Chapter 9
Digital Health Strategies

Introduction

For the past several years, digital technology has transformed the healthcare landscape, from analytics-enabled research to Web-driven consumer empowerment. Biopharma R & D is being optimized by analytics tools such as IBM Watson Health, applying cognitive computing to genomic, clinical trial, and claims databases. Trials themselves are evolving, as randomized, double-blind models integrate patient-reported outcomes. Consumers are driving the rapid adoption of smartphones and biosensors such as Fitbit and the Apple Watch, and they are increasingly participating in product development through online patient communities. This new landscape reflects the convergence of infotech and healthcare, from Apple's ResearchKit, codeveloped with the Mayo Clinic and other health systems, to Samsung's biosensors and new entrants such as Proteus Digital Health.

This chapter will first cover the impact of digital health on the biopharma value chain, from R & D to commercial activities. It will then focus on consumer-driven trends including wearable sensors and social media. It will finally cover provider-centered telemedicine initiatives, from e-consults to remote drug monitoring and the rise of new, on-demand medical services. Chapter 10 examines how companies can leverage data and analytics to improve their agility across the same value chain.

Biopharma Digital Strategies

New R & D Patient-Centric Models

The traditional drug development model follows a linear path, from discovery to the preclinical stage, leading to phase I, II, and III human trials to support approval by the Food and Drug Administration (FDA), the European Medicines Agency (EMA), and other regulators. A new model is emerging, involving patients as co-creators at each stage. Analytics allow a more predictive approach, often including biomarkers and companion diagnostics. Innovation itself is now more open, thanks to crowdsourcing technologies. Trials are optimized with e-recruitment and e-reporting. The supply chain is also enabled by real-time insight for forecasting, patient input for product formulation, and innovative cloud-based worldwide distribution.

As post-market data collection continues to blur the lines between research and commercial outreach, R & D supports marketing activities through an evidence-based communications strategy. The impact of digital technology on the value chain is summarized in Figure 9-1. In research, scientists can discover new care pathways by mining genetic and clinical data. In clinical care, big data may fuel a new paradigm for epidemiology by combining environmental data with user queries on search engines such as Google.

Figure 9-1 Digital transformation

Online patient communities can also help find and recruit patients with rare diseases, but challenges remain for wider adoption of digital technologies in R & D. Electronic health records (EHRs) offer significant opportunities to optimize treatments on a broad scale, but they are still fragmented and may have large biases; for instance, they may exclude the populations served by understaffed hospitals without the necessary infrastructure [1]. In epidemiology, a new approach was pioneered in 2009 by Google as it published its Flu Trends initiative [2]. However, a subsequent paper reported that, for 2013, Google showed almost twice as many flu cases as were estimated by the Centers for Disease Control and Prevention (CDC) [3].

Optimizing Clinical Trials

Digital technology can transform several stages, including recruitment, remote monitoring, and post-marketing surveillance. According to the Institute of Medicine, 75 percent of US trials fail to enroll their target numbers, and 90 percent do not reach that target within the specified time [4]. In addition to databases such as ClinicalTrials.gov, patients can now find trials through Google and Facebook ads, as well as online communities. For instance, Biogen has partnered with PatientsLikeMe and Fitbit to better understand the utility of wearables for tracking activity in multiple sclerosis patients and also to explore patient adherence to monitoring after the study. Apple's ResearchKit is used by many health systems, including Mount Sinai for their Asthma Health app; more than 8,000 participants enrolled in a clinical study within six months, and only 13 percent of them were located near the New York study site [5].

During trials, mobile devices allow real-time patient feedback, reducing in-person visits and giving an objective measurement of therapy response. Early signals of efficacy and safety can also help identify patient subsets with better responses and allow trial restructuring. Postlaunch, real-world evidence helps monitor efficacy and adverse events that may not have appeared within the limited scope of trials. For instance, Pfizer and IBM have launched a research project on Parkinson's disease, using sensors to provide real-time symptom information and medication timing and dosing, thus defining the digital signatures of individual patients. The study targets up to 200 participants including controls, and aims to discover which sensors can best provide correct insights and speed up trials. By 2019, Pfizer may apply this method to a phase III trial of a new compound and later extend it to other degenerative diseases such as Huntington's and Alzheimer's [6].

