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Healthcare opportunities for smart SIs and solution providers

Healthcare opportunities for smart SIs and solution providers

This presentation was given at the Smart VAR Healthcare Summit. It was presented to managed services providers, solution providers, innovators, and systems integrators (SIs). Answering:

* What kinds of BS can healthcare customers detect?
* What innovations can you help customers deploy?
* Where are the major opportunities to grow your business?

Takeaways:
* Go narrow, specialize, dive deep – talk about what’s important to your customers.
* Revenue, profit, and growth matters to them too
* Understand PBU: Payer vs. Benefiter vs. User
* Understand why healthcare businesses buy stuff so you can serve them in ways they find you indispensable

Shahid N. Shah

August 11, 2015
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  1. Healthcare opportunities for smart SIs
    and solution providers
    Smart VAR Healthcare Summit
    August 2015
    Shahid N. Shah, CEO

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  2. @ShahidNShah
    www.netspective.com www.ShahidShah.com 3
    Who is Shahid?
    • 20+ years of software engineering and multi-site
    healthcare system deployment experience in
    Fortune 50 and Government sectors.
    • 12+ years of healthcare IT and medical devices
    experience (blog at http://healthcareguy.com)
    • 15+ years of technology management experience
    (government, non-profit, commercial)
    • 10+ years as architect, engineer, and
    implementation manager on various EMR and EHR
    initiatives (commercial and non-profit)
    Entrepreneur, contributing
    author, blogger, engineer, and
    healthcare futurist

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  3. 4
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    What’s this talk about?
    Questions answered
    • What kinds of BS can
    healthcare customers
    detect?
    • What innovations can you
    help customers deploy?
    • Where are the major
    opportunities to grow your
    business?
    Key takeaways
    • Go narrow, specialize, dive
    deep – talk about what’s
    important to your customers.
    – Revenue, profit, and growth
    matters to them too
    • Understand PBU: Payer vs.
    Benefiter vs. User
    • Understand why healthcare
    businesses buy stuff so you
    can serve them in ways they
    find you indispensable

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  4. 5
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    What are the palpable opportunities?
    Business / Clinical
    • Condition-specific apps
    • EHR aggregation
    • Revenue cycle management
    • Genomics integration
    • Patient recruitment
    • Telemedicine
    • Remote medical monitoring
    • Health information exchange
    • Risk assessments and monitoring
    Technology
    • Analytics and tools
    • Information assurance and
    cybersecurity
    • Cloud infrastructure growth
    • Virtual desktops
    • Network optimization (to support
    larger images, genomics, etc.)
    • IoT and monitoring tools
    • Assets review and operational
    portfolio management
    • Unified communications

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  5. @ShahidNShah
    www.netspective.com www.ShahidShah.com 6
    What you need to know these days
    Consumer Health,
    mHealth, eHealth
    Health IT Product
    Development
    Wireless & Mobile
    Strategies
    Collaboration,
    Social Technologies
    Cloud Computing
    Strategies
    MedTech Product
    Development
    Content &
    Document
    Management
    (CMS/DM)
    Enterprise
    Architecture, SOA
    Regulated Product
    Management
    Trust Models &
    Regulated Privacy,
    Security Planning
    Technology Due
    Diligence

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  6. 7
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Problems you can solve for your customers
    Patient Discovery
    •Website
    •Pre-Patient
    Provider Search
    •Patient Connect
    •Patient
    Scheduling
    •Reminder call,
    scheduling,
    Ensuring Patient
    show up
    •Patient
    Intake/Experience
    Practice
    Management
    •Patient
    Scheduling
    •Charge Capture
    •Practice
    Management /
    Billing Tools
    •Revenue
    Analytics
    •Claims Scrubbing
    •Billing Services
    •Pricing
    Management
    (Aggregated
    Billing Data
    analytics)
    •Reviews /
    Feedback
    Infrastructure
    •DaaS
    •Network
    •Office
    Automation
    Clinical
    Management
    •MU2+ Compliant
    EHR
    •eRX
    •Voice
    Recognition
    •Clinical Language
    Understanding
    Integration
    •Patient Connect
    integration to PM
    •HIE
    •Labs
    •Device
    Connectivity
    •Image storage /
    EMR Access
    •Clearing Houses
    •Gateways
    Consulting
    Services
    •ICD
    •HIPAA
    •Practice
    Consulting
    •Revenue
    Planning
    •Legal and
    Compliance
    •Clinical Workflow
    Optimization
    •Billing to Clearing
    House
    Integration
    •Records
    Management /
    Migration
    Focus on jobs that customers need to be done, not what you want to build

