The Mobile Healthcare Industry Growth, Opportunities, Innovation and Barriers

1. The Mobile Health Industry
Growth, Opportunities, Innovation and Barriers
By: Glenn Roland

2. 2
1800 Alexander Bell Drive, Suite 515
Reston, VA 20191
703-234-2360 Phone
703-234-1281 Fax
tdg@thedominiongrp.com
groland@thedominiongrp.com
I’m always interested in
connecting with like-minded
professionals on Linked IN.
I’m not that big on tweeting,
my life isn’t that interesting.
rockhealth.com
mobithinking.com
mhealthnews.com
I am a technology professional with expertise in international telecom, mobile
solutions and healthcare market research. I’m passionate about digital and mobile
health and the potential advances in technology have to dramatically change not
only the healthcare system in the U.S. but the global system of care as well.
Although I’m optimistic, I’m a realistic too.
I believe some of the innovations taking place in these areas are still narrowly
focused and lack the fundamentals that will contribute to broad adoption resulting
in lower healthcare costs and improved treatment outcomes. Like any emerging
technology, there’s too much emphasis on the technology itself instead of the
problem being solved. As such, there is a functional and “brand persona” gap
between the technologists building Mobile health solutions and the people who are
responsible for improving health and treatment outcomes.
Our current system of healthcare is complex, steeped in tradition and further
complicated by misinformation that makes it difficult to separate fact from fiction.
My goal is to offer some straightforward opinions on where I believe Mobile health
stands today along with other factors that are hindering wide-scale adoption and
limiting the potential of technology focused on improving the healthcare industry.
About this
Presentation:
About me:
Glenn Roland

3. 1 Mobile Health Market: What’s Driving Growth ?
2 Market Opportunities: What and Where are they?
3 Mobile/Digital Health Innovation
4 Barriers to Growth: What’s Hindering Market Adoption?
5 Summary: Slow Adoption but Huge Upside Potential
Agenda
Executive Summary – Mobile Health Definition
Suggested Links and Additional Information

4. Executive Summary

5. Mobile technology has risen at an explosive rate worldwide over the past decade achieving 6.8 billion mobile
subscriptions at the end of February 2013. Mobile penetration in developed nations is around 128 percent of the
population while it is estimated to be 89 percent penetration in developing nations. China surpassed the U.S. as the
top market for smartphone sales at the end of 2011. By the end of 2016, it is estimated that mobile subscriptions will
reach 8.5 billion worldwide. Adoption of mobile technology among healthcare providers has risen dramatically as well
during the same period. By the end of 2014, it is estimated that 9 out 10 healthcare professionals will use mobile
routinely as part of their job. The growth in mobile, the emergence of digital health and the continuing trend toward
patient empowerment are key factors behind the dramatic advances taking place in the mHealth market sector.
As a result of these trends, investment in mobile and digital health technology has risen to record levels with global
brands and private investors allocating significant financial resource to capitalize on innovations taking place in the
space. At the end of 2013, $1.97 billion had been invested in digital health start-ups. Funding was up 39% from 2012
and 119% compared to 2011. The trend is continuing in to 2014 with $700 million being invested in Q1 alone.
Advanced networks, improved device technology are creating new opportunities to deliver healthcare to remote
regions around the world. In addition, the convergence of mobile and digital are creating new ways of detecting,
preventing and managing some of the most complex and costly diseases facing the healthcare industry today.
Despite the opportunities, significant challenges still remain toward wide-scale adoption across the healthcare industry.
Poorly defined business models, target markets, brand persona, litigation concerns, privacy issues, vague regulations and
interoperability have hindered wide-scale adoption of mobile technology across the industry. Not only have these
challenges slowed market adoption, it has impeded progress toward healthcare cost reductions and improved treatment
outcomes. Although there is an explosion of healthcare related apps on the market, patients have been slow to adopt
because of they have not shown tangible benefits toward the goal of improved health. There is a clear functionality gap
between the technologists that are building apps and the patient populations that need and will use them.
Although there are challenges, it’s still early in the evolution of technologies that comprise the space. Each day
significant advances are made and it is becoming increasingly difficult to predict what effect they will have on the field
of medicine. Investors and technology professionals that approach this market like they have others in the past are
underestimating the tradition and complexity that make the healthcare industry so uniquely challenging. Technology
alone isn’t the answer. Healthcare is vast and fragmented characterized by diffuse decision making and competing
interests. New technology entrants should work with payers and care providers to create relevant mHealth services and
business models that work in order to create an ecosystem that achieves longevity and efficacy over time. The upside of
the market is huge as the advancements taking place could potentially transform the healthcare system forever.
Executive Summary

