Nobody Does It Better: Mayo Clinic CEO Discusses Innovation and System Transformation

Posted:  March 20, 2017
David W. Johnson, Author in Residence

On March 8, Dr. John Noseworthy, Mayo Clinic’s CEO, stopped by MATTER for a “fireside chat” in front of an overflow audience. Dr. James Madara, the American Medical Association’s CEO and MATTER board member, joined Noseworthy on stage for a lively exploration of healthcare innovation and transformation.


Mayo Clinic is the world leader in complex disease diagnosis and treatment. People from around the world and all 50 states trust Mayo doctors with their lives. Mayo’s multi-disciplinary teams, not individual physicians, drive medical decision-making and deliver exceptional patient experiences.

Since its 1864 founding, physician-CEOs have led Mayo and built a cohesive culture that does not tolerate prima donnas. Salaried physicians and aligned staff share information, engage patients, and collaborate fully. Always putting patients first is the secret sauce that energizes and shapes Mayo’s clinical care, research, and business development.

Examples of clinical excellence and innovation abound:

  • 18% of Mayo surgeries have two surgeons operating simultaneously on patients. This reduces the treatment burden on patients, leads to better outcomes, and is more efficient. All hospitals should do this, but few do.
  • In 2016, Mayo conducted its first-ever face transplant in a 56-hour operation. The team conducting the transplant rehearsed the complicated surgery over the course of 50 Saturdays in the 3.5 years leading up to the surgery.
  • Mayo physicians have conducted over 450 Whipple procedures – the most complex surgery a general surgeon will do – laparoscopically (through two small incisions).
  • Easier, earlier disease diagnosis is a lifesaver. In partnership with ExactScience, Mayo researchers have developed a simple stool test to detect colon cancer. They also are close to developing a blood test to detect lung cancer.

Partnership between bio-medical engineers and clinicians drives Mayo’s relentless process improvement. A request for three new cardiology operating suites triggered a full review of Mayo’s procedures for cardiac surgeries. The initiative created enough incremental capacity to hire three new cardiac surgeons without building any new ORs.

Mayo Noseworthy Madara AMAIn response to a question regarding the “sluggishness” of physicians to embrace innovation, Noseworthy recommended engaging physicians with data. Madara noted that physicians spend two hours doing data entry and compliance for every hour with patients. This generates both frustration and burnout. Innovation communities, like MATTER, succeed when they enable physicians to engage with patients, practice efficiently, and deliver better outcomes.

Despite their focus at the pinnacle of the care pyramid, both Noseworthy and Madara stressed the need for better public health education and literacy. Metabolic syndromes cause most cancers and heart disease.

Reversing the spread of diabetes is of paramount importance throughout the world. Half of China’s adult population is pre-diabetic. The economic consequences of treating chronic disease are catastrophic. Promoting constructive lifestyle change is “the biggest opportunity in developed countries,” Noseworthy observed.

In this sense, Noseworthy ended the fireside chat where he began, embracing the necessity of innovation in transforming healthcare. Addressing MATTER entrepreneurs in the audience, Noseworthy proclaimed, “Healthcare’s future is in this room!”

Watch the entire event here.

Big Data Comes to Healthcare: Identifying High-level Trends to Solve Individual Problems

Posted February 13, 2017
by Devon Leichtman
Associate Marketing Manager – MATTER

Today, healthcare leaves a trail of data leading up to and following each patient interaction. From check-ups and surgeries to lab work and prescription refills, every moment of treatment yields a piece of data that could be hugely valuable to clinicians developing treatment plans or health systems streamlining their operations.

Unfortunately, most of this data still largely exists on its own. Most patients’ data is disparate, and the healthcare industry largely hasn’t formed processes to connect individual patient data, let alone the ability to show how individual patient data connects at a population level.

MATTER recently hosted NorthShore University HealthSystem’s analytics director, Chad Konchak, and infectious disease physician Nirav Shah, MD, MPH, for a conversation about their analytics work. Watch highlights of the event:

Chad and Nirav are building meaningful prediction modeling software within the NorthShore system. Their tools allow clinicians to make informed predictions about what will happen in the future for many of their patients, allowing them to make better, timelier decisions to improve outcomes.