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  7. @ShahidNShah
    www.netspective.com www.ShahidShah.com 8
    Care Delivery Technologies
    On the Rise
    • FHIR
    • Blue Button+
    • Real-Time Healthcare System
    • Voice User Interface
    At the Peak
    • Natural-Language Processing
    (Clinical Enterprise)
    • E-Prescribing of Controlled
    Substances
    • Logical Data Warehouse
    • C-CDA
    • Clinical Communications and
    Collaboration
    • Consent Management
    • Enterprise File
    Synchronization and Sharing
    • Enterprise Fraud and Misuse
    Management
    • Secure Text Messaging
    • Healthcare Master Data
    Management
    • IT GRCM
    Sliding Into the Trough
    • Continua
    • Business Continuity
    Management Planning
    • Unified Communications
    • Semantic
    Interoperability/Healthcare
    • Legacy Decommissioning
    • End-User Experience
    Monitoring
    • ICD-10 (U.S.)
    • Direct Messaging
    • HIE
    • GS1 Healthcare (GDSN)
    • HL7 Infobutton
    Climbing the Slope
    • Desktop Virtualization
    • Patient Self-Service Kiosks
    • Positive Patient Identification
    • Vendor-Neutral Archive
    • Enterprise Mobility Services
    • Information Life Cycle
    Management
    • IHE XDS.b
    • Location- and Condition-
    Sensing Technologies
    • User
    Administration/Provisioning
    • Enterprise Content
    Management
    • Patient Portals
    Entering the Plateau
    • Strong Authentication for
    Enterprise Access
    • Medical Device Connectivity
    Source: Gartner Hype Cycle for Healthcare Provider Technologies and Standards, 2015

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  8. Healthcare customers have great BS
    detectors
    The opportunities are real and achievable but…

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  9. @ShahidNShah
    www.netspective.com www.ShahidShah.com 10
    What does “disrupting healthcare” mean?
    This is $1 Trillion and the
    Healthcare Market is about
    $3 Trillion
    This is $1 Billion

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  10. 11
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Healthcare industry fallacies
    • Healthcare folks are neither
    technically challenged nor
    simple techno-phobes (they’re
    busy saving lives and trying to
    stay in business)
    • Most product decisions are not
    made by clinical folks or CIOs in
    silos, they are all consensus-
    driven and require team selling
    • Complex, full-featured, products
    are not easier to sell than simple,
    stand alone tools that have the
    capability of interoperating with
    other solutions
    • Stakeholders deal with
    consumers, members, and
    patients differently.
    – Payers, care delivery organizations
    (enterprises, independents),
    pharmacies, ancillaries
    • Selling into even small
    customers (e.g. doctors offices)
    is not easy.

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  11. www.netspective.com 12
    Nothing you do matters to the
    healthcare “industry”.
    But a lot of what you do
    could matter to specific
    stakeholders

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  12. www.netspective.com 13
    No, your big data or mobile ideas
    will not change healthcare.
    But if you can use them to add or extract value
    from the existing system, you’ll do just fine.

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  13. www.netspective.com 14
    No, your EHR/PHR or app will not
    be used by enough doctors or
    patients to matter.
    But if you can get even a fraction of them
    to use your software, you’ll do just fine.

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  14. www.netspective.com 15
    No, your tools and solutions will
    not easily be accepted by
    permissions-oriented institutions.
    Find customers with a problem-solving culture
    willing to accept risks and reward failures.

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  15. www.netspective.com 16
    No, your offerings will not be
    easily integrated into regulated
    device-focused clinical workflows.
    Incumbent vendors will not entertain the potential of
    new legal liabilities without someone to share it with or
    new competition without direct compensation.

