IBM Healthcare & Life SciencesBusiness & Strategy Overview

Health System Transformation & Global Experience

Sean Hogan

VP & General Manager

IBM Healthcare

smhogan@us.ibm.com

IBM’s Involvement in Healthcare

Buyer/Consumer of Healthcare

• 600,000 lives; $2B in investment

• Partner to promote innovation and value

Change agent transforming healthcare

• Influencer to national level reform and eHealth

• IBM Research -- 600+ healthcare patents, systems thinking

• IBM and Apple partnership for enterprise mobility

Solution provider across the continuum

• Intersection of business and technology for Payers / Providers / Life Sciences / Devices

• Business services, process and workflow integration

• Big Data, information management and analytics

• Secure, optimized transaction processing

• Infrastructure build and optimization

3

Collaborate for prevention and wellness

Improve operational effectiveness

Achieve better quality and outcomes

Our solution and investment focus

Dynamic Infrastructure

EMRs, Images, Records, Forms Lifecycle Management, Clinical Trials, Assets and Devices

Information compliance, availability and security

Retrospective

to Prospective

to Predictive Quality

and Care Management

Personalized

Healthcare Value

Integration /Interoperability

Collaboration and Automation

Health Integration Framework

Optimize

Analyze

Engage

Where is IBM helping?

Build sustainable healthcare systems

Health System Performance & Optimization

Increase access to healthcare

Individual Insights & Engagement

Optimize

Analyze

Engage

Collaborate to improve care and outcomes

Population Health Insights & Care Management

Build sustainable healthcare systems

Health System Performance & Optimization

Increase access to healthcare

Individual Insights & Engagement

Optimize

Analyze

Engage

Collaborate to improve care and outcomes

Population Health Insights & Care Management

Where is IBM helping?

Cleveland Clinic Abu Dhabi

Design & Build: 2012 - 2015

� Application Implementation 25 Applications including ERP & Radiology

� Integration All Hospital systems involving about 160 integration points

� Testing Managing the overall test program for the Hospital IT

� Training IT Training for all the staff, including the core EMR system (Epic)

� Infrastructure configuration, set up, operations and data center management

Run: 2014 – 2017

� Managed Infrastructure, Service Desk, NOC & Security

� Clinical and Business Application Support

� Support, Maintenance & Refresh: Multi-vendor Management & regular deployment

Innovate:

� Reinvented services with analytics and automation

Case Study: Cleveland Clinic Abu Dhabi

IBM Commitments to Kaiser Permanente

An innovation partner

Easy to do business with

� Headquartered in Oakland, California� Over 174,000+ employees� Approximately 10 million health plan members

"This agreement, grown out of our long-standing strategic relationship with IBM, will allow us to build on our leadership in health care technology, staying focused on the safety, satisfaction and privacy of our members and patients and ensuring that our physicians and clinicians continue to deliver real-time, personalized health care." - Phil Fasano, CIO for Kaiser Permanente

Increasing availability and focusing on healthcare intelligence for Kaiser Permanente

Hybrid CloudSecurityAnalytics

� System availability, onsite support and increased reliability

Business Problem

IBM Solution

� Re-badge Kaiser Permanente employees

� Transfer operations of server environment

� Change management and project support for Unix and Intel systems

Results and value

� Improved system availability, stability, reliability

� Analytics for improved transparency and reporting

� Reduction in cycle time to provision IT resources

Increased visibility

Case Study: Kaiser Permanente

Automation

� Largest nonprofit health plan in U.S.

� Integrated health caredelivery system

� 10 million members

� 17,000+ physicians

� 48,000+ nurses

� 174,000+ employees

� 38 hospitals

� 600+ medical offices/ outpatient facilities

� $53.1 billion operating revenue**Source: 2013 Kaiser Permanente Annual Report

Mid-Atlantic Region

Georgia Region

Colorado Region

NorthernCalifornia Region

Hawaii Region

Northwest Region

Southern California Region

Convenience/Service

14.8million

secure physician &clinician emails

13.1million

visits to KP.org &KP Mobile

3.6million

Online appointments

Affordability

26%reduction

in office visits per member

8%reduction

in follow-up visits per Member

11% reduction

in emergency room visits

Quality

57%reduction

in medication errors

50%fewer

hospitalizationfor diabetics

73% reduction

in cardiac mortality

Technology Platforms� EHR, Lab, Pharmacy, Appointment Scheduling

Integrated Solutions� Support over 1.5 billion transactions per month and connect over 2,000 interfaces

Strategic Outsourcing� Run data centers providing high availability of mission critical applications

At Kaiser Permanente, patient care is highly coordinated through state-of-the-art technology and multispecialty physician group practice

Case Study: Kaiser Permanente

IBM investments in the

region – Cloud and

services center

Application

management

Services

®

New common systems in

hospitals

Application

consolidation

Transformation

and outsourcing of

infrastructure

Integrating care

across the health

and social

ecosystem

Region of Catalonia - Spain

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Outcomes:

� $190M saved over 8 years

� Six Platforms consolidated to two

� Increased performance (220%) with fixed staff

� Single enterprise storage network

� Storage capacity up 660%; Windows 317%

� New ventures created include SmartRoom; CCM

“We don’t worry about computer capacity and performance

anymore, it’s just there. Having the newly transformed,virtualized infrastructure behind the scenes is contributing to

improving our patient care and lowering costs.”

