2018

Stories related to "Healthcare".

perspectives

Med Students without Borders

Like any successful entrepreneur, AMOpportunities cofounder and CEO Kyle Swinsky has developed a business that fills a need in an untapped market. In his case, it’s connecting international medical students to rotations in the United States. Swinsky’s Chicago-based startup is the 2017 winner of the Edward L. Kaplan, ’71, New Venture Challenge. Run by the Polsky Center for Entrepreneurship and Innovation, the New Venture Challenge is one of the top accelerator programs in the country, and the competition this year was stiff. But Swinsky’s business model, which presented an original and profitable solution to a unique demand, pushed Evening MBA student Swinsky and AMOpportunities to the front of the competition.

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A Quantifiable Impact

Steve Czech, ’98, is a quant. That’s how he ended up in an underappreciated but lucrative corner of the alternative-investments market, lending money directly to companies who are no longer attractive to commercial banks (for regulatory or strategic reasons) and who don’t want to issue equity or mezzanine debt. Since inception, his firm Czech Asset Management, LP, based in Old Greenwich, Connecticut, has managed approximately $4.5 billion of committed capital, which it loans to medium-sized companies that generate annual revenue between $75 million and $500 million and annual EBITDA of $7.5 million to $50 million. This business used to be the purview of commercial banks, which maintained long-term relationships with corporate executives. But industry consolidation and regulatory changes drove banks to push these loans off their balance sheets, creating an opportunity for Czech and a host of other Booth graduates who are his colleagues and competitors.

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What Is the Business Potential of Blockchain?

Eric Budish is professor of economics and a director of the Initiative on Global Markets at Chicago Booth, as well as a research associate at the National Bureau of Economic Research. His recent paper on cryptocurrency, titled “The Economic Limits of Bitcoin and the Blockchain,” was published in June: "I’m skeptical that Bitcoin—or other similar cryptocurrencies—will become what cryptocurrency believers fantasize about. Some fantasize it will become the global currency or a global store of value like gold. Some imagine it will become an important part of the global financial system, another currency alongside dollars and euros that moves around the world in serious quantities. My paper is trying to make an argument that’s quite skeptical of these possibilities. Satoshi Nakamoto, the anonymous founder of Bitcoin, came up with an ingenious way of creating trust in a database without a centralized, trusted party. I respect it as a computer science innovation, but my research shows it’s a really expensive way to generate trust because it’s only as trustworthy as the cost of attacking it. That cost is within the reach of eccentric billionaires, and certainly within the reach of a nation. Elon Musk could not attack the US Federal Reserve system, but he could attack Bitcoin. <br/>

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Distinguished Alumni Awards 2018

Since 1971, the Distinguished Alumni Awards have honored leaders across industries who strive to make the world better by turning ideas into action. This year’s winners have applied their transformative insights to address the challenges of a rapidly changing world—from Singapore, to New England, to Nigeria. Their successes in industries as diverse as oil, biopharmaceuticals, education, and agriculture exemplify the resounding impact of Chicago Booth. Swee Chen Goh, ’03 (AXP-2), is the chairman of Shell Companies in Singapore—the first woman to earn a role that high in the company. Goh wants Shell to continue to play a prominent role in Singapore’s future and contribute as an active member of the Singaporean community. In 2003, Goh joined Shell as chief information officer, oil product, East. Just a year into her tenure, she was promoted to vice president of global IT services, a move that made her the first Asian woman to hold such a senior role. She took on a P&L role in 2011, running Shell’s lubricants and commercial fuels business for Asia Pacific/Middle East. Goh, with her family, relocated to Beijing before returning to Singapore, where in October 2014, she assumed the role of chairman of Shell Companies in Singapore, which currently has 3,200 employees.

perspectives

The Book of Booth: Immanuel Thangaraj, AB ’92, MBA ’93

As managing director of Palo Alto–based Essex Woodlands, Immanuel Thangaraj has helped lead one of the world’s largest health-care- dedicated investment firms in raising over $2.4 billion and building more than 100 companies. In 2015, he spun out its early-stage investment activities into Park Lane Ventures, and he remains managing director at both firms. The 2003 Distinguished Alumni Award winner serves as co-chair of the Council on Chicago Booth and is a dedicated volunteer across the university.

