innovateHealth May 16, 2013!

Stay tuned for details!

innovateHealth Entrepreneur Health IT Law Summit 10/17/12

Please join us for the inaugural innovateHealth Entrepreneur Health IT Law Summit, presented by Ogden Murphy Wallace, PLLC.  This half day seminar will help NW technology entrepreneurs learn how to handle the barriers presented by government regulations on the health care industry, as well as identify business opportunities and potential sources of funding for innovative Health IT technologies.

The program will take place on October 17, 2012 from 1:00 p.m. to 4:00 p.m., with a networking reception immediately following.

Topics scheduled to be addressed include the following:

Law at the Intersection of Health Care and Information Technology:  A Guide for Health IT Entrepreneurs Entrepreneurs within the health care space need to know the unique aspects of the legal landscape.  This session will provide an overview of critical legal issues that any health IT entrepreneurs must understand.   

 

Show Me the Money:  Crowdfunding and Other Developments in Raising Capital

Crowdfunding has taken off as a way to raise startup and project funds.  What is crowdfunding now and what will it be when the JOBS Act regulations are implemented?  This session will provide an overview of how crowdfunding currently works, new opportunities under the JOBS Act, and the latest on the SEC’s rulemaking process.

 

Big Protection for Big Data:  Strategies for Managing HIPAA Privacy and Security Issues

Navigating the waters of health information privacy and security can be complicated, but not insurmountable.  A basic understanding of HIPAA, as well as identifying how your company fits under the HIPAA regulatory scheme will help inform how your company operates, how best to protect customer/patient information, as well as how to position yourself with third party vendors, investors, and partners.  This session will analyze HIPAA related obligations, provide risk mitigation guidance, and help you prepare for the upcoming next generation of health information privacy rules.

Is That App a Medical Device?  Regulatory Developments Related to Mobile Apps

The intersection between health and technology is becoming trickier as more and more apps straddle the line between technology and healthcare, and as the FDA wrestles with how to regulate this new technology.  This session will provide a basic  checklist to help you identify whether or not the FDA is likely to consider your app a medical device, provide a preview of what’s on the regulatory horizon and tips for navigating this new regulatory landscape. 

HITECH Health Reform:  Opportunities for Technology Companies Presented by the HITECH and Accountable Care Acts

Recent health reform legislation creates opportunities for information technology companies.  This session will explore new legal requirements and payment methodologies that will be implemented in the coming years, with a focus on areas where IT solutions must be developed.

Innovation and Marketing – A candid discussion with Randy Wise, Vice President of Marketing at Group Health. 10/2/12

Drinks | Food | Discussion

We have the pleasure of having a candid discussion with Randy Wise.  Randy is the Senior Marketing Executive for GroupHealth, the leading integrated care provider in Washington providing coverage services and medical care.  Randy is no healthcare insider.  He came from outside the industry and brought entrepreneurial energy to solve some big challenges.  We all know Group Health, but do we really understand how they are using marketing to position themselves in a changing landscape?  We’ve spent a lot of time talking about consumerism and the impact of digital health but how are these large institutions going to market with these messages?  Marketing is not a “nice to have” function in a healthcare organization any longer.  It is a critical pillar of strategic planning and execution.  Failure to lead with a marketing strategy that will support “where the puck is going to be” will be disastrous.  Come listen to Randy share his experiences at GroupHealth.  

Why we hope to see you at the event:

  • Understanding a marketing strategy will give you core insight into broader strategic goals and where your company might align
  • Marketing is a new frontier in healthcare and there are a lot of entrepreneurial opportunities to support that effort
  • Marketing has taken on a new role in risk management and you want to know why
  • There is a changing of the guard in marketing departments of large health institutions which is creating opportunities for new leadership

Discussion will be lead by Russell Benaroya, CEO and co-founder of EveryMove.

Come join us for this next impacting innovateHealth event in Seattle. innovateHealth is building the most influential group of health care technology and services stakeholders in the Pacific Northwest. Our mission is to support the development of a globally recognized health services and technology cluster in the Pacific Northwest which catalyzes entrepreneurship and attracts the talent necessary to make a significant impact. We hope you can join us for a lively discussion on health care strategic marketing.

