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Chief Strategic Innovation Officer

In response to the COVID-19 pandemic, our team will be interviewing experts from across the ecosystem to bring the HLTH community timely facts and updates. About Rich Roth:  Mr. Roth leads CommonSpirit Health’s innovation efforts, which seek to create and test novel services, programs, partnerships, and/or technologies – from within and outside of healthcare – that challenge the status quo and have the potential to reduce the cost of care, improve quality, and/or increase access to services. ﻿Working in concert with CommonSpirit Health employees and physicians, Mr. Roth works to anticipate emerging trends and technologies with the goal of incubating, studying, and scaling efforts to improve care.

COVID-19 Updates with Rich Roth

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Head of Strategy

Preparations are in full swing for <a href="https://www.hlth.com/2023event" target="_blank">HLTH 2023</a>, and we are excited to introduce an exclusive addition to our suite of offerings – <a href="https://www.hlth.com/2023event/insights-programs" target="_blank">The HLTH Insights Programs</a>. Specifically designed to accelerate awareness of emergent issues among health leaders, these programs target key segments of the healthcare ecosystem.  This deep-dive, thought-leadership series will raise visibility for pressing industry topics relevant to pharma and life sciences, payers, physicians, and innovators and offer sponsoring opportunities for aligned companies. The HLTH Insights Programs aim to spotlight crucial healthcare issues, delving into major challenges and significant advancements motivating today’s health leaders. As healthcare continues to evolve, HLTH presents an extraordinary platform for thought leaders to direct the trajectory of healthcare towards better quality and access, personalized treatments, and a more compassionate patient experience.  Our inaugural Pharma and Life Sciences Insights Program – Leveraging Innovation for Better Health: Advancing Drug Discovery and Outcomes in the Digital Age – will kick off at HLTH 2023 on Sunday, October 8, from 11:30 am – 1:50 pm PT. Hosted in collaboration with Fierce Pharma, the program aims to demystify the promising potential and complexities of digital advancements, focusing on their real-world application in reshaping healthcare and promoting a healthier future for all. Geared towards industry leaders, technology collaborators, researchers, innovators, healthcare providers, and patient advocates, this exclusive event offers immersive learning, networking opportunities across sectors, and insights into the latest innovations driving therapeutic discovery and improved patient health. The key themes include: Technological Triumphs: Groundbreaking Technologies Reshaping Healthcare Envision a world where machine learning models can predict the likelihood of disease relapse, or deep learning algorithms can unravel potential drug targets within vast genomic data. This isn&#39;t a distant dream but a present reality being refined and perfected in labs and tech hubs across the globe. Delve into the remarkable triumphs of advanced technology and how it’s transforming healthcare and optimizing drug discovery. Our expert panel will explore the impact of precision diagnostics, artificial intelligence (AI), machine learning, natural language processing, deep learning, and more. These advanced technologies are not just augmenting our understanding of disease but also solving complex clinical research issues, from enabling automated data harmonization and enhanced predictive modeling to paving the way for personalized medicine.  Digital Deliberations: The Ins and Outs of Implementing a Digital Strategy  Imagine the impact of AI-enabled clinical trials, where algorithms efficiently handle patient recruitment, monitoring, and data analysis, saving both time and resources. Consider the potential benefits of adopting advanced tech capabilities to unlock better health outcomes for patients. These considerations are the stepping stones to a more streamlined and inclusive healthcare system. Explore the integration and scaling of digital and advanced technologies within healthcare and clinical research. Our panelists will examine the capacity of digital tools to diminish drug development risks, reduce costs, increase clinical trial safety and efficiency, and diversify trial participants. We will go deep into the practicalities and challenges of building a robust digital strategy from leveraging external partnerships to improving infrastructural capabilities to enable better health and treatment outcomes for patients. Real World Opportunities: Actualizing the Power of Digital Health Solutions Consider a future where technology evolves to foresee more complex health risks, enabling early interventions and AI-driven care is personalized, predictive, and proactive. It&#39;s not science fiction; it&#39;s the future of healthcare – a future we&#39;re building today. Take an in-depth look at the transformative potential of digital health solutions, moving beyond the hype to understand the latest technology innovations that are enabling better patient care and outcomes. Our panelists will dive into the significant implications of digital health interventions, from managing chronic conditions to shifting towards personalized, predictive in-home care. We will explore how real-time patient engagement, coupled with the continuous collection of real-world data, creates unique opportunities for accelerating clinical trial recruitment, enhancing patient diversity, improving trial safety and retention, and delivering more personal, predictive insights and treatment options. The HLTH Insights Programs are included as part of your HLTH 2023 registration so be sure to join us for these exciting sessions spotlighting the transformative potential of digital technology on drug discovery and patient outcomes and more! With the HLTH Insights Programs and our esteemed panels of scientists, digital health experts, innovators, and tech pioneers, we aim to light the way forward. Together, let&#39;s explore the power and potential of innovation in shaping a healthier, more inclusive future. Don’t miss out.  <a href="https://www.hlth.com/2023event/register#reg-cards?utm_campaign=pharma_insights_program&amp;utm_source=HLTH&amp;utm_medium=blog" target="_blank">Grab your pass today.</a>

