Technologies that will Impact Healthcare of the FutureTechnologies that will Impact Healthcare of the Future

Are we Ready to Tackle Consumer Expectations?Are we Ready to Tackle Consumer Expectations?

Aarti Shetty, Senior Industry Analyst

Healthcare

08/22/201208/22/2012

© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

Today’s Presenter

Aarti Shetty, Senior Industry Analyst

Frost & Sullivan

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�Over 5 years of research expertise, which include business and scientific/academic research

�Experience base covering broad range of sectors, leveraging long-standing working relationships with leading industry participants’ Senior Executives- Orthopedics, Medical Imaging, Obesity Devices, Biomaterials, Wound Care, Tissue Engineering and others

Focus Points

• Healthcare of the Future

• Discussion on Influencing Factors

• Patient Cycle Segments

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• Innovative Technologies in Each Segment

• Summary

Poll Question

According to you, what is the most important issue to tackle in the next 10 years:

• Curtailing healthcare costs

• Providing access to healthcare to all

4

• Consumers taking personal responsibility of their health

Healthcare of the Future

Why should we start thinking about healthcare of the future?

• Aging baby boomers

• Informed patient population

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• Power of technology

• Increasing healthcare costs

National Healthcare Expenditures

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Ex

pe

nd

itu

res

($

Bil

lio

ns

)

6

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

4.6%

4.8%

5.0%

5.2%

5.4%

5.6%

5.8%

6.0%

6.2%

6.4%

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Medical Devices Market: Device Spend as Percent of National Healthcare Expenditure, United States, 1989-2009

Ex

pe

nd

itu

res

(%

)

Source: Frost & Sullivan analysis.

Market Drivers and Restraints Discussion

Medical Devices Market: Key Market Drivers and Restraints United States, 2012-2018

1-2 years 3-4 years 5-7 years

Patient demographics create the demand for new technologies that improve quality of life and reduce the risk of procedural complications.

Care models focused primarily on wellness and prevention should lead to earlier detection and higher utilization.

Telehealth and demand in care settings outside of the

hospital necessitates new/modified devices.

Dri

vers

7

hospital necessitates new/modified devices.

Underserved treatment segments including neurology and

pulmonary represent growth opportunities in the market.

Restr

ain

ts

Impact: High Medium Low

Government influence on regulatory process impacts time-to-market and adoption.

Complex purchasing environment requires building

consensus among various influencers that impact decisions.

On-going reimbursement cuts and cost-containment

measures in United States healthcare have restricted the

market.

Source: Frost & Sullivan analysis.

Segmentation by Activity

Healthcare Spending by Type of Activity

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Patient Satisfaction is Central to the Success of Providers

6%

Hospitals Promoting New Policies, Guidelines, or Initiatives in Last 12 Months to Improve

Patient Satisfaction

18%

82%

Importance of Patient Satisfaction on Hospital’s Financial Health

9

94%

Promoting Not Promoting

Note: N=17 hospital CFOs surveyed in 2011.

Very Important Somewhat Important

Neither Important Nor Unimportant Somewhat Unimportant

Very Unimportant

Consumer

Retailing & Finance� Customer service focus� Comparison shopping� Self-service, online shopping� Special offers

Manufacturing & Distribution� Faster time to market� One stop shop� Anytime anywhere

Patient Comfort and Satisfaction

Consumers expect Consumers expect

Consumer experiences in other markets affecting expectations from healthcare:

Key success factors• Utility• Ease of use• Engaging, not sterile

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ConsumerExpectations

Entertainment & Media� Customized products� Home services

� Anytime anywhere care

24 / 7 / 365 support to resolve questions,

One stop resolution, or call back

Proactive outreach to address issues affecting consumer

24 / 7 / 365 support to resolve questions,

One stop resolution, or call back

Proactive outreach to address issues affecting consumer

Ability to control and customize use and service features

Consumer controls interaction

Ability to control and customize use and service features

Consumer controls interaction

Consumers expect real time info at pt of consumption

Info comes to consumer

Consumers expect high levels of interaction and Q&A in face to face encounters

Consumers expect real time info at pt of consumption

Info comes to consumer

Consumers expect high levels of interaction and Q&A in face to face encounters

Shift in Focus

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Source: Frost & Sullivan analysis.