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  16. 17
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    You have made the job of
    identifying, diagnosing,
    treating, or curing
    diseases faster, better, or
    cheaper for clinicians
    through the use of
    information technology
    (IT) or business models.
    You have made the job of
    self-diagnosing, self-
    treating, or preventing
    diseases and improving
    overall wellness of
    patients through the use
    of new incentives,
    business models, or IT.
    You must be selling “actionable innovation”
    You can help your customers achieve practical, relevant, actionable solutions

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  17. Understand shift from volume to value
    To succeed in healthcare you need to…

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  18. 19
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Life expectancy is increasing…
    …but the rate of growth is slowing

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  19. @ShahidNShah
    www.netspective.com www.ShahidShah.com 20
    Bacteria used to kill us the most…
    Per 100k population, Historical Statistics of the United States, Millennial Edition

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  20. 21
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    We’ve got most infections beat…
    …except the flu and pneumonia
    Per 100k population, Historical Statistics of the United States, Millennial Edition

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  21. 22
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Top killers today
    Heart disease Cancer
    Chronic lower
    respiratory
    diseases
    Top killers in 1900
    Pneumonia
    and influenza
    TB
    Diarrhea and
    enteritis
    Infectious diseases used to kill us…
    …but what’s left seem only to be “manageable” not easily “curable”
    Per 100k population, Historical Statistics of the United States, Millennial Edition

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  22. 23
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Death by age group, 1900 Death by age group, Today
    From cures to management…
    …young people don’t dye of diseases often now
    http://siteresources.worldbank.org/INTHSD/Resources/topics/Health-Financing/HFRChap1.pdf

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  23. www.netspective.com 24
    Where’s the
    opportunity?

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  24. www.netspective.com 25
    http://www.slideshare.net/RockHealth/the-affordable-care-act-for-dummies

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  25. 26
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Shift from Fees for Service (FFS) to Value (VBC)
    The Shift
    The clinical model is shifting
    away from treatment of
    chronic conditions and
    focusing more on prevention,
    wellness, obesity intervention,
    behavior and lifestyle
    modification.
    Implications
    Clinical operations are shifting to hospital and
    physician ‘centered’ services that will rely heavily
    on health information technologies to monitor,
    coordinate, and manage care.
    • Successful Transition in Care resulting in
    Reduced Hospital Readmission Rates
    • Proactive population management
    • Patient engagement and collaboration
    • Disease prevention through wellness and
    obesity management
    • Chronic disease management
    • Care coordination and collaboration
    • Metrics and analytics

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  26. @ShahidNShah
    www.netspective.com www.ShahidShah.com 27
    How Digital Health helps in shift
    Successful Transitions of
    Care
    Reduced Hospital
    Readmissions
    Innovative Practice
    Models like Patient
    Centered Medical
    Homes
    Prevention, Wellness,
    Obesity intervention
    Behavior adjustments
    and modification
    Physician Marketing
    Personalized
    Concierge-Like
    Medicine
    Total Population
    Management

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  27. 28
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    What kinds of users are your customers targeting?
    Help your customers go narrow and deep not wide and shallow
    • Obesity Management
    • Wellness Management
    • Assessment – HRA
    • Stratification
    • Dietary
    • Physical Activity
    • Physician Coordination
    • Social Network
    • Behavior Modification
    • Education
    • Health Promotions
    • Healthy Lifestyle Choices
    • Health Risk Assessment
    • Diabetes
    • COPD
    • CHF
    • Stratification & Enrollment
    • Disease Management
    • Care Coordination
    • MD Pay-for-Performance
    • Patient Coaching
    • Physicians Office
    • Hospital
    • Other sites
    • Pharmacology
    • Catastrophic Case
    Management
    • Utilization Management
    • Care Coordination
    • Co-morbidities
    Prevention Management
    26% of Population
    4% of Costs
    35% of Population
    22% of Costs
    35% of Population
    37% of Costs
    4% of Population
    36% of Costs
    Source: Amir Jafri, PrescribeWell

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  28. @ShahidNShah
    www.netspective.com www.ShahidShah.com 29
    How will you choose to compete?
    Top-line
    revenue
    growth
    Free cash flow
    improvement
    Bottom-line or
    margins
    enhancement
    Cost
    containment
    Technology
    Managed
    services

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  29. 30
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Why healthcare businesses buy stuff
    Revenue
    Cycle
    Maintain
    capabilities
    Enter new
    markets
    Attract new
    patients
    Increase staff
    productivity
    Find your
    reason
    Healthcare businesses have complex buying processes – figure out why and what they buy