The tools they are building are focused on high-priority issues for NorthShore – areas where analytics have the potential to improve outcomes and save costs. They highlighted three examples.

  • Medication non-adherence drives up costs and drives down outcomes. Their solution explores the reasons and likelihood that patients don’t take their prescribed medications. That way, they can identify patients at risk of non-adherence and determine the right ways to motivate them to take their medications.
  • Post-surgery fevers are very common, and it is critically important to separate whether fevers are a normal reaction to surgery or a symptom of an infection. Their tool allows physicians to model expected post-surgical temperature very precisely to reduce unnecessary hospitalization time and costs.
  • Antibiotic resistance is a growing concern for many clinicians who worry about strains of bacteria developing resistance to the medications and becoming harder to treat. Chad and Nirav are identifying patient conditions and responses in relation to antibody development in order to better tailor antibiotic treatment combinations and reduce the risk of population-wide resistance to antibacterial treatments. Their analytics solution allows NorthShore physicians to prescribe the right antibiotics, with the narrowest spectrum, days before the cultures come back from the lab.

We continued the conversation Chad and Nirav began at MATTER last month, asking three questions from the audience that there wasn’t time to answer during the presentation.



Data collection poses a logistical issue. Doctors often don’t have the time to collect and make sense of data if it doesn’t immediately affect the quality of their care. So how do you get doctors on board with a data collection method that will benefit them in the long run, but only if they use it consistently in the short term?

  • Dr. Shah: There’s a strong healthcare culture that exists to prevent the addition of work to primary care physicians, especially since most of that added work doesn’t really provide value to the physician-patient encounter. So, when we try to collect data from physicians or healthcare providers, we must show in real-time the result of entering that data. We really have to show value on the spot.
  • Chad: In analytics, we’re responding to this call by building the data collection directly into the electronic health record, so that it’s easy and visible and these systems become health learning systems. If you can make it as simple and as direct as possible without having to obstruct existing workflows, physicians will be engaged and interested.

Takeaway: making data collection non-intrusive and proving value on the spot is key to getting clinicians on board.

What challenges and concerns came up when you were developing this software?

  • Dr. Shah: A lot of physicians are hesitant to use these sorts of prediction models out of fear that they won’t be totally accurate. It’s important to look at them as a diagnostic tool, capable of false negatives and false positives. It should guide and inform decision-making, not be the sole decision-maker.
  • Chad: Even though the data tools we’re building aren’t patient-facing, their outputs allow us to understand how to best engage with patients. How can we analyze how patients consume healthcare information and what types of messaging persuades them to visit their HCP? Maybe one patient responds better to messaging about how easy a procedure is, while another responds well to messaging about how well-trained our doctors are. This information is vital to helping NorthShore get patients to engage in preventative care.

Takeaway: while analytics tools are applied at large scale, and not every recommendation will be accurate, they can improve messaging to patients on the whole and therefore help deliver important care when patients need it.

Any final thoughts to others looking to work in this space?

  • Dr. Shah: Medicine has been so behind the ball in terms of using big data; it’s only fairly recently that we’ve been able to unlock insight from data we collect. In the past 10 to 15 years, we’ve seen an explosion in physicians working more with data scientists to really harness this power. You’re increasingly seeing professionals like “hybrid physicians,” who aren’t only responsible for clinical, but also for interfacing with experts like Chad to turn information into insight.
  • Chad: It’s a true team effort. My team is building a new tool to help clinicians do what they do best. And when we build it, we must think about how they can most effectively use it. It’s not prescriptive, but it’s more enriched information about what’s happening, and it’s up to the physician to use that information in the course of their care.

Takeaway: while healthcare lags behind many other industries in utilizing data, we are at an inflection point where clinicians and health systems can truly embrace data analytics solutions to solve existing problems and increase quality and efficiency of care.

