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Transforming Healthcare: 
The Promise of Innovation 
John L. Haughom, MD 
December 2014 
© 2014 Health Catalyst 
www.healthcatalyst.com Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 
© 2014 Health Catalyst 
www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m
Healthcare: The Way It Should Be 
Part One – Forces Driving Transformation 
• Chapter One – Forces Defining and Shaping 
the Current State of U.S. Healthcare 
• Chapter Two – Present and Future 
Challenges Facing U.S. Healthcare 
Part Two – Laying the Foundation for 
Improvement and Sustainable Change 
• What will it take to successfully ride the 
transformational wave? 
Part Three – Looking into the Future 
• What will it take to successfully ride the 
transformational wave? 
Available for FREE download at: http://www.healthcatalyst.com/ebooks/healthcare-transformation-healthcare-a-better-way/ 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 2 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Why Innovation Now? 
Healthcare organizations need innovation to 
address: 
• Inconsistent quality 
• Unacceptable levels of harm 
• Widespread waste 
• Unsustainable growth in costs 
• Rapidly rising demand 
• Looming provider shortages 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 3 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Innovation Definition 
“The design, invention, development and/or 
implementation of new or altered products, services, 
processes, systems, organizational structures, or 
business models for the purpose of creating new 
value for customers and financial returns for the 
firm.” 
Department of Commerce Advisory Committee on Measuring Innovation in the 21st Century Economy. 
Available at: http://www.esa.doc.gov/Reports/innovation-measurement-tracking-state-innovation-american-economy 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 4 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Types of Innovation 
Non-disruptive 
vs. 
Disruptive 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 5 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Technology-driven innovation 
is changing the world… 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 6 
© 2014 Health Catalyst 
www.healthcatalyst.co m
What does EXPONENTIAL 
growth feel like? 
© 2014 Health Catalyst 
www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m
© 2014 Health Catalyst 
www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m 8 
01 
02 
03 
04 
05 
06 
07 
08 
09 
10 
11 
12 
13 
14 
30 Meters 
Take 30 
Linear 
paces…
Take 30 
Exponential 
paces… 
26 times 
around the 
Earth! 
01 02 04 08 16 32 64 128 256 
... 1,073,741,824 meters 
© 2014 Health Catalyst 
www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m 9
Exponential vs. Linear Growth 
Linear trend 
Exponential trend 
Disruptive 
stress/Opportunity 
Knee of curve 
© 2014 Health Catalyst 
www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m
Understanding Exponential 
Technology… 
Peter Sasson holding 
the world’s first digital 
camera. 
(0.01 megapixels) 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 11 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Linear Exponential 
© 2014 Health Catalyst 
www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m 12 
1996 
Market Cap: $28B 
Employees: 140,000 
2012 
Bankrupt 
Employees: 17,000 
2012 
Market Cap: $1B 
Employees: 13 
“The New Kodak Moment”
Examples of Disruptive Innovation 
• IP telephony (e.g. Vonage, Skype) 
• Downloadable music (e.g. iTunes) 
• Books (e.g. iBooks, Kindle) 
• Search and advertising (e.g. Google) 
• Streaming media (e.g. Netflix, Hulu, Spotify) 
• Financial transactions (e.g. PayPal, E-trade) 
• Personal communication and networking (e.g. Facebook, LinkedIn) 
• Business communication (e.g. Gmail, Skype, Net Meeting) 
• Electronic commerce (e.g. Amazon, Alibaba) 
© 2014 Health Catalyst 
www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m 
• Etc. 
13
In 10 years it’s predicted that 
40% of the Fortune 500 
companies will no longer exist 
*Babson Olin School of Business, Fast Company April 2011, p. 121 
© 2014 Health Catalyst 
www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m
Exponential Growth of Computing 
Source: Ray Kurzweil. Available at: http://www.kurzweilai.net/sin-charts#!prettyPhoto 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 15 
© 2014 Health Catalyst 
www.healthcatalyst.co m 
Each dot is a 
computing 
machine 
Electromechanical Relay Vacuum 
Tube 
Transistor Integrated Circuit
Transistors per Chip 
Doubling: two years Source: Intel Research 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 16 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Processor Performance (MIPS) 
Source: Ray Kurzweil. Available at: http://www.kurzweilai.net/sin-charts#!prettyPhoto 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 17 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Internet Data Traffic 
Source: Ray Kurzweil. Available at: http://www.kurzweilai.net/sin-charts#!prettyPhoto 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 18 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Mobile Data Traffic 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 19 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Brain Power Equivalent/$1000 
Source: Hans Moravec, http://www.transhumanist.com/volume1/moravec.htm 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 20 
© 2014 Health Catalyst 
www.healthcatalyst.co m 
2014 
2023
Has Technology Advancement 
Mattered? 
