Wal-Mart as healthcare innovator?

June 18, 2009

BusinessWeek is doing a respectable job trying to find a 21st century professional journalism model.  For example, all the writers and editors are on Twitter and they have a social media site called BusinessExchange.  BX is pretty slow and clunky but kudos for the effort (you can check out my experiment with it in the topic on Comparative Effectiveness).  In addition, BusinessWeek.com has been active with user-generated content, asking for story ideas and following through with great frequency on published articles.

I recommended one on Wal-Mart laying foundation stones for an interesting new health care delivery model.  Here was my submission:

Look at how Wal-Mart is becoming the new health care company of the 21st century. With initiatives to offer electronic medical record and pharmacy services to employers, inexpensive medications to consumers and instore/onsite clinical care to both companies and individuals, Wal-Mart is exploring a very new medical business model. It is one that relies not on selling health products and services as standalone things, but rather using them as essentially loss leaders to sell something else–groceries, toys, electronics, clothes etc. Just like Apple re-imagined what a song was to sell iPods and iPhones, Wal-Mart is re-imagining health products to sell consumer goods. And they have the distribution channel, market power and information technology to pull it off. Health providers, pharmacy benefit managers and pharmaceutical companies should take note.

BusinessWeek writer Greg Spielberg picked up the story idea and today published an article titled Wal-Mart Medical Clinics Stumble. A different theme than I had in mind, but very interesting nonetheless.  And it became the most read and emailed story of the day!  Spielberg reports:

Wal-Mart has more than 1 million potential clients among its employees alone, and it is betting that the combination of rising health-care costs and consistent traffic from budget-minded shoppers will prove successful. However, the enterprise has been marked by early stumbles and is taking longer than expected to develop. Industry experts and clinic operators cite brand confusion, advertising problems, broken partnerships, and the recession as factors in Wal-Mart’s halting foray in the field.

The stumbles reported are a reminder that all things new go through a challenge phase. However, the pieces of the puzzle for putting together a new health care delivery model are at Wal-Mart and appear to be a part of its strategy. Once they work out the kinks, this kind of alternative drug/care/services model could be one of the answers in health care reform.


Wireless, Health and the FDA

February 23, 2009

BusinessWeek published an article today on the current and future use of wireless technology in medicine.  The article begins:

You can get wireless data access just about everywhere these days, from your bathtub to Barcelona’s city streets, so why not in your body? Well, soon you will-or at least, that’s the vision of a handful of emerging biotech companies. As the Boomer generation ages, companies eyeing the overburdened U.S. medical systems see opportunities to extend the reach of existing medical care, free up health resources for those who need them most, and encourage long-term health and fitness using technology.

Profiles are included for CardioNet (mobile cardiac monitoring), Triage Wireless iphone_health(wearable physiologic monitoring), Proteus Biomedical (embedded sensors in pharmaceuticals and medical devices) and Apple (iPhone sensors and applications for mobile health).

Of note in the article is a reference to the FDA recently hinting that it may consider regulating iPhone and other mobile health applications.  The source is MobiHealthNews, which detailed a session including the FDA’s Don Witters at the TEPR+ health IT conference earlier this month.  Mr. Witters was asked about the iPhone and whether or not it and other mobile health applications would be considered regulated devices.  MobiHealthNews writes:

At times during the session, the tension in the room was palpable. Witters declared that the FDA has jurisdiction over any device that diagnoses, treats or prevents a disease. This led to one question from the audience: “So an MRI app for an iPhone is a wireless medical device? Or a patient reporting their blood glucose level by text messaging their physician who then adjusts their insulin dosage with a return SMS?” Witters initial response was “No, I think that’s getting into information exchange-that’s different.” After the questioner thanked him and said that people probably just breathed a sigh of relief, Witters doubled-back. “Well, I think the real answer is ‘We don’t know.’ That’s why I’m here today to begin this dialog and see where [the FDA] fits.” So, the FDA could really be interested in inspecting iPhones for use as “wireless medical devices”? You bet.