Kate Wolin’s Company ScaleDown Aims to Make Weight Loss a Habit

A scale and a smartphone are all it takes.

katewolin-croppedMore than 70 percent of Americans are overweight, according to the CDC, and almost everyone who is overweight expresses a desire to lose weight. Yet few achieve their goals, and even fewer maintain their ideal weight. This problem has been a focus of Dr. Kate Wolin’s – a Harvard-trained scientist with deep expertise in behavior change – for more than 15 years. Her company, ScaleDown, uses a sophisticated behavioral phenotyping engine to get people to do just one thing: weigh themselves every single day, because research shows the more frequently a person weighs, the more likely he or she is to lose weight.

ScaleDown provides, cost-effectively and at scale, what personal weight loss coaches do for those who can both afford them and manage the time commitment. Every day, ScaleDown users get text messages in response to their daily weight, based on a sophisticated algorithm that generates individualized feedback.

“The behavioral phenotyping engine is our way of personalizing that feedback without the expense and the reach challenges that coaches can raise,” Wolin said. “I will have the best intentions to show up every Tuesday for that coaching session, but then, you know, I have this work event, or my kid has a thing at school, and I miss it.”

The key to real, sustained weight loss, Wolin said, is consistency.

“Weight, like many other chronic-disease related behaviors, is something you have to be attentive to every day,” she said. “We’re not about quick weight loss. We’re about helping you lose that weight and keep it off. It’s a lifestyle change.”

“We’re not about quick weight loss. We’re about helping you lose that weight and keep it off. It’s a lifestyle change.”

And that lifestyle change has implications beyond looking and feeling better. Much of Wolin’s own research surrounds the relationship between obesity and disease, including cancer.

“A lot of people know that heart disease and cancer are the leading causes of both morbidity and mortality in the US,” she said. “But many people are unaware that obesity is a risk factor for thirteen different cancers… While we don’t collect information on people’s chronic disease profiles at ScaleDown, I hope we are shifting that risk curve for folks who haven’t been diagnosed.”

Wolin met her two co-founders Gary Bennett and Dori Steinberg when they were students at Harvard. Their impetus for building ScaleDown came from their shared interest in serving people who couldn’t easily engage with the medical system.

Today, ScaleDown serves more than 20,000 active users, and they have had more than 110,000 users since they began selling their product. Their research shows that 93 percent of ScaleDown users have experienced clinically meaningful results, which compares to 40 percent in other weight-loss programs.

“We’ve gotten great traction and had enough users come through that we’ve really been able to build a robust product,” she said. “And now it’s about finding the right partners and channels for growing the business.”
For more on Kate Wolin, see her LinkedIn and Twitter.

Senator Kirk and Governor Romney Visit MATTER, Support Innovation in Healthcare

CHICAGO, Oct. 19, 2016 – U.S. Senator Mark Kirk and former governor and presidential candidate Mitt Romney today toured healthcare technology incubator MATTER to discuss the future of healthcare with entrepreneurs and innovators.

Located in Chicago’s Merchandise Mart, MATTER is a community of healthcare startups and industry leaders working together to fuel innovation in health IT, medical devices, diagnostics, and biopharmaceuticals.

Senator Kirk and Governor Romney met with several of the entrepreneurs working at MATTER to develop innovative healthcare solutions, including the founders of SurvivorPlan, an integrated care planning, care coordination, and patient engagement platform; HabitNu, a diabetes prevention and management tool; 300 Medical, a technology company that improves how patients receive care; and Resonance Medical, a software company that aims to upgrade existing cochlear implant processors.

“It was a pleasure to be back at MATTER,” said Senator Kirk, who visited the incubator for the first time in August of 2015. “The technology, devices, and products being developed by the entrepreneurs at MATTER will improve patients’ lives and positively impact the region’s economy,” Kirk continued.

“Today I had the opportunity to tour MATTER with U.S. Senator Mark Kirk,” added Governor Romney. “I enjoyed hearing from entrepreneurs and innovators on the cutting edge of healthcare technology who are working together to improve the healthcare industry, create jobs, and bolster the local economy,” Romney said.

