ORION HEALTH INVESTOR DAY UNITED STATES - · PDF fileORION HEALTH INVESTOR DAY UNITED STATES 15 SEPTEMBER 2016 For personal use only

ORION HEALTH INVESTOR DAY UNITED STATES

15 SEPTEMBER 2016

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Page 2 • 2016 © Orion Health™ group of companies

Important Notice

This presentation is given on behalf of Orion Health Group Limited

(“OHE”). OHE continues to comply with the NZX Listing Rules.

Information in this presentation:

is for general information purposes only, and is not an offer or

invitation for subscription, purchase, or recommendation of

securities in OHE;

should be read in conjunction with, and is subject to, OHE’s 2016

Annual Report, market releases, and information published on

OHE’s website (www.orionhealth.com);

includes forward-looking statements about OHE and the

environment in which OHE operates, which are subject to

uncertainties and contingencies outside of OHE’s control –

OHE’s actual results or performance may differ materially from

these statements;

may contain information from third parties believed to be reliable,

however, no representations or warranties are made as to the

accuracy or completeness of such information.

All currency amounts are in NZ dollars unless otherwise stated.

OHE results are reported under NZ IFRS. This announcement includes

non-GAAP financial measures which are not prepared in accordance with

NZ IFRS.

the information contained in this presentation should be read in

conjunction with the financial statements and accompanying notes.

due to rounding, the numbers presented throughout this presentation

may not add up precisely to the totals presented. Percentages may not

precisely reflect the presented figures as these are based on unrounded

numbers.

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STRATEGY OVERVIEW

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6%10%

23%

34%

45%

<18 18-44 45-64 65-74 75+

Individuals effected by chronic conditions

Healthcare spend increasing1

12

14

16

18

20

22

1999 2003 2007 2011 2015 2019

US healthcare spend as % GDP

Forecast

Global Trend - Regulatory and Funding Frameworks Addressing Excessive Spending

Shift in healthcare is taking place

Chronic conditions cost healthcare most and more elderly have chronic conditions2

$1,081$2,844

$5,074$7,761

$10,414

$14,768

0 1 2 3 4 5+

Number of chronic conditions

Average per capita healthcare spending (US$)

Wastage in healthcare is 30-45% Greatest opportunity in improving outcomes lies in elderly with chronic conditions

There is a shift in healthcare taking place with providers being incentivized to provide value over volume

This is being established through team based community care

1 World Development indicators2 Bloomberg School of Public Health

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Old Healthcare Model

Informed and Collaborative Decision Making Assists Effective Treatment

Decisions with

limited information

Not informed

or involved

No Access

No Input

Doctor

Complete

Health Record

Thinking Software

PatientDoctor Patient

Actively ParticipatesFull Spectrum of

Information

Emerging Healthcare Model

Hospital Labs, Radiology, Pharmacy Hospital Labs, Radiology, Pharmacy

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Aggregated data needs to be stored in a central location

60%

from exogenous sources

30%

from genomic sequencing

10%

from health systems

2012

500 Petabytes

2020

25,000 Petabytes

Value Proposition

Many data sources contribute to the health record

Consumerization of healthcare occurring

iPhone Blood

Glucose

Pulse Oximeter

Blood PressureHeart Rate

Armband sensors

for temperature,

skin response,

acceleration &

heat flux

HospitalConsumerGenomic AncillaryGP

Integrated

Care Record

Real-time Analytics

Open API Platform

Who pays for access:

Funders

Payers

Providers

API users

Who uses information:

Care coordinators

Patients

Physicians

Surgeons

Pharmacist

Data explosion

occurringSocial

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Amadeus: Platform for Innovation

Optimize Data for Usage Innovation Ecosystem Privacy & SecurityBuilt for Growth

▸ Fast acquisition

of data

▸ Data normalisation

in real time

▸ Patient centric

information provided

so that it can be used

by care providers

▸ Standard set of APIs

against which

developers can write

their applications

▸ Ability for application to

developers to scale

beyond one deployment

▸ Support & Feedback

Loops

▸ Fast development of

new (custom) data

models with APIs

▸ Fast time to value of

new features

▸ Scalable beyond

today’s traditional data

sets

▸ Only authorised

systems and users can

access information

▸ Ability to segment and

apply privacy critical

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Future Proofed Technology

Orion’s software solutions are underpinned by significant R&D investment

made in the world’s leading big data technologies

Previous generation technology limitations

Rigid Limited to analysing static

and structured data

SlowUnable to consume large

amounts of data or

scale-up

LegacyNot built for cloud, mobile

and IoT world

CostlyExpensive licensing costs

from incumbent vendors

FlexibleBuilt for analysing big

data in real-time

ScalableProcess virtually

unlimited patient data

at scale

Built for cloudOpen APIs to support

custom SaaS apps

InteroperableCooperates with vast

third party data

Modern tech stack New tech being used in

broader industries

Legacy and closed tech

stack

Legacy tech used by competing

IT health vendors

Server

Hardware

RDBMS

Model

Orion Health technology platform

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Phase 1 Phase 2 Phase 3 /4 / 5 Phase 3 / 4 /5 Phase 3/ 4 / 5