HLTH Launches New Insights Program Series – Debuting with Pharma and Life Sciences

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EVP and Chief Innovation Officer

I’m looking forward to the annual HLTH conference next week to share more on the growing trend of voice technology in the health care space and what’s next for Houston Methodist. Voice technology is one area of innovation that has had rapid adoption in our households and more and more in the clinical setting. It has given us accessibility and convenience to information, integrating into our daily lives as an assistant, planner and a resource to discover the unknown.  Voice is only one of many areas that has gone through rapid adoption during 2020. It has become evident to me during this pandemic that innovation in healthcare is not only the key to survival, but also our hope of improving care; reducing costs; improving the work/life balance of physicians and simplifying the way that consumers access and interact with the health care system. Significant moves have been made in health care innovation in recent years. COVID-19 has only sped along and aided in the adoption and acceptance of these innovations. Consumers have matured in the years since the Internet became a center for commerce in the 10+ years since the iPhone was released. Consumers shop online for their shirts and shoes, order groceries online and sign up for activities. And, in the year of COVID-19, we have witnessed the explosion of all things virtual: school, meetings, happy hours and virtual family gatherings. Online shopping and Facetime have rapidly changed the way that we conduct commerce and connect with family, yet health care interactions have been woefully slow to change from the basic clipboard on your way in the door to the paper bill you get in the mail. Health care providers must do better or they, like the dinosaurs, will not survive. At Houston Methodist, we have been active adopters of innovations in health care. We focus on products in the beta stage or beyond and have learned to rapidly scale those innovations. Our philosophy is to work in a “quad” model for innovation where the upper-left quadrant is “graduates” of the innovation center and includes those areas that are deemed successful in their return-on-investment for achieving quality or financial returns and the lower-right-quadrant are those products that “rest-in-pace” and did not have their intended results. The other two quadrants are rounded out with the pilot and the pipeline. The Center for Innovation leadership group, or what we call “DIOP,” which stands for Digital Innovation Obsessed People, is responsible for working with operating units to identify the pipeline, asking tough questions about our investments and tracking the results to discontinue or graduate a project. The results of focusing on innovation BEFORE it was essential for a pandemic such as COVID-19 enabled our system to be ready with telemedicine options for the consumer, allowed us to have virtual ICU cameras installed before they were absolutely necessary and have a touchless check-in for users as well as two-way-texting solution between patients and offices. Houston Methodist had over 50 care pathways that provided key information to patients that had successfully reduced length-of-stay and readmissions by over 25%. And, we had empowerment tools such as iPads and Alexa devices designed for patient rooms. We had AI tools such as MIC/Sick Bay in our patient rooms, symptom-checkers and chatbots. When COVID-19 came, the hospital pivoted within days to create a virtual, touchless environment for our patients and the results demonstrated that the innovations we invested in were well worth it. There is so much more work to be done as we aim to graduate (or retire) more innovation opportunities that improve the lives of our patients and providers as well as reduce the cost of care and increase the quality of care for patients. Health care providers must embrace transformation, otherwise risk disruptors circling with new technology and innovative ways of thinking. On Tuesday, October 13, I’ll share how we’ve embraced innovation like never before through our collaboration with Amazon Web Services to bring clinical voice technologies that drive clinical efficiencies and improve patient safety. Fostering a culture of innovation has led us to this opportunity and will continue to get us past this year -- the year that everything changed.

