TBR Healthcare IT Services Quarterly Performance Review and Outlook Webinar Deck

TBR

TECHNOLOGY BUSINESS RESEARCH, INC.

TBR’s Healthcare IT Services BenchmarkSM

Research Highlights and OutlookTechnology Business Research (TBR) Quarterly Webinar Series

Jan. 16, 2013

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2 TBR Quarterly Webinar Series | 01.16.13 | www.tbri.com | ©2013 Technology Business Research Inc.

Healthcare IT Services Quarterly Benchmark Highlights and Outlook: Webinar Presenters

John CaucisSenior Analyst, Professional Services Practice

[email protected] @jcaucistbr

Joseph WalentAnalyst, Professional Services Practice

[email protected] @JDWalent

mailto:[email protected]


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TBR’s Healthcare IT Services reports deliver unique insight and value through in-depth analysis in a concise, consumable format • TBR reports are unique for their deep, holistic

analysis of leading vendor businesses.

• Financial modeling and TBR insights help customers gain a better understanding of vendor business models.

• TBR reports and webinars are responsive to client timelines, clear and concise, and provide insights across multiple layers of a vendor’s organization and infrastructure.

• TBR’s strategic assessment provides an impartial check on a vendor’s progress in its strategic objectives.

Professional Services Business Quarterly Research Highlights and Outlook: Webinar Overview

TBR Professional Services Business Quarterly Healthcare IT Services Benchmark

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Improved accessibility and data gathering are resulting in increased demand for big data, analytical and cloud solutions

Despite political uncertainty, IT solution implementation remained consistent for the healthcare industry in 3Q12

Healthcare IT Services 3Q12 Benchmark Highlights and 2013 Outlook

Healthcare IT Services (HITS) Vendor Trends for 3Q12

Increased use of electronic health records (EHRs) in domestic and international markets, generating opportunities for healthcare IT service vendors

SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES

Demand for business operation solutions is stemming from healthcare providers’ needs for efficient delivery and cost control

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Electronic health records continued to become increasingly central to the delivery of healthcare IT services in 3Q12







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6 TBR Quarterly Webinar Series | 01.16.13 | www.tbri.com | ©2013 Technology Business Research Inc. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES

Healthcare IT Services Benchmark 3Q12 Research Highlights: Key Trends

Demand for Healthcare IT solutions remained solid, sustained by ongoing demand for EHR implementation and managementAverage TTM growth for the 18 firms in the PSBQ Healthcare IT Services Benchmark slipped downward slightly as uncertainty around government policies and requirements in the U.S. and Europe delayed decisions

Accenture

Cerner

CGI

Cognizant

CSC

General DynamicsHarris

HCL

IBM GS

McKesson

HP ServicesAllscripts

Infosys

Dell Services

CPSI

NextGen

Xerox ServicesSAIC

Deloitte

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Healthcare IT Services Revenue TTM Growth YTY

3Q12 HITS TTM Operating Margin and Revenue Growth

LEGEND: SIZE OF BUBBLE = HEALTHCARE IT SERVICES REVENUESOURCE: TBR ESTIMATES AND COMPANY DATA

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21.7% Avg. Healthcare IT Vendor TTM Growth YTY 10% Average Healthcare IT Vendor TTM Operating Margin

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Healthcare IT Services Benchmark 3Q12 Research Highlights: Key Trends

Greater EHR use has been the lead offering in promoting the migration of healthcare industry participants to implement wider IT solutions

Constant demand for electronic health records will continue to be a core driver of demand for healthcare IT services, with projected global demand expected to be a double digit CAGR through 2015

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Projected Global EHR Spend 2012-2015

SOURCE: INDUSTRY ANALYSTS & TBR ESTIMATES

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HPSecuring an extension of its engagement with the Centers for Medicare and Medicaid Services (CMS) positions HP to retain a leadership position in the state and local markets for EHR and Health Information Exchange (HIE) markets.

SAICMoving quickly after it completed its purchase of maxIT during 3Q12, SAIC fortified its positive momentum in healthcare IT services growth, winning contracts totaling $102 million to provide EHR implementation and consulting services.

AccentureIn October Accenture was chosen by the Norwegian Directorate of Health to develop and implement the country’s EHR system for use by medical professionals and citizens.


