has seen the business turn traditional e-commerce and retail models on its head, causing leading industry players, such as within the pharmaceutical sector, shares to tank as the company enters the industry.
Partnering with Berkshire Hathaway and JPMorgan Chase this year, forming their own healthcare company, Amazon has attracted a number of renowned healthcare figures to its operations, yet remains secretive of all ongoing developments.
2. Mark Bertolini - Chairman and CEO, Aetna
Although the company is set to merge with retail pharmacy CVS Health, insurance provider, Aetna, has been at the forefront of digital innovation.
Serving 22.2mn members and led by Chairman and CEO, Mark Bertolini, the company has harnessed a vision for building consumer-focused healthcare tools, in order to fully empower patients as they utilise its services.
With experience as a paramedic and with past roles with rival company, Cigna, Bertolini has gained extensive knowledge of the business, enabling Aetna to generate over $60bn in revenue in 2017. The business has also grown its total Medicare membership by 8%.
1. Donald Trump - President of the United States
Since his inauguration, President Trump has remained a key figure. With the aim to dismantle Obamacare and repeal the Affordable Care Act (ACA) without success, he has recently introduced new healthcare plans to support those without coverage, at lower cost. However, many of these plans will not cover long-term, complex health conditions.
He has also looked to lower drug prices, which has yet to come into fruition, but created increased complexities for insurance companies. It remains to be seen how the President will further seek to transform the industry.
Top 10 healthcare innovations for 2019
We take a look at some of the top 10 healthcare innovations which are transforming the sector
The telehealth market is booming. Consumers are leading increasingly busy lifestyles, with up to 60% favouring digitally-led services. Providing clinical care at a distance, increasing accessibility and eradicating potential delays has given patients greater control, boosting patient satisfaction and overall engagement. Such is its exponential growth, The Centers for Medicare and Medicaid Services in the US has recently released its proposed Physician Fee Schedule and Qualified Payment Programme updates for 2019, where telehealth services has been heavily featured, in order to deliver ‘different access points’ for patients.
9. Mobile technology
Consumers have become accustomed to accessing their data through the use of various digital tools, where the use of mobile and tablet health apps has tripled from 13% in 2014 to 48% today. Catering to this growing market, British based start-up Babylon Health is making waves on a global scale. Partnering with the National Health Service (NHS) and private health provider, Bupa, it has also cemented its presence across the flourishing Chinese market, with a membership base exceeding 1.4mn citizens across Europe, Asia and Africa. By partnering with global juggernaut Tencent, Babylon’s artificial intelligence system has enabled both parties to interact directly with users, identify specific illnesses, deliver health status assessments, and triage necessary actions. The mobile app is available to over a billion users and linked to more than 38,000 medical facilities in China alone.
8. Artificial intelligence
Artificial intelligence (AI) applications, such as predictive analytics for patient monitoring has provided significant financial savings. Applications that target hospitals and medical institutions include patient monitoring and transcribing notes for electronic health records (EHRs). The European Union is set to invest $24bn into artificial intelligence (AI) by 2020 in a bid to catch up with Asia and the US, who have invested heavily in AI and cloud services. This year, Google revealed its plans to harness AI and machine learning across a multitude of consumer technologies, particularly in healthcare. “If AI can shape healthcare, it has to work through the regulations of healthcare. In fact, I see that as one of the biggest areas where the benefits will play out for the next 10-20 years,” Google CEO Sundar Pichai has previously stated.
Blockchain is estimated to reach over $5.61bn by the end of 2025, even though it remains dependent on the ability to record and store information conveniently, economically and securely amongst different applications and systems. Providing transparency and eliminating third-party intermediaries, processes are streamlined, reducing healthcare costs exponentially. Unlocking the ability for providers to deliver a value-based healthcare system and enhance patient engagement, blockchain could save the industry up to $100-$150bn per year by 2025 in data breach-related costs, IT costs, operations costs, support function costs and personnel costs, according to BIS Research. Partnering with pharmaceutical giant GlaxoSmithKline (GSK), Ethereum blockchain-based supply chain platform, Viant sought to accelerate the pace of blockchain-based supply chain systems. Accenture and supply chain giant DHL have also developed a blockchain-based serialisation prototype which tracks pharmaceuticals from the point of origin to the consumer.