Sponsored by: Cambia Health Solutions, Ogden Murphy Wallace PLLC, point b and everymove

Is Health Care Innovation an Oxymoron? 6/18/12

innovateHealth Launches in Portland

Is Health Care Innovation an Oxymoron?

Round Table Discussion  | Food | Drinks

Come join us for the first innovateHealth event in Portland. innovateHealth is building the most influential group of health care technology and services stakeholders in the Pacific Northwest. Our mission is to support the development of a globally recognized health services and technology cluster in the Pacific Northwest which catalyzes entrepreneurship and attracts the talent necessary to make a significant impact. We hope you can join us for our Portland Kick-Off event and join us for a lively round-table discussion on health care innovation.

Digital health and its impact on consumerism, access, and the future of primary care – 5/21/12

Drinks | Food | Panel Discussion and Debate

This panel will explore how different constituents across the health care landscape are viewing the impact of digital health on empowering consumers.  We are bringing together a panel to debate the actual vs. aspirational (and hopefully answer a few questions):  What actually works?  Why technology enabled health care makes sense, but why it’s 10 years behind every other industry?  What’s the real impact of digital health on real doctors seeing real patients?  How does technology enable new delivery of care and alleviate pain points in provider work flow? Will my iPhone ever be my one stop shop for health care?

Panel Members:

Erika Bliss, CEO, Qliance

Ralph Derrickson, President & CEO, Carena

Brodie Dychinco, myRegence.com and founder of consumer health transparency start up

Colby Voorhees, Group Health

moderated by  Rob Coppedge, VP Business and Corporate Development,  Cambia Health Solutions  

Sponsored by: Cambia Health Solutions, Ogden Murphy Wallace PLLC, point b and everymove

EMRs – Love story or a 4 letter word? 3/13/12

InnovateHealth will host a panel discussion to explore the good, bad and ugly of EMR promotion and implementation. Led by an industry expert moderator, our panel ranges from true believers in the power of EMR to entrepreneurs trying to work around them to practice managers trying to pay for them to doctors wondering which way is up. Our panel will debate the positives and negatives – from process management to customer service to data analytics and third party integrations.  Most importantly, we will focus on the next set of opportuinties that may emerge in the space – either building on the back of this infrastrucutre or figuring out how to solve for its problems. 

Moderator:  Dave Garets, The Advisory Board

Panel Perspectives:
Peter Gelpi, Clarity Health, CEO and Founder
Steve Schwartz, AllScripts, SVP Corporate Business Development
Hiroshi Nakano, South Sound Neurosurgery, CEO
Jeff Westcott, Swedish Medical Center, Interventional Cardiologist

Dave Garets

With 34 years of experience in information technology, Dave joined the Advisory Board in March 2010 to manage the firm’s health care IT research and advisory services. Prior to joining the Advisory Board, Dave served as president and CEO of HIMSS Analytics from 2004–2010, and executive vice president of HIMSS from 2006–2010. Before that, he held positions as executive vice president of Healthlink and group vice president of the Healthcare Industry Research and Advisory Services at Gartner. In addition, he was senior manager in Emerging Practices with First Consulting Group for one year and CIO of Magic Valley Regional Medical Center in Twin Falls, Idaho for five years. Before coming to the health care industry, Dave spent 13 years in various management capacities for AT&T.

Dave is a HIMSS Fellow and served as HIMSS Board Chair in 2004. He also served on the faculties of the CHIME Information Management Executive courses for 11 years and was a Charter Member of CHIME. He is an internationally known author and speaker on health care information strategies and technologies, and was recently elected to the HIMSS 50-in-50, the 50 most memorable and influential contributors to healthcare IT in the last 50 years. Dave earned a Bachelor’s of Business Administration in Marketing from Texas Tech University.

Under Construction

innovateHealth’s blog is currently under construction.  Check back soon!

Guest Post: Andy Dixon, Harris Williams & Co.

Follow Up to the Recent “Capital Meets Innovation Summit”

I appreciated the opportunity to participate on the panel and enjoyed meeting many of you at the Capital Meets Innovation Summit.  For those of you that I did not have the chance to speak with, I wanted to take this opportunity to provide some additional information regarding Harris Williams & Co. and our Healthcare & Life Sciences group.