Preventative Technologies

Patient Education Aging in

Place

Markets in Preventative Healthcare Markets

•Patient Education: Patient education include systems that provide information, whether they may be mobile or online guides, about a specific medical condition or instructions for post-treatment care.

•Out of Hospital Elderly Care: Out of hospital elderly care include services that allow elderly patients to manage their health within the comfort of their own home and send such information to their healthcare providers.

•Remote Monitoring Devices: Remote monitoring devices are devices that allow patients to monitor their health within the comfort of their own home and send such information to their healthcare providers.

Remote

Monitoring

Devices

Technology Showcase - Preventative Market

Patients Like Me• Social networking site: members connect with patients with similar medical conditions• Learn and share information about treatment methods, how to check for symptoms, and how to monitor their health.• Patients who are new to certain medical conditions can learn from real life outcomes

Healthsense eNeighbor• Remotely detects movement and vital signs• Allows physicians and family members to log in to the eNeighbor System to retrieve information about patient’s activity and current medical statuses

eNeighbor Exit Care iTriagePatient

EDUWebMD Pill Alerts Logicare

Patients

Like Me

Pill Alerts• Ingestible pill that alerts physicians and care givers when swallowed through a signal emitted by a microchip and antenna within the pill capsule•The signal is transmitted to an external electronic device that can provide information to computer or cell phone•Device is powered by a low voltage charge from the external electronic device, does not require a battery

Diagnostic Technologies

Overview of Diagnostic Technologies

• Records Reform

• Self-Diagnosis

• Molecular Diagnostics

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• Mobile Applications

• Remote Monitoring

Technology Showcase - Diagnosis Market

Streamline Health• Enterprise solutions and services for content management and integration•Patient financial services solutions•Health information management solutions

23andme-Genetic testing to predict future health profile-Consumers send in a sample of their spit to analyze-Results show how genes will impact health of the individual and list disease risks and drug response

23andmePatient

SecureMASH Allscripts eClinicalWorks

Streamline

HealthCardioscan

eClinicalWorks

- Intuitive electronic medical record system that improves quality of care for patients- Allows patients to communicate with their physicians through a Patient Portal and provides important medical educational information- Provides a management tool for appointments, medical bills, and important data

Treatment Technologies

Overview of Treatment Technologies

• Disease Management

• Prevention Control

• Management of Chronic Diseases

• Miniaturization

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• Personalization

• Surgery

• Robotics

• Minimally Invasive Tools

Technology Showcase -Treatment Market

M7 Bot•Telepresence surgery device that allows doctors to perform surgical procedures from anywhere in the world via Ethernet or radio link•Controls are intuitive for surgeons, offers force feedback equipped controls and high definition sound and optics

HyGreen• Hand hygiene recording and reminding system• Protect patients and staff from HAI•Lower costs by lowering infection

Xenex HyGreen Sensiotec IMPRESSTitan

Medical

Radianse

SystemDa Vinci M7 Bot

Radianse System• Used to track, monitor, and locate patients, doctors, and expensive equipment within the hospital in real time•Comprised of ID-Tags, wall mounted receivers, an application server, and a suite of web based software applications•Real time interaction data between patient and staff is combined with clinical data

Poll Question

According to you, advancement in which component of the patient cycle should be prioritized in the next 10 years:

• Prevention

• Diagnosis

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• Therapeutics

• Treatment

What does the future hold?

1 Reimbursements for healthcare providers will include a prevention component.

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Source: Frost & Sullivan analysis.

2Newer methods of treatment to move patients from hospital to home settings will emerge

3Consumers will begin to take an increased responsibility for their own health.

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For Additional Information

Britni Myers

Corporate Communications

Healthcare

(210) 477-8481

britni.myers@frost.com

Aarti Shetty

Senior Industry Analyst

Healthcare

(650) 475-4552

aarti.shetty@frost.com

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Venkat Rajan

Industry Manager

Advanced Medical Technology

(210) 247-2427

venkat.rajan@frost.com

Joe Stoken

Sales Manager

Healthcare

(650) 475-4537

joe.stoken@frost.com