Lowell McAdam at the World Health Care Congress-Full Speech

Uploaded by VerizonCSRVideos on 18.04.2012

>> Good morning everyone.
It is a real pleasure for me in particular, Verizon to be
with you this morning.
When I took over, as Hampton said, you never replace someone
like Ivan Seidenberg, but when I took
over for Ivan we established
as our Corporate Responsibility objectives to be leaders
in healthcare, education, and energy.
And so to be here today in front of you to talk
about that is very important for us as a company
on such an important issue to our economy.
Now we've been involved with health IT for many years
and are big believers in the power of technology
to transform this huge segment of the American economy.
Let's see here.
It's now been almost 3 years
since Congress authorized 27 billion to fund the transition
of electronic medical records,
and in that time we've seen a tremendous amount of innovation
across the whole healthcare marketplace.
The CDC reports that 57%
of America's physicians have now adopted electronic
medical records.
Connected medical devices and machine
to machine communications are beginning
to change the interface between the doctor and the patient.
Wireless and broadband networks are evolving rapidly putting
high speed video capabilities within reach
of an increasing number of users across the country,
and we've seen a revolution in the behavior of consumers
who have come to expect anytime anywhere access to everything
in their digital lives.
Yet for all of this innovation, technology has
yet to truly transform healthcare
as it has other sectors of the economy.
Doctors report that their productivity actually goes down,
not up, when technology is introduced
because of incompatible systems and frustrating interfaces.
The amount of digitized medical information is rising
exponentially but systems still can't talk to each other easily
in part because of the licensing
and security issues unique to this industry.
Access to quality care is still uneven.
While 20% of Americans live in rural areas,
only 10% of doctors serve them.
So two thirds of the people in rural areas have to travel
at least an hour to gain medical care.
And maybe the most surprising thing is in an an- when we're
in an anytime anywhere age,
that patients don't have a seamless connection
to their healthcare systems that technology affords them
in literally every other aspect of their lives.
The results?
Consumers and providers are still frustrated.
Access to quality care is still unequal,
and America's 2.3 trillion bill for healthcare is still rising
at an unsustainable rate.
So I believe we're at an inflection point
when it comes to health IT.
In order to realize the full, disruptive potential
of technology, we need holistic approaches
to solve these fundamental issues
and deliver next generation healthcare experiences
to consumers.
We believe that Verizon is uniquely positioned
to bring safe, secure, health IT solutions to the marketplace.
What we bring to the table is communications infrastructure
that stretches across the entire healthcare marketplace
from the biggest institutions all the way to the consumer
and everywhere in between.
We provide the industry's most advanced wireless
and fiber optic broadband networks to millions
of consumers, small businesses, and institutions.
Our 4G LTE wireless network is extending broadband power
across the country.
So on any given day, our networks handle these kinds
of volumes: more than 2 billion text messages,
1 billion phone calls, 400 million emails,
and 8.7 petabytes of video.
So that's equivalent
to 4 million full length movies are flying
across our network every day.
Our global IP network operates in more than 150 countries
and serves 97% of the Fortune 500.
We have 500,000 miles of high speed cables,
enough to circle the world more than 20 times,
and our networks operate at 100 gigabit speeds,
the fastest in the world.
Today we're planning 500 gigabit networks
and I believe Patrick has a plan to fill all those up.
We'll talk about those in a minute.
[laughs] We've invested in extensive cloud infrastructure
and have more than 200 data centers
and cloud computing centers in 20 countries around the world.
We have a special expertise in security, monitoring and acting
on 5 billion potential threats to our networks every day.
Now we also run two innovation centers where we work
with entrepreneurs to develop more devices and applications
to run on that 4G network.
Much of that innovation is focused on connected devices
for the healthcare market.
We showcase many of these innovations
at the consumer electronics show this year.
Things like a mobile ER for first responders,
heart attack detectors for cardiac patients, mobile video
for live consultations, wireless sensors that help you check
on aging parents, and all kinds of connected biometric devices.
I just happen to have one here in my pocket
which is a wireless glucometer, okay?
This was developed by Genesis Health Technologies.
We'll get a nice shot of this here.
The Genesis people will love that.
[laughs] They were, it was built by a small group
of 10 people in Kentucky.
So traditionally when you check your blood sugar you record your
reading in a log and you share it
with your doctor on your next visit.
With the Genesis Glucometer, test results are sent
over the wireless network to an online portal
where you can track, you can graph,
and you can share your readings with your doctor
or your family immediately
so that you can manage your condition in real time.
Genesis is currently working with the state of Kentucky
to deploy this to state employees,
and Verizon will be offering it
with our own digital healthcare platform later this year.
We're focused on healthcare in a major way.
We have a $5 billion healthcare practice that is headed
up by Dr. Peter Tippett who is here in the audience,
and Peter would you just stand up for a second here?
So a just a word, if you want to ask me a medical question,
forget it, Peter's the guy that you want to talk
to when we can talk about what happens here with Verizon.
Late last year we brought all of our wireless
and wire line healthcare solutions
into a single organization so that we could understand
and approach this market in a more integrated way.
Now let me talk briefly about some of the solutions
that we're bringing to the marketplace.
Take one straightforward
but very costly problem, and that is fraud.
That accounts for an astounding 10% of healthcare expenditures.
One of the problems is that most fraud prevention consists
with trying to recapture money after the bills have been paid.
Verizon offers a cloud based system
that uses predictive modeling just like we do
on our own wireless network technology and it detects fraud
to the payment system before the claim is paid,
potentially saving businesses
and government agencies billions of dollars.
Another issue that poses special challenges
in healthcare is security.
Ideally connected healthcare should work just
like our ATM banking network, how it does today,
providing safe and secure access
to information wherever you might be around the world.
