Category: Words of Wisdom

HIMSS 2019: Solutions combine cutting-edge technology with government policy

Posted on by Jim Jordan

Last week, I had the opportunity to participate in a truly transformative event. The Healthcare Information & Management Systems Society, or HIMSS, held their global Health IT conference, where more than 45,000 healthcare professionals attended.

Tech leaders and industry executives networked with government policy makers, healthcare providers, and payors to discuss the future of healthcare. As expected, the results were eye-opening, and I would like to share them with you.

But before we talk about healthcare’s future, we need to take a step back and review the past to understand the significance of recent developments.

Shortly after the end of World War II, employers introduced the concept of health insurance as a perk to entice workers in an increasingly tight job market. Quickly, the practice took hold, and employer-sponsored, private health insurance became the norm in the United States.

The number of individuals covered by health insurance continued to grow significantly, but another issue had been thrust into the spotlight: Older and poorer Americans, without the benefit of employer-sponsored health insurance, were left out of the system. With the introduction of Medicare and Medicaid in the 1960s, senior citizens and those in lower-income brackets were provided a lifeline, but the cost of healthcare in the United States had skyrocketed.

And while healthcare costs continued to rise at a greater pace than the U.S. GDP, there were still many people who did not have access to affordable healthcare. The introduction of COBRA and other measures in the 1980s helped to bring some Americans back into the system, but the issue still persisted. And as Baby Boomers continued to age, healthcare costs began spiraling out of control.

In 2010, the issues of healthcare access and rising costs were addressed with the passage of the Affordable Care Act. The number of uninsured Americans decreased from 44 million in 2008 to 11 million in 2011. And with more people in the insurance pool, a value-based reimbursement system, and other measures designed to rein in costs, the decades-long growth in healthcare spending had finally begun to slow.

But while the ACA has improved access to healthcare and slowed the growth rate of actual cost, it has also limited choices for many Americans who are unable to see providers who are not within their insurance networks. This lack of competition will inevitably inhibit the best value being delivered by the system.

So this is where we are today. At the HIMSS Conference, we discussed recently proposed legislation and many ideas that will help tackle some of the pressing healthcare issues we are now facing. A few of the ideas presented include:

  • A dedicated focus on improving core outcomes, including access to affordable healthcare, reduced healthcare costs, and improved quality.
  • A shift in our current healthcare model. Through newly proposed legislation, there is an effort to convert our current provider-and-payor-centered healthcare system to a patient-centered model.
  • This new consumer-centered model will allow patients to have access and electronic portability of their medical records across the care continuum.
  • Providing this interoperability will lead to consistency across health IT systems, better communication among healthcare providers, and greater patient control over healthcare data.
  • Interoperability will also allow the capture of social determinants of health (lifestyle factors), which are now recognized as being equally as important as genetic information. This will give health providers a more complete picture of a patient’s health status, leading to better, more cost effective diagnostic and therapeutic decisions.
  • Leveraging cutting-edge technology to enhance outcomes. This will lead to greater healthcare access, more patient involvement in their own care, and the alleviation of our growing shortage of healthcare providers.

After speaking with healthcare, technology, and government leaders, one conclusion has become crystal clear: Healthcare problems cannot be solved in silos. The only way we can address our pressing challenges is by developing a holistic solution that combines cutting-edge technology with government policy. Only when these two forces work together will we be able to make meaningful changes in our healthcare system. It will require a combined effort of lawmakers, health IT companies, healthcare providers, payors, and patients to adopt new practices and new mindsets, and tackle our challenges once and for all.

I believe that the HIMSS Conference was a powerful step in the right direction, and I remain excited about the future of healthcare.

Using Public Disclosures to Prevent Competitive Patents

Posted on by Alan West

When does disclosing a secret actually help the secret-keeper?  In the world of patents and patent protection, it can be a key strategy.

Most entrepreneurs understand that an invention must be truly novel to receive a patent.  According to the U.S. Patent and Trademark Office (uspto.gov), an invention cannot be one that has been previously “patented, described in a printed publication, or in public use, on sale, or otherwise available to the public before the effective filing date of the claimed invention.”

As an example, I once worked at a company that acquired a medical device patent from a physician.  The resulting product achieved rapid market penetration, and the physician inventor received substantial royalty payments – until a competitor discovered that the inventor had described the concept to a group of physicians during a Grand Rounds at a small hospital a few days before he had filed the patent.  As a result, the patent was invalidated, the competitor began marketing a look-alike product, and the company and inventor had to deal with the rather nasty legal business of all the royalties that had been paid.