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  30. 31
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    The best ways to partner
    1. Top-line revenue growth: companies
    that help grow revenue for their clients
    are always welcome. There are fewer
    competitors when you’re selling solutions
    that grow revenue.
    2. Free cash flow improvement: if you can
    help healthcare companies improve cash
    flows, you’re going to have a much easier
    time than companies that don’t.
    3. Bottom-line or margins enhancement:
    companies that can show how they can
    grow their customers’ margins will skip to
    the front of the line when setting
    appointments with their clients.
    4. Cost containment: if a solutions provider
    can clearly show how they can help
    contain costs, they will see many
    competitors but will still have a good
    story that can help differentiate them.
    5. Managed services: taking over major
    areas of your customers’ workloads
    makes sense
    6. Technology: being “just” a tech partner is
    now table stakes, and it will be very
    difficult to compete.

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  31. 32
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    The business needs
    • Quality and performance
    metrics
    • Patient stratification
    • Care coordination
    • Population management
    • Surveys and other direct-
    from-patient data collection
    • Evidence-based surveillance
    The technology strategy
    • Aggregated patient registries
    • Data warehouse / repository
    • Rules engines
    • Expert systems
    • Reporting tools
    • Dashboarding engines
    • Remote monitoring
    • Social engagement portal for
    patient/family
    Do you have ideas in payment design?
    Payment models going fee for service to outcomes-driven care

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  32. 33
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    How will your customers get paid for your stuff?
    Direct Payment
    • Your best option
    • Very few truly disruptive
    technologies can be
    directly paid for by
    providers within the USA
    • Limited adoption of
    ‘traditional’ pay for service
    reimbursement for next
    generation technology
    Direct Reimbursement
    • Second best option
    • Improvements in
    technology are outpacing
    payer adoption
    • Reimbursement will come
    but its time consuming and
    difficult
    Indirect Reimbursement
    • Emerging option
    • Payer requirements for
    improved quality and
    efficiency are creating
    indirect incentives to adopt
    innovative solutions
    • Solutions targeting new
    value-based
    reimbursement incentives
    are highly useful to medical
    providers
    If you haven’t figured it out for them, customers will not figure it out for themselves

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  33. Act like a regulated entity, narrow your
    focus, and concentrate on workflows
    To succeed in healthcare you need to…

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  34. @ShahidNShah
    www.netspective.com www.ShahidShah.com 35
    Your customers’ innovation fit determines your opportunities
    Therapies
    Therapeutic
    Tools
    Diagnostic
    Tools
    Patient
    Administration
    Patient
    Education
    Most Regulation
    Least Regulation
    Be aware of regulations, don’t fear them, use them as
    a competitive advantage

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  35. 36
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Can you repurpose or enhance health data?
    Proteomics
    Genomics
    Biochemical
    Behavioral
    Phenotypics
    Economics
    Can you help customers use data to create new diagnostics or therapeutic solutions
    IOT sensors
    Administrative

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  36. www.netspective.com 37
    Where’s
    your
    focus?
    Why?

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  37. www.netspective.com 38
    “Small”
    isn’t
    easy to
    define

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  38. 39
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    If you’ve focused on tech, not customers…
    Where are you in the hype cycle?
    Source: Gartner; “Hype
    Cycle for Consumer
    Engagement With
    Healthcare and Wellness,
    2015”

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  39. 40
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    PBU: Payer vs. Influencer vs. Benefiter vs. User
    Payer
    Benefiter
    Influencer
    User
    If you don’t understand the exact interplay between PBU your sale will fail
    The payer is the
    person/entity
    that writes the
    check for your
    product.
    The person or group
    that benefits most
    from the use of the
    product.
    Or the person or
    group who
    influences the users.
    The person or group that
    actually uses the product.

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  40. 41
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Why selling into healthcare is hard
    Easy sell (iPhones, tablets, pagers)
    Physician Pays
    Physician
    Benefits
    Physician
    Uses
    Hard sell (EHRs)
    Institution
    Pays
    Gov’t
    Benefits
    Physician
    Uses

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  41. 42
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    How to best identify your buyers (not users)
    FFS vs. VBC?
    Target health
    sector?
    Number of
    employees?
    Annual sales
    volume?
    Geography?
    Number of
    hospital beds?
    Number of
    patients?
    Type of
    patients?
    The list goes on
    and on…be
    specific!
    Help them stay away from market segmentation, focus on identifying PBU particpants
    Identifying your
    customers will depend
    on helping your
    customers identify theirs

