1. Trends Driving Growth and Innovation in the Healthcare Industry September 29, 2014 AHA Health Tech Forum

2. 2 Six Big Themes for the New Healthcare Economy Role of New Participants – The emergence of IT based tools and services is witnessing the rise of a new breed of competitors. Who Pays? - The spiraling costs of care to government and private payors is forcing the launch of new methods and models for payment of healthcare services and products. New Partnerships – An industry that historically operated in distinct silos is now being forced to integrate, and thus leading to firms seeking new types of partnerships and collaborations. Modernizing Care Delivery – Clinical practice is moving from intuition based decisions to more analytics and data based approaches. Rethinking the Customer – Patients are no longer going to be passive participants in the process. Companies Revamping Strategies – Many industry participants as currently structured can not maintain viability without significant changes to their business model. Source: Frost & Sullivan analysis. Themes 2

3. 3 Healthcare Re-imagined In Person In Home PrescriptiveReactiveSemi-reactive Monitored Predictive Preventive Break-FixConnected Precision Streaming Source: Frost & Sullivan

4. 4 Disease/Care Management Prevention/Wellness Goal: Keep People Healthy Longer Goal: Keep People Healthy Longer Goal: Manage or Mitigate Risk Goal: Manage or Mitigate Risk Goal: Diagnose and Reduce Treatment Delay Goal: Diagnose and Reduce Treatment Delay Goal: Manage Goal: Manage Goal: Quality of Life Goal: Quality of Life Goal: Move to More Interaction and Self- Mgmt Goal: Move to More Interaction and Self- Mgmt Healthy / Well At RiskUndiagnosedChronically Ill Managed Chronically Ill Unmanaged End of Intervention Continuum of Care Size of Impacted Population $$ Early identification and prevention New models of care delivery to improve: Collaboration among providers Patient knowledge, self-help and health Increase intervention Higher touch at lower cost Source: Frost & Sullivan Care Delivery Transformation: Acute Care to Prevention Track, Predict, Intervene, Manage

5. 5 Leveraging Big Data to Improve Health, Reduce Costs 5 Imaging files Published research EHR / EMR Claims data Genomic data Remote monitoring mHealth apps Biometric sensors Social media Clinician notes Photos, video Microbiomic data Email, text messages Normalization of Data, NLP, Integration Analytics Actionable Insights Process, Behavior Change Metabolomic data Source: Frost & Sullivan

6. 6 Population Health Management Leverages Shifts in IT Define Population Identify Care Gaps & Stratify Risks Engage Patients Manage Care Measure Outcomes AUTOMATED & ONGOING Data Integration Analysis Reporting Communications and Alerts Source: The Institute for Health Technology Transformation, 2013; and Frost & Sullivan Social Media Mobility Cloud Big Data Cloud Big Data Social Media Cloud

7. 7 PROCESS CHANGE ANALYTICSINTEGRATIONDATA Hurdles to Reaching the Promise of Digital Health We are creating millions of useful data points, from a wide variety of sources… …But the data is provided in separate solutions which prevent getting a holistic view of the patient. FREEING DATA AND INTEGRATING DATA ARE KEY Predictive analytics has arrived…Natural language processing will become a commodity… …But working with only part of the data Analytics alone cannot transform healthcare. Analytics need to create actions. Culture change, behavior change, process changes are hard to execute. Source: Frost & Sullivan

8. 8 Redefining Stakeholder Roles in Healthcare Patients: Physicians: Pharma: Care Coordinators: Medical Device Companies: Care Providers: Insurers: Passive Active Block- buster Drug Thera- peutic Soluton Secondary Role Primary Role Procedure Based Value Based Breadth of Services Targeted Care Models Admini- strative Analytic Individual Team

9. 9 Competitive Success Factors Change Who Will Win Last DecadeCurrent DecadeNext Decade Technologies geared towards extending life Technology to improve outcomes and mitigate risk Integrated platforms to provide comprehensive continuum of care. Focus on quality of life. Companies that advanced standard of care. Companies that could make treatments safer and easier to perform. Companies that understand consumer behavior, needs, and pain points. Types of Companies Who Excel SuccessDrivers

10. 10 Business Models Must Adapt 10 Start with the need, not with the technology Look beyond your core customer base Know when to fold Applying techniques from other industries to healthcare Frugal innovation, tiered product markets Tiered solutions Savings through process improvement US to be a net importer of medical technology?

11. 11 Leveraging mHealth to Reduce Avoidable Medical Costs Source: mHealth report published by PwC,mHealth report published by PwC mHealth Technology Annual Cost to US Healthcare System Help patients track the timing & dosage of their medicines Help providers gain more insight into patients’ conditions & behavior to offer the right treatment & advice Provide information on side effects, benefits, etc. Patients don’t follow their prescriptions ~ $300 billion Patients don’t give doctors enough information ~ $45 billion Collect data through an application which keeps consumers engaged with the help of games, content and interaction Flag potential health problems and figure out exactly which people on the medical team they need to see Unnecessary visits to doctors ~ $125 billion Provide information to patients by allowing them to pose health related questions to a network of physicians Teleconsultations to screen, advise Missing critical warning signals ~ $7 billion Allow doctors to remotely monitor the vital signs of hospital patients and at home through sensors/devices Unhealthy diet & lack of exercise ~ $100 billion Allow people to track calories through weight-control applications Prompt people to set reasonable goals, exercise, and count calories Key Pain Points Addressed by Current mHealth Technologies

12. 12 Direct To Consumer Models     Convenience  Engagement  Personalization Breaking down “bricks and mortar” approach to healthcare Diagnosis, testing and treatment in the home Preference-based care vs. evidence- based care Customized approach to communication Shared-decision making “I want all my information in one place so my community has access” Consumer Analytics

13. 13 Contact Info Greg Caressi Senior Vice President Healthcare & Life Sciences (+1) 650 475-4555 gcaressi@frost.com Greg Caressi Senior Vice President Healthcare & Life Sciences (+1) 650 475-4555 gcaressi@frost.com