Massachusetts Digital Health Initiative

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1 Massachusetts Digital Health Initiative

2 Why Massachusetts Talent. Innovation. Investment. Collaboration. Digital Health leverages industries and capabilities in which Massachusetts excels: #1 Innovation State and top startup environment Leaders in US health reform Top healthcare delivery hub Dominant talent pool and university networks #1 global life sciences and medical device ecosystem Competitive investment/vc landscape Growing tech clusters in software, big data, robotics, cybersecurity, and other areas 2

3 #1 Innovation State Bloomberg s 2016 U.S. Innovation Index ranks Massachusetts as the Most Innovative State. The Index factors R&D intensity, productivity, hightech density, concentration of STEM employment, science and engineering degrees, and patent activity. Massachusetts has been #1 in the Milken Institute s annual State Technology and Science Index every year since

4 Mass Digital Health Companies Massachusetts is home to over 350 digital health companies, including both large established firms and startups: Anchor Organizations Growing Firms and Startups 4

5 MeHI Overview MeHI is the designated state agency for: Coordinating health care innovation, technology and competitiveness Accelerating the adoption of health information technologies MeHI is a division of the Massachusetts Technology Collaborative, a state economic development agency Promoting health IT to improve the safety, quality and efficiency of health care in Massachusetts Advancing the dissemination of electronic health records systems in all health care provider settings 5

6 MeHI Healthcare Technology & Innovation Digitize Healthcare Data 100% of acute hospitals in MA on EHRs >90% of physicians >80% of post-acute facilities >60% of Community Behavioral Health orgs Developed and Deployed Toolkits for EHR Adoption Meaningful Use Health Information Exchange Direct support for >70 hospitals, >8,000 physicians, and hundreds of post-acute and behavioral health orgs Share Healthcare Data First in the nation to leverage federal Medicaid funds to build a statewide Health Information Exchange 100% of large ambulatory practices connected to the HIway >80% of hospitals >75% of large community health centers >40% of large behavioral health practices Drive Innovation Helped launch the Massachusetts Digital Health Initiative > 350 digital health companies are headquartered in MA 13 of the 100 largest in the US are headquartered in MA Developed Community Digital Health Assessments for every community in the state Innovation grants 33 for HIway adoption and use Currently, eight communities grants across the state

7 Mass Digital Health Initiative Announced in January 2016, the Massachusetts Digital Health Initiative, or Mass Digital Health, is a public-private partnership building a stronger and more competitive digital health ecosystem across the Commonwealth. 7

8 Mass Digital Health Goal Make Massachusetts the leading global Digital Health ecosystem, in turn driving economic growth and improving healthcare outcomes and efficiency. 8

9 Mass Digital Health Marketplace

10 Marketplace Challenges There are challenges associated with both selling and buying early and midstage digital health innovations in Massachusetts: Entrepreneur Challenges Customer Challenges (Providers, Payers, Life Sciences firms, the Commonwealth) Time and cost required to enter into agreements with healthcare organizations makes it challenging for startups to survive Many startups have difficulty gaining access to MA customers It can be difficult to entrepreneurs to arrive at business models that work in healthcare Many digital health companies go outside Massachusetts for validation, demonstration or customer relationships Lack of awareness of opportunities to leverage digital health innovations, particularly in community health settings Lack of capacity to process, evaluate and select from a large number of innovations Startups approaching customers with a wide range of maturity levels and often unprepared to enter into business agreements with large complex organizations 10

11 Marketplace Framework GAPS GROWTH PHASE PROGRAMMING -Access to clinical expertise/education, networking and mentorship -Meetups: PULSE Check and Tap into TechSpring -Regional pipeline support (Hawkathon at UMass Lowell, etc.) -Access to clinical settings for pilot/validation -Access to clinical expertise and mentorship -Navigating security & interoperability -Marketplace Assessment Tool -Marketplace Directory -TechSpring Insights -Security / HIPAA Education -Access to clinical settings & researchers for further refinement/validation -Difficult to survive 18-month-plus sales cycles pre-revenue -Access to right people in customer orgs -Navigating security & interoperability -PULSE@MassChallenge -Marketplace Assessment Tool -Marketplace Directory -TechSpring Projects -Security / HIPAA Education -Access to right people in customer orgs for enterprise sales -Lack of pathways for marketing / market differentiation -Talent, Space, and Funding challenges -Need for meaningful peer and executive mentor relationships 11 -Scaling Company Interviews (18 completed) -Ecosystem Support Network -Marketing/Promotional Support (of company clinical outcomes and entrepreneur brand profiles)

12 Marketplace Program Overview The Marketplace Program is managed by the Massachusetts ehealth Institute at MassTech, and is a key component of the Mass Digital Health Initiative. Vision: Massachusetts is home to the most transparent, accessible, and organized Digital Health Marketplace, driving more local firms to grow and scale, and helping local customers better access and adopt digital health innovations. Goal: Strengthen digital health entrepreneur-customer connections across Massachusetts Strategies: Create Collaboration Opportunities for the Digital Health Marketplace Directly Facilitate Strategic Startup-Customer Connections Develop a Scaling Firms Support Network 12