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  42. 43
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Problems your customers looking to solve
    Improve
    medical
    science?
    Improve access
    to care?
    Reduce costs?
    Improve
    therapies?
    Improve
    diagnostics?
    Improve drug
    design?
    Improve drug
    delivery?
    Create better
    payment
    models?
    Focus on jobs that customers need to be done, not what you want to build

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  43. 44
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Some stuff not to focus on
    • Don’t go for simple incremental innovation if
    you can be bold and “disruptive” but make it
    look like you fit into the existing ecosystem
    nicely
    • Don’t look at mHealth, look at mobility in
    healthcare
    • Don’t look at apps, look at entire systems
    Incremental innovation is easier, disruptive innovation is probably more useful

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  44. @ShahidNShah
    www.netspective.com www.ShahidShah.com 45
    Forget mobile apps, focus on health IOT
    • With all the attention being paid to mHealth
    there’s been an useless focus on mobile apps
    • For the mobile apps, instead focus on
    mobility in healthcare through “health
    internet of things (IOT)” and self-care
    technologies

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  45. What’s needed in the marketplace?
    What are we doing wrong when it comes to health IT applications?

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  46. @ShahidNShah
    www.netspective.com www.ShahidShah.com 47
    Patient collaboration begs integration
    Independent
    Care
    Connected Care
    Coordinated Care
    Integrated Care
    Accountable Care
    Systems integration thinking (especially for
    EHR and RCM integrations) are a big
    opportunity

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  47. 48
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    We’re in the integration age
    Source: Geoffrey Raines, MITRE
    We’re not in an
    app-driven
    future but an
    integration-
    driven future.
    He who
    integrates the
    best, wins.

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  48. 49
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Application focus is biggest mistake
    Application-focused IT instead of Data-focused IT is causing business problems.
    Healthcare Provider Systems
    Clinical
    Apps
    Patient
    Apps
    Billing
    Apps
    Lab
    Apps
    Other
    Apps
    Partner Systems
    Silos of information exist across
    groups (duplication, little sharing)
    Poor data integration across
    application bases

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  49. 50
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    NCI
    App
    NEI
    App NHLBI
    App
    Healthcare Provider Systems
    Clinical
    Apps
    Patient
    Apps
    Billing
    Apps Lab
    Apps Other
    Apps
    Master Data Management, Entity Resolution, and Data Integration
    Partner Systems
    Improved integration by services
    that can communicate between applications
    Needed: Modernize Integration
    Need to get existing applications to share data through modern integration
    techniques

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  50. 51
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    What’s being offered to users What users really want
    Needed: Reimagined User Interactions
    Data visualization requires integration and aggregation

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  51. @ShahidNShah
    www.netspective.com www.ShahidShah.com 52
    Needed: self-service applications
    Patient Scheduling
    for Services
    Secure Social Patient
    Relationship
    Management (PRM)
    Patient
    Communications,
    SMS, IM, E-mail,
    Voice, and Telehealth
    Patient Education,
    Calculators, Widgets,
    Content
    Management
    Blue Button, HL7,
    X.12, HIEs, EHR, and
    HealthVault
    Integration
    E-commerce, Ads,
    Subscriptions, and
    Activity-based Billing
    Accountable Care,
    Patient Care
    Continuity and
    Coordination
    Patient Family and
    Community
    Engagement
    Patient Consent,
    Permissions, and
    Disclosure
    Management

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  52. 53
    @ShahidNShah
    www.netspective.com www.ShahidShah.com
    Needed: diagnostic quality mHealth

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  53. @ShahidNShah
    www.netspective.com www.ShahidShah.com 54
    Needed: predictive analytics

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  54. @ShahidNShah
    www.netspective.com www.ShahidShah.com 55
    Needed: care team integration
    HEALTHCAR
    E PROVIDER
    PATIENT/
    CONSUMER
    HOSPITAL
    FAMILY
    CAREGIVER
    ALTERNATE
    SITE OF
    CARE
    Care Team
    CALL CENTERS AND
    REMOTE SUPPORT

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  55. @ShahidNShah
    www.netspective.com www.ShahidShah.com 56
    Needed: automated diagnostics

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  56. Thank You
    Visit
    http://www.netspective.com
    http://www.healthcareguy.com
    E-mail [email protected]ctive.com
    Follow @ShahidNShah
    Call 202-713-5409

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