Professional Documents
Culture Documents
2009 State of The Industry
2009 State of The Industry
TABLE OF CONTENTS
Publishers Note and Editors Letter Industry Metrics: Wireless Health by the Numbers Carriers Take the Lead on Wireless Health Care Providers Push Pilots, Look for Results Alliances and Institutes Accelerate Time to Market Reimbursement Rises and Falls Consumer Health: The Answer to Who Pays? 2009 Wireless Health Venture Capital 2009 Wireless Health Deals A Step-By-Step How-to for Wireless Health Regulation The Year in Conclusion
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Publishers Note
Dear reader, As 2009, the rst year of publishing for MobiHealthNews draws to a close, our team has been busy revisiting the top stories, deals, interviews and event coverage from the past 12 months. After writing more than 700 posts on the MobiHealthNews site, publishing 45 newsletters, attending and covering countless industry events and reading well over 2000 comments from our readers, we would like to present the MobiHealthNews' Wireless Health State of the Industry Year End Report. We would like to thank our site's premier sponsors: MedApps, West Wireless Health Institute and AllOne Health for supporting our eorts. We would also like to thank our publication's many outside contributors whose perspective has added experience and depth to our industry coverage. While this report pulls from some of their work, I would like to point out that any errors, misconceptions or wayward commentary rest squarely on the shoulders of our editor, Brian Dolan. Thank you for being an active member of the MobiHealthNews community. We look forward to serving you in the New Year. Sincerely, Joe Maillie Publisher, Co-Founder MobiHealthNews
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Venture Capital
Wireless Health Venture Capital in 2009
2009
There were 15 venture capital investments announced during 2009 and 11 of them were for wireless remote patient monitoring start-ups. The remainder included a start-up working on a converged platform for physician-patient communications, a smartphone app developer focused on tness games, a call-in physician consultation service, and a tablet-based patient check-in device for physician oces. While there were few, this year's investments cover a variety of wireless health business models and oerings. In September MedMarket Diligence noted that investments and other nancings in the medical device sector topped $400 million in July and August. The $22 million round that wireless health start-up CardioMEMS secured, led the pack. MedMarket predicted another $400 million in investments in medtech for the month of September alone. By October venture capitalists focused on healthcare were hedging their bets based on the direction US healthcare reform was heading: VCs like Psilos and Chrysalis looked to fund companies that help people stay healthier and manage chronic diseases, guring this is one way the government will ultimately move to take costs out of healthcare. In November following the CTIA Wireless IT & Entertainment event in San Diego, where more than two dozen wireless health start-ups demonstrated their solutions, wireless industry veteran analyst Chetan Sharma predicted a lot of investment would ow into the sector in the coming days. One venture capital rm, Mohr Davidow Ventures (MDV), which invested in wireless sensor start-up Corventis in the past, told MobiHealthNews that it was actively pursuing start-ups like Corventis that collect clinically-actionable data for point-of-care. MDV was chiey interested in companies at the 510K level of FDA regulation. Products that require long, multi-year clinical trials before getting an FDA regulatory decision were not of interest. For the most part, the list of venture capital deals in the chart on the next page follow that trend.
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Venture Capital
Company Amount Location Date Announced Investors
CardioMEMS $22.1 million Atlanta, GA 08/26/09
2009
Company Description
Developer of implantable wireless sensors that track cardiac output, blood pressure and heart rate (more) Developer of wireless monitoring devices, including a motion sensor that detects heart rate and respiration (more) National network of primary care physicians that diagnose illness, recommend treatment, and prescribe medication over the phone (more) Developer of wireless remote monitoring systems that track the daily activities of cared for individuals in the home (more)
Autonomic Technologies
$20 million
Menlo Park, CA
05/08/09
Lead Investor: InterWest Partners; Also: Kleiner Perkins Cau eld & Byers, The Developer of implantable devices that aim to Cleveland Clinic soothe severe headaches (more) Lead Investor: BlueCross BlueShield Venture Partners; Also: Polaris Venture Partners, Developer of an automatic patient check-in HLM Venture Partners and device and service that aims to improve patientLong River Ventures provider relationship (more) Lead Investor: Seventure Partners; Also: ePlanet, Enterprise Ireland, and ResMed Lead Investor: HLM Venture Partners; Also: Cardinal Partners, Trident Capital Valhalla Partners, .406 Ventures.