Role of Social Media in Trials

Patients are taking a direct role in trials. As noted in Chapter 6, PatientsLikeMe was launched in 2004 with a focus on amyotrophic lateral sclerosis (ALS) and has since expanded to more than 2,700 conditions, with over 500,000 members. In 2013, it launched its Open Research Exchange, funded by a grant from the Robert Wood Johnson Foundation to link scientists and members, who can log patient-reported outcomes (PROs) on it. This was expanded in 2015 with a $900,000 Robert Wood Johnson Foundation grant to fund a collaboration with the National Quality Forum, aiming to develop and test the broader use of PROs [7]. In 2016, PatientsLikeMe and informatics firm M2Gen started combining PROs with molecular and clinical data from patients in the Total Cancer Care Program at Ohio State University, with a focus on lung cancer. The alliance is funded by PatientsLikeMe partners AstraZeneca and Genentech [8].

Other patient communities have successfully funded trials in rare diseases and enabled rapid enrollment in such trials through their patient network. By the mid-2000s, the Leukemia and Lymphoma Foundation was deploying about $50 million annually to fund 350 research projects worldwide. In 2013–2014, pharmas contributed at least $600 million to further development for blood cancers [9]. Biopharmas are increasingly engaging in long-term collaborations to optimize research, not only with patient communities but also with infotech leaders.

While social media are helping optimize trials, some mixed reports are emerging. Apps developed for Apple's ResearchKit by health systems such as Mount Sinai (asthma) and Massachusetts General Hospital (diabetes) have enabled broader and faster enrollments (more than 70,000 participants in the first two months) [11]. However, active conversations within patient communities during trials may undermine data integrity in areas such as eligibility (patient coaching about how to meet criteria), blinding (advice on how to get into a therapy and not a control arm), and safety (sharing adverse events may trigger a false spike in safety reports) [12]. To mitigate these risks, sponsors may take into account the activity intensiveness of various communities, the study size (one e-participant may influence a small study to a larger degree), and possibly complement the e-consent process with patient education about these risks.

Digital Impact on Supply Chain Management

In comparison with large retailers such as Walmart, the biopharma sector has been relatively slow in digitizing and integrating its supply chain. The evolution from siloed functions to a dynamic, patient-centric, and integrated global network will be increasingly supported by the Internet of Things (IoT). The healthcare IoT can be defined as platforms that collect and analyze actionable patient data to aid in the treatment and prevention of diseases beyond traditional care settings [13]. This can significantly reduce costs and connect market insights and patient outcomes back to the supply network, including contract manufacturers and suppliers. The IoT offers several advantages through the supply chain:

  • Pervasive visibility: Monitoring a shipment in real time through a combination of radio frequency identification (RFID), connected devices, and channels (3G/4G, GPS).
  • Predictive maintenance: Using sensors and connected devices to monitor and react to technical problems, coming close to machine-to-machine communications.
  • Forecasting and replenishment: This is especially important in biopharma to avoid a stock-out that would endanger patient lives and cause enduring damage to a company reputation.
  • Asset tracking: Smart labels include flat transponders fitted under conventional labels to transmit identifying data that are essential for security and compliance. In the current context of increasing risks such as opioid abuse in the United States, biopharmas are tightening control of their supply chains. For instance, Pfizer announced in May 2016 updated controls in its distribution channels to stop the use of its products in lethal-injection executions. The policy increases controls on wholesalers and distributors and sets up a monitoring system to ensure compliance. This is related to the 2015 Pfizer takeover of Hospira, which added several drugs used in lethal injections. While some states are still acquiring drugs from compounding pharmacies outside Pfizer's system, limits placed by several companies on their availability have partly contributed to a decline over several years in the use of the death penalty [14].

