In many respects eHealth and mHealth are still in their Wild West stage. That's why most applications are built based on short-sighted great ideas rather than long-term economic effectiveness. 

Traditionally, management and research have been at odds with each other. And its a big deal. Back in 2008 Berwick noted this by writing: “the U.S. health care system requires simultaneous pursuit of three aims: improving the experience of care, improving the health of populations, and reducing per capita costs of health care.”

But it now seems that the academic world has extended its hand. Here is the abstract for my talk at Medicine 2.0, traditionally an academic conference, being held this year at Harvard University:

Looking Beyond Controlled Trials: The Economics of eHealth Commercialization

Background: Despite highly promising evidence of the reach and efficacy of eHealth and mHealth tools, there are relatively few profitable businesses working in the space. Recent peer-reviewed publications have attempted to illustrate a positive correlation between eHealth programs and Return on Investment (ROI), and business stakeholders and the investment community remain optimistic. But eHealth and mHealth businesses tend to find it difficult to achieve sustainability. Why?

Objectives: This presentation is designed to introduce researchers and innovators to two common barriers that hamper commercialization: transfer costs and opportunity costs. Successful businesses in the eHealth and mHealth space understand these costs. Businesses that do not are often forced to pivot (a term indicating that a company’s business model has changed), or simply cease to exist. Further, in order to attract investors and clients, it is important to understand the differences between Return on Investment (ROI), and Return on Invested Capital (ROIC).

Methods: By revisiting key milestones in the growth of Internet healthcare, this presentation will review the fundamentals of transfer and opportunity costs, and ROI and ROIC as they pertain to growth in this unique and evolving market. 

Conclusions: The business of Internet healthcare exists in juxtaposition: research is slow, electronic modalities are quickly dated, and investors expect a high rate of return within three to five years. Successful organizations operating in the Internet healthcare space will develop long-term business plans and partnerships that address these barriers, and illustrate sustainability through value creation and Free Cash Flow (FCF).