Tool available and additional information available at: http://www.gapminder.org 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 21 
© 2014 Health Catalyst 
www.healthcatalyst.co m 
200 years that changed the world…
The Singularity is Near 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 22 
© 2014 Health Catalyst 
www.healthcatalyst.co m 
Ray Kurzweil
Poll Questions 
2. Within how many years do you anticipate exponential 
technologies will significantly impact healthcare? 113 
respondents 
a. < 2 years – 34% 
b. 2 to 4 years – 36% 
c. 5 to 7 years – 21% 
d. >10 years – 9% 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 23 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Historical Healthcare Innovation 
• Historically, innovation in healthcare has been 
linear, not exponential 
• Examples: 
• Warfarin vs. Pradaxa 
• Open Cholecystectomy vs. Laparoscopic cholecystectomy 
• Coronary artery bypass graft (CABG) vs. Cardiac stents 
• Going forward, expect disruptive (exponential) 
innovation in non-traditional categories 
• Examples: 
• Automated, intelligent care environments 
• Genomic-based personalized care 
• New technology-enabled care models (ambulatory- and patient-centric) 
• Integrated delivery organization design (ACOs) 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 24 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Harnessing the Power of Exponential 
Technologies 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 25 
© 2014 Health Catalyst 
www.healthcatalyst.co m 
Ubiquitous Networks 
Ubiquitous Sensors 
Artificial Intelligence 
Robotics 
3D Printing 
Synthetic Biology 
Materials Sciences 
Digital Medicine 
Faster, 
Cheaper, 
Computing 
Power
Programming Life & Health 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 26 
© 2014 Health Catalyst 
www.healthcatalyst.co m 
Computer code 
Genetic code 
Gene splicing
The Tale of Two Mice 
Reference: Flier SN, Kulkarni RN & Kahn CR. 2001. Proc. Nat. Acad. Sci. USA., 98:7475-7480 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 27 
© 2014 Health Catalyst 
www.healthcatalyst.co m
DNA Sequencing Cost 
Source: Ray Kurzweil. Available at: http://www.kurzweilai.net/sin-charts#!prettyPhoto 
Carlson, R. The Pace and Proliferation of Biological Technologies. 2003. Biosecurity and Bioterrorism: Biodefense Strategy, 
Practice, and Science Volume 1 Number 3. http://www.kurzweilai.net/meme/frame.html?main=/articles/art0614.html 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 28 
© 2014 Health Catalyst 
www.healthcatalyst.co m
DNA Sequencing Data 
Source: Ray Kurzweil. Available at: http://www.kurzweilai.net/sin-charts#!prettyPhoto 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 29 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Wearable Sensors – Endless Opportunities 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 30 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Sensory Data Means Big Data 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 31 
© 2014 Health Catalyst 
www.healthcatalyst.co m 
Sensor data from a cross-country-flight 
20 TB X 2 X 6 X 28,537 X 365 
20 terabytes of 
information per 
engine every 
hour 
Twin engine 
Boeing 737 
Six hour 
cross-country 
flight from 
New York to 
Los Angeles 
# of commercial 
flights in the sky 
in the United 
States on any 
given day 
Days in a year 
= 2,499,841,200 TB 
(One Zetabyte = 1,000,000,000,000,000,000,000 bytes)
Poll Question 
3. Who will drive the sensor revolution in healthcare? 
120 respondents 
a. Consumers – 27% 
b. Employers – 1% 
c. Payers – 4% 
d. Health systems – 2% 
e. All of the above – 67% 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 32 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Seizing the Opportunity 
Twenty years from now you will 
be more disappointed by the 
things that you did not do then by 
the things that you did do. So 
throw off the bowlines. Sail away 
from the safe harbor and catch 
the trade winds in your sails. 
Explore. Dream. 
Discover. 
