Artificial Intelligence, Machine Learning

& Blockchain – What do they mean for

the Healthcare Supply Chain?Presenters:

John Bass, Founder & CEO, Hashed Health

Chris Holt, Leader, Global Healthcare, Amazon Business

Artificial Intelligence, Machine Learning

& Blockchain – What Do They Mean for

the Healthcare Supply Chain?Presenters:

Chris Holt, Leader, Global Healthcare, Amazon Business

A system or service which can perform tasks that usually require human intelligence, such as visual perception, speech recognition, decision-making or translation

Artificial Intelligence

What is Machine Learning?

• Adapt based on recorded data

• Predict new data based on recorded data

• Optimize an action given a utility function

• Extract hidden structure from the data

• Summarize data into concise descriptions

Machine Learning are methods and systems that

• Can yield Garbage-In-Knowledge-Out

• Perform good predictions without data modeling & feature engineering

• Avoid the curse-of-dimensionality

• Are a replacement for business rules – they augment them!

Machine Learning are not methods and systems that

The Challenge For Artificial Intelligence: SCALE

Data

Data Training

The Challenge For Artificial Intelligence: SCALE

Data Training Prediction

The Challenge For Artificial Intelligence: SCALE

Aggressive migration

New data created on AWS

Data

Training PredictionPBs of existing data

The Challenge For Artificial Intelligence: SCALE

Tons of GPUs

Elastic capacity

Training

PredictionPre-built images

The Challenge For Artificial Intelligence: SCALE

Aggressive migration

New data created on AWS

Data

PBs of existing data

Tons of GPUs and CPUs

Serverless

At the Edge, On IoT Devices

Prediction

The Challenge For Artificial Intelligence: SCALE

Tons of GPUs

Elastic capacity

Training

Pre-built images

Aggressive migration

New data created on AWS

Data

PBs of existing data

The Promise Of Artificial Intelligence: INNOVATION

New Features

for Existing Products

New Experiences

and Product Categories

The Promise Of Artificial Intelligence: INNOVATION

New Features

for Existing Products

Breakthrough

Advances

New Experiences

and Product Categories

The Promise Of Artificial Intelligence: INNOVATION

New Features

for Existing Products

Common use-cases of Machine/Deep Learning

PersonalisationFraud

Detection

Cyber Threat

Prediction

Sensor Data Analysis

Personal Assistants

Natural Language

Understanding

Human Emotion

Analysis

Computer Vision

ProcessingPredictive

Maintenance

Flight Path Analysis

Early Detection of

Diabetic Complications

Leading cause of blindness in adults

Catch it early enough:

prevented 90% of time

Source: AWS

Skin Cancer Detection

At Physician-Levels (or better)

Source: AWS

FDA-Approved Medical Imaging

Source: AWS

Autonomous Driving Systems

Source: AWS

Real Time, Per Pixel

Object Segmentation

Source: AWS

Centimeter-accurate

positioning

Source: AWS

Computational

Knowledge Engine

Source: AWS

Pinterest

Visual Search

Pinterest Lens

Recommendations & Ranking At Netflix

Personalized ranking,

page generation,

search, similarity, ratings

In 140 new countries,

simultaneously

What is driving Healthcare?

Competition and changing reimbursements

More and more data to Analyze

Precision Medicine and Genomics

Bundled Payments / Value Based Reimbursement

Population Health (Chronic and Comorbid)

Increase Patient Safety and Patient Satisfaction• Joint Commission

• HCAPS

Improve Hospital Efficiency • Charge Capture and MS-DRG

• Decreasing readmissions

Regulatory Compliance• HIPAA, and PCI

What is on the hospital CIO’s mind?

• Managing and Securing a growing Tsunami of Data• Constantly evolving Cyber Security

• Healthcare is complicated, the average hospital is managing hundreds of applications (many are patient facing Tier 1 applications)

• The impact of analytics and data visualization

• Interoperability w/ ACOs, HIEs mean new integration points, more data

• Growing number of clinical and business applications

• Growing number of backlog of projects and department requests

• Increasing need to access applications at the point of care

• Technology influencing safety, and the customer experience

• Regulatory compliance

• Limited Capital budget, doing more with less

What makes Healthcare IT so Complicated?

• Admitting (patient access)

• Ambulatory care

• BioMed

• Cardiology

• Case management

• Communications

• Emergency department

• Environmental services (housekeeping)

• Finance

• Human resources

• Infection control

• Information services (systems)

• Laboratory

• Laundry and linen

• Materials management

• Medical records (HIM)

▪ Nuclear medicine

▪ Nursing

▪ Nutritional services (dietary)

▪ OR

▪ Pharmacy

▪ Quality assurance/utilization review (QA/UR)

▪ Physical plant (facilities mgt)

▪ Physician services

▪ Radiology (medical imaging, x-ray)

▪ Rehabilitation services

▪ Respiratory therapy

▪ Safety

▪ Security

▪ Social work

▪ Volunteer services

▪ Etc.