The summary of Mr. Witter’s remarks goes on to say that his goal was to start a dialog to listen, discuss and begin to answer some of these important questions.  Let’s give high marks to the FDA for reaching out to begin a conversation with the mobile health industry and consumers.  There is a lot to discuss, as this Q&A attests.  Regulatory authorities clearly need to play an important role in defining the boundaries of what is inside and outside their domains, and mobile health and wellness experts need to advocate for definitions that maintain innovation and the rapid growth of this field for consumers and patients.


From Health 2.0 to Health 3.0 with In-Body Sensing

February 19, 2009

Medtronic last week launched a new medical device in the U.S. to monitor heart beats and detect atrial fibrillation, or abnormal heart rhythms.  Called Reveal XT, it is a small device roughly the size of a memory stick, and is placed just under the skin in a brief outpatient procedure.  This is the most recent example of a fast moving and important

Medtronic's Reveal XT

Medtronic's Reveal XT

new category of medical technology: “inserted” (in contrast to implanted) sensors that can be administered and removed quickly and are designed to continuously monitor physiology, diagnose disease and maintain health.

One day you will have one.  We all will, because this kind of in-body (but non-invasive) continuous health monitoring will play an important role in advancing us from Health 2.0 (individual-focused online health empowerment and collaboration) to what we can call Health 3.0 (direct, automated connection between an individual’s sensed physiology and his Health 2.0 tools and communities).  More on that sweeping prediction in a bit.

St. Jude Medical, like Medtronic one of the largest global medical device companies, launched its own insertable diagnostic device six months ago.  St. Jude’s Confirm product is also a cardiac monitor.  It measures unexplained syncope (sudden fainting and dizziness) caused by electrical disturbances in the heart.  Medtronic’s Reveal XT is a product line extension based on an earlier device, Reveal DX, which is also approved for diagnosing syncope and measuring cardiac rhythm abnormalities.

The Reveal and Confirm technologies have a number of other similarities.  Both have a wireless

St. Jude's Confirm

St. Jude's Confirm

link from under the skin to the outside world.  This brings an individual’s monitored health information to a database and care management system (called CareLink by Medtronic and Merlin by St. Jude) that is used by physicians to receive patient-specific reports and analyze the diagnostic information.  Both devices can currently be inserted for up to a 3 year period.

These early applications of insertable monitoring devices are important.  Millions of people suffer from atrial fibrillation, which can lead to stroke, and unexplained syncope.  However, these are first generation, niche applications that do not do justice to the broad potential such technologies represent.  Having a sophisticated computer-based sensor device under the skin and limiting it to watching heart beats is like having an iPhone and using it only to make calls….or like going to the App Store with that iPhone, and feeling content with just downloading Pong.

Future product development for subcutaneous sensors will prepare them for broad health and wellness usage along three dimensions.  First, the evolution from implantables to insertables will evolve yet again to tiny but powerful “injectable” devices.  The requisite miniaturization know-how exists today.   This will break down the adoption barrier for even simple outpatient surgical procedures and for devices that can be felt and seen under the skin.  Second, the breadth of sensed physiologic parameters and device functions will increase to make the products more valuable and desirable, from additional body systems and molecular profile monitoring to medication and drug response tracking to activity and fall detection to direct mobile phone linkage to personal health record storage.  Third, the access to sensor information will expand from its current focus on providing the physician with patient data to providing the individual herself with the sensed data for whatever use she chooses: use it as the basis for personal health decisions, auto-upload it into her favorite online patient and wellness community sites, set up family and other caregiver support systems, etc.

As the form factor, features and openness of these technologies increase in this manner, we will transition from the current, limited focus on diagnosis to one of disease management.  Disease management will then transition to wellness management.  And that is when we will all have one.  Just as most of us could not now imagine a life without the mobile phone in our pocket, in the future there may come a day when we can’t imagine not having the ultimate mobile computer device under our skin.  And then we will be in a Health 3.0 world.