In manufacturing, an emerging technology is 3D printing, also called additive manufacturing, with uses in prosthetics and custom research tools. This creates a three-dimensional object by adding successive layers of material, guided by a computer. This market grew by 17 percent to $1.5 billion in 2015, and it is attracting specialized firms such as Stratasys and EOS GmbH, but also established players such as Hewlett-Packard. It announced a five-year initiative to develop a high-volume, more mainstream method allowing faster and cheaper production; it also took an equity investment in Shapeways. The first FDA approval for a 3D-manufactured drug was granted in March 2016 to Aprecia Pharmaceuticals for Spritam (levetiracetam) in epilepsy. Advantages of 3D printing include easier delivery for patients who have trouble swallowing pills and fast onset of action with rapid dissolution [15].

For distribution through a global network, cloud computing (the use of remote servers to store, access, and process data) can minimize capital investment and is best used in areas that have the greatest networking effect and share the least sensitive data; these include procurement, transportation management systems, store shelf optimization, and some sales and operations planning [16]. The impact of digital technology on the supply chain is illustrated in Figure 9-2.

Figure illustrating impact of digital technology on the supply chain – collaborative and customer-centric with end-to-end visibility. The impact can be demand driven, manufacturing excellence, advanced product design and packaging, and innovative distribution models.

Figure 9-2 Intelligent supply chain

Digital Transformation of Commercial Activities

Digitization is enabling a fundamental shift from a transactional mindset (selling a pill) to a patient-centric approach (meeting patient needs before, during, and after treatment and delivering positive outcomes that can support value for patients and payers). This entails an evolution from functional silos to an integrated system of care. While Web-connected patients have a primary need for long-term, product-neutral disease information, many digital activities fit within the marketing organization, with short-term budget cycles and sales objectives. In order for a new product to meet patient needs, a cross-functional approach must link development, economic, and marketing teams.

Care integration is being practiced by drug retailers and health systems. Among pharmacy chains, Walgreens is coordinating prescription refills, adherence tracking, and e-consults within a single smartphone app. It partnered with MDLive for telemedicine services and with WebMD for disease information, and it is incentivizing patients by integrating this into its Balance Rewards loyalty program. Among health systems, Duke University School of Medicine is piloting partnerships with Apple, Fitbit, and Withings to integrate patient-generated data such as blood pressure and weight with clinical data in its Epic electronic system, through the Apple HealthKit. For biopharmas, barriers to this integration include the lack of dedicated budgets and profit and loss ownership, and the significant overhead cost of pilot programs that may not be viable on a larger scale.

A 2016 survey of biopharmas showed that only 15 percent of senior managers could identify their company's main digital key performance indicators, fewer than 15 percent of companies had well-defined roles for digital leaders, and fewer than 30 percent could track their digital budget across business units. Many biopharmas tended to treat digital engagement as an aspect of execution, rather than as a central element of their strategy [17].

A key area for digital initiatives is diabetes, given its worldwide scope affecting over 350 million people. The major players have multipronged strategies, combining product-centric and product-neutral approaches.

