Microsoft Launches HealthVault

Posted by Lygeia Ricciardi October 4, 2007

Today Microsoft launched its HealthVault service to help consumers access and manage their own health information. HealthVault is a free service that lets you aggregate your own data from different sources (for example, lab reports from your primary care doctor and X-rays from your chiropractor) and feed it into a PHR or a variety of other devices and services. It also includes a search function.

This type of platform could be a big enabler for PHRs, which will only meet their full potential if they can tap into a much freer flow of electronic health information than exists today. Of course HealthVault and services like it can’t magically dissolve the systemic barriers that have blocked electronic health information sharing for decades, but it’s built on the conviction that consumer demand will drive changes in the health system more efficiently than any other force.

This consumer-centric view is compatible with the Project HealthDesign vision. The healthcare system may be too mired by (and invested in) the status quo to transform itself, and government is not always the most effective or efficient instrument to do the job. Genuinely disruptive change will require consumer demand. The tools to cultivate and then unleash that demand may best be provided by a player or players totally outside of healthcare that is experienced in developing products and services for consumers—like Google, Intuit (maker of Quicken), Microsoft, or some other group yet to emerge on the scene.

This new system also employs an open-platform approach, which could significantly expand and diversify the PHR marketplace. At launch time there were more than 40 partners who have developed (or pledged to develop) PHRs or other applications that work with HealthVault. This open approach promotes innovation and also the customization of products to meet the needs of specific consumer groups (including those with a particular health condition, disability, or cultural background).

Much of this is in keeping with what Project HealthDesign teams have been working toward since last year. By creating specific applications that can be built upon an open platform, endless possibilities exist to support a patient’s individual needs and a caregiving team’s ability to provide optimal care. Individually and collectively, the grantees are building personal health information solutions to meet the needs of many types of consumers. Data contained in repositories such as HealthVault’s can form the bases of powerful tools that help individuals make good choices about health behaviors.

The open platform is likely to create economic opportunities for developers of PHRs and related applications. According to Peter Neupert, Corporate VP of Microsoft’s Health Solutions Group, for every $1 Microsoft earns from its existing products, applications that build on them earn $7. It would be great for PHR developers if that ratio were to extend into the health sector, too.

So how is Microsoft going to generate income on HealthVault—which is available to the public for free? Through advertising linked to Internet searches. Advertisers will pay Microsoft to post ads alongside of the search query results from an associated (but separate) HealthVault search engine. From a privacy perspective, however, it is very important to note that Microsoft will not use the health data you’ve stored in your HealthVault “account” to customize the ads, (at least not as of now). It will also destroy—not sell—any history of the searches you’ve made. All of which is appealing to privacy and consumer advocate groups, though it remains to be seen whether consumers will decide en mass to trust Microsoft with some of their most sensitive data.

Another question I have is whether ad revenues will really be enough to support this service. A (failed) assumption that advertising revenue would pay the bills of many startup web companies was a major factor in the dot com bust of the late 1990’s. Are things different now? Possibly. The Internet has become much more fully integrated into our lives. On the other hand, Microsoft is no startup. It doesn’t need to generate immediate cash or risk going out of business. As Mr. Neupert said at a dinner with a group of health leaders earlier this week, “We’re patient; we’re in this for the long haul.” It may indeed take years or decades to cultivate consumer trust and provider willingness to share data electronically—but Microsoft can afford to wait, and besides, I don’t think anyone believes we can transform the whole health system overnight.

We’d love to hear what you think of this new development and this new player. Any guess on whether HealthVault and services like it can really move PHRs and related technologies in a significant way? Will consumers bite?

See the official statement from Steve Downs of the Robert Wood Johnson Foundation regarding the Microsoft announcement.

Also note today’s New York Times article, "Microsoft Rolls Out Personal Health Records" by Steve Lohr.

Comments

[HealthAnalyst]

Well I actually tried the new "service" out and it seems to be nothing more then an online server that you can upload information to.

Clearly they don't understand GUI design when it comes to the consumer market. I am in the exact demographic that they are looking for (women in their 40's and up who take care of parents and children. I work in high tech and I still had trouble seeing what value there was to the "vault" compared to a service like WEB MD or Revolution Health. (both of which I have accounts on). Untile the major vendors like epic, cerner etc get on board and let patients export their medical records this won't fly.

To be honest I now keep most of my dad's records (including cat scans) on my new iphone and my dauther suggested that she would just put hers on a facebook page and control access that way.

[Mark SIngh MD]

I had more time to look at Microsoft's HealthVault. I created my own personal account, but was disappointed by the sparseness of what I saw. There was no place for me to enter my past medical history, medication lists or allergies. As a physician and a software developer, I must admit, I was confused by what I saw. It was not entirely obvious from the look and feel as to what the application really does.

I was hoping for a robust PHR. In fact, I was hoping to start signing up my patients for accounts as they presented for their appointments. However, if I found the application confusing, it would be pointless trying enroll my patients at this point.
Mark Singh MD
http://www.clinicore.blogspot.com/