Healthcare Revolutionby Alex Fair, CEO MedStartr, Inc.

09.28.2013MedicineX

MedStartr.com | MedFundr.com @alexbfair | @MedStartr

#MEDX

Geekto

Freak to

Hero

#Geek2Freak2Hero#MEDX

We are not just any GeeksWe are patients, engineers, scientists, doctors, policy experts,

hospital leaders. We are Health Geeks.

Hey Alex, I’m also a Fashionista!

Indeed you are Jen, the only person I know who reads books on string

theory and vogue in same plane trip.

@endogoddess

@LewCardia

And we don’t control anything

Not the PayPal Mafia

We do our jobs and see problems

And Imagine Solutions

But we also get ideas, Ideas we want to make

happen to fix the problems we see in healthcare.

Healthcare Innovation is more difficult due to regulations and aversion to adoption

…and predicting Success in Healthcare is difficult…

THE PROBLEM WE SOLVE

which constrains capital, which limits innovation, which makes healthcare less effective

And our Ideas aren’t usually a widget, something simple to buy

@alexbfair#MEDX

It doesn’t usually get sold to consumers (patients)

@MedStartr#MEDX

…and you generally need an expert to install it

Image courtesy of Policymed.com

…aAnd no one, especially the patient thinks they should pay very much for it

…and it costs like a billion dollars to do anything of value

There is funding, but as consumers and doctors, Healthcare leaders, and the general public, we generally have No Say in what gets funded.

NIH Grants, $30.9

Pharma R&D Investment, $49.5

Foundations / SBIR, $3.0

Venture Capital, $8.5

Approximately $100B is Invested to fund Healthcare Innovation in U.S. Annually

Sources of Funding For Healthcare Innovation – 2011 ($B)

Venture Capital

Of the $8.5B invested in 2011, 19% ($1.6 billion) was invested in first or seed round investments and 81% ($6.9 billion) was invested in later stage projects

Of the $8.5B invested in 2011, 14% ($1.2 billion) was invested in healthcare IT investments and 86% ($7.3 billion) was invested in life sciences

Excludes: Angel investments, No detailed backup to foundation capital invested in early stage projects.

Foundations

A variety of foundations offer funding for early stage healthcare innovation, mostly focused around disease groups

In 2011, Susan G Komen For The Cure, one of the larger research funding not-for-profits had 2011 revenue of $358 million, but after fundraising expenses and administrative expenses only spent $283M million on programs (79% margin)

NIH Grants

Largest institutes are the National Cancer Institute which consumes 16% of NIH funding ($5.1 billion) and National Heart, Lung, and Blood Disease which consumes 10% of the NIH funding ($3.0 billion)

NIH budget expected to contract due to government debt pressures and expected decline in national spending

Excludes angel investment; approximates foundations

But we MUST try, because people will continue to be unhealthy and even die for preventable reasons

if we don’t.

So we continue, fueled by the desire to help others with our mad

geek skills.

@alexbfair#MEDX

Can we get a new definition for “Mad Scientist” please?

And we are not powerless

Alameda Health system is funding their community teaching program on www.MedStartr.com – go check them out!

When People Stand UpRevolutions Happen

When citizens get involved and activated, massive change is enabled. Crowdsourcing innovation and Crowdfunding their ideas is changing the world.

What Happens When You Engage Crowds that Care

• Funding – Investors look for traction among KOLs and constituent institutions and patients

• Partners – Where Corporate Innovation Officers shop• Publicity – weekly News Stories and three television

interviews in our first six months• Community – Feedback, Clinical Centers, Trials,

Support, Beta Testers, Distributors, and more

…but this is just the beginning

Rev.1. How to Code a Revolution in Healthcare

(the @FredTrotter / DocGraph story)

@alexbfair#MEDX

1: Get a Crazy Idea

…that just might work

@fredtotter

#MEDX

2. Run it by some friends(designers, doctors, programmers, nurses, artists, investors…)

…until you prove it does

3. Ask a crowd that cares to back it

…and they ask a crowd,

…and so on,

…and so on,

…and so on,

And then…

You may actually get a hospital to sign up

But who cares?

Ok, that’s a little harsh and unfair of me, I should really avoid comments like that. I let it stand and said it in the first place because we have seen so many innovators and early

adopters step forward and adopt new ideas but very rarely do we see hospitals. We can’t help them get better if they are not willing to be helped and it gets a little frustrating. We invite all Hospital leaders into the conversation though, please comments below, or email

InnovativeHospitals@medstartr.com

Because you already have:

Customers

Partners

and Funding

And who wants a

term sheet?

When you can have a bill of sale?

Again, I am being a bit harsh, this time on Angels and VCs. Sorry about that, it’s just that after

dozens of bad experiences, it seems like this is an industry that needs help being more efficient

about finding the best companies and getting the right match of investor to idea could use an

upgrade. This is why we are building MedFundr.com, Request access to the alpha at

MedFundr.com

Fred Trotter/ NotOnlyForDev

Results:• Eight Weeks• $45,011 Raised• 113 Patients, Doctors,

Nurses or Health Care Pros

• 24 Partners• New de facto standard

in health data• and a new approach…

Serial Crowdfunding

of Entrepreneurshi

p!