  • Novo Nordisk is by far the most diabetes-focused company, as the world's largest producer of insulin such as Levemir (insulin detemir) and NovoLog (insulin aspart), as well as Victoza (liraglutide) and a pipeline including an ultra-long-acting basal insulin and an oral long-acting GLP-1 analog [18]. Novo understood patient needs several years ago, as it developed an auto-injector branded as NovoPen, reflecting the commoditization of insulin in the patients' view, versus their clear preference for a user-friendly delivery system. Currently, its beyond-the-drug goals include helping discover demographic solutions. It teamed up with University College London and city leaders in several countries to analyze the sociological spread of diabetes in urban contexts through online and offline networking.
  • Merck has the most comprehensive product-neutral resource across all therapeutic areas with its Merck Manual, now online, which has gained it a unique consumer recognition. It also runs an entire subsidiary, Vree Health, focused on healthcare service and delivery. Besides product promotion for Januvia (sitagliptin) and Janumet (sita-metformin), and a pipeline including omarigliptin (weekly DPP-IV inhibitor) and ertugliflozin (insulin glargine), Merck has wide-ranging initiatives in diabetes care innovation. It launched in 2014 a global outcomes registry to identify gaps in type 2 disease management. The three-year project, involving 20,000 patients and tracking glucose control, adherence, quality of life, and health resource utilization, is part of a broader commitment to generate real-world evidence [19].
  • As AstraZeneca expands its portfolio from Bydureon (XR exenatide) to Forxiga (dapagliflozin) and Onglyza (saxagliptin), it aims to offer physicians a choice of treatments based on patient profiles and to provide customization to patients. In October 2014, It launched Fit2Me, a free diet and lifestyle support program including digital coaching, incentives, a progress log, and access to nurses across medication classes but still limited to AstraZeneca's products [20].
  • Sanofi faces the patent loss of its flagship basal insulin Lantus (insulin glargine), a slower-than-expected uptake for its successor molecule Toujeo (high-concentration glargine), and biosimilars from Lilly and Boehringer Ingelheim. It is thus expanding the footprint of its Sanofi Patient Solutions (see the text box, “Sanofi Digital Portfolio in Diabetes”).

Other digital initiatives include Genentech's five-year partnership with PatientsLikeMe, with an initial focus on oncology. The network's clinical trial awareness tool may help with recruitment, and its Open Research Exchange program provides access to patient-reported outcomes, especially valuable in oncology for their potential to demonstrate value to payers and regulators [22].

Pfizer has also developed several product-neutral online initiatives. In September 2015, it launched “Breast Cancer: A Story Half Told” (www.storyhalftold.com) to encourage patients to share photos and messages of hope, in partnership with five advocacy groups, including the Cancer Support Community, Living Beyond Breast Cancer, and the Young Survival Coalition. This addresses the 150,000 to 250,000 US women suffering from metastatic breast cancer and aims to improve patient education [23]. Pfizer also announced in June 2015, together with the American Lung Association, the Quitter's Circle, a mobile app and online community designed to help smokers quit through educational, social, and financial support. Research had shown that only half of smokers spoke to their physicians about quitting, and they faced financial concerns such as doctor visits, counseling, and treatment costs. The initiative allows smokers to start a quit team with friends and family, crowdsource funds, and join the Quitter's Circle communities on Facebook and Twitter [24]. In 2012, Pfizer launched its first mobile logging tool, HemMobile, a free app helping hemophilia patients and caregivers log infusions and bleeds, regardless of what factor replacement product was used. The app allows users to set private reminders for infusions, physician appointments, and factor reordering, and also to enroll in the Hemophilia Village community. If patients opted out, Pfizer would not record any personal information [25].

While most companies now have such initiatives, there is still a significant gap between patients' needs for product-neutral disease information and biopharma offerings. A 2015 Accenture survey of 10,000 patients in Brazil, France, Germany, the United Kingdom, and the United States across seven areas (brain, bones, heart, immune system, lungs, metabolism, and cancer) showed that only 19 percent of patients were aware of biopharma services. Sixty-five percent of respondents stressed the pretreatment period as the most frustrating one in their patient journey and wanted guidance at that stage. While 85 percent preferred their physicians as the primary contact point, only 1 percent said it could be a pharma company [26].

Biopharmas continue to face structural barriers to being one-stop-shops for patient services because of functional silos and often of the lack of coordination between social and non-social communications. If social media are housed within marketing, the rotation of product managers and their short budget cycles may be issues. Ideally, patient communications should become part of a coordinated ecosystem that includes alliances with advocacy groups and offers real-time support around diseases, including prevention, moving beyond engagement only after a prescription has been issued.

Consumer-Centered Trends

Wearables: Growth and Challenges

In parallel with biopharma initiatives, market demand has driven two related trends: wearables (sensors worn on the body or in clothing to track activity and vital signs) and their link to social media. While wearables have shown exponential growth, company success has been uneven, in part because consumers are generally more satisfied with hardware (devices such as the Fitbit wristband) than software (fitness and health apps). According to BCC Research, mHealth, defined as “medical and public health practice supported by devices such as mobile phones, patient monitoring services and other wireless devices” [27], is expected to reach a global revenue of $21.5 billion by 2018, with Europe as the largest mHealth market [28].