13 1. Create Collaboration Opportunities Build directory of marketplace participants at MassDigitalHealth.org Build online tools, including a self-assessment tool which defines company readiness to engage w/customers, and resources such as checklists and guides for doing business Support regional digital health entrepreneurship pipeline in highpotential geographies (Springfield, Worcester, Lowell/Merrimack Valley) via meetups, events, hackathons 13

14 2. Directly Facilitate Entrepreneur Customer Connections Three program pathways for building connections: $170K in grant support for to directly facilitate approximately 30 entrepreneur-customer relationships each in FY17 and FY18 Focused on companies in the Development and Deployment stages $80K in grant support for TechSpring to facilitate entrepreneur-customer relationships in Baystate Health, a community hospital setting Focused on companies in the Development, Deployment, and Distribution stages Will provide strategic business development support and facilitated introductions for individual firms in the Deployment and Distribution stages via Marketplace Program Manager MeHI-supported Healthy Aging Marketplace in partnership with EOHHS 14

15 3. Scaling Company Support Network Identify list of high-potential, high-growth firms Complete scaling firm interviews (18 completed so far) Provide activist relationship management and business development support Explore Scaling Company Roundtables Explore Customer Working Group Support ecosystem efforts to build relationships/connections via workshops and dinners 12x12x12 2.0? 15

16 Connect with Us Laurance Stuntz Director, Massachusetts ehealth Institute x201 mehi.masstech.org 16

17 Appendix: The Massachusetts Advantages

18 Investment Environment Boston Metro region is ranked #2 in the U.S., with 33 digital health deals worth $966 Million in Massachusetts Digital Health Investors Include:.406 Ventures, LLC Aptima Ventures LLC Beacon Angels Bessemer Venture Partners Bolt Catalyst Health Ventures Collaborative Seed and Growth Partners LLC Egan-Managed Capital Excel Venture Management F-Prime Capital Partners Flare Capital Partners Fletcher Speight Ventures Flybridge Capital Partners General Catalyst Partners Google Ventures Highland Capital Partners HLM Venture Partners Leerink Partners Long River Ventures MassVentures Mill Town Capital Polaris Venture Partners Sigma Prime Strategic Health Ventures LLC Summit Partners SV Life Sciences Venrock Associates Waterline Ventures Waypoint Capital Zaffre Investments 18

19 Innovative Healthcare Leadership Public policy leadership driving continuous innovation in healthcare payment reform 79 Acute Care Hospitals, including Academic Medical Centers, specialty hospitals, and community hospitals Care Delivery Networks including: Community Health Centers with more than 250 sites of care 600 Behavioral Health Group Practices 650 Long-Term and Post-Acute Care Providers 14,239 Active Primary Care Physicians 6,620 Active Nurse Practitioners 17,891 Active Specialist Physicians 6,301 Active Dentists A network of innovative, high-quality healthcare payers with a history of health plan innovation in digital health and value based care.

20 Digital Health Cluster Engagement in industry clusters raises a company s productivity*. Massachusetts is home to a strong and growing digital health cluster, composed of: Companies: Nearly 300 digital health companies 10 companies in the Healthcare Informatics 100 Investment: 30+ venture capital firms investing in digital health Innovation: 10+ digital health-specific innovation programs Healthcare Customers: 79 academic, specialty, and community hospitals 98 community health centers 46,000+ healthcare providers 14 private healthcare payers 550 biopharmaceutical companies 400 medical device companies Research and Talent: Over 100 colleges and universities Civic Leaders Public, private, and community leadership 20 *Source:

21 Innovation Infrastructure Massachusetts has the digital health innovation infrastructure to support explosion in company growth and the use of digital health to address key challenges: Technology and Data Reform Resources Nation-leading use of electronic health records (EHRs) across all care settings 100% of acute care hospitals >90% of physicians State programs supporting Behavioral Health and Long- Term and Post-Acute Care adoption Mass HIway: statewide health information exchange All-Payer Claims Database #1 in health insurance coverage in the United States State laws and policies supporting cost containment and payment reform Medicaid waiver supporting transformation to accountable care Innovative healthcare providers in all care settings Quality and innovative payers Programs, data, and insight from agencies including Massachusetts ehealth Institute, Health Policy Commission, Center for Health Information & Analysis Strong R&D and Research Universities/Institutes Investment programs to support startups MITRE Synthetic MA program 21

22 Complementary Clusters Cybersecurity: Among U.S. states, Massachusetts has the third-most cybersecurity firms (35) among the top Cyber Security degree programs at 18 universities, colleges, and community colleges, 4 NSA Centers of Excellence, 15 dedicated Security Research Centers, 13 Leading Research Centers Robotics: 122 companies in the Mass Robotics cluster Mass. robotics firms generated $1.6 billion in revenue in 2015 Life Sciences: All of the world s top 10 largest biopharmaceutical firms are in MA, along with 550 other biopharma companies Over 95,000 workers in MA $1 Billion state life sciences initiative Medical Device: 400 Medical Device makers in Massachusetts Big Data/Analytics: 537 companies in the Mass Big Data ecosystem 70+ data science related programs at 22 colleges and universities 22

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