6. “Mobile Health or mHealth is defined as “medical and public health
practice supported by mobile devices, such as mobile phones, patient
monitoring devices, personal digital assistants (PDAs), and other
wireless devices”. - World Health Organization
Mobile Health Defined

7. “When I was in medical school,
the term ‘digital’ applied only
to rectal exams”
- Eric Topol
Mobile health also falls under
the broader category of Digital
Health……
Mobile Health Defined

8. Mobile Health Market
What’s Driving Growth?

9. 6.8 billion
Global Mobile Subscribers
worldwide
96%
Of the worlds
population
Of the World’s Population
128%
penetration
market penetration in
developed countries
Exponential growth in Developed Nations ..
China and India
lead in adoption
ad in mobile
adoption
Market Growth – Mobile Adoption
There are 14 countries in the world
with over a 100 Million subscriptions
ranging from China with 1.2 billion to
Mexico with 102.7 million….. adoption

10. 5.2 billion
subscribers in developing
countries
76.6%
of Global
Subscriptions
Of the World’s Population
89%
penetration
market
penetration in
developing
countries
Market Growth – Mobile Adoption
Rapid growth in developing nations too….
Africa has lowest
penetration at 63
percent
has lowest
Studies show developing nations more “receptive” to Mobile
Health solutions…

11. “Maybe that’s because they have no choice…”

12. 23%
15%
9%
4%4%
46%
% ADOPTION BY COUNTRY THRU 2016.
China
USA
India
Brazil
United Kingdom
Rest of World
Mobile Technology Growth – Estimated thru 2016
26.2%
11.6%
57.5%
44%
11.5% 18.1%
0.0%
20.0%
40.0%
60.0%
80.0%
CHINA USA INDIA BRAZIL UNITED
KINDOM
REST OF
WORLD
% Growth by Country 2011 thru 2016
CHINA:
% Growth – 26.2%
% Adoption – 23%
UNITED STATES:
% Growth – 11.6%
% Adoption – 14.5% UNITED KINGDOM:
% Growth – 11.5%
% Adoption – 3.6%
INDIA:
% Growth – 57.5%
% Adoption – 8.5%
BRAZIL:
% Growth – 44%
% Adoption – 4.4%
The remaining countries of the world are estimated to grow
approximately 18% to account for 46% of global mobile adoption.

13. “Technology was not robust enough, the physical
characteristics of mobile devices were limiting…so past
interactions relied heavily on text messaging……and, that
wasn’t very compelling.”
Mobile Health Market Growth – Other Factors
Advanced Networks and Security
Networks capable of delivering rich media and
protecting patient privacy……
“Advances in Mobile device
Characteristics”
Exponential Growth in the number of global
mobile subscribers…..
56%
of doctors now use
smartphones
Healthcare Reform and the Need to Lower Costs
The move toward digital content and improved access to
healthcare data….
6.8 billion at the
end of 2012
(ITU)
Active instead of “reactive”
healthcare….and a continuing
trend toward patient
empowerment”
31%
Or 1 in 3 of cell
phone owners have
used their phones to
look for health
information. 2 years
ago that percentage
was 17%.
52%
of smartphone owners
gather health
information on their
phones