Smartphones themselves, however, are showing signs of saturation. IDC (International Data Corporation) reported a flattening of global shipments, as Apple showed a first-ever decline in 2016 and Samsung (the largest maker of Android phones) also saw a fall in sales. As nearly 80 percent of Americans own smartphones, the market may be driven only by upgrades and conversion of the remaining nonusers [29].

A parallel trend is the proliferation of apps but a low level of satisfaction. Of the 165,000 health-related apps on Apple's iOS and Google's Android, most are rarely used and many are quickly abandoned. According to a 2015 IMS study, more than 50 percent of health apps have narrow functionality (often just information, without interpretation). Only 2 percent of apps have connectivity with provider systems.

Multiple barriers persist, including lack of integration between EHR systems, regulatory uncertainties, and privacy concerns. For physicians, the lack of infrastructure to handle massive patient inflows is compounded by liability and reimbursement issues.

Because of its fragmented healthcare system, the United States lags Europe. Denmark leads in mHealth utilization, level of digitization, and regulatory framework. In 2015, the National Health Service (NHS) in England launched a website and related app to treat depression and anxiety, and improve access to mental health services [30]. Some progress is being made in the United States, as the Mayo Clinic, Geisinger Health, Kaiser Permanente, Intermountain Healthcare, and Group Health formed, in 2015, the Care Connectivity Consortium to share patient data in a secure exchange.

A growing body of evidence is also being collected through collaborations. The Dana-Farber Cancer Institute and Fitbit announced, in April 2016, a partnered study of the impact of weight loss on cancer recurrence, sponsored by the National Cancer Institute and the Alliance for Clinical Trials in Oncology. The study aims to enroll more than 3,200 overweight women with early-stage breast cancer, to be randomized for a two-year weight loss and education program, versus health education alone. Fitbit is donating a fitness and heart rate tracker, smart scale, and software for video exercises on mobile devices [31]. It remains to be seen within what time frame the current vertical solutions can evolve from consumer-grade devices and apps to FDA-approved research-grade devices with curation of apps, provider buy-in, and interoperability across the care continuum, from patients to physicians and health systems.

Consumer concerns are also exacerbated by massive data breaches such as those of Anthem and Premera Blue Cross. Anthem alone suffered a breach of 78.8 million records in early 2015. Security experts agree that healthcare data has a much longer value than credit card information, as theft and misuse take a long time to show up in fraudulent billing and medical records [33]. Consumers are therefore reluctant to share data digitally. A 2013 Health Information National Trends survey of more than 3,000 patients showed that only 6 percent had actually shared health data through their devices, and that less than a quarter would be willing to do so for digital images or diagnostic information [34].

Some privacy risks may not even be publicly known. The Journal of the American Medical Association reported in 2016 a study of 211 Android diabetes apps that showed that 81 percent did not have privacy policies. Permissions (which users must accept to download an app) authorized collection and sharing with third parties of sensitive information such as insulin and blood glucose levels. There are no federal protections, including within HIPAA (the Health Insurance Portability and Accountability Act) against the sale or disclosure of data from apps to third parties [35].

The FDA has released several guidelines, including a 2015 guidance on electronic consent in trials, requiring clear information and ease of navigation [36]. It has stated its intent to calibrate regulation, overseeing only mobile apps and devices that could pose a safety risk if they malfunction, such as electrocardiography devices like AliveCor [37]. In its capacity to regulate false and deceptive advertising, the Federal Trade Commission (FTC) has already brought enforcement proceedings against two app developers, including one claiming to treat acne through light from a mobile phone. In addition, the Department of Health and Human Services (HHS) monitors HIPAA violations, and in July 2013 it fined WellPoint $1.7 million for failing to provide adequate safeguards for its online app database [38]. This conflicting pattern of rapid, mostly uncontrolled growth and related risks also applies to the evolution of social media in healthcare.