6. Health wearables
With the rise of lifestyle diseases, such as diabetes, more consumers are turning to health wearables that monitor glucose, heart rate, physical activity and sleep to gain a greater understanding of their health conditions. Following on from the release of the first Bluetooth headset back in 2000, the growing interest in wearables has seen monitoring our health and data become standardised. This data can be analysed by sophisticated algorithms to drive long-term diagnosis and support. Partnering with Google, health wearables company Fitbit is exploring the development of consumer and enterprise health solutions. Its acquisition of HIPAA-compliant health platform, Twine Health has seen the business enhance its clinical services by bringing on board a coaching platform, empowering people to seek better health outcomes.
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5. Electronic health records tools
From 2018-2022, the electronic health records (EHR) market is expected to grow at a compound average rate of 6% per year Providers and organisations continue to house fragmented technologies which create barriers towards collaboration and data sharing opportunities. This is further exacerbated if a patient straddles both public and private healthcare. Technology giant Apple has integrated patients’ medical records into its Health App as part of its iOS 11.3 beta. The data is encrypted and protected with the user’s iPhone passcode. Partnering with hospital providers and clinics, patients are now able to view their medical records from multiple providers within one platform. Johns Hopkins Medicine, Cedars-Sinai, Penn Medicine, UC San Diego Health and even the Cleveland Clinic have implemented this technology.
4. Healthcare transportation
Non-emergency health transportation remains a key issue worldwide, preventing patients from getting to or from a doctor’s appointment. 25% of lower-income patients have missed or rescheduled appointments due to lack of transportation, costing US health systems up to $150bn each year. Transportation companies such as Lyft and Uber have therefore entered the market by partnering with state governments to reduce these costs and deliver personalised patient care.
3. 3D Printing
Healthcare providers are set to represent the second largest industry sector in 3D manufacturing. The Food & Drug Administration’s decision to release its first comprehensive framework advising manufacturers of 3D medical products highlights its growing impact where more than 100,000 knee replacement surgeries are completed each year using 3D-printed, patient-matched surgical guides, for example. Through this process, surfaces and structures can be optimised for strength, weight and material use. Consultation between surgeons and patients has also been bolstered, where patients can better understand the complexity of his or her specific needs.
As consumers get more involved in the management of their health, consumer genetics and research companies have grown in popularity and scale. People want to further understand their genetic makeup, leading personal genomics and biotech company 23andMe to become one of the largest consumer-based organisations worldwide. Interestingly, this year, the company has entered a four-year collaboration with GSK to develop new treatments, but using human genetics as the basis for discovery.
Not only looking to develop treatments by analysing human genetics, pharmaceutical companies are looking to even remove hereditary genes which pass diseases down generations. In 2017, human embryos were successfully ‘edited’ through gene editing tool, CRISPR (Clustered, Regularly Interspaced, Short Palindromic Repeats), eradicating hypertrophic cardiomyopathy within 42 embryos.
1. Vertical integrations
As healthcare providers aim to provide greater transparency, promote collaboration and lower escalating patient costs, 2018 has been the year for a significant number of vertical integrations. CVS Health’s $68mn takeover of health insurer Aetna is a case in point. By influencing more of the supply chain, it will gain significant negotiating power to reduce costs for payers and patients, develop personalised solutions and improve overall outcomes. It will also promote the eradication of delays in process by removing any third parties within traditional business models. Other notable integrations are Optum’s acquisition of the DaVita Medical Group, Humana and Kindred Healthcare and Cigna and Express Scripts.
Reports have indicated that not only has the number of healthcare deals more than doubled in the last five years, the size of deals has also grown as a result of repeat investor interest, highlighting that this trend is here to stay.