Phreesia
$11.6 million
New York, NY
02/20/09
$9.8 million
Belfast, Ireland
07/20/09
$9 million
Dallas, TX
12/04/09
WellAware
$7.5 million
Charlottesville, VA
12/08/09
Myca Health
$5 million
10/06/09 12/04/09
MycaHub combines an EMR, a comprehensive admin system, and the ability for doctors to BlueCross BlueShield Venture communicate with their patients via a variety of Partners, Sandbox Industries. channels. (more) Investors include Cotswold Foundation Echo is developing a wireless blood glucose monitor for diabetics. BL's platform, TVx, gathers info from Bluetoothbased wireless medical devices at home and displays it on the TV. Developer of wireless technology for monitoring the health of expectant mothers and babies (more) Developer of medical applications for wireless and web-enabled devices (more)
BL Healthcare
$3 million
Foxborough, MA
08/06/09
undisclosed Lead Investor: PUK Ventures; Also: Catapult Venture Managers, University of Nottingham Carilion Biomedical Institute, Optimum Sensor Holdings
Nottingham, UK Roanoke, VA
04/27/09 12/11/09
$160K undisclosed
12/01/09 07/01/09
Developer of motion-detecting iPhone tness apps that include peer challenges to keep users Lead Investor: Channel 4's 4iP motivated Sequoia Capital New Venture Partners, Unilever Ventures Service provider of remote cardiac monitoring for arrhythmia diagnosis (more) Developer of a personalized online tness coaching system and wireless monitoring device (more) Developer of real-time physiological and biomechanical monitoring technology for defense, rst responder, training and research markets (more)
MiLife
undisclosed
Bedford, UK
01/16/09
Annapolis, MD
06/18/09
Motorola Ventures
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2009
During the course of 2009, MobiHealthNews chronicled 73 business deals between two or more companies or organizations active in the emerging industry. We dened a deal as an acquisition, pilot, program, joint venture, or product or service launch in conjunction with another company. For many global rms, the fastest path to market leadership will be through acquisition, Investment rm TripleTree's research director Chris Homann told MobiHealthNews. This consolidation may not come in the same urry as weve seen in enterprise software, but some thoughtful strategic deals will begin to occur. Because many of the questions surrounding mHealth and Wireless Health solutions center on who pays for them, early M&A activity may be focused on those solutions demonstrating recurring revenue growth or meaningful end user (or patient) retention. The 73 deals summarized here could serve as a timeline for wireless health activity in the past year. The deals are ordered chronologically, beginning with AllOne Health's massive pilot with the U.S. Army, which licensed AllOne Mobile for more than 10,000 wounded warriors managing traumatic brain injuries. The charts on the following pages are testament to the work accomplished this year by wireless health companies, and it points to many more deals in 2010.
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Q1
U.S. Army
Army licensed the technology for 10,000 soldiers, speci cally those with traumatic brain injuries. The Mobile Viewer allows users to view but not edit pro le information as well as current prescriptions, existing health conditions, known allergies and more. KP worked with Mobilestorm for the pilot, which showed 0.73 fewer no shows. National rollout to follow. As part of the announcement, IBM said it had integrated its Information Management, Business Intelligence and WebSphere Premises Server sensor event platform into Google Health already. The group will focus on ve key areas, one being: enterprise collaboration and ehealth. The mHealth Alliance aims to bring together the major mHealth stakeholders for the developing world. MobilizeMRS rebranded to FrontlineSMS:Medic following the deal. Ohio Health expects iShoe to hit the market in 2010 with a pricepoint of $100. Allscripts launched its own iPhone app a few weeks later. AllOne Health's users in the Army look to be the rst to bene t.