Social Media: From Insight Mining to Co-Creating

According to the Pew Research Center, 65 percent of American adults use social media, up from 7 percent in 2005, but the overall number of users has leveled off since 2013. While 90 percent of young adults use these sites, as many as 35 percent of those over 65 also do [39].

In its 2015 Cybercitizen Health US study, Decision Resources surveyed 6,601 US adults and found an overall demand for disease-oriented information, rather than drug data. Up to 38 percent of respondents had searched symptoms and conditions in the past 12 months, and up to 39 percent had done so through search engines versus 18 percent on social networks, only 12 percent on prescription drug websites, and even fewer (8 percent) on pharma corporate sites. The top site used was Facebook, closely followed by WebMD, with Twitter far behind. The top types of information sought were factual: prescription drugs' efficacy and side effects, followed by news feeds and provider ratings [40].

The use of private online physician ratings has greatly increased, with 8.9 million unique visitors for Healthgrades in September 2015 alone, partly because public websites such as Physician Compare include overly complex data or measures of clinical quality not meaningful to consumers, who are more interested in service components than mortality statistics [41].

In addition to provider ratings, the dominant need for disease information explains the growth of patient communities. Among others, PatientsLikeMe allows members to track their disease status and compare it with de-identified data from a large database, and to access customized clinical trial information. This trend is worldwide: in Europe, RareConnect is a site from EURORDIS (European Organization for Rare Diseases), with financing from public funds, events such as telethons, and corporate sources. PatientsLikeMe has partnered with the FDA to improve the reporting of adverse effects and has developed measurement tools through its Open Research Exchange. Given that 30 to 55 percent of patients with hypertension do not adhere to their medication regimen, PatientsLikeMe codeveloped with the Villanova College of Nursing a management instrument that would be free to physicians and would be completed during office visits to add PROs to clinical data [42].

The most advanced strategies belong to rare diseases, where some groups have actually funded trials and codeveloped breakthrough treatments. After its first investment in Aurora (later Vertex), leading to the 2012 FDA approval of Kalydeco (ivacaftor) for patients with a rare gene mutation, the Cystic Fibrosis Foundation is now funding research programs with Pfizer, Sanofi/Genzyme, and Shire. It has invested $425 million as part of its venture philanthropy model, and, in 2014, it sold its royalty rights for cystic fibrosis treatments developed with Vertex for $3.3 billion, to further develop new therapies and to provide online support of patients [43].

Given this rapid patient empowerment through social media, but also regulatory constraints, it would be prudent for biopharmas to adopt a stepwise approach. An indispensable first step is a sophisticated listening function, tracking what consumers are seeking online, but also what they are saying between themselves on social media. Beyond insights mining, companies can then reflect and shape the consumer demand for disease information with an unbranded portfolio ranging from blogs to compendia such as the Merck Manual. Some companies are issuing corporate posts on topics such as patient access information. Although practiced by a few biopharmas, branded messages remain a risk on uncontrolled social media. Facebook continues to allow pharma brands to disable comments, so many of the existing branded pages offer only the ability to share content but not respond [44]. These steps reflecting different degrees of risk are summarized in Figure 9-4.

Figure 9-4 Social content risk assessment

Best practices for biopharmas could also include the following steps:

  • Listen: What conversations are happening around your disease and product?
  • Audit: What are consumers' preferred platforms? Do they correspond to those you already use?
  • Create content: Develop content that addresses patient pain points and their entire journey, including the pretreatment and posttreatment stages.
  • Integrate: Pilot new initiatives and integrate them into overall social publishing
  • Coordinate: Coordinate a consistent message across functions, from R & D to health economics and market access, customer relations, sales, and marketing.

In addition to extensive involvement with consumer trends and behaviors, eHealth success for biopharmas also depends on an understanding of provider-centered initiatives including telemedicine.