You have to be especially cautious to not disclose a patentable idea to anyone before filing a patent, unless your audience has signed non-disclosure agreements in advance.  Otherwise, it is considered to be a “public disclosure,” even if it is to one person.

You can, however, use such public disclosures to your advantage.  Let’s say you are a start-up company with a patent covering your first product.  A common defensive patent strategy is to file additional patents covering improvements and line-extensions to your original patent – a tactic known as the “picket fence.”  In this way you create a “fence” surrounding your product, making it much more difficult for competitors to get around your patent.

These new patents are all subservient to your core patent in that they are offshoots of the original and cannot be independently practiced.  As a start-up company, however, you may not have the cash to file all these new applications.  A well-financed competitor, on the other hand, may decide to file patents covering improvements to your product as an offensive strategy.

By filing enhancements to your original patent, they can create bargaining chips to use with you to negotiate a cross license, giving them the right to your original patent in exchange for you to use their patents covering product improvements.  It is a common and effective strategy, but it’s crucial to realize that it can also undermine your company’s competitive advantage.

A simple way to avoid becoming fenced in by a competitor in this way is to publish a description of the improvement in a paper or on your website.  If you are not going to file a patent on the improvement, publicly disclose the idea so no one else can patent it.  In that case your product would still be protected by your core patent.

The Intellectual Property Pyramid Assessment©, a workbook published by the Pittsburgh Life Sciences Greenhouse, will soon be available to order on Amazon. To sign up to get more details please email info@plsg.com.

PLSG Participates in Mentoring International Young Entrepreneurs

Posted on by Marissa Kuzirian

As a mentor to young professionals, hosting transatlantic partnerships represents a special honor. Transatlantic mentoring programs strengthen entrepreneurship in the U.S. and abroad. The Young Transatlantic Innovation Leaders Initiative (YTILI) connects European and Eurasian young entrepreneurs with U.S. mentors in cities across the country and is sponsored by the German Marshall Fund of the U.S. and the U.S. Department of State’s Bureau of European and Eurasian Affairs.

The 2018 YTILI Opening Summit in June, brought mentors and entrepreneurs together in Portugal, where participants discussed similarities and differences between the U.S. innovation ecosystem and European and Eurasian innovation ecosystems. Domain experts assisted fellows in fine-tuning pitch strategies and other related topics. YTILI fellows include young entrepreneurs between the ages of 24-35 with either commercial or social ventures that they are seeking to scale in their home countries. In 2018, 70 YTILI Fellows from Europe will benefit from mentorships at businesses, institutions, and civil society organizations across the U.S., building their networks and partnerships to help attract investments and support for their ventures. By experiencing new perspectives, YTILI fellows will also develop the expertise to better engage in policy conversations in their home countries, across Europe, and in the transatlantic market.

In October, Pittsburgh will host eight entrepreneurs with businesses ranging from bio-decontamination devices for healthcare, a global navigation satellite system correction provider, technology to produce rare parts for classic cars. During their one week stay in Pittsburgh, fellows will learn about Pittsburgh’s cultural and innovation ecosystems and meet with key members of the community to gain knowledge and connections, and to learn about entrepreneurship in the U.S.

Mentoring provides rich benefits not only for the mentee, but also for the mentor, as I have learned through YTILI, as well as Women In Bio’s MAPs program, and as a Brandeis Innovation Mentor. As a mentor, I have built strong relationships with individuals who have opened the door to their own connections when I have needed them. I have also learned from my mentees – from alternative ways to approach difficult situations to gaining deeper knowledge in subject areas important to the mentee. However, the most important benefit I have experienced as a mentor is the energy and inspiration of working with entrepreneurs who are pursuing their dreams and solving important problems.

International programs, such as YTILI, have an added benefit, as we can learn across cultures to foster creativity in finding solutions at home, here in Pittsburgh.

For more information on the YTILI Fellowship program, contact Marissa Kuzirian at the PLSG.

 

Can you really create a “community?”

Posted on by Delvina Morrow

The United Nations defines community development as “a process where community members come together to take collective action and generate solutions to common problems.”

Each of us, as individuals, plays a critical role in community development. It is up to each of us to help our communities to thrive and grow for the betterment of all members; to ensure that our region not only excels, but also truly makes an impact.

Since joining the PLSG I have found myself connected and rooted in a new community; the life sciences entrepreneur community.