Having closed 47 transactions with an aggregate value of over $7 billion in 2008, Harris Williams & Co. is one of the largest mergers and acquisitions advisory firms in the country focused exclusively on the middle market, and represents private equity groups as well as publicly and privately held companies.  The firm has a dedicated Healthcare & Life Sciences group, consisting of 13 professionals based in our San Francisco, CA and Richmond, VA offices, which is one of the leading healthcare platforms in the middle market and has successfully executed transactions for companies spanning a broad spectrum of healthcare products and services.  The group focuses on transactions in the medical and life sciences products, facilities and alternate site healthcare services, and ancillary services and outsourcing sectors of the healthcare market.  A brief overview of the Healthcare & Life Sciences group’s recent transactions can be found on our website at http://www.harriswilliams.com/business/recent_trans.php?temp=4e5802bf63aab34481d292ef3efe9cee.

As I mentioned during the panel, healthcare is one of a select set of industry segments in which there continues to be meaningful M&A activity.  While the total number of healthcare transactions was down approximately 13% in Q1-09 relative to both Q4-08 and Q1-08, M&A activity remains strong in a number of healthcare sectors.  HCIT is a real hot spot right now for deal activity with attractive valuation multiples possible for well-positioned, growing companies that can demonstrate that their product/solution improves clinical efficacy and/or reduces overall system cost.  In addition, we see medium-term momentum in specialty and institutional pharmacy, home health, and proprietary and contract medical devices, which should accelerate as the legislative picture begins to firm up in the latter part of 2009. thumb-HarrisWilliams

In addition to our transaction work, from time-to-time our Healthcare & Life Sciences group publishes a “Market Monitor,” in which we provide an overview of key trends and M&A activity within a specific sector of the healthcare industry.  We recently published a Market Monitor on the Contract Research Organization (CRO) sector (available at http://www.harriswilliams.com/pdf/CROmarketmonitor.pdf), which may be of interest to many of you. We have developed similar pieces on the Specialty Pharmacy and Diagnostic Imaging sectors as well, which I would be happy to provide upon request.

If anyone has any questions about Harris Williams & Co. and our Healthcare & Life Sciences group, please feel free to give me or Todd Morris a call in our San Francisco office at 415.288.4260 and we would be happy to chat further.

Andy Dixon

Andy Dixon
Harris Williams & Co.
575 Market Street, 31st Floor
San Francisco, CA 94105
Phone:  415.288.4260
Fax:  415.288.4269

www.harriswilliams.com

Top 5 Quotes From Summit (Please Add Your Own)

Here are my top 5 quotes* from yesterday’s Capital Meets Innovation Summit. Please add your own in the comments section if you’re so inclined. (There were a lot, terribly hard to choose.)

  1. The first time I took investor money was the first time I started having a hard time sleeping. … Profit is liberating. – Cliff Monlux
  2. Health care is a great place to be. It’s a pile of manure right now, but you can grow big flowers out of that. – Howard Mahran, Deep Domain
  3. We’re one natural disaster, one terrorist attack, one pandemic away from this thing [the stimulus plan] not happening. Betting the farm on stimulus money is not a risk I would want to take. – Richard von Riesen
  4. Banks didn’t invent PayPal, accountants didn’t invent Quicken. … Coming at health care from another industry perspective can help. Make your pitch to investors as simple as possible: Our customers like us, we’re cheaper than our competitors, we have recurring revenue, we’re scalable. Period. – Henry Albrecht, Limeade
  5. We’re looking for superhero CEOs. – Alan Frazier, Frazier Healthcare Ventures

*Paraphrased.

Capital Meets Innovation Summit – The Live Blog

[to be cleaned up, filled out later!]

12:00 p.m. Stimulus plan… Morris: looking at the way health care is paid for. Lots of focus on pilots for bundling care … focus on moving system toward paying for value (not for using resources like it is now). von Riesen: if you’re an early-stage company, don’t make it a big part of your business plan. Timing is questionable, other details, etc. We’re one natural disaster, one pandemic away from this thing not happening. “Not a risk I would want to take.”

11:53 a.m. von Riesen: A sophisticated angel investor will see blind spots that an entrepreneur might not see …

11:37 a.m. Morris: Be sure if you take money from a vc, they have the right expertise …. Lots of vcs out there that invest in health care services that don’t know anything about it. Benaroya: Onerous terms create disfunctional behavior. If you start letting yourself be treated as an employee, not a founder/owner, things have spiraled in the wrong direction.

