What they overtly lack is connections to the healthcare world. I'm surprised they aren't publicly roped into Cleveland Clinic, Mayo Clinic or Kaiser, as they to support novel technologies in this space. I suppose you can argue that the business model is fundamentally incompatible, but I've seen Mayo and Kaiser go in anyway; they can acquire these labs and roll them into operations pretty easily.
If it's a finger prick, there's less to mark up.
From the outside, it seems like the entire healthcare industry is built on being purposefully inefficient so as to create large costs that they can in turn mark up.
To the VA, inefficiency is a problem. In the healthcare world in general, it doesn't seem to bother anyone.
Instead, the important things are the turn-around-time and billed cost. If Theranos can offer 4 hour turnaround and a clinic/hospital cannot (or even get close), they will pay for it because it is good for doctor productivity and patient outcomes. If Theranos can maintain a half-medicare cost structure, that's also good for the provider because they can expand their margins.
Additionally, Theranos might do deals with insurance companies such that they reduce their reimbursements/push providers to use Theranos, which reduces the insurer's costs. The outcomes-case is even more pressing for an insurer these days.
Now, none of these directly translate to lower insurance premiums, but that doesn't mean that there aren't economic reasons to adopt the service.
> From the outside, it seems like the entire healthcare industry is built on being purposefully inefficient so as to create large costs that they can in turn mark up.
This is generally untrue, as much as it is a public perception. The system lacks simplicity and thus comes across as opaque; this is its failing. Its complexity is not malicious, though.
Not much, which is why this service should not be offered through the standard healthcare system. I can see two other ways to do it:
(1) I walk into a drugstore, sit down at the testing machine, select the tests I want, swipe my credit card, and the machine takes a drop of blood from my finger, runs the test, and gives me a printout of the results.
(2) Home testing kits for every common lab test, not just blood sugar.
[1] http://ir.questdiagnostics.com/phoenix.zhtml?c=82068&p=irol-...
http://online.wsj.com/article/SB1000142412788732412300457905...
The application is interesting.
I'd have lunch with her.
Any pointers would be appreciated. My email is in my profile if you would like to discuss it more in depth.
An example of something I am interested in is: http://jenslabs.com/category/electronics/ketosis-detector/
but my more general question is: how can we do everything a standard blood panel does now, except do it extremely frequently (e.g. daily or hourly or even continuously) and noninvasively or as close as is feasible.
Of course, I know very little about the field, so this might all be the equivalent of "Hey guys, I know a little HTML and I was wondering if I could build a MMORPG..." posts on gamedev, but hey, gotta start somewhere. :D
Yes... But here's one place to start (somewhat analagous to "read Accelerated C++ and the OpenGL red book"): http://www.amazon.com/Practical-Flow-Cytometry-Howard-Shapir...
http://www.nytimes.com/2011/09/27/health/27paper.html?pagewa...
And this site also looks interesting:
While the thumb-prick and low sample volumes are cool, in the grand scheme of patient care they are somewhat gimmicky. Until doctors request higher-frequency testing, this doesn't pinch that hard. Still cool.
The big sign that they need to be wielding novel capabilities to compete with Quest and Labcorp is the offering of their menu at half of the medicare reimbursement rate. Each of those companies run ~40% gross margins off of medicare reimbursement, so Theranos without novel tech would be running a pretty substantial loss.
What about patients wanting higher-frequency testing? What if the test machine were sitting in my local drugstore, and I could go in, swipe my credit card, and have it run a test on a drop of my blood whenever I wanted to?
Except, I kept on saying, maybe the service is offered directly to people - without a doctor's consult.
Hell, what do I know! Nice to see innovation in fields other than information technology though.
I'd be more wary of potassium and other electrolytes, but it would be interesting to see a comparison to venipuncture.