14. 8.5 Billion Mobile Subscribers are estimated
worldwide by 2016

15. %99
%78
34%
28%
%100
%86
53%
%47
%100
94%
85%
%82
Computer Smartphone Tablet Digital Omnivore
%0
ONCOLOGY CARDIOLOGY PRIMARY CARE
(FP, GP, IM)
PSYCHIATRY NURSE
PRACTITIONER
PHYSICIAN
ASSISTANT
%20
%40
%60
80%
%100
59%
84%
54%
88%
48%
85%
44%
77%
40%
77%
30%
76%
2013 2014
EXPECTED BY JUNE 201420132012
9 out of 10
of healthcare
providers by 2014
will use
smartphones, and
nearly as many
will have adopted
tablets.Physicians becoming
“digital omnivores”
defined as clinicians
who use a tablet,
smartphone and
laptop/desktop
routinely in a
professional capacity
GROWTH BY YEAR
Source: Epocrates.com
GROWTH BY SPECIALTY
Market Growth – Healthcare Provider Adoption

16. FITNESS
Apps used for
health and
fitness
FITNESS
Inform patients
and act as
reference for
physicians
EDUCATION
Appointment
scheduling,
medication
alerts
REMINDERS
“In the moment”
interactions with
patients and
physicians
RESEARCH
Used to enhance
physician patient
interactions and
compliance
COMMUNICATION
Mobile
extensions to
enterprise
applications
ENTERPRISE
5
42
120
83
55 38
116 122
57
102
70 80 69
160
40
87
227
174
40
232
86 94 80
112
220
90
60
170
140
180
120
170
350
150 140
180
0
50
100
150
200
250
300
350
400
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2011 2012
REFERRALS DIAGNOSTICS
$890 Million $1.4 Billion $1.97 Billion
Used by patients
to find physicians
Apps intended to
aid in diagnosis
2013
Market Growth – Investment in Startups

17. The top deals of 2013 comprised 20% of all funding….
100Mil
70Mil
68Mil
65Mil
63Mil
50Mil
40Mil
43Mil
41Mil 40Mil
Market Growth – Investment in Startups

18. Market Growth – Investment by Brands

19. $1.97 billion invested in
Digital Health start-ups in
2013…..
…and nearly $ 700M in
funding poured into the
space in Q1 2014, paving
the way for the biggest
year ever for the industry.
– Rock Health

20. 62%
Of personal
bankruptcy filings each
year are related to
medical bills….
$2,080,779
Lowest paid CEO on the list of 10
largest “nonprofit” hospitals….
8X more
The cost we pay for one
Nexium pill versus what the
French pay…
50th
U.S infant mortality rank,
nine spots below China.
Needless to say, we are not getting “bang for the buck” for what we
spend on healthcare……
Source: “Bitter Pill: Why Medical Bills Are Killing Us”
Most expensive
country in the
world to have a
baby
Market Growth – Need to Lower Costs
What’s making America sick?

21. $210 Billion
Unnecessary Services
$130 Billion
Inefficient delivery of care
$190 Billion
EXCESS ADMINISTRATIVE COSTS
$55 Billion
P r e v e n t i o n f a i l u r e s
$75 Billion
FRAUD
$105 Billion
Inflated Prices
$750 Billion
is wasted every year..
Source: The Institute of Medicine
Market Growth – Need to Lower Costs
The Real Culprits….

