1. © 2010 IBM Corporation Lets Build A Smarter Planet: Healthcare Dr. Ulrich Pluta - IBM Global Healthcare

2. © 2010 IBM Corporation Lets build a smarter planet: Healthcare Forces at work across healthcare systems are impacting us all. Growing expectations for value from increasingly costly health systems. Broad global awareness of quality and patient safety challenges. Increasing need for citizens to make better health and wellness choices. Emerging approaches to promoting health and delivering care such as e-health and medical tourism. Expanding resource challenges. Increasing cost sharing among public and private health insurers and individuals. The world is connected: economically, socially and technically. Source: Healthcare 2015 Series, IBM Global Business Services and IBM Institute for Business Value

3. © 2010 IBM Corporation Lets build a smarter planet: Healthcare The need for progress is clear. People worldwide pushed below the poverty line by personal healthcare expenditures each year.¹ 100 million In many parts of the world, healthcare costs are rising two times faster than economic growth.² 1.5 million Errors in the way medications are prescribed, delivered and taken harm 1.5 million U.S. citizens every year.³ The number of developed countries where people with higher incomes have better access to physicians than those with lower incomes. 5 50 percent 2 times The estimated number of patients affected by healthcare-related infections in the EU. 4 1 in 10 With poor urban governance, life expectancy within developing countries can be as low as 35 years. 6 35 years

4. © 2010 IBM Corporation Lets build a smarter planet: Healthcare The demand for change is strong. Gap between envisioned change and past success at managing it. 8 in 10 Healthcare leaders anticipate substantial change ahead. 29% HEALTHCARE CEOS GLOBAL CEOS Source: IBM Global CEO Study 2008

5. © 2010 IBM Corporation Lets build a smarter planet: Healthcare Healthcare faces global challenges brought on by five key drivers, and the need to overcome five key inhibitors Globalisation Healthcare costs are affecting the competitiveness of companies, regions and countries Consumerism More knowledgeable, demanding citizens Changing demographics and lifestyles Aging and overweight populations Diseases that are more expensive to treat Increased prevalence of chronic conditions – especially diseases of affluence New technologies and treatments Advances revolutionizing risk assessment, diagnosis, and treatment Financial constraints Pool of funds for healthcare is not limitless Societal expectations and norms Is healthcare a societal right or a market service? Lack of aligned incentives Few incentives to encourage the behaviour of collaboration and service transformation Inability to balance short and long-term perspectives Common focus on urgent short-term needs, rather than long-term sustainability Inability to access and share information Clinical data is being generated at unprecedented rates, but information sharing remains elusive DRIVERS (increase cost of care)INHIBITORS (limit effectiveness of care) Source: Healthcare 2015 Series, IBM Global Business Services and IBM Institute for Business Value

6. © 2010 IBM Corporation Lets build a smarter planet: Healthcare A smarter health system forges collaborative partnerships to deliver better acute, chronic and preventive care, while activating individuals to make smarter choices. This mandate for change is a mandate for smart.

7. © 2010 IBM Corporation Lets build a smarter planet: Healthcare Individuals will be served by collaborative, coordinated health systems. GOVERNMENTS Address the current lack of sustainability by providing leadership and political willpower, removing obstacles, encouraging innovation and guiding countries to sustainable solutions. DOCTORS, NURSES AND OTHER CAREGIVERS Develop partnerships with individuals, payers/health plans and other stakeholders, collaborating to promote and deliver more evidence-based and more personalized healthcare. CARE DELIVERY ORGANIZATIONS Expand the current focus on episodic, acute care to encompass the enhanced management of chronic diseases and the life-long prediction and prevention of illness. PAYERS AND HEALTH PLANS Help individuals remain healthy and get more value from the healthcare system while assisting care delivery organizations and clinicians in delivering higher-value healthcare. PHARMACEUTICALS AND DEVICE MANUFACTURERS Work collaboratively with care delivery organizations, clinicians and individuals to create products that improve outcomes and lower costs. COMMUNITIES Make realistic, rational decisions regarding lifestyle expectations, acceptable behaviors, and healthcare rights and economies. Source: Healthcare 2015 Series, IBM Global Business Services and IBM Institute for Business Value

8. © 2010 IBM Corporation Lets build a smarter planet: Healthcare Smarter healthcare organizations are doing so by becoming instrumented, interconnected and intelligent.

