- Examining Opportunities for Georgia

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1 - Examining Opportunities for Georgia Ayodeji Fajebe Science Technology and Innovation Policy (STIP), Summer 2011 Georgia Institute of Technology

2 Motivation Research Question Definitions Overview Categories Results Conclusions Implications

3 The American Recovery and Reinvestment Act of 2009 (ARRA) framed in the wake of the economic downturn provides many different stimulus opportunities, one of which is the $19 billion on health IT $17B toward physician and hospital incentives to invest in the adoption and use of health IT $2B to the Office of the National Coordinator for health IT in part to support regional and local health information exchanges The HHS is using stimulus incentives to encourage healthcare providers to meaningfully use Electronic Health Records 1) Title XIII of ARRA was given a subtitle: Health Information Technology for Economic and Clinical Health Act (HITECH). 2) HHS = U.S. Department of Health and Human Services

4 Are there opportunities for Georgia to be a top player in this industry?

5 1. Health Information Technology 1,2 (health IT) is broadly defined as the application of information technology (IT) to the design, development, creation, use and maintenance of information systems for the healthcare industry 2. For this study, the terms "medical" and "healthcare refer treatment or diagnosis of the human body 3. Patents are one of several proxies that can be used to measure innovation (R&D expenditures is another) 4. But not all innovation in health IT are captured by patents 1. Chaudhry, B. Wang, J., & Wu, S. et al., (2006). Systematic review: Impact of health information technology on quality, efficiency, and costs of medical care, Annals of Internal Medicine, 144(10), Furukawa, M. F., Raghu, T. S., Spaulding, T. J., & Vinze, A. (2008). Adoption of health information technology for medication safety in U.S. Hospitals, Health Affairs (Project Hope), 27(3), doi: /hlthaff

6 Patent counts (USPTO 1 database) are used as a measure of innovation in the health IT industry over the last 20 years ( ) Key indicators used are inventor data (defined as first author), assignee data (recipients who commercialize it) patents commercialized assignees inventors 1) USPTO = United States Patent and Trademark Office (

7 1. Bar Coding & Radio Frequency IDentification (RFID) tracking systems (patients, drugs, devices) 2. Electronic Health Records (EHRs) patient identity electronic record systems 3. Handhelds portable devices for monitoring & data display 4. Informatics & Clinical Decision Support acquire, analyze, interpret, & present data 5. Medical Claims, Billing & Insurance payment processing systems 6. Picture Archiving & Communication Systems (PACS) storing, transferring, retrieving medical images

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9 Medical Claims, Billing, & Insurance 21% PACS 9% Bar Code & RFID 17% EHR 20% Informatics & Clinical Decision Support 25% Handhelds 8% N = 972

10 # of Patents = 561 (18 yr period) ARRA Act Feb * 68% # of Patents = 384 (3 yr period) July 2011 (73) # of Patents Published * =Annualized

11 Category Total % of US Patents Bar Code & RFID % EHR % Handhelds 80 94% Informatics & Clinical Decision Support % Medical Claims, Billing, & Insurance % PACS 85 72% Grand Total %

12 Category # of US-owned patents Assigned to US entities % Bar Code & RFID % EHR % Handhelds 61 81% Informatics & Clinical Decision Support % Medical Claims, Billing, & Insurance % PACS 58 95% Grand Total % *Total US patents, N = 872

13 Category * SMEs Fortune 1000 companies # of Assignees that are SME % Bar Code & RFID % EHR % Handhelds 55 90% Informatics & Clinical Decision Support % Medical Claims, Billing, & Insurance % PACS 47 81% Grand Total % N = 717

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15 # States Total Patents 1 CA WA 74 3 PA 49 4 NY 46 5 IL 42 6 MA FL GA NC 5 35 OK 1 36 WV 1

16 # States Total Patents 1 CA NY 80 3 WA 71 4 PA 53 5 MN 49 6 MA 38 7 IL FL NC 9 22 GA 5 34 OK 2 38 VT 1

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19 Inventor City Assignees Category Publication Year 1 Atlanta, GA AT&T BLS Intellectual Property, Inc. (Wilmington, DE) Bar Code & RFID Woodstock, GA AT&T Intellectual Property I, L.P. (Reno, NV) Bar Code & RFID Woodstock, GA AT&T Intellectual Property I, L.P. (Reno, NV) Bar Code & RFID Decatur, GA Envoy Corporation (Nashville, TN) Medical Claims, Billing, & Insurance 1998 AT&T Intellectual Property I, L.P. 5 Marietta, GA (Reno, NV) Medical Claims, Billing, & Insurance Carrollton, GA 7 Clarkston, GA Greenway Medical Technologies, Inc. (Carrollton, GA) Medical Claims, Billing, & Insurance 2010 Kimberly-Clark Worldwide, Inc. (Neenah, WI); Bernard Technologies, Inc. (Chicago, IL) EHR Atlanta, GA Accenture LLP (Palo Alto, CA) EHR 2008 Informatics & Clinical Decision 9 Atlanta, GA LXE, Inc. (Norcross, GA) Support Atlanta, GA NOT ASSIGNED* Bar Code & RFID Atlanta, GA NOT ASSIGNED Handhelds Atlanta, GA NOT ASSIGNED EHR Athens, GA NOT ASSIGNED Medical Claims, Billing, & Insurance 2008 * Assigned to an angel firm

20 Inventor City Assignees Category Publication Year 1 Lowell, MA 2 Carrollton, GA McKesson Information Solutions, Inc. (Alpharetta, GA) Greenway Medical Technologies, Inc. (Carrollton, GA) Medical Claims, Billing, & Insurance 2004 Medical Claims, Billing, & Insurance Atlanta, GA LXE, Inc. (Norcross, GA) Informatics & Clinical Decision Support Seattle, WA 5 Palo Alto, CA Health Discovery Corporation (Savannah, GA) McKesson Information Solutions LLC (Alpharetta, GA) Informatics & Clinical Decision Support 2010 Informatics & Clinical Decision Support 2010

21 A lot of inventing is going on in health IT Opportunities are growing Most are U.S. owned and more are even commercialized Particularly in Health Informatics & Clinical Decision Support Systems and EHR (almost 50%) There is a prevalence of SMEs in health IT (>90%) The data suggests that innovation heads West and East and tends to cluster

22 Georgia has a presence on the invention side But a weak & diminishing presence on assignee side Georgia lags behind in health IT inventions and even more in their capture (commercialization) Georgia might be losing out of the opportunities to play a dominant role in health IT Thus Georgia needs to target specific policies that fosters greater innovation in health IT as well as captures it As inventors & entrepreneurs respond to these incentives, the activities could lead to a spurring of economic growth, and potentially, in the form of new companies and jobs for the local economy

23 Project Personnel and Funding: This project was funded as part of a summer 2011 STIP internship. Personnel on the project include Ayodeji Fajebe (investigator) and Jan Youtie, Ph.D. (co-director of STIP program). For More Information: Contact Ayodeji Fajebe afajebe@gatech.edu Phone: THANK YOU!