11:28 a.m. Benaroya: Found out that raising institutional money for hc services virtually impossible. Good thing … no pressure to grow on a three-year timeline …. can take time to focus on business, quality, etc. Recently invested in laser tatoo removal, clinical research, automated customer service.

11:23 a.m. Chris Price, Paragon. Peter Morris, currently with Carol, but former venture investor. John Cake, Premera Blue Cross. Russell Benaroya, REM Medical (sleep wellness), institutional investor.

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11:23 a.m. von Riesen: What do we look for? Mgmt team, board, other investors. Why? Have to know if the deal is gonna survive. You don’t want to be the only smart person at the table. “Back-up protection” on your money.

11:18 a.m. Switching now to investors.

11:09 a.m. Albrecht: Early stage now means 5 million. 90% of “early-stage investors” wouldn’t have been classified as such 10 years ago. I think we all know exactly how many months till we’re profitable, running lean and making sacrifices till we make it.

11:06 a.m. Monlux: The first time I took investors money, the first time I started having a hard time sleeping. Once you take money, you’re managing investor relations all the time. Profit is liberating. More latitude. What’s your timeline to profitability?

11:04 a.m. Gelpi: VC world has to reinvent itself … it’s looking more like private equity. There’s no early-stage investing yet. Put smaller amounts of money at work.

11:00 a.m. Richard von Riesen: Lots of scar tissue on the entrepreneur panel. Lots of flexible thinking. But … most people asking for money do a horrible job. Would you let your parents invest in your company? Entrepreneurs have to close the loop … have all the pieces in place so investors don’t have to find them for you. There are fewer angels, but there are angels out there that still have money. Entrepreneurs aren’t doing a good enough job. (Whoa!)

10:52 a.m. Mahran: HC is a great place to be. It’s a pile of manure right now, but you can grow big flowers out of that.

10:45 a.m. Coppedge: Big hurdles in educating angels and some vcs about health care … so complex and complicated. How have entrepreneurs educated potential investors? Gelpi: Sometimes we don’t get caught up in the HC world at all … just show Clarity as a Saas model, solving an administrative problem. Henry: very hard to explain role of delivery chain … banks didn’t invent PayPal, accountants didn’t invent Quicken, coming at it from another industry perspective can help. Make it as simple as possible: customers like it, we’re cheaper, recurring revenue, scalable. Period.

10:42 a.m. Mahran, Deep Domain. Lean times can help you to make pretty good decisions. Current customers are best salespeople .. when they talk to other folks. Idea: Getting access to potential customers is just as (more) important than capital.

10:40 a.m. Henry, it’s a great time to be a HC innovator. Just better not need a lot of money, some money is OK. At Limeade, all fat has been cut, just meat and bone at  this point. But it’s turned out to be a good thing. Investment history = “typical hustle” … friends, family, employees, angel investors, no vc yet.

10:32 a.m. Stern/Snap, first self-funded, then Series A in 2006, then large debt round. 2007 revenue subscriptions started, going really well till recently due to housing market. Tightened belt, staff reduction, cost cutting, investor stepped up and gave Series B, now back to revenue model. Looking to the future, for medical home model to work, need objective info at doc fingertips for case management, continuity of care … Snap for Seniors well positioned.

10:30 a.m. Gelpi/Clarity, originally self-funded, but went out with a Series A in early October, set price point. Reduced Clarity down to one risk: can you scale, can you grow. Set parameters and learned to function within those parameters. It’s productive for companies.

10:24 a.m. First, the entrepreneurs… Peter Gelpi, Clarity Health … coordinating physician referrals, reducing administrative headaches. Eve Stern, Snap for Seniors … collect and aggregate info on assisted living, nursing homes, etc. and distribute to websites. Henry Albrecht, Limeade … online wellness service for employers, health and performance. Howard Mahran, Deep Domain … provide ways of accessing clinical, financial data, move IT bottleneck.

10:20 a.m. Starting roundtable (long table) of entrepreneurs and investors. Moderated by Rob Coppedge and Cliff Monlux.