While getting to know this community, I began attending Tuesday morning BioBreakfasts where I had the opportunity to meet Thomas Voigt. Thomas became a regular face and comforting friend in my explorations of understanding the life sciences community.  At Innovation Works, I befriended Terri Glueck who not only showed me the “the way,” but at each networking event, allowed me to follow her as she introduce me to each and every person she spoke with.  At every PLSG Open House, I knew that Cassie Ruane (founder of Mental Health Metrics, Inc.) would be there to share kind words on how much she enjoyed our events. At industry networking events I often met people who would share interesting stories about one of my colleagues that made me realize that our community may be small at times, but, as Margaret Mead once said, “A small group of thoughtful people could change the world.”

So, how are we, as a community, working towards changing the small yet mighty world we live in?

As an organization, we have worked hard to redefine how we connect and engage within our life sciences and entrepreneur community. It is our goal to further develop our community by creating transparent and high value community engagement activities for all while lowering the barriers of participation.

When you walk into the PLSG building today, there are notable changes that help to define us a community space. We have created a visually appealing meeting/event space, which not only showcases our impact by listing the 484 companies we have worked with, but also allows members of the community to see the sheer impact of the life sciences on our community.

As an organization, we have and will continue to redefine our events, making them more accessible and collaborating with other likeminded organizations and groups to ensure that each PLSG engagement is representative of the region we serve. We have hosted groups like the Young Nonprofit Professional Network of Pittsburgh for both board meetings and social events. We have hosted feminist maker space Prototype PGH for board meetings and have opened our doors to the ACHE of Western PA, the Fourth Gear cohort of 2018, Duquesne University, and many more local organizations.

We believe that it is our role, to help support a strong and vibrant life sciences community.

Thank you for being part of our vibrant and growing community.

From Analytics to Action – Part II

Posted on by Alicia Varughese

In Part I of this two-part series, we noted that the rise of data analytics in the business of health care represents important changes in roles and responsibilities.  This includes the fact that more physicians and clinicians – because of their prior experience in analyzing data – are finding themselves moving up to the executive suites of their organizations.

The graphic above shows few examples of how Big Data and the need to implement a value-based care approach have been key drivers in the creation of these new roles. Out of these, the roles of Chief Strategic Officer and Chief Data Officer are seen to rely heavily on data analytics. A general description of each role follows:

Chief Strategic Officer – This might also be referred to as Chief Technology Officer (CTO).  Some of the primary responsibilities include improving performance management systems, imparting the CEO’s vision to the clinical team and staff, overseeing business and corporate development, leading market research and integration.  An example of this new role currently in action is David Cannady, Chief Strategy Officer of Mercy Health, Ohio’s largest non-profit healthcare system.

Chief Data Officer – Alternate names for this role include Chief Data (Analytics) Officer (CDO) or Chief Health Information Officer (CHIO).  This role focuses on providing a centralized control of data management, leveraging analytical tools, tackling issues of interoperability, and harnessing data to strategize population health initiatives and improve patient outcomes.

Some current leaders performing in this role are: John Pyhtila, Ph.D., Chief Data and Analytics Officer at Partners HealthCare, a Boston-based non-profit hospital and physicians network; and Terri Steinberg, MD, MBA, Chief Health Information Officer and VP Population Health Informatics for Christiana Care Health System, a Delaware-based private, non-profit hospital network.

Bringing analytics to action continues to present challenges and opportunities within the health care system, including changes within senior management roles and responsibilities.  As the health care industry continues its march toward a value-based, consumer-driven approach, data analytics and strategic decision-making will go hand-in-hand.  At the same time, the influence of other industry C-suite models will continue to be felt within health care leadership.

The PLSG remains connected to the growing impact of data analytics affecting health care and the life sciences.  Reach out to us to learn more.

From Analytics to Action – Part I

Posted on by Alicia Varughese

As healthcare organizations shift to a value-based care approach, more clinicians, physicians, and nurses can expect to be armed with easy-to-use, self-service analytics.

The common denominator promises to be enormous amounts of data. But simply gathering data makes up only half of the equation. The other half requires careful analytics, performing quality evaluation and interpretation of that data, to drive key decisions across the organization.

Progressive change in healthcare will include moving toward this heavily data-driven decision-making process. This is where we see the role of data analytics come into play. But this is not only limited to the point of care. Another major impact of data analytics we can see happening is the change in the current C-suite structure in provider organizations.

With the shift from a fee-for-service model to a value-based model, hospitals consolidate and form larger systems, making hospitals no longer the focal point of streamlining operations. As such, senior management will need to possess the skills of a thought-leader and data-driven decision maker moving forward.