“MATTER is honored to host Senator Kirk and Governor Romney for a discussion about how technology innovation is improving healthcare and changing lives,” said Steven Collens, MATTER CEO.

MATTER is a community of entrepreneurs, innovators, and industry leaders working together to harness technology to improve health and healthcare. MATTER connects and promotes collaboration between entrepreneurs, scientists, physicians, investors, and industry partners in order to bring next-generation products and services to market that improve quality of care and save lives. For more information, visit and follow @matterchicago.

Fresenius Kabi Joins Chicago Health Innovation Incubator MATTER as Newest Strategic Partner


(LAKE ZURICH & CHICAGO) – October 11, 2016 – Fresenius Kabi has joined Chicago’s healthcare innovation incubator, MATTER, as a new strategic “gold” partner, both organizations announced today.

MATTER is a community of healthcare innovators based in Chicago.  Fresenius Kabi is a global healthcare company that specializes in medicines and technologies for infusion, transfusion and clinical nutrition.  The company is based in Germany with its U.S. headquarters in Lake Zurich, Illinois and advanced manufacturing, R&D and logistics operations throughout the Chicagoland area.

MATTER and Fresenius Kabi will work together to accelerate the development of technologies that improve health and patient care, with a focus on products used in the treatment of people with critical and chronic conditions, which is where Fresenius Kabi has special expertise.

In the U.S. Fresenius Kabi products include specialty and generic injectable medicines, infusion pumps, clinical nutrition products and transfusion and cell-processing technologies used to collect, store, process and transfuse blood, blood components and specific therapeutic cell types and lines.

“This partnership is about physical and digital innovation, which as we know is transforming patient care, making high-quality care more effective, more affordable and more in reach for more people worldwide,” said Dean Gregory, president, medical devices, Fresenius Kabi USA.  “We look forward to engaging with the MATTER community and collaborating with its innovators, entrepreneurs and other partners as a means to fulfill our purpose, which is to put lifesaving medicines and technologies in the hands of people who care for patients.”

Through MATTER, innovators from across the healthcare industry connect and collaborate to accelerate the development and growth of solutions that address industry challenges and improve care.

“Fresenius Kabi is a leader in healthcare with a focus on therapeutics and devices, and we are thrilled to welcome their innovators and experts into the MATTER community as we collaborate to improve care,” said Steven Collens, chief executive officer, MATTER.

About Fresenius Kabi

Fresenius Kabi ( is a global healthcare company that specializes in medicines and technologies for infusion, transfusion, and clinical nutrition. The company’s products and services are used to help care for critically and chronically ill patients. The company’s U.S. headquarters is in Lake Zurich, IL. The company’s global headquarters is in Bad Homburg, Germany. For more information about Fresenius Kabi worldwide, please visit


MATTER is a community of entrepreneurs, innovators and industry leaders working together to harness technology to improve health and healthcare. MATTER connects and promotes collaboration between entrepreneurs, scientists, physicians, investors and industry partners in order to bring next-generation products and services to market that improve quality of care and save lives. For more information, visit and follow @matterchicago.

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Fresenius Kabi Media Contact
Matt Kuhn
Fresenius Kabi
(847) 550-5751

MATTER Media Contact
Melissa Lederer
(312) 543-9537

Predictive Poop: Microbiomes and Gut Health

Posted September 29
By Clayton Gentry
MATTER Journalism Fellow

On Wednesday, September 21, Professor Jack Gilbert and Dr. Eugene Yen discussed their research on the human microbiome and fecal microbiota transplants (FMT). The event kicked off the “What’s Next for Healthcare” lecture series, produced by MATTER in partnership with NorthShore University HealthSystem.

Predictive Poop Panel

Gilbert, who has a background in marine ecology, opened his talk by equating ecosystems in nature with the human body.

“Transitioning from understanding the rainforest to understanding the human gut is very easy,” he said. “Your body is an ecosystem.” As in nature, Gilbert said, the agents that make up the rainforest — which outnumber the amount of cells in a body — have a direct impact on the health of the host.