[break due to dying computer. now resuming…]

9:28 a.m. Scott: What else can we do to foster innovation? Kaplan: Some opportunity around stimulus money for docs and HCIT. Frazier: We can really take advantage of innovation at area hospitals. This region is more advanced than others around the country as far as systems, tech, etc. Kaplan: Interoperability is key … for portability of health records to become a reality.

9:25 a.m. Kaplan: Great area for innovation. Collaboration distinguishes area. Not counting on any public money. Huge downward pressure on docs, hospitals, etc. around partnering with industry. Press is all over it.

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9:19 a.m. Frazier: Where’s the one million dollars to take a great idea the next step forward? I don’t know. He’s stumped. He sees no panacea. None from state government. Entrepreneurial spirit can make things happen w/o a lot of money … that’s the most important thing. Frazier: Wants more training in the area, e.g. at Stanford, training entrepreneurs in the biotech field.

9:13 a.m. Gary Kaplan, CEO, Virginia Mason Medical Center. Frankly, much of what we do is waste. But if we can take the non-value add work, services out of the line, we can free up capital. Have to change the culture, don’t automate bad processes. Fix the process, then automate.

9:08 a.m. Second panel, overview of Seattle market. Alan Frazier: HC innovation, it’s a tough, tough place right now. In early stages, dependent on angels or vc. Good thing about this area, great place to innovate. Full of tech, full of risk takers. Al Scott (PSBJ), moderator: What about those companies we read about that are founded in the depths of recession? Frazier: They better have a low-cost model. Low capital intensity.

8:47 a.m. Butler: Get to know investors well before you need the capital. Investors will take one risk these days … before they would take two. (Management, execution, market, product.) Let investors know what milestones are and hit them. Take mgmt, execution off the table as risks. Focus on the right funds … avoid those that are troubled, dealing with existing problems. Dixon: Optimistic about moderate improvement. HC, your product/service has gotta reduce costs or improve clinical effectiveness.

8:45 a.m. Butler: Large tech funds (e.g., MS) making more strategic investments. Dixon: Have to take into account how that affects an entrepreneur’s path.

8:42 a.m. Butler: Investors valuing capital efficiency more than ever. “Immensely focused.” Whitford: The capital efficiency trend is great for everybody.

8:40 a.m. Butler: Seeing a shakeout of the vc industry. Better firms in position to make investments, others are referred to as the walking dead. Early-stage, angel investors not coming back like late-stage. Risk not really coming back into the market yet. Dixon: 2008 VC $30B, Q1 2009 $3B. Estimate $15B/year over next couple of years, market basically cut in half. Presumably that money will be going to later-stage, not start-ups. (Dark clouds moving in.)

8:35 a.m. Dixon: Strategic buyers looking for smaller targets, don’t want to bet the whole farm.

8:29 a.m. Now looking to future (crystal ball) … Butler: Will continue to look choppy for the rest of the year. As things start to normalize, buyer companies will buy growth (inorganic growth vs. organic growth). Dixon: On the HC side, things are improving moderately not rapidly. Clarity about legislation will free up capital. Lots of interest in HCIT, as you would expect. On the services side, no big platform investments, but tuck-ins. Bigger bets coming in 2010.

8:22 a.m. Whitford: Asking what panelists see “before and after Lehman.” Butler: Before, buyers looked for a reason to say YES. Now they’re looking for reasons to say NO. Every buyer has two emotions: fear and greed.

8:20 a.m.: Dixon: Market peaked May/June 2007. Since then, funding has dried up completely. Within last month, lenders coming back into the market (conservatively). HC along with food and bev is one of the few industries still showing activity. HC is down, but has held in there.

8:16 a.m. Butler: Starting to see some unfreezing of vc, m&a markets. Valuations are the caveat. Today it’s take it or leave it. Negative feedback loop starting to be broken.

8:12 a.m. Hand-raising test: room full of entrepreneurs, investors scattered all around as well.

8:10 a.m. First panel, all about context. Operating at 6,000 feet. Michael Butler, Cascadia, and Andy Dixon, Harris Williams.

8:05 a.m. Getting started now. And on time! Intros by Joe Whitford of DWT. Working hard to get the word out about health care innovation in the Pacific Northwest.

7:55 a.m. We’re here in the lovely conference space at Davis Wright Tremaine … cloudy day in Seattle, but high spirits (so far) and good coffee starting the day.