Projects live on MedStartr now!

Partners Stepping UpCompanies that are partnering with crowdfunded projects on

MedStartr.com

Over 100 Partnerships Startd

Rev.2. Partners Driving Innovation

• Challenges• Open Innovation Programs• Grants• Pitch Days

25% of the Robert Wood Johnson Day Pioneer Pitch Day projects in 2013 are MedStartrs (including MedStartr itself!)

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Inside

GovtRock

Outside

Cost Per Idea Cost Per Solution

Open vs. Closed

– In-House (2012, Fortune 100 Company)

• 50M cost• 2 outside design vendors• 18 Months

– Open Innovation Challenge CMMI/ CMS

• 8,500+ ideas submitted• 900M offered• 3 Months

– Public Open Challenge: Rock Health:

• 800+ ideas submitted• 1.3 M/ 100K offered

– Outside Customer Challenge• 10K offered• 1,000s of submission from

customers

Dol

lars

@alexbfair#MEDX

Crowdsourcing Innovation

This was a challenge we ran that worked out three times better than expected due to massive exposure our methodology drove. Some

great ideas were sourced by this program! See it at www.MedStartr.com/CrowdsCare

Learn more at http://about.medstartr.com/challenges

Tech • Crowdfunding• Challenges• Social Media

Awareness• Strategy• Outreach• Design

Operations• Setup• Management• Support

Experts• Optimization• Mentors• Partners

Engagement• Customers• Communities• Live Events

How Your Crowd Drives Crowdfunding with an Open Innovation Ecosystem

Get Help From: Dr. Howard Luks, Regina Holliday, Sutha Kamal, Kim Whittemore, Eythor Ernstson, Donna Usiskin, Eugene Borukovich, Dr. Jen Dyer, Steve Greene, David Williams RN, Paulo Machado, Dave Chase Fred Trotter, and many more

Mentors get involved, becoming advisors, early adopters, investors, or champions driving our client’s success

Results: Crowds Drive Massive Exposure

Get Help From: Dr. Howard Luks, Regina Holliday, Sutha Kamal, Kim Whittemore, Eythor Ernstson, Donna Usiskin, Eugene Borukovich, Dr. Jen Dyer, Steve Greene, David Williams RN, Paulo Machado, Dave Chase Fred Trotter, and many more

Mentors get involved, becoming advisors, early adopters, investors, or champions driving success

PR

Uber Geeks Get Involved to Power Ideas

Rev.3. Let Patients Lead!

@ReginaHolliday

Regina Holliday is one of our true heros in healthcare. She

dealt with the grief of losing her husband Fred and her anger

at how the healthcare system failed him first by painting a 70xf17 foot mural in DC,

and then by painting the back of

hundreds of suit jackets for people

transforming healthcare. Now she hangs ot with Presidents and is

helping drive change faster and better

than ever. Thanks Regina for all you do and for being on our

Board!

#TheWalkingGallery Film• $13,175 in 4 weeks from Doctors,

patients, Medical School Leaders• Film produced and distributed to increase

awareness of Patient perspectives in all communities

Partnership With Patients• $18,165 in 6 weeks from Doctors, Patients,

and Cerner Sponsored in Kansas City• Created a conference to promote Physician

/ Patient Partnership

Sarah Kucharski

FMDchat 501c(3) formed to help people suffering from a rare disease @FMDChat

Great Example of someone going from Geek to Freak to

Hero by owned her condition and building a

community

Michael Weiss

• Crohn’s Disease Warrior Patrol 501c(3) formed to help people suffering from Crohn’s, Colitis, and Irritable Bowel Disease

@HospitalPatient

Another great example,- Mike built a community of

over 700 Crohn’s, Colitis, & IBD Disease patients in just a few months on MedStartr

John Accardi (Patient) & Frank Lewis (Engineer)

@LewCardia

John and Frank want to revolutionize

Ostomy systems for Ostomates

Everywhere – Fund them on

www.MedStartr.com!

Creating the Wave

• Starts with Patients

• Builds with Doctors

• Peaks with Partners

• And you may even get a Hospital to sign up

If you Do it Right, You all Ride the Wave together

Photo courtesy New York Times

How will you Revolutionize

Medicine?

@alexbfair#MEDX

Get Your Hero On

(if you need a cape, please see Regina Holliday in the back)

Thank you for your support and attention

@alexbfair#MEDX

Crowdfunding Healthcare Innovation

Thank you for your interest.

For more information please contact us at 530.MED.STARtr or GetStartd@medstartr.com

Equity Crowdfunding for Healthcare

We would love to be your Alfred.

For Corporations, Associations, Governments, and other Organizations we also help you drive

innovation with our Crowds4Cures Open Innovation Platform

Where Patients, Care Providers, Partners, Payers, and Institutions can collaborate to create the Healthcare

Innovations they care most about