“Your body is an ecosystem.”

Gilbert’s fascination with the subject stemmed from his interest in learning more about his own susceptibility to Alzheimer’s: he has a genetic mutation that makes him 30 times more likely to acquire the disease. He said about ten years ago he began to study why some adults with the mutation do not get Alzheimer’s, while some do. Gilbert believes the answer may lie partially in his own microbiome.

While the adult microbiome is relatively stable, Gilbert and Yen agreed that the kinds of human and environmental exposure infants experience can have a long-term effect on their physical health. Gilbert discussed the idea of the human microbiome in the context of childbirth, focusing on the differences between children born via vaginal delivery and children born via cesarian section.

“You get your microbiome from your mother,” Gilbert said. “The children who are born via vaginal delivery, who pass through the birth canal, acquire a microbiome from that transit – a microbiome that is very, very similar to the mother’s vagina.” Babies born via C-section, Gilbert said, “acquire their microbiome from the skin of the first person they come into contact with.” He said these babies have a higher probability of having neurological disorders, obesity, and other developmental issues.

Professor Gilbert Predictive Poop

He also described the impact of the body’s microbiome on one’s physical health by comparing Amish children, who undergo heavy exposure to animals as small children, and Hutterite children, who grow up on industrial farms without animal exposure. Whereas the U.S. average for asthma occurrence hovers around 8 percent, asthma occurrence in the Amish stays around 3 to 5 percent, and is around 35 percent in the Hutterites. Gilbert attributes this contrast to differences in the microbiomes of Amish and Hutterite bodies: early exposure to animals diversifies the Amish microbiome.

In 2015, Gilbert co-founded The BioCollective, and is currently the chief scientific advisor, helping to develop the patient recruitment and product lines.

Yen, a clinician at NorthShore University HealthSystem who specializes in colon cancer prevention and the treatment of irritable bowel syndrome, also discussed the microbiome, but in the context of his own work in fecal microbiota transplants (FMT).

Yen believes his work on FMT can play a role in altering adult microbiomes for the better. FMT, which dates back to 4th century China, Yen said, is the infusion of a healthy donor’s liquid stool preparation (informally referred to as a “crappuccino”) into the GI tract to restore normal flora.

One positive implication of the procedure is that it can potentially resolve some health problems that would otherwise require antibiotics or other pharmaceuticals, particularly clostridium difficile colitis, or C. diff. These bacteria attack the lining of the intestines, causing frequent diarrhea, abdominal pain, loss of appetite, and fever. The disease represents a common cause of hospital-acquired diarrhea, and Yen described it as a “disease caused by antibiotics treated with antibiotics.”

“It’s a disease caused by antibiotics treated with antibiotics.”

Indeed, current mainstream treatments for C. diff revolve around antibiotics, but Yen’s work has shown that FMT should be seriously considered as a non-pharmaceutical approach to curing the disease. Since his first FMT patient in May 2010, Yen has conducted the procedure 167 times with a cure rate of 96 percent.

Dr. Yen Predictive Poop

Yen said future directions for research on FMT involve crafting alternative modes of transplantation like frozen stool, stool substitutes and pill-based formulations. Moreover, Yen said FMT could have clinical applications outside of C. diff including irritable bowel syndrome, obesity, inflammatory bowel disease, diabetes, chronic fatigue syndrome, depression, multiple sclerosis, and Parkinson’s disease.

Intensive study of the human microbiome is relatively new. Ninety percent of the approximately 4,000 articles on the subject have been published in the past five years. The research is young, but according to Gilbert and Yen, altering the human microbiome may yield tremendous health improvements for certain patients, and the secret is in the poop.

