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The digital transformation of healthcare

Manu VarmaSr. Director of Marketing and Strategy April 6, 2016

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Collecting millions of data points

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Number of persons aged 80 or over

Source: UN Dept of economics and social affairs

2015

2050

2100

(in 100 millions)

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Chronic conditions

Source: WHO

400m

500m

1,5 bn

diabetes

respiratory disease

at risk of cardiovascular disease

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Healthcare spending at tipping point

Source: OECS, McKinsey

1970 1990 2010 2030 2050 2070 2090 21100

10203040506070

Extrapolation

GDP +2%(historic rate)

GDP +1%(half of historic rate)

GDP +2%

As % of GDP OECD countries

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From reactive to proactive health

Leveraging connectivity of devices around us

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Islands of data

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A longitudinal personalized overview

Monitoring, informatics and connected care

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Connected devices that monitor, motivate and engage patients

We offer purpose-built products designed for continuous data capture in the hospital, the home, and beyond

• Health watches, blood pressure monitors, sleep devices and other wearables

• Fall Monitoring and Lifeline Services

• Home medical devices for sleep such as CPAP and BiPAP

• Connectivity with blood glucose monitoring

• SpO2, Weight, NIBP

Philips Acute Care telehealth programs yield faster discharge ratesPhilips eICU program facilitates 24/7 continuous surveillance by the telehealth center for critical care patients in the ICU. The program is designed to facilitate a more immediate case review after admission, timely use of performance data, and quicker alert response times.

Enabling technology • Bi-directional audio/video technology• Population management software• Proprietary clinical decision-support• Near real-time and retrospective reporting tools• Targeted process redesign

26% increasein survival rates in the ICU*

20% faster discharge rates from ICU*

15% faster discharge rates from the hospital*

16% improvement in response times*

“This is the first large-scale study that ties ICU telehealth to both the improvement of patient outcomes and cost reduction through shorter length of stays.”

Craig Lilly, MD

*Lilly CM, et al. A Multi-center Study of ICU Telemedicine Reengineering of Adult Critical Care. CHEST. 2014 Mar 1; 145(3): 500-7.

Philips partnered with Banner Health to reduce hospital readmission rates. Our consulting team identified the top 5% of most expensive patients, analyzed workflows to uncover ways to improve care coordination, and designed tools and patient engagement programs to deliver continuous, comprehensive and proactive services to this population.

Enabling technology• Population management software platform enabled with analytics designed for

monitoring patients at home• Intelligent monitoring with 24/7 continual surveillance • Web-enabled remote consults with 2-way video• Mobile care tools and event management systems

Banner Health achieves 27% savings and higher patient satisfaction

45% reductionin hospitalizations*

32% reduction in acute & long term care costs*

27% reduction in costs of care – a savings of $788 per patient per month*

“The successful results of our at-home telehealth pilot with Philips have been dramatic.”Hargobind Khurana, MD, Senior Medical Director

15% improvement in patient satisfaction vs. normal care**

*Dahl, D., Khurana MD, H. (2015). Impact of an intensive ambulatory program on both financial and clinical outcomes in Banner Health. Unpublished internal study. **Banner iCare Q3 IAC Client Experience Results Survey. 2013.

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Integration of information via

HealthSuiteopen digital platformenabling innovative capabilities, services and connected health.

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Key takeaways

Acceleration of new models of healthcare delivery are transforming care from reactive to proactive

Digital technologies are key enablers for improved quality, cost efficiency and operational performance across health systems

Digital technologies enable connected health across the full continuum of health with the aim to improve patient experience and outcomes

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