Automating Healthcare

Automating HealthcareBy Wayne Caswell, Founding Editor, Modern Health Talk
Inspired by “What if AI Could Uber the Healthcare Industry?

I loved this Forbes article because it so closely matches what I write about at Modern Health Talk … and because of the truly immense potential.

Many of my past articles are about topics like Getting the Healthcare Incentives Right and how a Hybrid Healthcare System might blend free market capitalism (to encourage innovation and risk taking) with social concepts that promote the general welfare as declared in our Constitution.

Consider what’s possible

People complain about rising healthcare costs – already $3.5 trillion/year. But at the same time, the medical industrial complex fiercely resists changes that would cut into their perverse profits. As a result, the U.S. spends almost twice as much per capita on healthcare as other advanced nations, according to the World Health Organization, yet we still live sicker and die younger.

If only we could cut our costs in half and improve our outcomes to match the others. We’d save well over $1.5 trillion every year. But I think we can do even better than that if we think creatively and beyond cost savings.

The positive effect on profits, GDP and global competitiveness could match the cost savings. And with that, public investments in health, wellness, prevention and productivity might nearly pay for themselves — potentially wiping out $3.5 trillion/year in current spending. But to do that we must first know Why American Healthcare is So Expensive in the first place.

Exponential Technologies

Exponential technologies include network and computing systems, data science, nanotech and digital fabrication, robotics, artificial intelligence (AI), augmented and virtual reality (AR, VR), autonomous vehicles, and digital biology, biotech and medicine.

Consider what’s already happening with medical devices as the power, speed or capacity of the electronic components doubles each year. The devices themselves keep getting smaller, cheaper, more accurate, and easier to use, moving down-market from doctors and specialists in hospitals and clinics, to consumers at home or on the go.

The consumerization of medical devices not only enables the Smartphone Physical but also remote telehealth monitoring services that can focus on wellness and prevention to dramatically lower overall costs. This is happening today, albeit slowly and with a lot of resistance from industry incumbents protecting their positions. Imagine the accelerated benefits if government was to encourage and even demand the use of such technologies.

As the embedded processors, sensors and actuators disappear into everyday objects like the watch on your wrist, clothing or patches you wear, or even under-skin devices, an obvious benefit is real-time monitoring. This can give you or a telehealth monitoring service context to better understand what affects the measurements. Is it a strenuous exercise, something in your diet, or maybe something in the environment? Having that knowledge facilitates taking corrective action if needed.

But is that knowledge learned, and where does it reside? Is it something you or a remote human must interpret and make decisions on, or can that be automated through machine learning and artificial intelligence? And is the data stored and processed in the sensing device itself, or is it in a connected smartphone, or computer system in some remote service? How remote is it – in another room, or across town, state lines, or even international borders? You can see why your local doctor might resist.

Technology Intersections

Solutions to the world’s most pressing problems often lie at the intersection of these exponential technologies, blending science and technology (INFO + BIO + NANO + NEURO).

Consider a healthcare solution that leverages remote sensing, machine learning, public health records, and personal genetic profiles to improve population health and help prevent disease. Or think of the potential impact of big data analytics and knowledge learned from data collected from millions of medical records, published medical journals and Internet queries, and trillions of connected smart devices. Then personalize care based on genetics and behavior.

How might politicians use the knowledge of what affects health, and insight into the economic impact, to improve regulations and legislation to promote wellness and productivity and reduce care costs? Might they finally see gun violence as a public health issue? Would doing something about toxic pollution (air/food/water) become easier to justify? Would automation and the move to universal healthcare help them prioritize good nutrition, poverty relief, safe places to play and exercise, sleep wellness programs, and other factors that benefit the general welfare?

False Predictions

Don’t summarily disregard the possibilities and potential of automating healthcare, or the impact of exponentially advancing technology. We often overestimate what can be achieved in the short-term. But we vastly underestimate what can be achieved in the long-term. We humans are just not equipped to process exponential growth. We instead think linearly, assuming a constant rate of change. But thinking exponentially is key to exploiting new opportunities.

The following quotes show that it’s risky to say that something can’t or won’t be done, especially when technology is concerned and it’s the right thing to do. I hope the list inspires you and others to do the right thing.