Note: others have used the term Health 3.0 to capture the future link of commerce to health content and community.  We believe this definition heads in the wrong direction, taking us away from a patient and health-outcomes centric definition.


Innovating beyond the drug

February 12, 2009

A study published this week in the Archives of Internal Medicine finds that individuals with high cholesterol levels who faithfully take statin drugs have a 45% lower death rate than those who neglect to take these medicines.  It is a massive study of almost 230,000 people over four to five years, and shows this dramatic effect in both people with existing heart disease and those at risk but with no pre-existing coronary event.

Therapy on my mind

Therapy on my mind

This demonstrates yet again that adherence and persistence to pharmaceutical therapy is essential to health outcomes.  Or in the words of former U.S. surgeon general Dr. C. Everett Koop, “Drugs don’t work in patients who don’t take them.”

But there has also been some interesting commentary about the findings, challenging that the statins were responsible for the health benefits observed.  The Coronary Drug Project of the 1970s, for example, showed a benefit from faithfully taking a placebo that was almost as high as consistently taking active lipid-lowering drugs.  What’s going on here?  An incorrect conclusion to draw would be that the right mindset alone is the key to conquering disease.  It isn’t.  Or that drugs do not play a central role in the battle.  They do.

Dr. Mark Hlatky, a professor of medicine and health research and policy at Stanford University, has the insight:  ”It is definitely a very important observation that people who take their drugs always do better than people who don’t, even if the drug is not terribly effective, because they tend to take care of themselves better in a lot of ways.”

Engagement in one area of positive health decision making (drug adherence) has a multiplier effect in healthy behavior overall (diet, exercise, other lifestyle choices).  So if pharmaceutical products are effective, even modestly so, and the problem of medication adherence can be solved, this can have a profound effect by making pharmaceutical therapy the catalyst for better wellness management and disease prevention.  The so called “placebo effect” could therefore be thought about and used in a positive way, by harnessing the beneficial effects of attitude and expectations toward therapy in the delivery and support of effective pharmaceuticals.  With this as a guiding principle, pharmaceutical developers should focus not just on innovation to make new drugs, but on innovation around and beyond the drugs they already have.

Few companies are doing this today, but it is the future of the pharmaceutical industry.  It will require developing not just individual drugs, but “pharmaceutical systems” that support and empower consumers to take their medicines correctly and physicians to personalize the drug regimens they prescribe.  It will also require integrating sensor and information-based tools about drug taking behavior and physiologic response into pharmaceutical products, and making consumer communications and support-based services a part of the pharmaceutical business model.



ePatients: consumers shaping health care

January 29, 2009

The e-Patients.net site has an excellent review of a white paper on how use by patients of online and health information-based tools is transforming health care and the physician/patient relationship. You can download the white paper (”e-patients: how they can help us heal healthcare”) at e-Patients.net and also in the Intelligent Medicine Blog information box.

Here is a summary of the major conclusions, as summarized by e-patients.net:

1. e-patients have become valuable contributors, and providers should recognize them as such.
“When clinicians acknowledge and support their patients’ role in self-management … they exhibit fewer symptoms, demonstrate better outcomes, and require less professional care.”

2. The art of empowering patients is trickier than we thought.
“We now know that empowering patients requires a change in their level of engagement, and in the absence of such changes, clinician-provided [information] has few, if any, positive effects.”

3. We have underestimated patients’ ability to provide useful online resources.
Fabulous story of the “best of the best” web sites for mental health, as determined by a doctor in that field, without knowing who runs them. Of the sixteen sites, it turned out that 10 were produced by patients, 5 by professionals, and 1 by a bunch of artists and researchers at Xerox PARC!