Mark Twain 
Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 33 
© 2014 Health Catalyst 
www.healthcatalyst.co m
Thank You 
Upcoming Educational Opportunities 
There Is A 90% Probability That Your Son is Pregnant: Predicting 
the Future of Predictive Analytics in Healthcare 
Date: December 17, 1-2pm, EST 
Host: Dale Sanders, Senior Vice President, Health Catalyst 
Register at http://healthcatalyst.com/ 
© 2014 Health Catalyst 
www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m
Questions, 
discussion, 
comments… 
Placeholder, enter your 
own text here 
For Information Contact: 
John.Haughom@healthcatalyst.com 
© 2014 Health Catalyst 
www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m

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Transforming Healthcare: The Promise of Innovation

  • 1. Transforming Healthcare: The Promise of Innovation John L. Haughom, MD December 2014 © 2014 Health Catalyst www.healthcatalyst.com Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential © 2014 Health Catalyst www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m
  • 2. Healthcare: The Way It Should Be Part One – Forces Driving Transformation • Chapter One – Forces Defining and Shaping the Current State of U.S. Healthcare • Chapter Two – Present and Future Challenges Facing U.S. Healthcare Part Two – Laying the Foundation for Improvement and Sustainable Change • What will it take to successfully ride the transformational wave? Part Three – Looking into the Future • What will it take to successfully ride the transformational wave? Available for FREE download at: http://www.healthcatalyst.com/ebooks/healthcare-transformation-healthcare-a-better-way/ Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 2 © 2014 Health Catalyst www.healthcatalyst.co m
  • 3. Why Innovation Now? Healthcare organizations need innovation to address: • Inconsistent quality • Unacceptable levels of harm • Widespread waste • Unsustainable growth in costs • Rapidly rising demand • Looming provider shortages Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 3 © 2014 Health Catalyst www.healthcatalyst.co m
  • 4. Innovation Definition “The design, invention, development and/or implementation of new or altered products, services, processes, systems, organizational structures, or business models for the purpose of creating new value for customers and financial returns for the firm.” Department of Commerce Advisory Committee on Measuring Innovation in the 21st Century Economy. Available at: http://www.esa.doc.gov/Reports/innovation-measurement-tracking-state-innovation-american-economy Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 4 © 2014 Health Catalyst www.healthcatalyst.co m
  • 5. Types of Innovation Non-disruptive vs. Disruptive Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 5 © 2014 Health Catalyst www.healthcatalyst.co m
  • 6. Technology-driven innovation is changing the world… Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 6 © 2014 Health Catalyst www.healthcatalyst.co m
  • 7. What does EXPONENTIAL growth feel like? © 2014 Health Catalyst www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m
  • 8. © 2014 Health Catalyst www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m 8 01 02 03 04 05 06 07 08 09 10 11 12 13 14 30 Meters Take 30 Linear paces…
  • 9. Take 30 Exponential paces… 26 times around the Earth! 01 02 04 08 16 32 64 128 256 ... 1,073,741,824 meters © 2014 Health Catalyst www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m 9
  • 10. Exponential vs. Linear Growth Linear trend Exponential trend Disruptive stress/Opportunity Knee of curve © 2014 Health Catalyst www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m
  • 11. Understanding Exponential Technology… Peter Sasson holding the world’s first digital camera. (0.01 megapixels) Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 11 © 2014 Health Catalyst www.healthcatalyst.co m
  • 12. Linear Exponential © 2014 Health Catalyst www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m 12 1996 Market Cap: $28B Employees: 140,000 2012 Bankrupt Employees: 17,000 2012 Market Cap: $1B Employees: 13 “The New Kodak Moment”
  • 13. Examples of Disruptive Innovation • IP telephony (e.g. Vonage, Skype) • Downloadable music (e.g. iTunes) • Books (e.g. iBooks, Kindle) • Search and advertising (e.g. Google) • Streaming media (e.g. Netflix, Hulu, Spotify) • Financial transactions (e.g. PayPal, E-trade) • Personal communication and networking (e.g. Facebook, LinkedIn) • Business communication (e.g. Gmail, Skype, Net Meeting) • Electronic commerce (e.g. Amazon, Alibaba) © 2014 Health Catalyst www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m • Etc. 13
  • 14. In 10 years it’s predicted that 40% of the Fortune 500 companies will no longer exist *Babson Olin School of Business, Fast Company April 2011, p. 121 © 2014 Health Catalyst www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m
  • 15. Exponential Growth of Computing Source: Ray Kurzweil. Available at: http://www.kurzweilai.net/sin-charts#!prettyPhoto Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 15 © 2014 Health Catalyst www.healthcatalyst.co m Each dot is a computing machine Electromechanical Relay Vacuum Tube Transistor Integrated Circuit
  • 16. Transistors per Chip Doubling: two years Source: Intel Research Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 16 © 2014 Health Catalyst www.healthcatalyst.co m
