Medical Device Connectivity with a BaaS is a Disruptive Innovation

This deck was presented at the 4th Annual Medical Device Connectivity Conference (MDCC4) where Shahid Shah, CEO of Netspective Communications, described how creating a data-centric Backend-as-a-Service (BaaS) is good business and can generate new revenue for medical device vendors.

Topics covered:
* Marketplace and industry challenges for device vendors
* Why connectivity is good business
* Why connectivity is a disruptive innovation
* What is a “Back-end as a Service” (BaaS)?
* There’s nothing special about health IT data that justifies complex, expensive, or special technology.

Key takeaways:
* Hardware, sensors, and software are transient businesses but data lives forever. He who owns, integrates, and uses data wins in the end.
* Data from devices is too important and specialized to be left to software vendors, managed service providers, and system integrators.
* Implement a data-centric hardware and BaaS technology strategy

Transcript

1. Med Device Connectivity with a
   BaaS is a Disruptive Innovation
   Creating a data-centric Backend-as-a-Service (BaaS) is
   good business and can generate new revenue
   By Shahid N. Shah, CEO
   

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2. NETSPECTIVE
   www.netspective.com 2
   Who is Shahid?
   • 20+ years of embedded systems, software
   engineering and multi-discipline complex IT
   implementations (civilian government,
   defense, health, finance, insurance)
   • 12+ years specifically in healthcare IT and
   medical devices experience
   • Entrepreneur and founder of multiple
   startups
   I blog at http://healthcareguy.com
   Author of Chapter 13, “You’re
   the CIO of your Own Office”
   

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3. NETSPECTIVE
   www.netspective.com 3
   Topics
   • Marketplace and industry challenges
   for device vendors
   • Why connectivity is good business
   • Why connectivity is a disruptive
   innovation
   • What is a “Back-end as a Service”
   (BaaS)?
   • There’s nothing special about health
   IT data that justifies complex,
   expensive, or special technology.
   Key takeaways
   • Hardware, sensors, and software are
   transient businesses but data lives
   forever. He who owns, integrates,
   and uses data wins in the end.
   • Data from devices is too important
   and specialized to be left to
   software vendors, managed service
   providers, and system integrators.
   • Implement a data-centric hardware
   and BaaS technology strategy
   What you’ll learn in this briefing
   Data from devices is too important to be left to others
   

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4. NETSPECTIVE
   www.netspective.com 4
   Why connectivity is good business
   Looming 2.3% excise
   tax provision of the
   Affordable Care Act
   (ACA)
   Longer product
   development
   timelines caused by
   increased regulations
   Higher customer
   expectations due to
   consumerization of
   devices
   Lower margins as a
   reaction to
   commodity
   competition
   More complex and
   longer sales cycles as
   devices need IT
   approval
   Raising money for
   hardware is tougher
   than software
   

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5. NETSPECTIVE
   www.netspective.com 5
   Customers trapped by
   their EHR vendors are
   begging for a way out
   Device vendors aren’t
   benefiting from industry
   trends but can if they’re
   smart about it
   Customer base has
   shifted from clinical to
   clinical + IT + system
   integration
   Clinical customer goals
   have shifted from basic
   automation to advanced
   process optimizations
   Device manufacturer’s
   access to regulated IT
   and system integration
   skills is growing
   You can use OSS to disrupt health IT
   

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6. NETSPECTIVE
   www.netspective.com 6
   Healthcare industry / market trends
   PPACA
   “Affordable Care
   Act”
   ACO
   “Accountable
   Care Org”
   PCMH
   “Medical
   Home”
   MU
   “Meaningful Use”
   Health
   Home
   mHealth
   PCPCC
   “Patient Centered
   Care”
   Major market and regulatory trends that are causing customers and competitors to shift
   You must learn and be able to talk to customers about all these terms
   

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7. NETSPECTIVE
   www.netspective.com 7
   Why care about MU?
   If you’re not talking about MU you’ll find it harder to get in the door
   2011 2013 2015
   “Enable significant and measurable improvements in population
   health through a transformed delivery system.”
   MU Stage 1 MU Stage 2 MU Stage 3
   Direct Impact:
   Device integration
   proposed
   No Impact
   Indirect Impact:
   Start planning for
   MU
   

