Innovation Profile Report
by Current Analysis, Inc.
Brian Washburn
11/18/2013
Verizon
Service: Converged Health Management
Verizon Converged Health Management uses wireless M2M combined with biometrics
to let clinicians monitor medical patients remotely. Patient vital signs are transmitted to a
HIPAA-compliant, cloud-based secure server, which clinicians can analyze and, if
necessary, intervene. The service can give patients mobile/web access to their medical
data, and to related information. As part of the service, Verizon can host social
networking forums where patients can participate anonymously for recommendations
and support.
Service Provider Goals

Healthcare and M2M are growth hot buttons for Verizon. Verizon is particularly
interested in building up strength in the healthcare and financial verticals.

Hospitals are often IT backwaters: The U.S. Affordable Care Act (ACA) is
prompting the sector toward cost cutting through service automation.

A mobility, cloud, device expertise, security, management and social media
bundle is a defensible position for a large network provider.
LAUNCH DATE: 10/24/2013
SERVICE CATEGORY: Mobility
APPLICATION: Bundles
REGION: N. America
COUNTRIES: U.S.
CUSTOMER TARGET: Enterprise
VERTICAL: Healthcare
INNOVATION PERSPECTIVE
INNOVATION RATING: Compelling
Unique offering with a significant new revenue opportunity
A cloud or hosted service or ecosystem initiative that delivers new capabilities or a new
value proposition to customers or partners. The service is clearly differentiated from
other similar services, and should be watched to evaluate the opportunity being
explored.

Major competitors already pair M2M with cloud and provide HIPAA consulting.

Verizon is fishing for possible clients among hospitals, insurers, and employers.

The principle – prevent ‘Obamacare’ financial penalties on healthcare providers
by avoiding patient re-admission – is sound.
INNOVATION ECOSYSTEM
Partners: BAM Labs, BL Healthcare, HealthID Profile,
NantWorks

Verizon Converged Health Management is designed to transport and store
information (e.g., patient blood pressure, oxygen saturation levels, glucose levels
and weight) collected by mobile devices. Verizon partners include BAM Labs; BL
Healthcare; HealthID Profile; and NantWorks.
MONETIZATION PLAN
Monetization Model: Acquire, Upsell
Verizon Converged Health Management enables healthcare companies to reach out
and work with their patients directly. Verizon can win business with insurers, healthcare
providers and large employers by using remote monitoring and management to help
them cut costs. The healthcare industry is no longer allowed to bill for frequent patient
re-admittance, and Verizon's product should reduce costs by reducing patient readmittance.
OPPORTUNITIES
MARKET DRIVERS

Chronic health conditions require ongoing monitoring and prevention; does not
mesh well with current, response-based healthcare model.

Extended personal in-patient/at-home care is cost-prohibitive to most patients.

Frequent re-admittance was a vast profit driver; the Affordable Care Act (ACA)
aims to penalize this practice.
ECOSYSTEM BENEFITS

Verizon Converged Health Management ties to Verizon’s mHealth platform
efforts.

The solution provides a communications/storage framework for partner medical
device vendors.

Verizon has certified the platform with HIPAA, U.S. FDA: Solutions provider can
hook into Verizon as compliant.
STRATEGIC FIT

Verizon aims to be more vertically oriented, especially in key areas of finance
and healthcare solutions.

Converged Health Management provides a platform for healthcare solutions
partners drawing on Verizon’s Innovation Centers.

Converged Health Management bundles Verizon M2M with mobile/network
security, multiple cloud hosted services.
COMPETITIVE ADVANTAGE

Verizon obtained FDA 510(k) device approval for its solution, addressing issues
of basic legality/registration for the platform.

Verizon’s device partners appear ready to plug in and begin to sell as part of the
secure platform.

A reactive healthcare industry may jump on a quick fix to avoid ACA financial
penalties.
THREATS
ADOPTION HURDLES

Healthcare (particularly hospitals) are poor at adopting new technology. They
may fail to re-tool for chronic patients despite obvious benefits.

Major uncertainty still surrounds ACA. Policies and penalties are subject to be
modified, delayed, or pulled entirely by political, legal challenges.
INTERNAL RISKS

Lack of customer adoption after investing in Converged Health Management,
similar to industry efforts to build healthcare exchanges.

ITSPs may build equally solid certified healthcare bundles, build device
ecosystems, source wireless access as a re-sold commodity component.

Questions about what is – and is not – regulated and their costs: e.g.,
smartphone app vs. official medical device.
ECOSYSTEM RISK

A poorly deployed partner could expose both itself and Verizon to liability, despite
Verizon’s FDA registration/HIPAA compliance.

Verizon needs to showcase healthcare device partners that have committed to,
deployed with Converged Health Management.
ADVANTAGE SUSTAINABILITY

FDA 510(k) clearance for medical devices has a 90-day waiting period: hundreds
of medical devices clear 510(k) registration each month.

Verizon has built a focus in healthcare solutions, is working to help medical
device vendors do business with the provider.
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