22. $3,800 $4,522 $4,448 $4,118 $4,495 $5,099
$3,182
$5,669
$3,925
$5,643
$3,405
$8,508
8.9%
11.2% 10.9% 11.6%
11.3% 11.9%
10.3%
9.3%
9.5%
11.0%
9.4%
17.7%
Australia Canada Denmark France Germany Netherlands New Zealand Norway Sweden Switzerland United Kingdom United States
Of the countries that spend the most on healthcare, we spend by far the
highest per person and yet our life expectancy is the lowest in the group…
Highest cost per person and
highest percentage of GDP

23. Will Healthcare Reform (a.k.a, Obamacare) fix the
fundamental problems that are causing healthcare
costs to skyrocket in the U.S?
The answer is NO….
Source: The Brookings Institute
Market Growth – Need for Real Healthcare Reform

24.  Young adults can stay on their parents health policies until
the age of 26
 Children cannot be denied coverage for pre-existing conditions
 Over 5 years, $11 billion will be increased to community
health centers to serve more low-income and insured people
 Starting in 2014, insurance cannot restrict coverage or base
premiums on health status or gender
 Individuals will be required to carry health insurance or be
subject to a penalty
 Employers with 50 or more workers must offer health
benefits or pay a fine
Current Healthcare Reform – Key Provisions
The ACA was intended to expand coverage NOT reduce healthcare costs….
- The Brookings Institute

25. Market Growth – Need to Lower Costs
“Digital health may be the best and
most efficient way to get us out of our
healthcare mess with smart and cost-
effective solutions” - Eric Topol
…but the business model needs to
lower costs for the patient not just
increase profits for the insurance
company and/or healthcare
provider…
Its just common sense!!

26. “With increasing personal responsibility for
their own health, there is the real potential
to move toward a society focused on overall
wellness and preventive measures rather
than reactive measures”
Market Growth- Empowered Patients

27. Mobile Health Opportunities
What and Where are they?

28. 55%
18%
“Apps developed to date do
not fit well with the greatest
areas of spend in healthcare –
those patients facing multiple
chronic diseases and typically
over the age of 65.”
“They are the top healthcare spenders
but smartphone penetration is lowest
among this group.”
U.S Smartphone Adoption by Age
Aged 45-54 years
Over age 65
Market Opportunities – Older Sick People

29. Market Opportunities - Compliance…or, lack thereof….
“About half of all people
don’t take medications like
they are suppose to”
- Eric Topol

30. “ On avoidable healthcare costs in the U.S., it was demonstrated that
six disease areas (congestive heart failure, HIV, osteoporosis,
hypertension, diabetes and hypercholesterolemia) accounted for $105
billion in annual avoidable costs from non-compliance to medication
treatments”
$105 Billion
Market Opportunities - Cost of Non-Compliance
Yet, very few apps on the market focus on the problem of
Non-Compliance…..
Source: IMS Institute of Health Informatics

31. “Obesity alone costs the
United States more than
$150 billion in lost
productivity a year…
- The Atlantic
Market Opportunities – Obese People

32. TheUnitedStatesranksjustbelowatNo.2withanobesityrateof31.8%.
The U.S. ranks No. 2 as the most overweight country with an obesity rate of 31.8%.
“However, the majority of fitness and wellness apps are simply
informational with limited functionality…”
Market Opportunities – Obese People

33. $1 Million
The average cost of a severe heart attack
– CBS News
“The ability to diagnose an imminent
heart attack has long been
considered the holy grail of
cardiovascular medicine”
– Eric Topol
“We have sensors in our cars to detect oil pressure. What about sensors in
our body to detect artery fractures prior to having a heart attacks?
Market Opportunities – Heart/Chronic Disease

34. “It seems as though, if innovators are looking
to build healthcare solutions, the target
demographic is not the technophiles early-
adopters of the Social Network, who are
predominately middle-to upper-middle class
whites and Asians living on the coasts……..
Source: CDC
“Blacks have the highest rate of obesity, followed by
Mexican Americans, other Hispanics, and finally whites”
Non-Hispanic
Blacks
49.5%
All Hispanics
39.1%
Mexican
Americans
40.4%
Non-
Hispanic
Whites
34.3%
“Indeed, the early-adopter elite have more spending power and so many
web products are aligned with the mentality of “innovating for the elite”……
but, when it comes to healthcare innovation, this wisdom fails.”

