Imagination at work.

Bram Stolk, PhD MBA, VP Global Research, GE Healthcare March 24, 2015 Washington DC

Interagency Working Group on Medical Imaging

DRAFT – USE LAYOUT TO ADD CLASSIFICATION LABEL

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Source: Accenture Analysis

Global healthcare crisis is rooted in demographic shifts, underserved demand, and rising costs

Aging population in several key markets…

…underserved demand in developing markets…

…more chronic conditions…

…and rising healthcare costs

GE Healthcare March 2016 - 2

Med. imaging disrupted by applications focus Present (Near) Future

Film Competing on HW specs

Digital images Competing on HW specs and ease of use

Application-centric Compute engine driven Commoditized HW Competing on utility

Past

•  Hardware migrates to’ good enough’ over time (e.g., Mobisante ultrasound) •  Hardware/software gets integrated •  Analytics drives new disease specific applications “beyond the image” (e.g., radiogenomics)

Imaging Lab Tests

Data & Analy.

Devices & Sensors

Move beyond hardware, move beyond the image….. GE Healthcare March 2016 - 3

GE Healthcare March 2016 - 4

Healthcare – shifting paradigms

Consumers … bear more risk, demand value

Digitisation …. System-wide connectivity to enable value delivery

New entrants …. creating disruptive models to capture new profit pools

Gov’t policy… enabling the value agenda

Inexorable burden of COST Exponential explosion of DATA

Systemic reactions…

Industry forces…

New paradigms of care …

Customers need solutions for value based, distributed and personalized care

Retail Pharmacy

Dx Imaging Center

Physician Clinic

In-patient Rehab Cardiology

OR

Oncology

Community-Based Care Acute Care Post-Acute Care

Preventive Care

Radiology Out-patient Rehab

Hospital Home Care

GE Healthcare March 2016 - 5

Data, Mobility, cost sens, transparency

Impact of transition on various industry players

Yesterday Today/Tomorrow

•  Patients

•  Radiologists

•  Clinicians

•  C-suites

•  G‘vmt/payers

•  Imaging suppliers

Value based medicine driven by clinical outcomes with patient in center… Understanding of clinical value >> understanding of technological potential

passive Active, co-payments, info

Technology focus (more slices/CT) Value, Disease/care area focus

Procedure max, risk averse Outcome-max, risk vs. benefit

Focus outside of medicine Optimisation of clinical operations

Hospitals, Input cost Out-patient Rx, Value-based outputs

Modality/technology focus Clin outcomes, solutions, less cost

6

Evolution of Medicine... Towards personalized Medicine

outcome

time

Attr

ibut

es •  Every Patient Unique

•  Very Expensive •  Quality Highly Variable •  Highly Trained physician •  Long Apprenticeships •  No process •  Knowledge in physician

2000

•  Disease-Centric Standards of Care •  Costs reduced •  Quality Controlled •  Follow Task Directions •  Task Spec. Knowledge •  Knowledge in Ds Team

2005

Rapid expansion of know-how, skills and technology

Horizon 1 Craft Medicine Horizon 2

Disease Management

•  Patient Centric •  Genetically determined •  Follows process •  Quality Optimized •  Continuous Training •  Work in Teams •  All knowledge

Horizon 3 Gene stratified Individualized care

individualized medicine needs continuous / rapid knowledge expansion

2010

GE Healthcare March 2016 - 6

Despite regional nuances, the global health system will likely apply common levers to achieve three core goals

…at lower costs

More access to care…

…with better outcomes…

Levers

Goals Technical innovation and automation

Change care channels from centralized hospital to decentralized self-care Pay for outcomes, not inputs;

shift to prevention: disease to health

Changing the Economic Model

Creating Productivity Gain Shifting Healthcare Delivery

Source: Accenture Analysis

GE Healthcare March 2016 - 7

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Advancements impacting Healthcare Accelerated by changes in technology, consumer expectations and regulatory environments.

Precision Medicine Consumer Focus Medical decision, practices, products tailored to the individual

Increased consumer role in healthcare; demand similar experiences from other industries

1 5

Colossal Clash

New Models of Care

Clinical and consumer health solutions are on-track to collide

Emerging models aim to improve outcomes and decrease costs

2

6

Owning the Journey

New Entrants

Offering products and services along end-to-end patient journey

Non-traditional companies and start-ups are entering healthcare

3

7

Care Anywhere

Data Explosion

New care delivery models are offering care beyond traditional settings

Data liberation due to digital technologies and government initiatives

4

8

‘CapX to OpX’ Cost pressures are driving companies to manage capital efficiently and get the most value out of their investment

10

New Sensing Options New tools and technologies that enable next generation diagnostics

9

Enhanced communication, More computer power, New consumer habits GE Healthcare March 2016 - 8

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The ‘Birth’ of Opportunity The intersection of healthcare trends are birthing new opportunities to improve healthcare outcomes.

1Acquired by IBM April 2015

New Models of Care Data Explosion

Mercy Health partnered with Explorys1 to manage populations to meet ACO and PCMH goals using Explorys’ analytics platforms

CliniCloud offers a wireless non-contact thermometer and a digital stethoscope that is integrated to Doctor on Demand virtual visits

Care Anywhere Colossal Clash Consumer Focus New Entrants

Uber partnering with Pager, the on-demand app that connects patients to doctors to deliver flu prevention packs and flu shots

1 2 3

Entrance barriers shifting…Proliferation of companies & business models GE Healthcare

March 2016 - 9

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IWGMI – HCP – Industry…. ….The Opportunity

GE Healthcare March 2016 - 10

IWGMI – HCP – Industry…. ….The Opportunity

Increased Data Access, Enhanced Learning, Innovative Technologies: Improved Patient Care

IWGMI Broad Spectrum

Knowledge

Industry

Technical Innovation

(Academic)

HCP Patient

Care/Data

Data Acquisition

Innovation Sharing

Data Centralization

Improved Patient

Care

GE Healthcare March 2016 - 11

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IWGMI – HCP – Industry…. ….the actions: ü  Establish Cross Functional Workgroups around specific topics -

IWGMI/Industry role in cancer moonshot – need alignment ü  Enable and create awareness of cross industry/academia research

grants (e.g. EIBIR) ü  Evaluation/Inclusion of Google/IBM(Watson) in workgroups? ü  Joint Initiatives to free up academic researchers (vs clinical load) ü  Improved workflows in regulatory bodies, enabling faster access to

innovative technologies. ü  Joint evaluation of privacy concerns as we head into Big Data

Analytics ü  Innovative technology challenge grants – what if we could…

Increased Data Access, Enhanced Learning, Innovative Technologies: Improved Patient Care GE Healthcare

March 2016 - 12

Thank You!