Provider-Centered Strategies: Telehealth

The explosive growth of telehealth is supported by multiple trends, from an aging population with comorbidities weighing on an already cost-burdened system, to relaxing licensure regulation and mobile technology. The total addressable market for outpatient spending is now estimated at $57 billion by Cowen Equity Research [45]. While the terms telehealth and telemedicine are often used interchangeably, the latter is defined as “the use of electronic information and communication technologies to provide and support healthcare when distance separates participants.” While telemedicine specifically refers to diagnosis and treatment, telehealth helps patients more broadly through self-care, education, and support systems [46]. The scope of telehealth is very broad, from standard e-consults to new on-demand services such as American Well and Teladoc.

Physician Digital Trends

While biopharmas aim to increase their patient and physician engagement, studies show a clear physician preference for other information sources. A 2015 Decision Resources study of 3,029 US practicing physicians showed that their clinical decisions are mostly influenced by conferences, colleagues, and journals, while pharma representatives were cited by less than a third of respondents. The professional apps most used were Epocrates, UpToDate, and Medscape, with their main attractiveness being quick access to information and ease of navigation. For online videos watched for clinical purposes, the same trend applied, with Medscape Professional Network and YouTube cited first versus only 8 percent using pharma websites. These videos were primarily for continuing medical education, seminars, medical procedures, and disease information [47].

Scope of Digital Services

Beyond these clear physician trends, the healthcare landscape is being fundamentally changed by a broad range of new and existing players, from on-demand services to device manufacturers (Figure 9-5). Several competitive threats are emerging for providers as well as biopharmas, as patients are partly migrating to on-demand services, content portals, and even pharmacy chains. These entities act to disintermediate communications between biopharmas and patients. For example, online portals like WebMD and Everyday Health are transitioning from content to service providers. WebMD offers a private wellness portal to self-insured employers and health plans. Its partnership with Walgreens integrates its content into the retailer's experience to track and reward healthy behavior. Everyday Health partners with Cigna for early risk identification in prenatal care, and it has also an alliance with the Mayo Clinic [48].

Figure describing the scope of telehealth services in content/companies portal, on-demand services, pharmacies, insurers, health systems, and device manufacturer.

Figure 9-5 Scope of telehealth services

On-demand services represent a “convenience revolution,” as they provide real-time consultations at about half the cost of standard visits. Players include MDLive, Doctor on Demand and American Well, and some firms such as AmeriDoc also offer lab testing services. Although some sites claim that they are reviewed by internal medical boards, most do not offer external validation or continuity of care.

A study published in May 2016 by JAMA Dermatology surveyed 16 online telemedicine companies, including seven general sites and nine focused on dermatology. Researchers created six fictitious scenarios and used stock images. Some sites misdiagnosed syphilis, herpes, and skin cancer, and two linked users to overseas doctors not licensed to practice where patients were located. Of the 14 clinicians who viewed photos of nodular melanoma, 11 correctly told the patient to see a doctor, but 3 diagnosed it as benign. According to the American Telemedicine Association (ATA), these services have grown rapidly, with more than one million e-visits expected in 2016. Many insurers cover them, generally for costs between $35 to $95. Given quality concerns, the ATA began an accreditation program in 2015. Although nearly 500 telemedicine companies applied, only 7 had been approved as of May 2016 [49].

Faced with competition from new insurers such as Oscar Health, health plans have also developed online services. UnitedHealthcare has 16 telehealth partners and remotely monitors 20,000 members in their homes. Anthem also launched, in partnership with American Well, its LiveHealth program to be rolled out to its 33 million members, as a 24/7 service costing $49 per visit. These payer initiatives aim, in part, to minimize misuse of emergency rooms by patients with non-urgent issues.

Top therapeutic areas for telemedicine include mental health, dermatology, and cardiology through synchronous services (real-time consultations) and asynchronous services such as the transmission of radiology images.

Reimbursement from Medicare is slowly improving. Although there is no federal mandate, states have the option to reimburse for Medicaid teleservices, and many, including California, New York, and Pennsylvania, already cover videoconferencing. In addition, 21 states and the District of Columbia require private payer reimbursement, at varying cost levels [50].