MATTER Launches The OSF Simulation Stage in Partnership with OSF HealthCare

Screen Shot 2016-09-06 at 11.37.06 AM                  MATTER-Logo-POS[1]

New specialty environment at MATTER lets healthcare innovators develop ideas and test products in real-world clinical scenarios; first project will focus on hospital observation units

(CHICAGO, IL) – September 6, 2016 – MATTER, in partnership OSF HealthCare, today announced the launch of The OSF Simulation Stage at MATTER, a flexible simulation environment designed to allow early-stage healthcare technology innovators to test their products in real-world clinical environments and gain valuable feedback – knowledge they traditionally would not have the opportunity to receive until much later in the development process. The Stage, which is configurable to model a number of hospital clinical settings such as an ICU, cath lab, or procedure room, is outfitted with medical equipment from Hill-Rom and electronic health record software from Allscripts.

The OSF Simulation Stage’s first configuration will model a hospital observation room and will be the focal point of a six-month-long challenge sponsored by Hill-Rom to develop technologies to improve the efficiency, quality, and financial stability of hospital observation units. The challenge is an opportunity for innovators to develop solutions to a timely problem and gain feedback from clinicians on the front lines of delivering care. Applications from teams interested in participating must be submitted by October 15. The winning team will be presented with a cash prize. For more information, visit

“Simulation provides an invaluable opportunity for testing, training, and iteration in a safe and controlled environment,” said Dr. John Vozenilek, vice president and chief medical officer for Jump Trading Simulation & Education Center, a partnership between OSF HealthCare and University of Illinois College of Medicine at Peoria. “The friction involved in bringing new healthcare technologies to market is immense, and it’s often doubly hard for early-stage innovators to navigate the healthcare system to secure crucial pilots and gain direct feedback. The OSF Simulation Stage at MATTER eliminates this friction by accelerating the testing process and paving the way for outside evaluation to shape new ideas and iterative decisions that might otherwise not be uncovered until much later in the process – or missed entirely. We’re thrilled to partner with MATTER on this endeavor.”

“Since MATTER opened last year, we have heard from startups and innovators that they want greater access to clinical environments in which to develop ideas and test prototypes,” said MATTER CEO Steven Collens. “The OSF Simulation Stage gives them this environment and is designed to be highly flexible and adaptable to a variety of situational challenges.”

The OSF Simulation Stage is the second specialty environment that MATTER has designed to facilitate connection and collaboration between entrepreneurs and clinicians to advance healthcare. Previously, MATTER introduced the AMA Interaction Studio, in partnership with the American Medical Association, that provides an interactive environment for entrepreneurs and physicians to engage one another early on in the development of new solutions.

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Media Contacts:
Melissa Lederer
(312) 543-9537

Denise Molina-Weiger
OSF Innovation
(309) 308-9547

About OSF HealthCare
Headquartered in Peoria, OSF HealthCare is owned and operated by The Sisters of the Third Order of St. Francis, and consists of more than 18,000 employees in 115 locations, including 11 hospitals throughout Illinois and Michigan. Its physician network employs more than 1,000 primary care, specialist physicians, and advanced practice providers. More at

About Jump Trading Simulation & Education Center
Jump Trading Simulation & Education Center (Jump) is an incubator where collaboration and innovation lead the transformation of healthcare worldwide. Jump programs and objectives are key to improving the safety, effectiveness, and efficiency of care for community members across the region.
A collaboration between OSF HealthCare and University of Illinois College of Medicine at Peoria (UICOMP), Jump advances the missions of both organizations.

MATTER is a community of entrepreneurs, innovators and industry leaders working together to harness technology to improve health and healthcare. More than 130 healthcare technology startups operate at MATTER, and the company partners with 10 hospitals and health systems, four universities and more than 40 industry-leading companies. By equipping, empowering and emboldening healthcare innovators, MATTER accelerates the development of technologies that solve the right healthcare problems in the right ways. For more information, visit and follow @matterchicago.

Salon Recap: Shift to Fee-for-Value and Impact on Medical Devices

In April, MATTER assembled a diverse group of stakeholders for a salon on how healthcare payment and delivery reforms are impacting the way health systems evaluate medical devices. The group included executives from device manufacturers including Abbott VenturesHill-Rom, Briteseed, and Diagnostic Photonics; providers, payers, technology and telehealth experts, and contract and procurement specialists. We  had a spirited conversation about how health systems and manufacturers are interacting in this brave, new, fee-for-value world. Following are a few high-level takeaways from the morning.


