Deep Dive: New Business Models
4th November 2020
Meet consumer demands and remain competitive
Scientific and technological breakthroughs require systems that can keep up with the pace of change, yet the current reimbursement model doesn’t necessarily support the most innovative and promising solutions. Innovators are left with the challenge of how to ensure their strategy demonstrates the right value so they can get paid – or find a way to be paid outside of the traditional system. Ultimately, policy-makers, payers, providers and suppliers need to urgently rethink how they work if we are to help innovation thrive.
EIT Health continues to voice the need to reshape incentives with New Business Models in order to support the development and growth of new health innovation. On 1 December, we will connect leaders from across healthcare to present exciting new models and approaches, and debate how healthcare can keep up with the pace of change through a series of panel discussions, case studies and presentations.
We’ll bring together moderator Kurt Höller (EIT Health) and Ariel Stern (Harvard Business School) to discuss the business landscape in Europe. Then, with Dr Gottfried Ludewig (German Federal Ministry of Health) and Dr Kristina Lagerstedt (1928 Diagnostics), the four panel speakers will come together for discussion and Q&A.
Dr Kristina Lagerstedt is a tech and healthcare entrepreneur and scientist, from Stockholm. She is the CEO and founder of the digital health company 1928 Diagnostics and will be joining us on 1 December to present a case study of her company.
In 2019, Dr Lagerstedt along with co-founder and COO Dr Susanne Staaf - had to pick the right business model for their Swedish medical start-up, to commercialise their novel technology to hospitals and health care providers. Developed in partnership with research hospitals to help fight the global antibiotic resistance crisis, the company's cloud-based technology platform helped partners identify resistant genes and mutations in bacteria more quickly and accurately. The platform allows for easier outbreak cluster tracking in support of hospital infection control management, as well as better diagnostics and antibiotic selection.
By the end of the year, they had raised $5 million, employed 16 people, and had their platform deployed at 24 partner sites in ten different countries. Their decisions on which markets to focus on and with which business model crucially impacted ther chances at successfully converting existing users and attracting new clients.
Dr Lagerstedt previously worked as a cancer scientist within paediatric oncology, focusing on identifying and commercialising molecular biomarkers for detecting and guiding the treatment of cancer. In the video below, she explains why she switched roles and outlines what she hopes EIT Health Summit Series attendees will take-away from her session.
Ariel Stern is an Associate Professor of Business Administration in the Technology and Operations Management Unit at Harvard Business School, where she teaches the MBA course Transforming Healthcare Delivery.
Ariel's research focuses on technology management and innovation in healthcare. Her projects consider the regulation, strategy, and economics of healthcare, with a focus on understanding the drivers of new product development among firms and the determinants of how new medical technologies are adopted and used in practice.
Ariel also serves as the Director for International Health Care Economics at the Health Innovation Hub, the independent think tank of the German Federal Ministry of Health. Her research has been cited by Bloomberg, The New York Times and National Public Radio, and we are delighted to be welcoming her expert insight to the New Business Models: Meet Consumer Demands and Remain Competitive session.
In this short video, Ariel previews her EIT Health Summit Series session which will discuss reimbursement and business model strategy for companies looking to scale and make an impact.
Germany’s Digital Health Reform
Dr Gottfried Ludewig is a politician and Director General of Digitalisation and Innovation at the German Federal Ministry of Health. In his current role, he is helping to drive the digital transformation of Germany’s healthcare system - a market of 83 million people with over 2,000 hospitals.
Late last year, the German parliament passed new rules supporting digital innovation in healthcare. These changes attempt to put Germany in the lead for digital patient-oriented healthcare globally. Amongst other initiatives, doctors can now prescribe low-risk medical apps with less regulation, and healthcare-professional-to-patient communications and prescriptions have moved to electronic channels.
Dr Ludewig will speak about his experiences as part of a panel discussion on 1 December.
In this short video, Kurt Höller – Director of Business Creation at EIT Health and panel discussion moderator for the New Business Models session – outlines his role supporting start-ups and talks about the importance of finding the right business model to take the focus away from the product or service to additionally consider reimbursement and regulation.