That means that while organizations have access to data, the next most important step is to read this data, analyze it, and then define metrics and strategies to drive better quality of care and patient outcomes. In other words, leaders should be able to translate these analytics into action. Also, expect more physicians and clinicians to move up to C-suite roles, based on their experience and ability to understand and analyze data as a means to provide quality care, as required by the Affordable Care Act.

By utilizing the power of data analytics and innovative technologies, larger health care organizations are adapting to bring technologies to the targeted population around them, rather than driving patients into hospitals. Leaders in this approach, marked by implementing population health management initiatives, include Kaiser Permanente and the establishment of virtual hospitals that is being done at Intermountain Healthcare.

PLSG remains plugged into these data analytics trends as part of our mission. In Part II of this series, we will examine some of the new C-suite roles being created to accommodate the rise in data analytics in health care.

# # #

Young Talent Vital, PLSG Responds

Posted on by Jim Jordan

A greenhouse’s primary function is to help things grow. To create or simulate the optimal environment to spur as much of that growth as possible, actually.

In our case, the pursuit and promotion of growth focuses on the life sciences. Our name – the Pittsburgh Life Sciences Greenhouse – wasn’t chosen by accident.

My connection with PLSG has been long and deep, but after becoming president, I noticed something troubling. The environment created to spur as much growth as possible in this particular “greenhouse” may not have been an optimal one. One element in particular had been falling short and required additional attention.

It became apparent that, at all of our events, we suffered from a lack of young talent being involved – a serious and unacceptable flaw.

In response, we started talking with entrepreneurs and researchers under the age of 40 to learn why they had not be participating in PLSG programs, and, thankfully, they answered with frank, honest, and constructive comments. Essentially, they believed their needs were not being met. Like anyone else, they need to spend their time wisely and productively, and, having drawn that conclusion about us, they chose not to attend our events or take full advantage of our offerings.

Obviously, this situation needed to change. The life sciences community here is on the rise, but it can only continue to do so when all elements of that community remain engaged. A major part of our mission at PLSG calls for us to remain open and inclusive and meet the needs of the entire life sciences community.

All of this led to establishing a new, six-member “Under 40, Underserved” Advisory Board, whose purpose will be to enlighten PLSG on the specific opportunities and challenges that confront minorities, women, and young entrepreneurs as business leaders in the life sciences.

The primary objective is to enable PLSG to develop and enhance its programs to support these underserved groups, spurring partnerships, friendships, and alliances to broaden individual networks and enhance professional abilities. We believe this new board also can help PLSG in connecting and cooperating with existing support groups in the region, such as Propelle, the Minority Network Exchange, Vibrant Pittsburgh, Coterie, and the T. Howard Foundation.

As president of PLSG, I want to open our doors to the wider community of innovative thinkers, financing sources, potential customers and users of new products, elected officials and governmental representatives, and anyone with an interest in the amazing work being accomplished here in the life sciences, in all its forms. Realizing that we had not been reaching this critical constituency of young people, we are working now to turn that around. We invite everyone interested in the life sciences to join us, as well.

After all, a greenhouse – this one included – is all about promoting growth.

# # #

What Actually Drives Innovation in the Life Sciences Industry

Posted on by John Manzetti

With the evolving digital landscape and its impact on the technology sector, innovation has become a buzzword for many different categories. Within the saturated landscape, it’s important to take a step back and think about what truly defines innovation. It’s more than the ability to take a concept and bring it to commercialization and it’s more than finding the right recipe to showcase technology in a way that attracts investors. It comes down to creativity, savvy and ultimately finding novel methods to address problems in ways that are considered “coloring outside the lines” of what is normal. It is not simply a “better mousetrap” – as better is not innovative. “Different” is what makes a solution innovative – something that truly has never been done before.

At the Pittsburgh Life Sciences Greenhouse, we work with a multitude of portfolio companies that we believe are “different.” Here’s a closer look at the solutions that are making them cutting-edge.