Navigating 2020 by Embracing Innovation

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Managing Director, Life Science & Healthcare

This October, Silicon Valley Bank, a division of First Citizens Bank, published its annual<a href="https://www.svb.com/trends-insights/reports/healthtech-trends-report?utm_source=blog&amp;utm_medium=events&amp;utm_campaign=us-2023-10-lg-sp-na-na-lh-na&amp;utm_content=na" target="_blank" style="background-color: transparent; color: rgb(0, 0, 0); font-size: 12px;"> </a><a href="https://www.svb.com/trends-insights/reports/healthtech-trends-report?utm_source=blog&amp;utm_medium=events&amp;utm_campaign=us-2023-10-lg-sp-na-na-lh-na&amp;utm_content=na" target="_blank" style="background-color: transparent; color: rgb(11, 76, 180); font-size: 12px;">Future of Healthtech 2023 Report</a>, a comprehensive overview of the VC-backed healthtech innovation marketplace. The report contains a deep dive on the value-based care (VBC) space, including key trends, venture investment, opportunities and challenges in VBC. Mind the (care) gapThe US healthcare system has long struggled with steadily rising healthcare costs, overburdened providers and poorer relative outcomes. Even though the US spends much more of its GDP on healthcare than other countries, it has worse results. Compared with other high-income countries, the US has the highest rate of preventable deaths and infant deaths. The US has a history of inequality in access to care, with people of color and low-income individuals more likely to experience adverse health outcomes than the rest of the population. These issues stem in part from an inefficient fee-for-service (FFS) reimbursement model, which dictates how providers are paid. Under FFS, providers are paid for each service they provide and are rewarded for volume – they’re paid more if they deliver more care, even if they don’t achieve desired health outcomes. Because the FFS model focuses on volume rather than quality of care, it creates misaligned incentives for providers. VBC aims to change this dynamic by tying the reimbursement providers receive to the results they deliver to patients, rather than care volume. Providers are rewarded for hitting certain healthcare outcomes, quality and cost measures. Challenges Despite recent momentum, VBC’s adoption comes with challenges. One of the biggest hurdles is the financial risk providers must take on to participate in VBC contracts. Risk-based reimbursement models take time to achieve profitability, which is a risk that providers and investors are taking on at different levels. Most providers were built in a predominantly FFS system and must take on the operational and technical challenges that come with adapting to VBC, including care coordination, risk assessment and health outcomes measurement, all while navigating the limitations of the differing state CPOM (1) laws. Meaningful capital is also required to meet upfront capital reserves and there is a long delay in receiving cash shared savings payments. Undeniable pressure and momentum Though VBC adoption is still a work in progress, there is impressive recent momentum that is guiding the transformation. CMS is leaning further into VBC models, and in 2022 announced its aim to have all Medicare beneficiaries cared for by providers in VBC models by 2030. Payers, who are feeling the squeeze of rising medical costs, are doubling down on VBC models and growing partnerships with primary and specialty care VBC companies. VBC enablers, which offer technology-driven solutions to help providers and payers adopt VBC models, are seeing substantial growth and VC investment. Providers are realizing that while VBC comes with risk, it also allows for better outcomes, less administrative burden and more predictable revenue, with freedom to use those dollars more flexibly to meet patient needs. They can spend more time on preventive, holistic, equitable care that FFS models didn’t adequately support. Several recent strategic acquisitions by large payers and retailers in the VBC space have contributed to the positive momentum. This momentum is likely to accelerate as we see more incentives and government initiatives, better outcomes measurement data from early adopters and new innovative technology solutions. With the current strains on our system growing to unsustainable levels, the pressure has never been higher for VBC adoption and innovation in this space.Value-based care market map (2) <img src="https://lh7-us.googleusercontent.com/i8h-b0BoBycqKvJ7YHto2odvEtyWY-dvjG4kqXGUI5DKrBwCb6Od5fXnKTcqb0s3UGqIQK85P4dzJa7FnnzuHylDg9VBm2vTmtEGpXN5R34xVmKmbBVVeYnYX7wRUGrnz8wLo8nhHDvoBUbvJ6udDCg"></img>The spectrum of value-based