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Lab Results

Marcia Kraniak—79 years old, from the South Side of Chicago—went home from the hospital eight weeks ago. She had been admitted to the University of Chicago Medical Center (UCM) with congestive heart failure and spent three days there. Fluid had built up in her body, and her heart was too weak to pump enough blood. She couldn’t move around easily. Two months after leaving the hospital, however, she’s doing well on her new regimen at home. Shortly after Kraniak arrived in the UCM emergency department, hospital staff identified that her medical condition, her home life, and her mental state made it less than likely that she would get well after she went home. A new admissions algorithm predicted she might have to come back to the hospital soon. So the cardiology and nursing teams at UCM applied a special new protocol on her behalf. They gave Kraniak (a patient invented for this article) a detailed plan to take care of herself—including instructions to eat better, lay off the salt, and try to take a short walk every day—and simplified her medications to help her stay on her regimen and get well more quickly. In the past, hospitals didn’t closely monitor whether patients had to be readmitted shortly after an original hospital visit. If patients returned with the same health issues, they got patched up again, the hospital got paid again, and nobody tracked how many patients made this boomerang trajectory.

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Data and Healthcare Diagnostics

Nearly a year before his spring 2015 course began, professor Dan Adelman queried medical directors at Chicago-area hospitals to put forward their most pressing, most intractable issues—real-world problems for his MBA student teams to solve. These four challenges, from three institutions sharing unprecedented access to their data (normally a top-secret strategic asset), formed the foundation of last year’s Healthcare Analytics Laboratory: University of Chicago Medicine (UCM) wanted to evaluate a brand-new intervention—then in practice for only a few months—designed to reduce heart-failure readmissions within 30 days. Were patients leaving the hospital healthier? Was it saving money? And if it was working, could it be expanded across the hospital? UCM also sought to optimize the case mix in its vascular-surgery practice. What kinds of procedures should be their focus and specializations? How should the doctors grow their practices? What skill sets should they invest in or hire for?

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To Your Health

The Challenge: In the early 2000s, a 50 percent failure rate for mental-health-drug trials meant the Food and Drug Administration approved few new treatments for psychiatric diseases, says Amy Fershko Ellis, ’80, who cofounded MedAvante in 2002 to analyze how the pharmaceutical industry tested psychiatric drugs. Her team found the root cause of trial failure was measurement variability and investigator bias in subjective assessments of trial participants. MedAvante created a holistic methodology to improve testing, but the company encountered industry resistance as outsiders looking to change the way clinical trials had long been conducted. The Strategy: Ellis applied universal principles to product development. Because drug trials are conducted in various parts of the country and around the world, companies pay investigators to find, evaluate, and enroll patients. But differences between investigators result in unreliable outcomes. MedAvante, however, proposed a way to control and centralize the evaluation process, using the internet to connect remote clinicians to patients to ask the same questions in the same way and characterize patient responses identically. MedAvante also digitized the process and made it cloud based, so researchers would have instant results. To build credibility, MedAvante enlisted key medical and scientific leaders who believed in their strategy and concept—mostly academics who didn’t have an economic bias. In 2005, MedAvante’s first two trials involved drugs that had previously failed. The new methodology showed significant results demonstrating the drugs worked, and the treatments were approved. Even with those results, industry skepticism of MedAvante’s nontraditional approach meant slow methodology adoption. But by 2009 the psychiatry industry embraced the system, and MedAvante dropped the 50 percent trial failure rate to the low teens. In 2014, MedAvante expanded the platform for use in all medical drug trials, using new technology to enhance data quality for drug developers. New services were quickly adopted beyond psychiatry, especially in studies of Alzheimer’s disease, where the company now holds a leadership position. “We benefited from the halo we had from our success,” Ellis said. The Takeaway: A great strategy can work in all sectors, even if implemented by industry outsiders. If the strategy and results are sound, don’t be discouraged by naysayers.

perspectives

This is Working For Me: Daniel Morissette

After eight and a half years as CFO of Stanford Hospital & Clinics in Palo Alto, California, Daniel Morissette is now senior executive vice president and CFO of Dignity Health. The San Francisco–based provider, the biggest in California and fifth largest in the nation, encompasses 42 hospitals and 60,000 employees. A Midwest native, Morissette savors the Bay Area’s 250-plus days of sunshine, often running three-to-five miles per day. When work, travel, and negotiations become stressful, he clears his head through prayer and meditation. “A great mentor of mine said, ‘Let’s close our eyes for a minute.’” As a mission-based health-care organization, we take care of all comers. Previously they were paying nothing. With coverage provided by the Affordable Care Act, we got a little bit of a financial boost. Over time, with preventive care, we hope to see far fewer tragic and painful cases. In a mission-based system, I get to strive for the same successes most businesspeople do and then reapply those earnings to society. If we efficiently charge and collect like any other firm and work on making the product better, both our revenue per patient and our margins go up. With that we can spend more on equipment to diagnose and screen, open additional facilities, provide even more help to the powerless and in impoverished areas, and hire more people. We do good things for people.