Unfortunately HIPAA rules and numerous other security
and privacy regulations make that extremely difficult.
The problem is that rec-
up until recently there is no universal system
for authenticating the identity of patients and doctors
in a connected environment.
At Verizon we're helping to solve this problem.
Starting last year we began to work with our customers
to understand the challenges associated with HIPAA
and DEA compliance and have begun
to provide universal identity services to physicians working
in an electronic environment.
We're also working with partners
to expand health information exchanges.
For example, we're working with one
of the country's largest Blue Cross Blue Shield Networks
to implement a health information exchange
in the commonwealth of Pennsylvania.
Basically we provide the platform taking clinical data
and storing it in our cloud
where it can be securely accessed over the web
from any type of device-- a laptop, a cell phone, an iPad,
or any other custom made table device.
These exchanges help bridge the gaps between the various silos
in today's system and allow the healthcare providers
and patients to communicate securely,
confidently, and easily.
With these issued handled at the platform layer,
security becomes the enabler rather than the impediment
to connected healthcare.
More broadly, by fixing these behind the scenes issues,
we clear the way to put a new set of tools in the hands
of consumers of healthcare which is where the real revolution
and the healthcare paradigm will come from.
Already we see signs that customers are impatient
to use the technology to take charge of their own healthcare.
A Smartphone is basically a computer
for your product, for your pocket.
Of the 100 million or so Smartphone users in the US,
one third already use their mobile device to keep track
of things like diet and exercise, and if you look
at users under 35, that number becomes 60%.
So these are the early signs of anytime anywhere healthcare.
If we can harness that pent up willingness on the part
of consumers to manage their own health, we can move the needle
on some of the biggest problems in our system today.
Take the issue of chronic care.
Chronic conditions affect almost half of all Americans
and account for seven out of every 10 deaths at a cost
of $1 trillion a year.
One of the challenges of chronic care is that it doesn't happen
at one place at one time, but rather over a long period
of time in homes, offices, doctor's offices, clinics,
community centers, and hospitals.
For example, 95% of diabetes care is done at the patient home
or at work or on the go, not in the doctor's office.
This is an area we think Verizon can really make a difference
through a range of digital tools
that better help people manage their health.
Here's just a couple examples.
We're working with a big insurance well point
on a video conferencing trial using secure capabilities
of our 4G LTE wireless network to let people
with chronic illness use their Smartphones and tablets
to consult with nurse managers.
Early results of these telemedicine trials show
that hospitalizations go down and the time
between hospitalizations go up thanks
to these virtual consultations.
As I mentioned earlier, we're collaborating on all kinds
of medical monitoring devices that can be placed
in the patient's home to feed constant, real-time data streams
to the cloud so physicians can access patient data
from a distance.
Estimates are that there will be 35 million of these devices
in people's hands by 2015.
Later this year we'll be releasing a new suite
of digital healthcare services that can be delivered
over the cloud to any connected device.
Our initial focus will be on chronic diseases,
but the same mHealth Platform could be used for other things
like wellness and prevention programs.
By putting the consumer of healthcare in the center
of the circle, this new generation
of technology delivers what customers have come to expect
in every other aspect of their digital lives: reliability,
privacy, anytime anywhere access, and above all, control.
Now Verizon will be a key player in this emerging marketplace,
but no one can do this on their own.
We're working with partners
across the whole ecosystem including universities,
medical institutions, insurers and technology investors
to test new methods and approaches,
and we've also focused our foundation,
our philanthropic arm, on finding novel ways
to use technology to address the underserved rural markets
and raise the standard of care for all Americans.
I'm very pleased to be sharing the stage this morning
with Dr. Su Chung [assumed spelling] a true visionary
in this field.
Patrick and I have been discussing the work
of his company networks, what they're doing in the area
of mHealth and we think it's a great opportunity
for us to work together.
We have shared our goal to develop
and scale connected IT solutions,
and one of the ideas we're talking about is using big data
to improve the treatment of cancer
through a comprehensive database called Cancer Knowledge
Action Network.
I am confident that Patrick will have more to say about this
but we're excited about the possibility of working with one
of the true innovators in this field on solutions
that could revolutionize a big piece of the healthcare market.
And revolution is not too strong of word
for what technology can do for healthcare, but we need to act
with more speed and more urgency to make this happen.
Policymakers could accelerate the implementation
of health IT dramatically with just a few critical reforms.
For example, congress needs to authorize Medicare and Medicaid
to reimburse for mobile health technologies.
We also need a national licensing framework
to enable medical devices to be provided and services
to be provided across state borders without the fear
of increased liability.
And regulators need to ensure that their policies foster,
rather than stifle, innovation
and technology advances in healthcare.
If we get this right, we have the chance
to dramatically improve the quality of life,
not just in the US, but around the world.
If you think about it, there are more
than 5 billion wireless phones in use around the world today.
Wireless networks cover more than 85%
of the world's population.
In less developed countries, they're more pervasive
than roads and electricity.
The world health organization has just published a report
on the fantastic potential for using these wireless networks
to deliver M and E healthcare solutions
to the world's population.
They note that while there are lots
of small scale mHealth experience-
experiments going on, no one has really solved the security,
interoperability, and standardization problems
that are getting in the way of delivering these vital services
in a system-wide, worldwide basis on a secure
and interconnected way.
At Verizon we think it's time to scale up.
We believe in the disruptive power of innovation
to transform healthcare and dramatically improve the quality
of life for America and the world.
This is not only one of the world's great social
and moral challenges, but also one
of its greatest growth opportunities.
We look forward to working with partners across
and throughout this industry
to finally realize the full potential
of health IT revolution.
Thank you.