35. Target and build Apps for Sick People!!!

36. Mobile/Digital Health Innovation

37. Mobile/Digital Health Innovation
“The Robot will see you now…..”

38. “30 million wearable health devices were shipped in 2012,
a 37% increase over 2011”
- Axial Exchange
Innovation – Wearable Health Technology

39. The emerging market for
“wearable technology” is not
an extension of the
smartphone “form factor”…it
is an emerging market on its
own…

40. “As a whole, the wearable technology market is
estimated to be $19 billion by 2018….”

41. “With sensing technologies and
monitoring in the palm of our
hand, we can make a Google map
of the human body “ - Eric Topol
In 2012, the FDA approved the first digital smart pill…..
Innovation – Sensing Technologies (a.k.a, smartpills)

42. “….highly individualized
treatments based on a persons
own unique genetic structure and
physiology …..“
Innovation – Genome Sequencing
“Affordable genome sequencing
combined with “big data“ will
create…..
Side note: On November 13, 2013 the FDA ordered 23andMe (a startup genetic
testing company) to stop marketing its products as the agency considered it to be in
violation of the Federal Food, Drug and Cosmetic Act (the FD&C Act).

43. “3D printing combined with stem cell advances and other
forms of human engineering could end human disability”

44. …I love my fitbit….it even
tells me how many
calories I burn when I
open the refrigerator
door…..
Anonymous Director at NIH
But, right now the focus is fitness trackers and other cool stuff..

45. and, everybody is building glasses and watches…

46. “True” innovation will look something like this…..
Artificial Pancreas
The first insulin
pump
“The Artificial Pancreas represents the most revolutionary
development in diabetes care since the discovery of insulin…”JDRF

47. Barriers to Growth
What’s Hindering Adoption?

48. “Despite rapid adoption among
healthcare providers to use mobile
technology, their willingness to
prescribe mobile health apps for
their patients is lagging….
What’s hindering wide-scale
market adoption…??
Barriers to Growth

49. “mHealth has the potential to
revolutionize the healthcare
industry yet organizations are
still uncertain how to capitalize
on the technology.
- PWC Health
Barriers to Growth – The Business Model

50. “How many businesses do you know that want to cut their
revenue in half? That’s why the healthcare system won’t change
the healthcare system.”
- Rick Scott, Governor of Florida

51. Barriers to Growth – Brand Persona
While digital health professes to
be, in part, about disease
management, the current “brand
persona” seems to be more along
the lines of fashion and the hip
perspective of the ripped
runner….”

52. “And there lies the rub–a disconnect from real patients like the
prototypical 60 year-old man with diabetes and
hypertension. He’s still wearing a Timex…”
TECHNOLOGY
GURU
TARGET AUDIENCE

53. “Homogenous teams of
innovators make products for
people just like them. And that’s
a problem”
- The Atlantic
Trust me, I’m a
Doctor….

54. LEGAL: Any implications that make me legally liable?
REIMBURSEMENT: Does patient pay or will insurance?
SECURITY: Is the app secure and HIPAA compliant?
CHOICE/RATINGS: Most relevant/trustworthy apps for patients.
INFRASTRUCTURE: How do I recommend/prescribe an app?
REGULATIONS: Do I need FDA approval to prescribe?
Source: IMS Health
Barriers to Growth – Physician Adoption
The main hurdles to wide-scale physician adoption:

55. “Patients currently face a
dizzying array of
healthcare apps to choose
from, with little guidance
on quality or support from
their doctors”
- IMS Health

56. “Its very easy from the technology
point of view to say that this is the
future but [ those saying so] don’t
take in to account the traditions
and complexity of the healthcare
system…..”