Anvita Mobile
Anvita developed a mobile viewer of Google Health for Android. (more) 02/05/09 Completed a pilot for text message appointment reminders. (more)
Kaiser Permanente
Mobilestorm
02/05/09
IBM
IBM and Continua to create guidelines for wireless medical Continua Health Alliance, devices to connect to Google Health. Google (more) 02/12/09 Companies formed, ng Connect, a group for vendors looking to create next-gen wireless devices with AlcaLu. (more)
Alcatel-Lucent
02/16/09
Vodafone Foundation
UN Foundation
The Foundations teamed up with the Rockefeller Foundation to create the mHealth Alliance. (more) 02/17/09 MobilizeMRS taps FrontlineSMS platform for its work in global health. (more) 02/24/09 Ohio Health pilots the smart innersole for fall prevention. (more) 02/26/09
FrontlineSMS iShoe
Edge Health to embed Allscript's EMR into its iPhone app, EdgeRPM. (more) 03/04/09 Clickatell enables text messaging for AllOne Mobile. (more) 03/11/09
AllOne Health
Signi ca Insurance Group The health plans' members can view, and Erin Group manage and exchange their health Administrators info with their providers. (more) 03/16/09 Rady Children's pilots GI's Pillcam, a tiny wireless camera inside a pill. (more)
The deals made AllOne Mobile available to more than 400,000 people total. Joshua Devine, a high school sophomore, swallowed the Pillcam at Grady's one of the rst patients to do so. The grant was for $285,000 Australian dollars. ANT+ is an alternative short range wireless technology to ZigBee or Bluetooth. Qualcomm's Don Jones and Scripps' Dr. Eric Topol join as part of the Institute's founding board.
03/17/09
Telstra Foundation
Telstra Foundation funded a two year mobile project for mental health services. (more) 03/25/09 Microsoft to allow personal health devices to connect to HealthVault via ANT+. (more) 03/25/09 GMWF donated $45M to create the West Wireless Health Institute. (more) 03/30/09
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Q2
Verizon Wireless
Alcatel-Lucent, Ericsson
The center will focus on three key verticals: healthcare, utility and security. GE will market Intel's Health Guide as part of the deal, which also focuses on wireless sensors for the senior care market. The deal eventually falls through. The services could become part of Jitterbug's Service Store its version of an App Store. MedApps currently uses a dedicated wireless device to route data from connected medical devices. Later in the year, Novartis announces a trial with Proteus unclear if it's a separate deal. Medzio continues to add a few new partners throughout the year, but the app's sum does not appear to be more popular than its parts.
Intel CardioNet
04/02/09 04/02/09
GreatCall / Jitterbug
Jitterbug pilots a medication adherence service from Meridian and a diabetes management service from Meridian Health, WellDoc WellDoc. (more) 04/03/09 RPM company MedApps connects devices' data streams to Microsoft's HealthVault. (more)
MedApps
Microsoft
04/12/09
Proteus Biomedical
Proteus announces two drug companies will trial its intelligent Two undisclosed pharma medicine technology and sensor. companies (more) A.D.A.M. announces Medzio, a collaborative mobile app suite from the newly formed Mobile Health Network. (more) Doylestown Hospital becomes rst hospital pro led on Apple's site for equipping its care workers with iPhones throughout its facility. (more) The three companies teamed up to work on smart innersoles for fall prevention. (more)
04/14/09
A.D.A.M.
04/21/09
Doylestown Hospital
04/30/09
The hospital connected the iPhones to their Meditech EMR system and also noticed doctors favor Epocrates. The collaboration results in AT&T's smart slippers for fall prevention, unveiled in December.