SummaryEmbed software and

view health record

Introduce clinical

functionality

Complete full suite of

clinicalsIntroduce analytics API platform enabled

Description

Stand up core

solution, load data,

establish feeds from

data sources to

create rich electronic

health record

Expand functionality

of systems. Install

“doing” software for

providers including

inpatient flows,

medications, care

coordination

Expand views and

add cross care

setting flows,

referrals, orders and

patient apps

Expand views &

interfaces, add

analytics functions

Expand views,

interfaces and add

platform as a service

capabilities

Revenue

(per patient)

$$$

$$

$$$

>$$$

A Customer Journey Today

Interchangeable

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Page 10 • 2016 © Orion Health™ group of companiesPage 10 • 2016 © Orion Health™ group of companies

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~90%

~10%

On Prem CloudPrivate Cloud

/


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Opportunity to Assist Existing Customers Move to the Cloud

Customer

Benefits of being in the cloud Value Opportunities

~90%

~10%

On Prem Cloud

On

premise

will shift

to the

cloud

Growth

opportunity

when

moving

patients to

the cloud

Hosting change allows a shift in business model to a

subscription basis with customers

Private Cloud/

1

2

- Significant cost

savings

- Economies of scale

- Lower support costs

- Direct access to data

through our own APIs

- Standardized solution

with rapid deployment

- Ability to apply

machine learning and

analytics

- Connection to complete

patient record with new

data sources

- Easy access to

additional APIs and

cloud services

- Data is accessible and

interoperable

- Scalable environment

- Efficient deployment &

upgrades

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Growth Drivers for Orion Health

United

States

• Obamacare and

CMS funding

models

• Canada Health

Infoway strategic

roadmap

• Personalized Healthcare 20/20, supported by £4.2Bn Tech Fund

• Regionalization –NHS Trusts: > 44 Sustainable Transformation Patches

• Care Coordination programs (Devo Mancs)

• €2Bn Program

to fund

regionalization

and Care Co-

ordination

(TSNs, 950

Public hospitals

becoming 135

Regions)

• Interoperability

platforms

• National Health IT

strategy driving

regionalisation

and national EHR

Canada United

Kingdom

France Australia New Zealand

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US BUSINESS UPDATE

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United States – Market Context

Affordable

Care Act

(Obama Care)

• Forces providers

& payers to find

savings

• New policies

and incentives

continue

CMS

Reimbursement

model

• Driving to get

physicians on

incentive

programs in a 0

sum program

• Those who

provide quality

will get rewarded

and those below

standard will be

penalized

Payer - Mergers

and Acquisitions

Continue

• As means to

create

economies of

scale, with the

addition of

Providers

becoming

Payers

(Payvidors)

Value based

contracts

gaining traction

• Industry is

forecasting non

fee for service to

make up 75% of

all transaction by

2020

• However, some

providers still

only have

20,000 – 40,000

patients in

outcome based

plans

Competition

landscape

changing

• Solution

convergence

taking place

• ACOs requiring

integrated

solution

Other

market

segments

• Pharmaceuticals,

Bio Tech, Device

Manufactures,

Employers

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Key Players

▸ Provider Segment

– Key competitors – Cerner, Epic, IBM, Allscripts DB Motion

– We win in Clinical Integration Networks and lose in closed networks controlled by above

competitors

▸ Payer Segment

– Key Competitors – Accenture/Intersystems, IBM

– We win when provider engagement and clinical integration are key drivers to new value

base models and narrow networks.