  • PHONOGRAPH – “The phonograph has no commercial value at all.” (Thomas Edison)
  • TELEPHONE – “Well-informed people know it is impossible to transmit the voice over wires and that were it possible to do so, the thing would be of no practical value.” (Boston Post, on the telephone, 1865)
  • TELEPHONE – “This telephone has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.” (Western Union internal memo, 1876)
  • ELECTRICITY – “Fooling around with alternating current is just a waste of time. Nobody will use it, ever.” (Thomas Edison, 1889)
  • CARS – “The horse is here to stay, but the automobile is only a novelty–a fad.” (President of the Michigan Savings Bank, speaking to Henry Ford’s lawyer, Horace Rackham. Rackham ignored the advice, invested $5000 in Ford stock, and sold it later for $12.5 million.)
  • PLANES – “Heavier-than-air flying machines are fantasy. Simple laws of physics make them impossible.” (Lord Kelvin, president, British Royal Society, 1895)
  • INVENTION – “Everything that can be invented has been invented.” (Charles H. Duell, commissioner of the US Patent Office, recommending that his office should be abolished, 1899)
  • PLANES – “Man will not fly for 50 years.” (Wilbur Wright, to brother Orville after a disappointing flying experiment in 1901. Their first successful flight was in 1903.)
  • RADIO – “The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?” (David Sarnoff’s associates responding to his urgings for investment in radio, 1912)
  • TANKS – “The idea that cavalry will be replaced by these iron coaches is absurd. It is little short of treasonous.” (ADC to Field Marshal Haig, at tank demonstration, 1916)
  • MOVIES – “Who the hell wants to hear actors talk?” (H. M. Warner, Warner Brothers, 1927)
  • NUCLEAR – “There is not the slightest indication that nuclear energy will ever be obtainable. It would mean that the atom would have to be shattered at will.” (Albert Einstein, 1932)
  • TELEVISION – “Television won’t last because people will soon get tired of staring at a plywood box every night.” (Darryl Zanuck, Movie Producer, 20th Century Fox, 1946)
  • SPACE – “Space travel is bunk.” (Sir Harold Spencer Jones, Astronomer Royal of the UK, 1957, two weeks before Sputnik orbited the Earth)
  • COPIERS – “The world potential market for copying machines is 5000 at most.” (IBM to the founders of Xerox as it turned down their proposal, 1959)
  • MUSIC – “Guitar music is on the way out.” (Decca Records, declining to record a new group called The Beatles, 1962)
  • COMPUTERS – “I think there is a world market for about five computers.” (Thomas J. Watson Jr., chairman of IBM, 1943)
  • COMPUTERS – “So we went to Atari and said, ‘Hey, we’ve got this amazing thing, even built with some of your parts, and what do you think about funding us? Or we’ll give it to you. We just want to do it. Pay our salary, we’ll come work for you.’ And they said, ‘No.’ So then we went to Hewlett-Packard, and they said, ‘Hey, we don’t need you. You haven’t gone through college yet.‘” (Steve Jobs, founder of Apple)
  • COMPUTERS – “640 K [of computer memory] ought to be enough for anybody.” (Bill Gates, founder and CEO of Microsoft, 1981)
  • INTERNET – “I predict the Internet will soon go spectacularly supernova and in 1996 catastrophically collapse.” (Robert Metcalfe, founder of 3Com and inventor of Ethernet, 1995)
  • NEW BUSINESSES – “The concept is interesting and well-informed, but in order to earn better than a ‘C’ the idea must be feasible.” (Yale professor’s comments on a term paper submitted by Fred Smith for an overnight delivery system. Two years later, Smith founded Federal Express.)

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3 Comments

  1. Christeen Paul says:

    Good criticism! Many things you pointed out are exactly right. It doesn’t matter how much we spend, it’s all about how efficiently we are utilizing the investment made. As the demand for healthcare is increasing day by day, healthcare providers need to manage large amount of inventories, patient files, appointment scheduling, billing and other managemental as well as clinical procedures. It is not possible to effectively do manual processing of all these with accuracy and timeliness. Manual processing is more prone to errors, time consuming, requires large amount of work force as well as other associated resources. Thanks to modern technology. Automation is the best practical solution for effectively managing modern healthcare. As you said, automation could cut down healthcare cost by half its estimate by streamlining and offering high quality healthcare. Automation helps healthcare providers to offer low cost value-based patient care, which should be the top most priority of every healthcare institution. I can share you some real digital use cases for healthcare automation [link removed]. These case studies simply show how much modern healthcare can utilize technology for yielding better efficiency to provide more patient-based care. 