AT&T
05/26/09
Jitterbug
Samsung, Qualcomm
Senior phone service provider Jitterbug worked with phone maker Samsung on its new Jitterbug J phone and Qualcomm to create a more seamless data connectivity for users. The phone and data connectivity enable the company's Services Store. (more) 06/02/09 Remote cardiac monitoring company LifeWatch signed an exclusive agreement with Verizon to use its network to carry its wireless health services. (more) 06/04/09 The White House is working with a number of industry partners to launch a free text messaging service, called Text4Baby, for low-income expectant mothers. (more) 06/05/09 Interoperability consortium Continua certi ed Nonin's Bluetooth-enabled pulse oximeter. (more) 06/09/09 Partners Healthcare in Boston spun out a start-up, named Connected Health for now, with an initial service around a wireless blood pressure cu . (more) 06/16/09 The Institute announced plans to conduct clinical trials for Corventis and shepherd the sensor to market. (more)
Jitterbug added 1xCDMA data to its phones but it didn't want the users to know they had Internet-enabled phones perhaps too daunting.
Verizon Wireless
LifeWatch
White House
Text4Baby originally aimed to launch in September but has since been delayed until next year. This marks the rst wireless health device with Continua certi cation.
Nonin
Partners Healthcare
Connected Health
Connected Health just completed a pilot with EMC, which used the cu for corporate wellness programs. Dr. Eric Topol and other Institute directors demo Corventis' monitoring sensor at events all year long.
Corventis
06/23/09
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Q3
Company A
Company B, etc.
Roche Diagnostics
WellAware
07/01/09
MYLEstone saw the deal as a baby step for the industry and was fed up with hype around meter integration into smartphones. WellAware only launched a few weeks before the announcement.
07/01/09
Healthagen / iTriage
Centura Health
07/08/09
Healthagen's iTriage helps users determine wait times at hospitals. The move followed months of rumors and sent the company's stock plummeting. Augme Mobile Health is the start-up's wireless health focused marketing arm. Quickly becomes a focus at Modavox.
Highmark CMS
CardioNet
07/13/09
Modavox
Augme Mobile
07/15/09
Nintendo A.D.A.M.
07/16/09 07/17/09
mVisum
07/21/09
The peripheral could spark a healthy games movement. CallMD will license A.D.A.M. Symptom navigator content, too. The pilot became public after the VA announced it would tighten the belt on pilot spending.
Skyscape
Physicians Interactive
07/27/09
Skyscape has long created mobile applications for healthcare workers dating back to PDAs.
Verizon Wireless
Qualcomm
07/28/09
nPhase also took over managing CardioNet's service as part of the deal. The pacemaker connects to the server at least once a day to make reports.
08/10/09
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Q3
Continued
Company A
Company B, etc.
Best Buy
Microsoft
08/20/09
08/27/09 08/27/09
MedMinder
08/31/09
Sprint
DataSmart
09/03/09
Halo Monitoring
Microsoft
09/09/09
According to one estimate: 430 million M2M devices will ship in 2013 myHalo wirelessly transmits secure vital signs, activities of daily living, and critical event info.
Novartis
Proteus Biomedical
09/22/09
Novartis told reporters (inexplicably) that the deal could become exclusive. Methodist may hire more nurses thanks to the savings from the network, reportedly. AirStrip had more than 100 customers at the time. DA noted an uptick in wireless health services looking to test QoS in 2009.
Methodist Healthcare
09/23/09
AirStrip DeviceAnywhere
09/29/09 09/30/09
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Q4
Company A
Company B, etc.
Keas
Former Google Health head launches Microsoft, Google, others online health site Keas. (more) 10/06/09 VZW o ers home health care workers application called OnCare, which was created by Xora. (more) 10/08/09 Voalte's iPhone-enabled voice, alarm, text service is piloted at Sarasota Memorial Hospital. (more) 10/08/09 AT&T will provide connectivity for Vitality's GlowCaps medication adherence device. (more)
Xora
The app costs about $35 a month. Voalte becomes a hit with nurses there, looks to move to other wards. GlowCaps light up when a patient needs to take medication, send texts and can even call the pharmacy for re lls. While just a concept app, it could point to opportunities for health games with sensors.