  • Rinovum Women’s Health has taken an age-old problem of difficulty in conception and has addressed it in a novel way – through The Stork®, a device that provides a simple, yet elegant solution that is cost-effective in helping families across the globe conceive. CEO and President Stephen Bollinger was thinking outside the box when he developed this technology which has proven in a recent clinical study to be more effective at delivering sperm to the cervix than natural intercourse when trying to get pregnant.
  • Cognition Therapeutics (CogRx) is committed to the discovery of new therapies to improve the lives of those living with Alzheimer’s Disease (AD) and other neurological disorders and has stepped up to the plate to solve the “unsolvable cognitive disorder” with a small molecule drug, which appears to be working in recent toxicity tests in human Australian trials. Big pharma can’t believe it, as they never thought it could work, but it is showing signs of success and Chief Science Officer Susan Catalano is pleased with the forward progression that has occurred to-date and has said that human treatment for AD will begin this year.
  • Medrobotics, the company that created the Flex® Robotic System, has changed surgery as we know it by giving physicians the ability to access anatomical locations that were previously difficult or impossible to reach minimally invasively. The solution combines robotics in a unique and interesting way with surgery techniques that provide a life-saving and tissue-sparing solution for many difficult surgical applications. We will continue to see many successes from Medrobotics as it just passed FDA clearance!
  • Blue Belt Technologies, Inc.is developing the next generation of smart surgical instruments for initial use in orthopedic procedures. The company’s Navio® Surgical System incorporates patented technology to provide precise control to surgeons via an intelligent, handheld, computer-assisted, bone-cutting tool. The Navio system provides robotic assistance to the surgeon while performing bone-shaping tasks through minimally invasive incisions. The Company’s STRIDE™ Unicondylar Knee system provides implant features optimized for use with Navio.

While there are numerous evolving technologies entering the healthcare market, I don’t believe it will become increasingly harder for start-ups and other companies to think of ways to be “different.” We have not seen any drop off in new and exciting ideas, and in fact, there has been more disruption now than ever. I predict that there will be more innovation coming in drug development and health information technology (HIT) applications that provide better and more cost-effective patient care. It’s going to be more thoughtful treatment planning and delivery, not a better “mousetrap.”

Two Reasons Why Life Science Investments Are Booming

Posted on by John Manzetti

Blog pic2

Recent reports are showing an increased interest in life science investments. MIT Technology Review reported that venture capital investment in U.S. life sciences startups rose to $8.6 billion, a 29 percent increase from 2013 to 2014. CB Insights reports that biotech and pharmaceutical investments reached $4.66 billion in the first nine months of 2014, with digital health and medical devices also showing significant gains. California had the majority of life science investments in the nation, but Pennsylvania is showing promise as an emerging hub, accounting for 5 percent of deals.

The most recent numbers suggest that investors are interested in the healthcare and life sciences industry, but will that interest continue? In this blog, we analyze some of the top drivers of life science innovation and how they will affect the investment landscape in the future.

Increased Focus On Patient Engagement

With policy changes, new technologies and cultural shifts, patients are taking a more active role in their health management than ever before. Furthermore, as more patients gain access to their electronic health records (EHRs), engagement is more likely to happen. In the Wall Street Journal, Lygeia Ricciardi, director of the Office of Consumer eHealth, stated that by using EHRs, “patients better understand their own condition and have more informed conversations with doctors.”

Historically, patients would ultimately leave their health management and care decisions up to their physicians. Now, as these digital health tools become more available, patients are more interested in being active participants in their care. Studies show that patients worldwide and from all age groups want access to digital health services that meet their needs and are high-quality. The problem is that many of those services don’t exist yet, according to a study by McKinsey & Company. This is why investors are showing interest and why more health startups are popping up━to fill the need.

Convergence of Healthcare and Big Data

Traditionally, the healthcare and life sciences industries have lagged far behind other industries like retail and marketing when it comes to embracing actionable, big data and using it to make meaningful changes. However, in recent years, strides have been made to catch up to these other industries.

Advances in big data and technology have made it easier for physicians, researchers and other leaders in the life sciences and healthcare industries to collect valuable and actionable patient insights. For example, the National Institutes of Health (NIH) launched the Big Data to Knowledge (BD2K) initiative in 2012 to promote better access to and quality of health and disease information in the biomedical research community. The sharing of this data could help to accelerate and increase the effectiveness of new drugs and treatments.

Even hospitals are starting to embrace big data. The Harvard Business Review says some hospitals are using, “graph analytics to evaluate the relationship across many complex variables such as laboratory results, nursing notes, patient family history, diagnoses, medications, and patient surveys to identify patients who may be at risk of an adverse outcome.”

This convergence of big data and healthcare is inspiring new innovations and laying the groundwork for emerging startups to enter the space.

Some investors and industry thought leaders have expressed concern over whether or not the investment and innovation in life sciences will continue. This is especially prevalent when considering the biotech investment boom, with some calling it a bubble that could potentially burst in the next few years. There are definitely obstacles that healthcare and life sciences startups must address and overcome to be successful in a market that is in a period of transformation. However, recent reports suggest that the overall outlook for investments is optimistic. Companies that have an innovative, in-demand product, smart marketing, a business plan that foresees and plans for the future are likely to come out on top.