4. We have overestimated the hazards of imperfect online health information.
This one’s an eye-opener: in four years of looking for “death by googling,” even with a fifty-euro bounty for each reported death(!), researchers found only one possible case.

  • “[But] the Institute of Medicine estimates the number of hospital deaths due to medical errors at 44,000 to 98,000 annually” … [and other researchers suggest more than twice as many]
  • We can only conclude, tentatively, that adopting the traditional passive patient role … may be considerably more dangerous than attempting to learn about one’s medical condition on the Internet.” (emphasis added)

5. Whenever possible, healthcare should take place on the patient’s turf. (Don’t create a new platform they have to visit – take yourself wherever they’re already meeting online.)

6. Clinicians can no longer go it alone.

  • Another eye-popper: “Over the past century, medical information has increased exponentially … but the capacity of the human brain has not. As Donald Lindberge, director of the National Library of Medicine, explains ‘If I read and memorized two medical journal articles every night, by the end of a year I’d be 400 years behind.”
  • In contrast, when you or I have a desperate medical condition, we have all the time in the world to go deep and do every bit of research we can get our hands on. Think about that. What you expect of your doctor may shift – same for your interest in “participatory medicine.”

7. The most effective way to improve healthcare is to make it more collaborative.
“We cannot simply replace the old physician-centered model with a new patient-centered model… We must develop a new collaborative model that draws on the strengths of both systems. In the chapters that follow, we offer more suggestions on how we might accomplish this.”


Pfizer, J&J and the right path for innovation

January 27, 2009

We have seen this before.  Pfizer’s bid to buy Wyeth for more than $68 billion is another example of a giant pharmaceutical company seeking to get bigger as a solution to looming generic competition and an unproductive R&D pipeline.  The strategy has not been successful for Pfizer in the past.  The company has undertaken a number of mega-mergers over the last 10 years, including Warner-Lambert for $120 billion in 2000 and Pharmacia for $58 billion in 2003.

Bigger Giant, Same Clothes

Bigger Giant, Same Clothes

These deals bought Pfizer the blockbuster drugs Lipitor, Celebrex and Bextra, but the impact on innovation has been striking.  During this same period, Pfizer invested $60 billion in R&D, but launched only one new product with revenues exceeding $1 billion.

While most major pharmaceutical companies are struggling with these issues, some are exploring a very different path to innovation in response.  Johnson & Johnson, for example, recently created the Office of Strategy and Growth to develop major businesses that enter new markets and leverage the drug, device and consumer product diversity and strengths of the company.  The direction of this strategy has become clear over the last few months, and it shows J&J moving quickly and aggressively into information-based, patient-centric medicine and wellness management.  In October of 2008, J&J launched a Wellness and Prevention Platform with the acquisition of HealthMedia, a leading behavioral medicine company that offers web-based, automated coaching for wellness, disease management and health interventions. (Note the impact technologies like this can have on patient outcomes in our Connecting with Connected Health post).   This was followed in December with the acquistion of the Human Performance Institute, a science-based health, productivity and performance training company.  J&J spoke of both acquisitions as being central to its growing focus on the health and wellness management needs of large employers, health plans and governments.  The company clearly sees a multi-billion dollar opportunity in providing solutions for these entities that are on the front lines of dealing with ever-increasing health care costs.

J&J is also positioned to link the new wellness and prevention platform to its portfolio of medical devices and pharmaceutical products, creating treatment systems that could redefine standards of care and outcomes…and have the potential for billions more in new and differentiated products.  Think about its LifeScan blood glucose meters linked to HealthMedia virtual diabetes education coaches on a diabetic consumer’s mobile phone, for example.  Or patients implanted with its Cypher heart stent receiving drug adherence monitoring and automated coaching for their anti-clotting therapy and recommended diet and exercise regimen, leading to an integrated system of device, drug and behavioral medicine.  This approach, focusing on new paths to innovation and growth and not just more of the same, can make even giants dance.


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