digital disruption in healthcare - mack institute for ... · digital disruption in healthcare. 2...
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3. Growing evidence of impact of wearables
Source: Vitality
Increasing uptake of wearables at CorporatesVitality incentives promote usage
Wearables 0%
100%
1 2 3 4 5 6 7 8 9 10 11 1213 14 15 16
Relative use of wearable devices after activation (months)
Non-Vitality members Vitality members
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Healthcare | “State of the nation”
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The cost of progress
US inflation, 1978 =100
1978 90 2000 12
0
100
250
500
750
1,000
1,250College tuition
Medical care
Consumer prices
Average wage
Source: Thomson Reuters: “The Cost Disease”, by William Baumol, 2012: The Economist
Acquired by
Aetna
Acquired by
Anthem
Pre-acquisitions Post acquisitions
$131bn
46 m customers
$109bn
54 m customers
$107bn
38 m customers
Industry consolidationRising healthcare costs
35
49
58
74
131
Revenue($bn,2014)
15
14
24
39
46
Members(m)
Pla
ye
rs s
eek t
o a
gg
reg
ate
7
Consumer health | “State of the nation”
7
Industry response: Proliferation
Source: Intel
Always MooreNumber of transistors in CPU*
Log scale
1960 70 80 90 2000 10 14
1
102
104
106
108
1010
*Central processing unit
Movement Heart Rate Sleep Temperature RespirationSkin
Conductance
Brain
ActivityHydration Posture Glucose
Oxygen
LevelHeart Rate Variability
Muscle
Activity
Blood
Pressure
Eye
TrackingIngestion
Costs dropping dramatically
Pla
yers
seek t
o
pers
on
alise
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These “two cities” frame Corporate Wellness today
8
Healthcare
Costs go down due to improvements in technology and
production methods
Costs go up due to new technology, medicine and scarcity of
skills
Consumer Health
Corporate Wellness today
Industry players seek to personalize their technologies
(‘quantified self’)Industry players seek to aggregate and scale
Industry is undergoing proliferationIndustry is therefore undergoing consolidation across providers
and payors
People continue to live longer, but in poorer health – chronic disease levels continue to rise, despite increases in life expectancy