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8. NETSPECTIVE
   www.netspective.com 8
   Implications of healthcare trends
   PPACA ACO
   MU PCMH
   Health
   Home
   mHealth
   DATA
   Evidence Based Medicine
   Comparative Effectiveness
   Software
   Regulated IT and Systems
   Integration Services
   

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9. NETSPECTIVE
   www.netspective.com 9
   Don’t give up data to others without a fight
   Software vendors, systems integrators, and others don’t have your best interest in mind
   Cloud
   Services
   Management
   Dashboards
   Data Transformation (ESB, HL7)
   BaaS Gateway
   (DDS, XMPP
   , ESB)
   Enterprise Data
   RCM, Financials,
   EHRs
   Device Inventory
   Cross Device
   App Workflows
   Alarm
   Notifications
   Patient Context
   Monitoring
   Device
   Teaming
   Device
   Management
   Report
   Generation
   HIT
   Integration
   Remote
   Surveillance
   Device
   Data
   SSL VPN
   Patient
   Self-Management
   Platforms
   Device Utilization
   Device reimbursement
   Device profitability
   

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10. NETSPECTIVE
    www.netspective.com 10
    New revenue centers in software and services
    0%
    20%
    40%
    60%
    80%
    100%
    Hardware Software Services
    Up
    Down
    Flat
    Ranking
    YoY
    Build the right roadmap so that you don’t leave new revenue on the table
    2 year ranking comparison of Top 30 HIT firms by offering type. Pure play firms are failing behind
    Source - The 2012 Healthcare Informatics 100 ranks the leading 100 vendors by revenues derived from healthcare IT products and services earned in the U.S.
    Focus on
    Services and
    Solutions is
    the way to go
    % of all
    firms by
    offering
    

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11. NETSPECTIVE
    www.netspective.com 11
    How do you get started?
    1. Use “integrated platform” to create “smarter” alarms by using
    multiple data sources for earlier detection of events and more
    meaningful alarms by improving alarm sensitivity and specificity.
    (e.g. detect repeat small O2
    desats that would not currently
    trigger a conventional alarm). Crowd-source this activity.
    2. Set “wider” alarm limits to decrease nuisance and false alarms
    on each monitor/device. (e.g. SpO2
    alarm at 80%). This
    maintains “device level” alarms.
    3. Collect clinical and alarm performance data to develop
    algorithms and evaluate system performance. Document gaps
    in current data sources and device capabilities.
    4. Stop/adjust IV pump based on above.
    Consider Dr. Julian Goldman’s proposal on improving the quality of clinical alarms
    

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12. NETSPECTIVE
    www.netspective.com 12
    Data-centric device architecture
    Extensibility and adaptability will be key in a data-centric world
    Device Components 3rd Party Plugins
    App
    #1
    App
    #2
    Security and Management Layer
    Device OS
    (QNX, Linux, Windows)
    Sensors Storage Display Plugins
    Web Server, IM Client
    Connectivity Layer (DDS, HTTP, XMPP)
    • Presence
    • Messaging
    • Registration
    • JDBC, Query
    Plugin Container
    Event Architecture
    Location
    Aware
    1 2
    3
    4
    5
    6
    7
    

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13. NETSPECTIVE
    www.netspective.com 13
    Ensure your devices fit in a modern IT architecture
    Create a Back-end as a Service (BaaS) for your devices
    Cloud
    Services
    Management
    Dashboards
    Data Transformation (ESB, HL7)
    BaaS Gateway
    (DDS, XMPP
    , ESB)
    Enterprise Data
    RCM, Financials,
    EHRs
    Inventory
    Cross Device
    App Workflows
    Alarm
    Notifications
    Patient Context
    Monitoring
    Device
    Teaming
    Device
    Management
    Report
    Generation
    HIT
    Integration
    Remote
    Surveillance
    Device
    Data
    SSL VPN
    Patient
    Self-Management
    Platforms
    Device Utilization
    Device reimbursement
    Device profitability
    

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14. Thank You
    Visit
    http://www.netspective.com
    http://www.healthcareguy.com
    E-mail shahid.shah@netspective.com
    Follow @ShahidNShah
    Call 202-713-5409
    

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