Happy New Year! OK, I've made several resolutions this year, and one of them is to blog more regularly, which I know I haven't been good at. Of course, the other one is the one you all made too, which is to watch my diet and exercise regularly and hopefully lose a little weight! So its a perfect topic for this blog, because although new years resolutions have a way of fading from memory by the second week of January, I think the trend in healthcare toward wellness management is one that's here with us for awhile.
We've all been reading about the rising cost of healthcare and what its doing to the bottom lines of companies like GM and others. But whether its an employer or an individual or the federal government that is picking up the tab for our healthcare, its incredibly costly and payors are going to be aggressively looking for ways to cut costs. How do you do that without rationing care and reducing the access of people who need it most?
Let's agree on this - keeping people healthy and well is generally less expensive than treating them once they are sick. Large employers are starting to pick up on this and incorporating in their benefits plans more focus on diet, exercise and smoking cessation. I'm a major technology fan, as most of you know, but we don't need genomic medicine to tell us that we could cure a lot of cancer right now by getting people to stop smoking.
There are interesting companies out there working on the emerging 'wellness' market. Some, like
Matria are coming at this from a more traditional business in disease management. By monitoring patients with chronic diseases - like diabetes and congestive heart failure - Matria can help those individuals manage their disease and stay in control. Keeping them out of the hospital is not only better for the patient, but also saves their employer or insurer
big money. Its a little harder to measure the return on investment for a similar approach to wellness, but its got to be enormous, because it starts even earlier - before a patient has chronic disease. Last April, Matria acquired
Miavita, a company that Mike Milken helped found, which focuses on web-based solutions to help healthy people stay well.
Pharmaceutical companies are not unmindful of the wellness opportunity. While on the one hand, therapies to treat disease are becoming more and more targeted to narrower sets of patients, drugs that help more broadly promote wellness may be the blockbusters of the future - because we will all take them to keep from getting sick. I suppose you could think about the statins as an example of that category - we take them pre-symptomatically to prevent the development of heart disease, based on a diagnostic test (cholesterol level) result. Its likely that
obesity will be the next big market for wellness blockbuster drugs.
The relatively wild west world of 'nutraceuticals' has been promoting wellness for a long time. My friend and advisor
Steve Burrill has raised a fund to invest in companies in this space, and has . Steve would point out that the current market for nutraceuticals is $150B, which is almost half that for prescription drugs and is ALL paid out of pocket. Foods like
Benecol, a margerine that lowers cholesterol by adding a natural plant sterol called sitostanol to the spread, have made it to the mainstream supermarket shelves.
So happy new year - and think about your own personal wellness this year. I'll take a moment to share some of my personal favorite wellness tips with you:
Great diet book, if you are a data-driven person like me: "
The Business Plan for the Body" by Jim Karas. Good common sense and helpful advice to change your habits. And formulas!
Self assessment, web-based tool that tells you how 'old' you are (healthwise) compared to your chronological age. Makes you stop and think, and helps you create a good plan for action on the things you can do something about.
http://www.realage.com/Pilates - ok, you have to do cardio too, but strength training and flexibility are often neglected, especially by Type A personalities like me. I've become religious about my weekly Pilates class, which is a gentle way to strengthen your core muscles, including your back if you have back problems. As always, consult your doctor before embarking on new fitness routines - especially if you have health issues.
OK, time to get moving! Wishing you a healthy new year!
(Disclaimer: I own no stock or financial interest in any of the companies mentioned above. I just think they are interesting!)