Moving from Health Care to Life Care May 13, 2019 Judy Murphy, RN, FACMI, LFHIMSS, FAAN Chief Nursing Officer, IBM Global Healthcare

What we will cover: Industry Prevention Engagement Consumerism AI

1. INDUSTRY Old Healthcare New Healthcare Fee for service Pay for performance Acute care, episodic focus Continuum of care, life focus Volume Value Process & delivery Quality & outcome Employer-centric Consumer-centric Prices unknown Cost transparency One way dialogue Engaged & mobile Transactional Brand loyal Data poor & disconnected Integrated rich “big” data Reactive Predictive & prescriptive Standards Personalized & optimized

PAST FUTURE The New Model of “Care” Fee for Service Value-Based Care Compete on Volume Individual Patients Focus on Illness, Episodic Encounters Acute Care centric Compete on Outcomes Population Health Management Focus on Health/Wellness, Prevention & Disease Management Continuum of Care, all venues 4

Digital Healthcare Progression Pop Health Management AI Personalization Precision Medicine EHR Optimization Analytics Mobile Apps Portals Telehealth Digital Reinvention Digital Reinvention incorporates digital technologies like never before to create revenues and results via innovative strategies, products and experiences. EHR Implementation Digital transformation Digital transformation digitizes whole aspects of a business producing customer experiences that support what individuals need or want. Digitization Digitization improves efficiency by applying technology to individual resources or processes. 5

2. PREVENTION Source: Bipartisan Policy Center, TFAH/RWJF, Aug. 2013

Population Health Management Model ENTIRE POPULATION 40-60% 20-25% 5-15% 2-3% POPULATION HEALTHY / LOW RISK AT RISK 60+ CHRONIC ACTIVE DISEASE RISK STRATIFICATION 5-10% 15-20% 30-40% 40-50% RELATIVE COST No or very-low touch Low touch Medium to high touch High touch ENGAGEMENT Fully automated Validate from data Mostly automated with email, call, text, mobile app Blended -retail outlet, care mgt, automated Active Case Mgmt OUTREACH ~20% of population drives ~80% of cost

Population Health Management Health, Wellness and Prevention is the Goal With Population Health Management, we help move people from right to left – and work to keep them there Health care spending Health Status Healthy/ Low Risk At-Risk High Risk Active Disease Chronic 8

3. ENGAGEMENT “Know me” “Engage me” “Empower me” Capture and incorporate preferences “Engage me” What’s my history? What are my preferences? How will I respond? What will motivate me? Respect my privacy Personalize offerings and services Engage in the preferred dialog Be relevant (“right information”) Be consistent across touch points Show sincerity -- “you care” Give me the information I need Shared Decision Making Collaborative Care Planning “Empower me” Innovate to deliver quality, convenience and total experience Connect me with relevant communities and chronic care networks Demystify; simplify control and access Enable action and convenience Provide transparency in both clinical and financial Promote home care and telehealth 9

Why Engagement Matters Marketing Clinical Target & Attract Consumers Optimize Care Utilization Build Loyalty & Prevent Leakage Empower and Enable Health & Wellness Optimize Engagement Opportunities Prevent & Manage Chronic Conditions 10

4. CONSUMERISM Healthcare consumer expectations are changing. Consumer experience is increasingly important. Self service, digital interaction and online engagement is expanding and expected in all industries – including healthcare Consumers are experiencing more “out of pocket” healthcare expenses than ever before Healthcare consumers are beginning to demonstrate more “retail-like” behaviors Seamless, frictionless experiences are now anticipated New business models, mergers and acquisitions are delivering healthcare services with more options and choice Slide 11

Consumer experiences have forever changed customer’s expectations … Set the “better customer experience” stage Redefined convenience & service Practically “magic” 12

5. AI 13 Medical Literature Exogenous data – 60% Guidelines Clinical data – 10 % Genomics data – 30% Exogenous data – 60% Medical Literature Guidelines Institutional Knowledge 13

Social determinants of health converge with traditional care

Use of telehealth, remote monitoring, IoT, and allowing aging in place “Life Care” Management: the Future Everyone has an AI-supported care plan with clinical decision support and analytics that help determine the most effective mix of interventions: high-touch / low-touch remote / in person including wellness / prevention / disease management / illness Use of telehealth, remote monitoring, IoT, and allowing aging in place

SUMMARY Better health, managed costs, and best patient and provider experience (Quadruple Aim) enabled through AI insights A comprehensive view of the individual and population - using clinical, social and other key determinants of health Personalized care at scale - engaging patients as individuals without compromising efficiency Population Health Management - providing insights to manage health/wellness and care for an individual and across a population

What we covered: Industry Prevention Engagement Consumerism AI

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Thanks! Judy Murphy murphyja@us.ibm.com @JudyMurphyHIT