careThe definition of VBC is subject to debate, but in the broadest sense, we consider it to include risk-taking entities, the companies caring for specific, high-cost populations (even if they do not take financial risk), as well as the technologies, products and services that enable the shift to VBC. Thus, the business models of VBC companies vary widely: Some derive 100% of their revenues from shared savings, some receive a combination of FFS revenue and shared savings, and others contract with risk-taking entities and are paid on a per-member-per-month (PMPM) basis. Full or global risk models involve two-sided risk, whereby providers share in both the upside of savings and the downside if care costs more than estimated. If costs come in lower than the benchmark, providers retain a predefined portion of the savings dollars. On the flip side, costs that are higher than the benchmark result in loss. Moderate risk models can involve one-sided risk or a capitated amount. Others take on no direct risk but offer tech powered solutions to enable providers and payers to adopt VBC models. As these tools evolve, we anticipate more payers and providers to dive deeper into VBC risk. Many companies have a combination of these various revenue models and risk levels, allowing providers and payers to dip their toes into VBC. We have also seen a recent burgeoning in specialty care VBC companies, which focus on patient populations that are both complex and high cost, such as kidney care, oncology and cardiology. Payers and primary care VBC companies are reducing risk by sub-contracting care to specialty care companies like Thyme Care and Strive Health.Mega-deals: VBC is a bright spotIt is not surprising that there has been a 116% decrease in mega-deal3 investments from 2021 to 2022 and 80% decrease from 2022 to 2023 given the bonus of cash companies raised in 2021 and 2022. Despite there being a lot of available investment dollars on the sidelines, investors are being disciplined on valuation. Many later-stage companies are revising growth projections and cutting costs to avoid fundraising this year to escape difficult valuation conversations. Valuations were very generous in 2021 and 2022, supported by strong public markets, which we do not have today. However, VBC is a bright spot, with half of this year’s mega-deals focused on VBC delivery or enablement: Carbon Health, Monogram Health, Strive Health, Aledade and Vytalize.  <img src="https://lh7-us.googleusercontent.com/OfqOnGRb7hJUzkdkfRdSARTuukNYEfGzPzWrTHsILGP0CBTgLjGsIyR6SSw6bKs4w0EPeJKK2zgJcuN5Or0j_ZZk4ko7KrrcjBHPaI6SvqYODdMvKN7-t65PhCPQiU1Z2xsySGA9p7uXTIKfIo7Rp1o"></img>Source: SVB’s Future of Healthtech report, Oct. 2023.  To view the full report, please visit<a href="https://www.svb.com/trends-insights/reports/healthtech-trends-report" target="_blank" style="background-color: transparent; color: rgb(0, 0, 0); font-family: Arial, sans-serif; font-size: 12px;"> </a><a href="https://www.svb.com/trends-insights/reports/healthtech-trends-report" target="_blank" style="background-color: transparent; color: rgb(11, 76, 180); font-family: Arial, sans-serif; font-size: 12px;">https://www.svb.com/trends-insights/reports/healthtech-trends-report</a>Notes:<ol><li>Corporate Practice of Medicine</li><li>List is not exhaustive, select healthtech companies represented</li><li>Mega-deals are venture-backed investments ≥ $100M</li></ol>This material, including without limitation to the statistical information herein, is provided for informational purposes only. The material is based in part on information from third-party sources that we believe to be reliable but which has not been independently verified by us, and, as such, we do not represent the information is accurate or complete. The information should not be viewed as tax, accounting, investment, legal or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investment, or to engage in any other transaction. All non-SVB named companies listed throughout this document, as represented with the various statistical, thoughts, analysis and insights shared in this document, are independent third parties and are not affiliated with Silicon Valley Bank or First Citizens Bank &amp; Trust Company. All third-party trademarks, logos, and brand names are the property of their respective owners and are herein used for informational purposes only. Any predictions are based on subjective assessments and assumptions. Accordingly, any predictions, projections or analysis should not be viewed as factual and should not be relied upon as an accurate prediction of future results.

The State of Value-Based Care

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