    1. Thanks, Paul, for your response to my article. During the middle of my 30-year IBM career, when I was Systems Engineer, I had very large hospital accounts and installed Patient Accounting and Medical Records systems. All of that enterprise experience was mainframe based. Then before the IBM PC was introduced, I started moving to end user and consumer applications, and that expanded my tech and market perspective. But while I never got the medical training of a physician, I think my view of the US Healthcare problem has unique value.

      I’ve come to believe that fixing healthcare starts with fixing politics, because you have a $3.5 trillion/year industry that doesn’t want to change or lose half of its revenue, even if that would good for the nation and society. The medical industrial complex, which I often describe as a cartel, spends heavily on political lobbying and otherwise resists disruptive business models such as functional medicine and telehealth, especially across state lines and international borders. Even medical school curricula is focused on diagnosis and treatment rather than prevention or cure. That’s because prevention goes against the most profitable business models.

      I removed your reference link (too self-promoting) but will let people reach out to you directly if interested in your consulting services. I agree that there are great opportunities to automate complex healthcare provider systems, but much of my focus lately has been on the even bigger savings potential of addressing the business and political problems. I’ve also written about the Economic Benefits of Population Sleep wellness, which I believe could also exceed $1 trillion/year in improved workforce productivity and reduced healthcare costs.

  2. RELATED ARTICLES:

    UnitedHealth offering Americans FREE APPLE WATCH if they do this — Meet UnitedHealth’s FIT requirements: walking 500 steps in seven minutes six times per day – an hour apart each time, walking 3,000 steps in 30 minutes once per day and walking at least 10,000 steps per day.

    Would You Trust An Automated Doctor? (Forbes, 6/19/2019) There’s an important point not covered in this article and the survey it’s based on. Think of tech innovation as an extra tool for you and your doc, not as a replacement of your annual physical with her. Beyond just real-time monitoring of a patient’s health is the ability to provide context and actionable insight that can influence behavior. Diabetics can learn what diet and exercise choices most affect glucose levels, with the objective of minimizing measurement swings. Athletes can tailor workouts for maximum benefit and minimum risk while tracking progress. And patients, family, and/or caregivers can be alerted if things seem dangerously out of sorts.

    Amazon, Walmart and Best Buy quietly entered Healthcare market to disrupt an industry resisting change. The big winner? Consumers. (Inc. September 2019) I COMMENTED:

    TRENDS — This trend of retail clinics, telehealth phone consults, home healthcare visits, and home delivery matches up perfectly with what I’ve written about for five years. As medical devices keep getting smaller, cheaper, more accurate, and easier to use, many medical functions will move downmarket from physicians in doctor offices to consumers at home.

    RESISTANCE — Healthcare CEOs, who invested in political influence to reinforce their perverse profits and currently sit at the top of the mountain, now look down with fear at the tech innovators hungry for disruptive change.

    WHY — Americans are sick and tired of spending twice on healthcare as other advanced nations, and they’re demanding change. If they can’t get it politically, because this industry cartel owns the politicians, they’ll seek change elsewhere, giving companies like Amazon, Walmart, and Best Buy a giant sized opening. Those wanting to disrupt US healthcare, cut spending in half or more, and save $1.5 trillion/year, or more, need to know “Why American Healthcare is So Expensive” in the first place.

    3 must-haves to hit telehealth’s tipping point (AMA December 2019)

    I’m surprised to see the AMA support telehealth rather than block it as they’ve done before. Maybe they’re seeing it as inevitable and the only way to compete with new entries like Amazon, Walmart, and CVS that combine technology with retail clinics and local sale of prescription drugs and medical devices.

    As I wrote years ago, the exponentially accelerating pace of tech innovation is making medical devices cheaper, smaller, more accurate, and easier to use. That trend is enabling disruptive new business models as more & more work of doctors in offices moves down-market to consumers when and wherever they are.

    Medical industry incumbents still need to worry about telehealth across state lines and international borders as the tech makes that easier, less expensive, and more convenient, because foreign telehealth services may someday become safer and more expensive if U.S. alternatives aren’t competitive.

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