57. So, I have all of this incredible information literally
24/7 – not just from my prescription medical
devices – but also from my fitbit, from a Bluetooth
blood pressure monitor, from a digital scale and
from a variety of different Iphone apps that are
used for nutrition tracking etc….
None of them connect…….
-Anna McCollister-Slipp
A type 1 diabetes sufferer
Barriers to Adoption - Data Interoperability

58. Everybody seems to think that its OK
to wait another two to three years for
this process to play itself out…
But, for those of us who live with data
dysfunction two or three years may be
the difference between going blind or
dying in our sleep…..
-Anna McCollister-Slipp
A type 1 diabetes sufferer
Barriers to Growth - Data Interoperability

59. In 2012, the FDA approved the first digital smart pill…..
“There are an estimated 90,000+
health-related mobile apps on the
market today……
Barriers to Growth – Federal Regulations
…..since 1997, the Food and Drug
Administration (FDA) has approved 103
of them…. - Mobihealthnews

60. FDA definition:…an instrument, apparatus, implement,
machine, contrivance, implant, or in vitro that is
intended for use in the diagnosis of disease or other
conditions, or in the cure, mitigation, treatment, or
prevention of disease in man, or intended to affect the
structure or any other function of the body……
July 2011
Draft guidance
released
2012 2013
Source: FDA.gov
2011 2013
First Mobile App
approved
Workgroup
formed to
identify
regulatory
framework
FDA tells
congress final
guidance by Oct
2013
FDA launches
first inquiry for
an App
Final Guidelines
released
Sept 2013
Coalition asks
for a delay
Health IT
Committee asks
to expedite
Feb2011
July2011
July2012
Mar2013
May 2013
June 2013
June 2013
FDA Scope:
Mobile Medical Apps
Enforcement Discretion
Non-
Regulated

61. Barriers to Growth - Mobile Security
“Porn makes up 1% of mobile viewing
activity but accounts for 16% of
malicious attacks…..
“Mobile directed to web-based ads
accounts for 12% of requested content
and 20% of attacks…..
“Despite a dramatic rise in malware focused on mobile devices, only a
fraction of smartphones and tablets are protected by security software”
- Juniper Research
Source: Blue Coat

62. “Dumbass patents are crushing
small business” - Mark Cuban
…patent assertion entities (also called patent trolls) do not manufacture goods
themselves but profit from licensing agreements that they often enforce via the
threat of litigation…… - PatentFreedom.
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
655 1,133
1,079
2,140
2,125
2,440
4,048
5,379
4,229
4,400
Patient-assertion Entity involvement in Patent Litigation
over time…
Although legislation (Leahy-
Smith America Invents Act (AIA))
was enacted in 2011 to curb the
activities of these entities, they
still pose a significant risk to the
emerging market for innovation
in the Digital Health/MHealth
space.
American invents act
passed by Congress
Number of patent lawsuits

63. About 66% of all
handsets sold globally
in 2013 were NOT
smartphones; they were
junk phones selling for
about $200
At the end of 2013,
81% of phones sold
worldwide were
NOT Apple
Source: IDC
Barriers to Growth - Hype
If you plan to go Global, build your app with the lowest
common denominator in mind….
Smartphones and Apple are Overhyped

64. Lots of apps, lots of hype, but slow adoption……
Apps will generate $25 Billion in revenue in 2013
$25, 000,000,000
More than 1.5 Million apps available in
the Apple app store and Google play…..
…of the apps that are downloaded 1 in
4 are abandoned after the initial use….

65. 40,000+ healthcare apps available for
download from the U.S. Apple iTunes store….
Most in the overall wellness category, with
diet and exercise apps accounting for
the majority….
50% achieve fewer than 500 downloads.
Conversely, 5 apps account for 15% of all
downloads in the healthcare category…..
Lots of apps, lots of hype, but slow adoption……

66. “Just because I have a fitness app on my phone doesn’t make
me an athlete” – Dr. Harry Greenspun

67. “People use Apps that enhance their lives”
“Health Apps need to evolve from “party trick” to real
solutions that actually improve health….