Healthcare IT Services 3Q12 Research Outlook: Macro Impact

Securing EHR-oriented implementation engagements positions healthcare IT services vendors to expand the breadth of solution delivery to clientsHealthcare IT vendors continued to hone their respective EHR practices as government regulatory pressures and business operational improvement drove demand

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Adoption and use of broader data sets continues to become more prevalent across the healthcare IT services marketplace







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Healthcare IT Services Benchmark 3Q12 Research Highlights: Areas of Focus

Vendors cater to specific healthcare IT needs to secure leadership positions in high-value segments

The rising tide of healthcare data captured through telemedicine, mobile healthcare management applications and medical devices will raise demand for analytical solutions to detect patterns and raise healthcare outcomes

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M&A investment to rapidly expand healthcare data management and analytical expertise further established thought leadership positions

IBMComplementing its Smarter Healthcare efforts under the corporatewide Smarter Planet initiative, the acquisitions of big data analytics software provider Vivisimo and storage solutions provider Texas Memory Solutions position IBM Global Services to provide increasingly comprehensive data utilization and management solutions and resources.

Deloitte ConsultingDeloitte Consulting’s purchase of Massachusetts-based Recombinant in October expanded its healthcare-oriented data analytics and warehousing capabilities.

Healthcare IT Services Benchmark 3Q12 Research Outlook: Areas of Focus

Deloitte and IBM Global Services expanded their healthcare-specific analytics capabilities to establish their positions in high-value areas of demand


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Delivery of business solutions particular to facets of the healthcare industry will experience greater demand in 2013







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Healthcare IT Services 3Q12 Benchmark Research Highlights: Key Trends

Lowering cost of delivery will push healthcare industry participants to secure additional services from healthcare IT service vendorsDemand for expanded IT services engagements extending to operations and business practices will deliver positive growth momentum in 2013

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HITS Benchmark Average YTY Total Growth vs. IT Services Vendor Benchmark Average YTY Growth

TBR HITS Benchmark Average YTY Revenue Growth TBR IT Services Vendor Benchmark Average YTY Growth

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SOURCE: TBR ESTIMATES AND COMPANY DATA. HITS BENCHMARK AVERAGE GROWTH DERIVED FROM 18 PROVIDERS. VENDOR BENCHMARK GROWTH DERIVED FROM 31 PROVIDERS.

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Healthcare IT vendors are reshaping portfolios to offer a wider range of services needed in the healthcare field

CSCCSC deepened its breadth of healthcare-related solutions by introducing Payer Optics 360°. The solution leverages CSC’s Health Intelligence Platform to offer analytics and predictive modeling built on health plan customer data. Payer Optics 360° is supported by CSC’s Health Plan consulting and IT services.

Dell ServicesSeeking to divest a noncore healthcare IT service offering, Dell Services sold its revenue cycle solutions business to longtime partner Conifer Health Solutions, a division of Tenet Healthcare. TBR believes with solid demand for revenue cycle management (RCM), Dell Services was able to realize adequate capital to fund more clinical and ambulatory-oriented solution development.

Healthcare IT Services Benchmark 2Q12 Research Outlook: Market Positioning

CSS and Dell Services took steps to reconfigure their healthcare IT services portfolios to realize revenue growth in 2013


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Healthcare IT Services Practice Research Outlook: 4Q12 Research Highlights

TBR’s Healthcare IT Services practice tracks the activities of leading healthcare IT vendors in the public and commercial sectorsHealthcare IT Services Research

Current Topics 4Q12 Report Key Themes

• HITS Vendor Reportso IBM Global Services**o HP Services**o CSC*o Accenture*o Dell Services*

• Vendor Reportso CGIo HCLTo Cognizanto General Dynamicso Infosyso Xerox Serviceso SAIC

• Vendor Benchmark• Benchmark Webinar

How does vendor fiscal performance reflect the overall healthcare IT services market landscape?

What strategic actions are vendors taking to adjust to market conditions or to better position against competitors?

How are healthcare IT services vendors leveraging partnerships? Are they forming new alliances? How are they leveraging M&As?

How are vendors managing their human capital in the current environment?

Where are vendors capitalizing on new market opportunities? What new markets — domestic, international or commercial — and new solutions are healthcare IT services vendors eyeing to generate revenue streams?*SEMIANNUAL: REPORTS PUBLISH IN CALENDAR 2Q/4Q.

**SEMIANNUAL: REPORTS PUBLISH IN CALENDAR 1Q/3Q.

High-growth Segments

Strategic Actions

Alliances & Acquisitions

Resource Management

Growth & Margin

Performance

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Questions?

Healthcare IT Services Practice Research Outlook: Questions

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John CaucisSenior Analyst, Professional Services Practice

[email protected] @jcaucistbr

Joseph WalentAnalyst, Professional Services Practice

[email protected] @JDWalent

Healthcare IT Services Quarterly Benchmark Highlights and Outlook: Webinar Presenters

For further information, please contact:

Lindy Hanson James McIlroyDirector, Professional Services Practice Vice President, [email protected] [email protected]

@TBRIncwww.slideshare.net/tbr_market_insight





TBR

TECHNOLOGY BUSINESS RESEARCH, INC.

About TBR

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TBR Healthcare IT Services Quarterly Performance Review and Outlook Webinar Deck

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