New Customers are Influencing Purchasing Decisions

Providers continue to consolidate both horizontally and vertically as health systems combine and purchase physician groups. This consolidation allows providers to enter into at-risk financial arrangements to manage the costs of caring for a population of patients. However, under these new care models, an individual physician’s influence over the medical device purchasing process is decreasing, causing health systems to involve multiple stakeholders – often called “value committees” – in the evaluation and purchase of new technologies. These new customers have unique incentives and priorities that medical device manufacturers need to be aware of.

Long-term Value is Increasingly Important to Payers and Providers

Both payers and providers want to understand the long-term value of a medical device, including its impact on cost, quality, and outcomes. Providers in at-risk financial arrangements are particularly focused on its impact on downstream medical costs (e.g., post-acute care use and setting). Some of the earliest examples of this trend can be found in orthopedics, where commercial and government programs such as Medicare’s Bundled Payment for Care Improvement initiative consolidate payments for acute and post-acute care services for joint replacement procedures.

Data and Analytics are Becoming Critical to Proving Value

Many manufacturers are already moving in the direction of collecting and analyzing medical device data and providing more connected and interoperable devices. To be more competitive in the future, however, manufacturers will need to understand what specific kinds of evidence payers and providers need to prove a device’s value under these new payment models – such as case studies and real-world examples – instead of just randomized clinical trials.

For those interested in more details about what was discussed at the salon, meeting notes prepared by Navigant Consulting can be found here. And if you a hospital administrator or medical device innovator interested in being part of this important dialogue in the future, please contact Shareef Ghanem (, senior program manager, for information on upcoming events.

MATTER Member Profile: Dane Guarino of Markit Medical

Posted May 10 by Ornella Hernández
MATTER Journalism Resident
Medill School of Journalism, Class of 2016

Dane Guarino Markit Medical – MATTERIt was fall 2014 orientation day at the University of Chicago’s Booth School of Business. Dane Guarino sat next to his fellow first-year, Lance Larsen, and struck up a conversation. They had both recently left the investment banking world and come to Booth for the same reason: to build a health tech company. Lance would soon become Dane’s co-founder of Markit Medical, an online marketplace where patients can shop for healthcare services based on price, insurance coverage, and physician quality. Two years later, they’re about to launch their latest pilot.

Sites like Kayak or Expedia are industry standard to buy flights, because travelers value different aspects of travel such as cost, convenience, or timing. Guarino believes you can apply the same principles to medical procedures: say you need an MRI or a colonoscopy. Your PCP could refer you, but can he or she factor in price and insurance data?

Even if that were possible, patients question the confidentiality of their healthcare when it’s provided by their employer. For example, “Home Depot employees can see all of their healthcare options at work,” explains Guarino. “But none of the employees actually use the portal because they don’t feel comfortable. Our goal is to bring that data to the doctor’s office where the patient is most comfortable making healthcare decisions.”

Guarino and Larsen joined MATTER in summer 2015 after being named semifinalists in the Edward L. Kaplan New Venture Challenge at Booth. Here, they have developed technology to begin automating what was a manual and slow price estimating process. Rather than calling multiple provider facilities to receive quotes, Markit Medical will “build relationships with the specialist facilities so that we can automate the price collection process and show the patient all of their options much more quickly,” says Guarino.

Guarino keeps himself motivated, hydrated, and caffeinated while studying, attending lectures, cold calling, and visiting physicians and clinics. He’s never without a lemon water bottle, an espresso bottle, and a notebook – he credits his coffee addiction to his former life in I-banking. “This notebook probably has the last four month’s worth of interactions with mentors, investors, and potential business partners,” he says.

Guarino considers himself a self-starter who isn’t afraid of breaking the status quo. While in finance, he came up with new ways to model financial statements and helped design a CRM system that tracks clients more effectively. In healthtech, designing better ways to do things is his full time job. “Why isn’t pricing and insurance info at the doctor’s office so you know your options when being referred?” he asked himself. “Let’s see if we can become a part of the physician work flow.”