Effectiveness of Telemedicine

Key issues for telemedicine remain its accuracy and cost effectiveness, which have been best analyzed by health systems. The Veterans Health Administration (VA) has a large program collecting data from over 17,000 participants, for illnesses ranging from diabetes to depression. It demonstrated high patient satisfaction, a 25 percent reduction in bed days, and a 19 percent reduction in hospital admission when compared with usual care.

Partners Healthcare conducted a randomized trial using a wireless pill bottle, together with feedback services and reminders for hypertension patients. Initial findings showed a 68 percent higher rate of medication adherence, compared with controls [51]. Similarly, in its Hospital at Home model, Johns Hopkins achieved comparable outcomes versus inpatients and yielded overall cost savings of 19 percent, generated, in part, from lower average length of stay and fewer diagnostic tests [52].

European initiatives have also generated positive results. In the United Kingdom, the Department of Health Whole System Demonstrator program, launched as early as 2008, was a 12-month study of 3,230 patients with diabetes, chronic obstructive pulmonary disease, or heart failure. Intervention participants, receiving telehealth equipment and monitoring services, showed fewer hospital admissions and lower mortality, also with lower costs per head.

In the United States, remaining barriers include licensure, privacy concerns, and broadband access, as some rural locations lack adequate network infrastructure. Only about 10 state medical boards issue licenses allowing interstate telehealth, but portability is expected to increase. A longer-lasting barrier may be liability fears. Teladoc and American Well both cover the cost of malpractice insurance, but risks persist if patients use telemedicine alone instead of as a complement to in-person visits [53]. Finally, interoperability remains a challenge, even though some EHRs have started exchange programs.

Conclusion

From consumer-driven trends, such as wearables and social media, to physician-centered strategies, such as on-demand services, and business-to-business initiatives from payers and EHR systems, digital technology is profoundly changing the healthcare landscape. Biopharma companies have launched initiatives, including those of Sanofi, Novo Nordisk, AstraZeneca, and Lilly in diabetes. They have also recognized the effectiveness of partnerships such as that of Biogen, Fitbit, and PatientsLikeMe in multiple sclerosis. However, these initiatives are still largely uncoordinated across functions and many are at the pilot stage.

Some significant gaps remain in biopharmas' understanding of the patient journey and of physician preferences. While multiple studies report an overwhelming information need from both groups for product-neutral information, biopharma digital portfolios are still often skewed toward product-centric communications. In addition, there is still not a clear business case for large-scale, long-term digital investments by biopharmas. Digital activities are still, in many cases, siloed by functions and business units, and the lack of metrics does not support investment.

Summary Points

  • Digital technology radically impacts the entire biopharma value chain, from new R & D models involving patients as co-creators to post-marketing surveillance optimized through continuous drug monitoring.
  • EHealth also supports a growing consumer empowerment, especially as online communities take on an expanded role in collecting patient-reported outcomes and in actually funding clinical trials in rare diseases.
  • Biopharmas and infotechs are increasingly partnering to fund technology start-ups and optimize data collection, as is shown by the dRx Capital joint venture between Novartis and Qualcomm.
  • Biopharma supply chains are now increasingly supported by the Internet of Things, allowing better asset tracking, additive manufacturing, and cloud-based distribution.
  • At the commercial end, biopharmas are developing digital portfolios including disease information and patient support, blogs, and wellness monitoring. However, there is a gap between consumer demand for product-neutral information and biopharma outreach that is still in great part product-centric.
  • Consumer-driven trends include the growth of wearables such as Fitbit, but most apps are still limited by narrow functionality and lack of interoperability from patients to health systems.
  • For providers, key digital information sources remain professional networks rather than biopharma companies. On-demand services represent new competition but suffer from uneven quality. While e-consultations are being increasingly reimbursed, the United States still lags Europe, due to limited interstate licensure, liability concerns, and privacy issues, especially in light of cyberattacks and uncertainties regarding cloud services.
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