Voalte
AT&T
Vitality
10/09/09
Corventis
USC
USC develops an iPhone game called BeatingHeart, that demonstrates Corventis' wireless sensor capabilities. (more) 10/14/09 Apple teams up with Epic Systems to integrate iPhones into Epic's EMR o ering at Stanford Hospital and Clinics. (more) 10/14/09 Cinterion powers connectivity for Diabetech's 4th generation wireless diabetes management platform, GlucoMON. (more) USC and Boston Scienti c created a demo iPhone app for BS's Latitude application. (more) The two companies create a smartphone speci cally for hospital workers called the Vocera Smartphone. (more)
Apple
Epic Systems
Diabetech
10/15/09
Diabetes is a key condition targeted by many wireless health start-ups. Latitude enables physicians to monitor implanted devices.
Boston Scienti c
USC
10/23/09
Motorola
Vocera
10/27/09
AllOne Health
Connectyx
AllOne Mobile will be packaged with health info on a USB drive company, Connectyx's MediFlash o ering. (more) 11/02/09 London-based St. Mary's Hospital will trial Toumaz's wireless sensor for vital sign monitoring. (more) 11/02/09
The deal puts AOM in Walgreens, Harris Teeter, Krogers and other retail locations. The bandaid-like sensor monitors skin temperature, heart rate and respiration.
Toumaz Holdings
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Q4
Continued
Company A
Company B, etc.
Roche Diagnostics
NeuroVigil
11/02/09
GreatCall / Jitterbug
MobiWatch
Jitterbug acquired mobile personal emergency response service (MPERS) start-up MobiWatch for an undisclosed sum. (more) 11/04/09 Mount Sinai tested CareSpeak's text messaging adherence program for teenage liver transplant patients. (more)
CareSpeak
11/05/09
The program remarkably reduced rejection episodes for the patients. The system will monitor heart rate, breathing rate, and physical activity.
Mayo Clinic
STMicroelectronics
Mayo and STM are collaborating on a wireless cardiac monitoring service. (more) 11/05/09
GSM Association
GSMA and the university plan to establish a wireless health innovation University of Manchester center in Manchester. (more) 11/11/09 Research In Motion has brought MedAptus, a charge capture o ering for physicians, to its BlackBerry devices. (more) 11/19/09 Remote wound care service WTN inked a two year agreement with AT&T for connectivity. It also inked a deal with HTC to use the Fuze smartphone. (more)
MedAptus
MedAptus brought three versions of its o ering to BlackBerry. WTN uses wireless networks to access patient records, review visuals and more. WTN used to work through Verizon Wireless.
AT&T, HTC
11/23/09
Intel announced a number of Indianabased customers for its Intel Health Guide device for the home health market. (more) 11/24/09 Intel is piloting its Intel Health Guide at JH School of Nursing. (more) 11/30/09
The Health Guide added wireless connectivity this year. The devices will run on Clearwire's new WiMAX network in Baltimore.
GE
GE bought LIG for an undisclosed amount. LIG's o ering QuietCare uses infrared sensors to remotely monitor patients in senior care facilities. (more) 12/02/09 Novartis is working with IBM and Vodafone to bring SMS For Life campaign to Tanzania. (more)
GE owned a minority stake in LIG prior to the acquisition. The service aims to improve availability of anti-malarial drugs in remote areas.
Novartis
IBM, Vodafone
12/14/09
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While this report could not discuss every deal or development in wireless health this past year, it should serve as a reference point for the year ahead as well as a snapshot of an industry in its infancy. Next year will bring substantial revenue growth for the industry, increased capital investment, a number of strategic acquisitions and little progress on reimbursement from payers. Many wireless carriers only recently established dedicated healthcare business units, which may begin to launch products by the end of next year. Some of the newly founded institute's are working to ll leadership, while others were only founded a few weeks ago. Care provider groups are largely experimenting with pilots and looking for signs of ecacy from budding wireless health services. Direct to consumer health products are mostly only available via online stores, but the big box electronics stores are beginning to take notice. These are still early days, but they are busy ones.
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