68. Summary
Slow Wide-scale Adoption but
Huge Upside Potential

69. Summary
• Explosive growth in mobile and digital health is being driven by rapid growth of
mobile technology worldwide:
− As of February 2013, there are an estimated 6.8 billion mobile subscribers worldwide.
− 6.8 billion mobile subscribers is equivalent to 96% of the world population.
− Mobile subscribers in developed nations is rapidly reaching saturation.
− Penetration in developed nations is 128% and 89% in developing nations.
• The rapid growth of mobile worldwide is a key factor behind the rapid adoption of
mobile and digital health among healthcare providers.
− By 2014, 9 out 10 healthcare providers will use smartphones.
− Nearly as many will have adopted tablets as growth among physicians is rising rapidly
− Physicians becoming “digital omnivores” defined as those who use a tablet,
smartphone and a laptop/desktop routinely in a professional capacity.

70. Summary
• Explosive growth in mobile adoption and digital technology across the industry is
driving exponential investment in the healthcare space.
− At the end of 2013, $1.97 billion had been invested in digital startups.
− Funding was up 39% from 2011 and a 119% compared to 2011.
− In Q1 2014, investment topped $1.35 billion according to a report by Startup Health.
− Since 2010, funding in digital health is $7.4 billion with 1,393 deals.
• According to Startup Health, the top growth markets for investment in 2013 were
the following:
− Patient Engagement – 410%
− Sensors and Vital Signs Monitoring – 243%
− Personal Health – 135%
− Navigating the Health System – 82%
− Big Data Analytics – 102%

71. Summary
• Other factors effecting the adoption of mobile and digital health solutions include:
−A continuing trend toward patient empowerment.
−An increased focus on healthcare reform and the need to lower costs.
−The acceleration of an aging population and increased incidence of chronic disease.
−Rapid advances in the underlying technology that supports innovation in these areas.
−An increased focus on entrepreneurship across the health technology sector.
• The growth in adoption and investment have created a wide-range of opportunities
across healthcare for innovations that improve health and treatment outcomes.
− Increased focus on providing healthcare to remote regions globally have created
opportunities with large carriers, solution providers and philanthropic organizations.
− Opportunities exist in technical innovation, investment, legal, security and
entrepreneurship around new solutions focused on the healthcare market.
− Geographically, the most active regions for digital health funding were in Northern
California and the Northeast corridor of the United States.

72. Summary
• Although tremendous opportunities exist for mobile and digital health over the
next decade, there are still significant barriers hindering adoption including:
− The complexity and tradition of the current medical system in the U.S.
− Poorly defined business models that don’t provide adequate incentive to innovators.
− Too much emphasis on consumer markets instead solutions for sick people.
− An economic model that does not pass on cost savings to the patient.
− Vague federal regulations that do not promote rapid “go to market” innovation.
− A legal system that discourages providers from implementing new treatments.
− Poorly defined guidelines for prescribing and paying for innovative treatments.
− A “brand persona” that promotes health and wellness devices as a “party trick” instead
of technology that will actually improve health.
− As the market grows, the threat of “patent assertion entities” that will stifle innovation.

73. There has literally never been a better time in history to
be an innovator or entrepreneur in the healthcare space
– Todd Park, Startup Health

74. Suggested Links
and Additional Information

75. 75
1800 Alexander Bell Drive, Suite 515
Reston, VA 20191
703-234-2360 Phone
703-234-1281 Fax
tdg@thedominiongrp.com
groland@thedominiongrp.com
I’m always interested in
connecting with like-minded
professionals on Linked IN.
I’m not that big on tweeting,
my life isn’t that interesting.
5 USEFUL LINKS FOR MORE INFORMATION:
rockhealth.com
wirelesshealth.wordpress.com
mobithinking.com
mobihealthnews.com
mhealthnews.com
In December at the Gaylord
National Resort and
Convention Center.