  • 17. Processor Performance (MIPS) Source: Ray Kurzweil. Available at: http://www.kurzweilai.net/sin-charts#!prettyPhoto Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 17 © 2014 Health Catalyst www.healthcatalyst.co m
  • 18. Internet Data Traffic Source: Ray Kurzweil. Available at: http://www.kurzweilai.net/sin-charts#!prettyPhoto Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 18 © 2014 Health Catalyst www.healthcatalyst.co m
  • 19. Mobile Data Traffic Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 19 © 2014 Health Catalyst www.healthcatalyst.co m
  • 20. Brain Power Equivalent/$1000 Source: Hans Moravec, http://www.transhumanist.com/volume1/moravec.htm Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 20 © 2014 Health Catalyst www.healthcatalyst.co m 2014 2023
  • 21. Has Technology Advancement Mattered? Tool available and additional information available at: http://www.gapminder.org Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 21 © 2014 Health Catalyst www.healthcatalyst.co m 200 years that changed the world…
  • 22. The Singularity is Near Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 22 © 2014 Health Catalyst www.healthcatalyst.co m Ray Kurzweil
  • 23. Poll Questions 2. Within how many years do you anticipate exponential technologies will significantly impact healthcare? 113 respondents a. < 2 years – 34% b. 2 to 4 years – 36% c. 5 to 7 years – 21% d. >10 years – 9% Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 23 © 2014 Health Catalyst www.healthcatalyst.co m
  • 24. Historical Healthcare Innovation • Historically, innovation in healthcare has been linear, not exponential • Examples: • Warfarin vs. Pradaxa • Open Cholecystectomy vs. Laparoscopic cholecystectomy • Coronary artery bypass graft (CABG) vs. Cardiac stents • Going forward, expect disruptive (exponential) innovation in non-traditional categories • Examples: • Automated, intelligent care environments • Genomic-based personalized care • New technology-enabled care models (ambulatory- and patient-centric) • Integrated delivery organization design (ACOs) Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 24 © 2014 Health Catalyst www.healthcatalyst.co m
  • 25. Harnessing the Power of Exponential Technologies Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 25 © 2014 Health Catalyst www.healthcatalyst.co m Ubiquitous Networks Ubiquitous Sensors Artificial Intelligence Robotics 3D Printing Synthetic Biology Materials Sciences Digital Medicine Faster, Cheaper, Computing Power
  • 26. Programming Life & Health Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 26 © 2014 Health Catalyst www.healthcatalyst.co m Computer code Genetic code Gene splicing
  • 27. The Tale of Two Mice Reference: Flier SN, Kulkarni RN & Kahn CR. 2001. Proc. Nat. Acad. Sci. USA., 98:7475-7480 Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 27 © 2014 Health Catalyst www.healthcatalyst.co m
  • 28. DNA Sequencing Cost Source: Ray Kurzweil. Available at: http://www.kurzweilai.net/sin-charts#!prettyPhoto Carlson, R. The Pace and Proliferation of Biological Technologies. 2003. Biosecurity and Bioterrorism: Biodefense Strategy, Practice, and Science Volume 1 Number 3. http://www.kurzweilai.net/meme/frame.html?main=/articles/art0614.html Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 28 © 2014 Health Catalyst www.healthcatalyst.co m
  • 29. DNA Sequencing Data Source: Ray Kurzweil. Available at: http://www.kurzweilai.net/sin-charts#!prettyPhoto Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 29 © 2014 Health Catalyst www.healthcatalyst.co m
  • 30. Wearable Sensors – Endless Opportunities Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 30 © 2014 Health Catalyst www.healthcatalyst.co m
  • 31. Sensory Data Means Big Data Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 31 © 2014 Health Catalyst www.healthcatalyst.co m Sensor data from a cross-country-flight 20 TB X 2 X 6 X 28,537 X 365 20 terabytes of information per engine every hour Twin engine Boeing 737 Six hour cross-country flight from New York to Los Angeles # of commercial flights in the sky in the United States on any given day Days in a year = 2,499,841,200 TB (One Zetabyte = 1,000,000,000,000,000,000,000 bytes)
  • 32. Poll Question 3. Who will drive the sensor revolution in healthcare? 120 respondents a. Consumers – 27% b. Employers – 1% c. Payers – 4% d. Health systems – 2% e. All of the above – 67% Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 32 © 2014 Health Catalyst www.healthcatalyst.co m
  • 33. Seizing the Opportunity Twenty years from now you will be more disappointed by the things that you did not do then by the things that you did do. So throw off the bowlines. Sail away from the safe harbor and catch the trade winds in your sails. Explore. Dream. Discover. Mark Twain Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential 33 © 2014 Health Catalyst www.healthcatalyst.co m
  • 34. Thank You Upcoming Educational Opportunities There Is A 90% Probability That Your Son is Pregnant: Predicting the Future of Predictive Analytics in Healthcare Date: December 17, 1-2pm, EST Host: Dale Sanders, Senior Vice President, Health Catalyst Register at http://healthcatalyst.com/ © 2014 Health Catalyst www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m
  • 35. Questions, discussion, comments… Placeholder, enter your own text here For Information Contact: John.Haughom@healthcatalyst.com © 2014 Health Catalyst www.healthcatalyst.co Follow Us on Twitter #TimeforAnalytics Proprietary and Confidential m