9. © 2010 IBM Corporation Lets build a smarter planet: Healthcare INSTRUMENTED We now have the ability to measure, sense and see the exact condition of everything. Today, there are 1 billion transistors for each person on the planet. 7 By 2010, 30 billion RFID tags will be embedded into our world and across entire ecosystems. 7 There is a 60% reduction in hospital readmissions for patients who use remote physiological monitoring, compared with those who receive standard care. 8 Typically, hospitals over-procure mobile assets by 20-30% while critical staff spend 10-30% of their time searching for them. 9 Smarter health systems automatically capture and exchange information through diverse channels to proactively manage and deliver preventive and therapeutic care.

10. © 2010 IBM Corporation Lets build a smarter planet: Healthcare INTERCONNECTED People, systems and objects can communicate and interact with each other in entirely new ways. The Internet of people is 1 billion strong. Almost one third of the worlds population will be on the Web by 2011. 10 There will be nearly 4 billion mobile phone subscribers worldwide by the end of 2008. 10 The number of health-related Web sites in the U.S. has increased from 35 four years ago to nearly 500 today. 11 While only 6% of European Union general practitioners use electronic prescriptions, 97% in Denmark, 81% in Sweden and 71% of general practitioners in the Netherlands use e-prescriptions. 12 Smarter health systems remove information barriers and work as integrated teams with the individual to make smarter decisions.

11. © 2010 IBM Corporation Lets build a smarter planet: Healthcare INTELLIGENT We can respond to changes quickly and accurately, and get better results by predicting and optimizing for future events. Every day, 15 petabytes of new information are being generated. This is 8 times more than the information in all U.S. libraries. 13 More than 3,600 statistical articles are published each year on the topic of coronary heart disease alone. 14 The average individual health care record, including digital x-rays and scan information, contains as many bits of data as 12 million novels. 15 Increasing digitization and medical imaging will lead to a 41% annual increase in storage requirements between 2008 and 2012. 16 Smarter health systems continually analyze information to meet the changing needs of the organization, optimize performance, integrate predictive models, and deliver greater value to the individual.

12. © 2010 IBM Corporation Lets build a smarter planet: Healthcare An opportunity for health systems to think and act in new ways. Improve operational effectiveness. Deliver collaborative care for prevention and wellness. Achieve better quality and outcomes. ++=

13. © 2010 IBM Corporation Lets build a smarter planet: Healthcare Achieve better quality and outcomes Deliver collaborative care for prevention and wellness EMRs, Images, Records, Forms Lifecycle Management Information compliance, availability and security Retrospective to Prospective to Predictive Care Management Personalized Healthcare Value Integration / Interoperability Collaboration and Automation Health Integration Framework Improve operational effectiveness Our healthcare solutions focus and investments

14. © 2010 IBM Corporation Lets build a smarter planet: Healthcare Smart healthcare: Deliver collaborative care for prevention and wellness. SMART IS Standardizing clinical practices across health systems, informed by integrated information. Servicio Extremeño de Salud: Implemented a regionally integrated system that enables patients to go to any health center in the region knowing the doctor will be able to view their complete, up-to-date records for faster clinical decision-making. SMART IS Speeding diagnoses and treatments by making it easier for doctors to navigate complex patient information. Thy-Mors Hospital: Developed a first-of-a-kind patient records system that uses a three-dimensional model of human anatomy to easily navigate patient records, simplifying access to electronic health information and helping to deliver and explain treatments to patients easier and faster by focusing solely on medical data relevant to current diagnostic efforts.

15. © 2010 IBM Corporation Lets build a smarter planet: Healthcare Smart healthcare: Deliver collaborative care for prevention and wellness. SMART IS Being able to access an individuals full medical history with a single trusted view. Shanghai First Peoples Hospital: Developed a reliable, large-scale identity repository that aggregates a patients historical care information while eliminating duplicate and erroneous data, improving care through the sharing of trusted patient information and reducing costs through efficiency improvements. SMART IS Proactively driving the integration of technology, process and people changes back into the organization. American Hospital Dubai: Deployed an integrated healthcare information system for the community of Dubai and surrounding Gulf States, providing secure, real time access to patient information and changing the way medical, nursing and healthcare staffs perform their jobs when utilizing technology.

16. © 2010 IBM Corporation Lets build a smarter planet: Healthcare Thank you for your time today. For more information: Dr. Ulrich Pluta Contact: ulplu@de.ibm.com