Markit Medical is currently developing a tablet application that automatically displays results in a PCP’s office. Patients can peruse quality level, location, convenience, and price to make a choice just as if they were “buying socks on Amazon.” The stakes, however, are a little higher for Guarino and Markit Medical. To connect with Dane Guarino, visit his LinkedIn.


Tales from the Trenches: David Jonas of PharMEDium

Posted May 12 by Ornella Hernández
MATTER Journalism Resident
Medill School of Journalism, Class of 2016

David Jonas, founder of PharMEDium Healthcare Corporation, sat down with ContextMedia CEO Rishi Shah at MATTER’s latest iteration in the Tales from the Trenches series. The hour-long conversation revolved around Jonas’ 35+ years of healthcare industry experience including hiring practices, the importance of service as well as product, and the staggeringly high stakes in healthcare. Watch the interview highlights and read our summary below.

Born in Israel, Jonas spent more than two decades at Baxter International as the chief financial officer of renal therapy services when he saw an opportunity to strike out on his own. Baxter had long practiced compounding – mixing drugs for pain management, surgeries, and epidurals – but was planning to cut the business segment loose in 2003. Jonas seized the moment and left Baxter to start a new company mixing drugs for hospitals who outsource ready-to-use compounding products.

Jonas tells Shah about building PharMEDium, sterile compounding, and his journey through healthcareJonas stressed identifying value proposition in the early stages of entrepreneurship. “You have to decide how different you are. You have to define what the customer wants and needs. Understand both the cost and the value,” said Jonas. In PharMEDium’s case, that value came from providing exceptional customer service. “In today’s environment, you can have a phenomenal product, but the service component will make or break your product,” said Jonas.

PharMEDium set out to provide a drug compounding service which included procurement, sterilization, mixing, packaging, and distribution. This meant building expensive facilities and infrastructures and hiring a core team. Jonas was deliberate in bringing in the right talent to augment the business, and bought 500 contracts from Baxter. “We needed people with an entrepreneurial spirit, who enjoy change, but also adhere to standard operating procedures. No cowboys,” he said.

Patient safety keeps Jonas awake at night, and loose cannons terrify him in the high-stakes drug compounding industry where any mistake could be deadly. Maintaining quality control and sterile procedures that comply with the U.S. Food and Drug Administration is fundamental to compounding, and PharMEDium excelled at it. Today, the company has about 70 percent of the market, according to Crain’s Business.

PharMEDium was able to become the market leader in sterile compounding by fostering a meticulous company culture. With success, however, comes accountability. Jonas recalled an incident involving a competitor whose contaminated batch of steroid injections caused meningitis and resulted in more than 60 deaths and about 750 injuries in 2012.

“This is unacceptable when a customer is trusting you,” said Jonas. “In 2003, The Drug Quality and Security Act passed and clarified the regulatory environment that we were subject to. This brought in all the investors,” said Jonas. This investment buzz continued, and in Fall 2014, PharMEDium was preparing to file their initial public offering. Rishi Shah, David Jonas, and Steve Collens at MATTERs Tales from the TrenchesAt the 11th hour, Jonas “got an offer that was too attractive to pass up,” and AmerisourceBergen acquired PharMEDium for $2.5 billion in November of that year.

“In the last few years, I started spending time in private investment, VC, and in bringing my healthcare experience to the table,” said Jonas. He had founded JVC Investment Partners in 2000 and currently serves as its president. His son Jonathon Jonas, who is a partner of JVC, sat front and center in the auditorium to listen to his father.

Rishi asked which market is most ripe for disruption. Jonas said that the U.S. is, but that Israel is the best for biotech – in particular, cardiovascular tech and neural modulation. As a born and bred Israeli, Jonas will now look back to his home country to invest in the IT business. Watch the full interview and join us for our next Tales from the Trenches on Thursday, June 23.