– We lose when IBM or Accenture have strong long standing relationshipsFor

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Market segments & Key drivers

Provider

• Shift from fee for service to fee for value requires cross-care setting

coordination

• Medicare payment reform requires electronic clinical quality measure

capture & reporting

• Increase in network affiliations to support independent physicians

• Managing 85c in the dollar

Payer

• Shift from fee for service to fee for value

• Combat competitive threat of disintermediation

(providers turning into payers)

• Decrease costs (e.g. out of network spend)

• Retain and attract new members

• Managing 15c in the dollar

Life Sciences

• Accelerate drug discovery

• Increase revenues through improved med adherence

Public

• Support federal push for health information exchange

• Improve health of citizens

• Reduce cost of care (Medicaid)

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United States – Key Business Focus Areas

Top

Line

Growth

Upgrade existing

customers

New Provider

Customers with

PHM

New Payer

Customers – via

Cognizant

Business

development into

new markets –

Pharma, Devices

Customer

Value

Delivery

Converge to

Amadeus in the

cloud

Improve value

and adoption

Focus on

sustainable

business

models

Margin

Expansion

Refine

Implementation

methodology

and capabilities

Reduce cost of

hosting and

improve

services

Deliver and

Gain

References

Focus on

gaining multiple

references

within each

segment (Payer

and Provider)

Internal

Development

Continue to

build team from

reorganization

in early 2016

Partner

Channels

Cognizant our

distribution

partner for the

payer space

1 2 3 4 5 6


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Customer Migration to the Cloud

▸ The convergence of our current customer base

to the cloud is expected to take >18 months

▸ We expect that customers will positively

receive the move to the cloud due to

– faster route to new features and product

releases

– standard solution to manage

– lower cost of maintenance

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Cal INDEX | update

▸ Target provider participation uptake has been

slower than initially anticipated but we are now

encouraged by the engagement with potential

participants.

▸ The solution also must be migrated to AWS

Direct and Amadeus, which we aim to

complete early next calendar year.

▸ We are working closely with the newly

engaged BSC Executives, while Cal INDEX

continues to recruit a new CEO.

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US PAYER MARKET

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Page 22 • 2016 © Orion Health™ group of companiesPage 22 • 2016 © Orion Health™ group of companies

Payer Sector Overview

Shift in the way payers think about their solutions with most plans getting

involved with Medicare and Managed Medicaid.

1Q16 Health Enrolment by Segment

N = 265 Million 1Q15 to 1Q16 Segment Percentage Changes

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Cognizant & Trizetto Footprint

Govt

50+ Organizations and 30 State and Federal Exchanges

PBM

3 of the 5 Leading US PBMs

Providers52+ Health Systems and 260,000+ Care ProvidersSupporting over 2 Billion transactions per year andover 400PM/EHR Partners

Payers

370+ Payer Organizations

Life Sciences

Nearly all major Global Pharmaceuticals, Medical Devices

and Bio Tech Companies

190 Million Livessupported on Cognizant

software platforms

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Orion Center of Excellence Highlights – Practice to Support Tranzform

• Integration Services

• Implementation Services

• Platform Support

• Testing

• Program Management

• Talent pool drawn from Cognizant HIE

COE and external recruits

• Supported by Orion through structured

training to onboard new team members

• Knowledge Repository on Orion

products, implementation processes

and best practices

• Onsite & global teams

• Core-Flex model to address fluctuation

in client’s staffing needs

People

Knowledge

Services

Delivery Model

A dedicated Orion CoE ensures availability of the right expertise for our client’s needs

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Cognizant Health Tranzform – Where Does Orion Fit?

Real T

ime S

tream

Captu

re

TranZform™ Analytics

Mic

ro B

atc

h

Streaming

&

Computation

Engine

In Memory

Massively

Parallel

Processing

CareTranZform™

Data Processing Pipeline

Cleansing

SequencingRouting

Mapping

Replay Enriching

TranZform™ Data Engine

TranZformIntegration engine

EMPIsFTPHTTPS TCP/IP

Data

So

urc

es

Network TranZform™ Insights TranZform™ EngageTranZform™

Open API and API Manager

Terminology

Services

Member

Registries

LabsRads

Genomics

EMRsCommunitySystems

Public Health

HIEs

PBMs SocialPayerClaimsBYOHD

Third Party Eco System

EMR Services

Non Member

Data Spaces

Payer

Member

Custom

Clinical

Consumer

Custom

Custom

Patient Matching

CertificationDe-Dup

Conversions

Rules-Audit Notification-Error

Data Transformation & Semantic Standardization

Raw Data

Store

X12

HL7

DICOM NCPDP Device Custom

Connectors

Real Time Stream Capture

Analytics Sandbox

Orion Health

Technology

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▸ Tranzform:

– Net new business - new plans & provider owned plans

– Potential upsell into existing Cognizant clients

▸ Centre of excellence deployment in NA and Worldwide

– Live customer with combined services in NA in the near term

– Live customer with combined services in EMEA in the medium term

▸ Significant pipeline growth and movement in stages

Key Goals in the Relationship with CognizantF

or p

erso

nal u

se o

nly

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Documents

ORION HEALTH INVESTOR DAY UNITED STATES - · PDF fileORION HEALTH INVESTOR DAY UNITED STATES 15 SEPTEMBER 2016 For personal use only