Daniel Martich, MD, Chief Medical Information Officer, UPMC

Leading integrated healthcare system in Pennsylvania

• $12.0 billion in revenue

• 20 hospitals

• 62,000 employees,

• 3,400 physicians

Objectives:

� Reduce cost

� Improve performance and stability

� Consolidate and virtualize

� Autonomic computing

� Create new innovation capabilities

Proliferation of medical literature

~700 K new scientific articles / year Clinical

Genomics

Exogenous data(Behavior, Environment, Device)

1,100 Terabytes

6 Terabytes

0.4 Terabytes

Data Generated (per life)

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PUBLISHED KNOWLEDGE POPULATION INSIGHTS

IBM Watson Health CloudStandard based, massively scalable, regulatory Compliant

SolutionsIBM & Ecosystem Solutions

DataStructured & unstructured

InsightsCognitive & Advanced

Analytics

ProvidersPayersResearchersIndividuals PharmaGovt.

LearnAdvance with Watson

learning analytics engine designed for the future

ActCoordinate care, engage

your population, and scale your PCMH care

management team

InformImplement a scalable clinical &

financial big data platform across the enterprise to

support FFS & VBC

Solutions

Population HealthManagement

ConditionSpecific Care

Healthand Wellness

Social Programs

DiscoverySolutions

Real WorldEvidence

IBM Watson

Partnerships Clients

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18

Our global integrated delivery utilizes consistent processes and procedures for the areas of operations

we manage

Guadalajara

Mexico City

Edmonton

Calgary

Vancouver

San Jose

Caracas

Lima

Asuncion

Brazil sites

Hortolandia

Sao Paulo

Sao Salvadore

Rio de Janeiro

Nova Lima

Montevideo

Buenos AiresMartinez

TorontoBarcelona

Madrid

Caceres

Eastern European sites

Vilnius (Lithuania)

Bucharest (Romania)

Prague (Czech Republic)

Szekesfehervar (Hungary)

WroClaw (Poloand)

Global

Regional

Application Services Global Delivery Center (GDC)

Johannesburg

Capetown

India sites

Bangalore

Pune

Kolkata

Chennai

Hyderabad

Delhi/Gurgaon

China sites

Dalian

Shanghai

Shenzhen

Tokyo

Ho Chi Minh

Metro Manila

Hanoi

Perth

Adelaide

Ballarat

Melbourne

Brisbane

Sydney

Canberra

Rochester, MN

Dubuque, IA

San Francisco, CA

Boulder, CO

Tucson, AZ

Southbury, CT

Gaithersburg, MD

Lexington, KY

Atlanta, GA

West Palm Beach, FL

Tier III & IVFacilities

Server SystemServices

StorageSystemServices

NetworkOperationsServices

ApplicationManagementServices

SecurityManagementServices

EndUser

Services

BusinessContinuityServices

� Delivering outsourcing services for over 20 years

� 379,00 employees worldwide serving customers in 175 countries

� 260,000 IT services professionals

� 52 languages supported at Help Desks globally

� 430 data centers (170 IBM owned/leased; 260 client data centers)

� 2.0M sqft IBM data centers; 2.6M sqft client data centers

� Over 140,000 non-IBM servers under management

� Leader in privacy and security services

� Manage over 4M End User Seats

� Leader in providing remote support using global resources

� Patent leader for 22 years

Global deliveryat-a-glance

07/10/2015 HELSE SØR-ØST and IBM & Partners 20

Our vision and value to HSØ and Sykehuspartner

Infrastructure

• Network

• Data centers

• End-user computing

• Telecom

Applications

• Regional Clinical Solution

• Clinical system SSO

• End user experience

• Early mobility

• Speech to text

• Video conferencing

Advanced Clinical Services

• Telemedicine

• Remote monitoring

• Patient portals

• BYOD / wearables

• Information exchange

Cognitive Computing

• Streaming analytics

• Genomic research

• Population health

1. IBM & Partners will help SP to become a stronger and more valued partner for HSØ by freeing-up resources and

continuously infusing IT-Clinical experts from UPMC and IBM that based on experience from achieving HIMSS level

7 and beyond will be able to raise the capability, relevance and value of Sykehuspartner to HSØ

2. IBM & Partners will enable HSØ to become a role model for high value health care through a mutual journey

similar to what UPMC has done, but faster and more safely due to the learning points achieved at UPMC and IBM’s

capabilities to fund, lead and deliver

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