Presenters:

John Bass, Founder & CEO, Hashed Health

Twitter: @johngbass

Email: jbass@hashedhealth.com

LinkedIn: https://www.linkedin.com/in/johngbass/

Find Resources & Join the Conversation at https://chat.hashedhealth.com

Transformations TrackArtificial Intelligence, Machine Learning, and Blockchain –

What Do They Mean for the Healthcare Supply Chain?

Faculty Disclosure

The faculty reported the following financial relationships or

relationships to products or devices they or their spouse/life

partner have with commercial interests related to the

content of this CE activity:

John Bass - Ownership interests: HCA and Medtronic

“Blockchain”• The Blockchain is a time-stamped registry that

securely records & shares transactions / events / data across a network.

• Public or private records are linked using cryptography, creating an immutable record of events that can be used to enforce business rules (“smart contracts”) across a marketwithout a third party governor.

• It is a transformative new way of developing products at the market level.

• ”Blockchain” represents a spectrum of technologies that power distributed networks.

• Chronological• Shared• Immutable• Market-

Focused• Development

Platform

The world’s first blockchain is called

Bitcoin proved:

by moving

trustto the software we change how

digital assets are transacted across value chains.

The world’s second blockchain is called

Ethereum opened the door to digital assets & a new wave of innovation.

Gartner: $3T by 2030

www www 2.0 www 3.0

Primary focus information reputation value

Primary unit search / links likes assets

Dominant Platform

Google Facebook ?

Blockchain: The Internet of Value

1. Market Level, multi-constituent process2. Trust3. Transparency4. Alignment of incentives

When Do You Use A Blockchain?

Medical RecordsClaimsProducts/SuppliesHealth ServicesPatientsDataIdentityClinical Trials

digital health assets+

enterprise businesses+

decentralized health infrastructure

1. Immutable Shared Ledger

• Move trust to the protocol

• Overcome limitations of current infrastructure (ex. claims built for volume, fiat currency not programmable)

2. Smart Contracts: Programmable Value Transfer / Tokenization

• Reduce administrative burden

• Connect payments and benefits / incentives

• Create new applications on top of shared, market-level data structures

Two Levels of Value / Complexity

Blockchain Enabler: New Business ModelsExample: Decentralized exchange / marketplace

• “Tokenized” digital assets are created• List asset on the Exchange for consumers• Creates a rational, decentralized market for trading• Allows for innovation on the buy & sell side• Creates a foundation for smart value-exchange innovation & automation

“Imagine a day when health care delivery in the United States functions the way other parts of our economy do… drive quality and cost-effectiveness with information, competition and genuine choice.”

Alex Azar, HHS Secretary 3/6/18

Blockchain Enabler: IoT, AI, ML: Example: IoT / devices as trusted actors in the supply chain

• Create / Register device• Authenticate as trusted source• Record to ledger• Wallets & smart contracts

• Use Cases:• Track & Trace• Wellness• Contracting Oracle• M2M / DAO

New Pricing & Contracting Models Programmable Value Transfer: Creating a relationship between payments & real-world activities

Examples:• Proof of Service• Proof of Outcome• Dynamic Pricing• Episodic Value-Based Contracting / Value-Based Payments

“fundamentally reorient how Medicare and Medicaid pay for care, and create a true competitive playing field where value is rewarded handsomely.”

Alex Azar, HHS Secretary 3/6/18

Other Supply Chain Use Cases of Interest at Hashed:

• EDI• Decentralized Master Data Management• Shared Ledgers Between ERPs / EHRs• Inventory Sharing• Device Lifecycle

What Success Looks Like: The Challenge & The Opportunity

Business ModelTechnical Model

Network Governance Structure

Finding this is hard(but your future may depend on it)

The Healthcare Innovator’s Dream Come True!

• Create new infrastructure designed for trust, transparency & incentive alignment in healthcare

• Create new business models designed for adoption / network effects

• Create new economies• Create new value chains & markets• Create new actors in markets

Lead or Follow?

MeaningfulInnovation

Market Structure

Readiness

Culture

Business Model

Technical Model

Governance Structure

Thank You!

Presenters:

John Bass, Founder & CEO, Hashed Health

Twitter: @johngbass

Email: jbass@hashedhealth.com

LinkedIn: https://www.linkedin.com/in/johngbass/

Find Resources & Join the Conversation at https://chat.hashedhealth.com