1

Transition to Connectivity

4th Annual Medical Device Connectivity Conference

& Exhibition, Boston

2

Transitions in Healthcare Dependent upon Transition to Connectivity

Individualized Medicine

Patient Centric

Decentralized, Community-based

Collaborative, Shared Information

Based on Protocols and Analytics

Preventing Sickness (Wellness)

Integrated, Two Way

Source: Frost & Sullivan analysis.

From...

One Size Fits All

Provider Centric

Centralized, Hospital-based

Fragmented, Specialized

Based on Individual Expert

Treating Sickness

Fragmented, One-way INFORMATION FLOW

LOCATION

FOCUS

APPROACH

TREATMENT

DECISION MAKING

OBJECTIVE

...To

3

Connected Environments Will Serve as the Infrastructure for That

Transition

Healthcare Spending by Type of Activity

5 712

15 1721

70 66 51

10 12 16

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2012 2025

Prevention Diagnosis Treatment MonitoringSource: Frost & Sullivan analysis

More Emphasis on Diagnosis, Monitoring, and Prevention

The effectiveness of this shift

towards Diagnosis and

Monitoring will depend to a large

extent on the Connected Health

Infrastructure

4

The Connected Health Ecosystem – The Big Picture

�� � � � �� � � � � � � � � � � � � �

� � � � � � �� � � � � � � � � � � � �� � �

� � � � ��� � � � � �� � � � �• Professional

Apps

• Wellness Apps

• Fitness Apps

• Texting

Informational

Services

• Video Diagnostic

Consultation

• Remote Doctor/Specialist

Services

• Distance

Learning/Simulation

• Retail Telehealth

• TeleImaging

• Home and Disease

Management Monitoring

• Activity Monitoring

• Diabetes Management

• Wellness Programs

• Remote Cardiac ECG

• PERS

• Medication Management

• Electronic Health Records

(EHR)

• Health Information Exchange

(HIE)

• Patient Portals

• Hosted Cloud Infrastructure

• Medical Device

Interoperability

Source: Frost & Sullivan analysis.

Connected Health Systems, Segmentation, Global, 2012

5

Aligning Goals of Stakeholders

• Collect and Analyze Big Data

• Eliminate Unnecessary Treatments and Care

• Patient Empowerment

• Improved Outcomes

• Quality of Life

• Improve Delivery of Care

• Improve Workflow

• Identify Administrative Waste

• Monetizing Connected Services

• Industry Collaboration

• Tracking Utilization

on

Medical Device Manufacturers

• I

• IW

Healthcare Providers

•

•

T

Payors/ Regulators

nt

Patients

6

Professional Consumer Spectrum

Source: Frost & Sullivan analysis.

• An essential part of assessing a client on this spectrum is knowing who the customer is.

• Understanding where your product is or wants to be is essential in understanding the value of a product.

Physicians Nurses Case Managers Motivated Self ConsumerCare Giver

Reimbursed

FDA

ApprovalDirect

Payment

Reimbursed Direct

Payment

Telehealth Industry: Professional Consumer Spectrum, North America, 2012

7

HHS

Health Quality Outcomes and Research

Regulatory Agencies

HMO’s-VHA

•HTA & MDPnP

Provider Organisations

Medical Device Manufacturers, GPO’s

Insurance

Key Influencers in the Near Term To Adoption

Source: Frost & Sullivan Analysis

Low High

Low High

Low High

Low High

Low High

Low High

Low High

Low High

Key Takeaway: The medical device manufacturers need to take ownership as they are the key

agents who would promote and produce interoperable medical devices and would create

awareness among the clinicians by highlighting benefits..

8

Leveraging Industry Feedback in Development of Tools and Services

How are the priorities forproduct specifications defined?

Do insurance companies influence adoption of interoperable devices?

Awareness about the needs of interoperabilityand directives for interoperability among clinicians?

Mean rating

Mean on a rating 1-5

Factors evaluated during product selection

Source: Frost & Sullivan Survey

9

Prioritize and Plan Adoption Timeline

Phase 1

Phase 2

Phase 3

§ Organize cross functional team to evaluate the

complete spectrum of connected health and

interoperable medical device solutions. Target

specific departments/services.

• Execute strategy, build case studies, maximize

utilization, make future acquisitions that

enhance existing platform.

§ Develop method for down selecting

technologies based on ease of integration,

relevancy to institution needs, and financing

considerations.

10

Select upcoming technology trends in the field of medical device connectivity

Technology Trends

Adaptive Therapy

Asset and Supply Tracking

Analyzing Big Data

Systems capable of analyzing large patient data sets to

help optimize care and diagnosis.

Healthcare Everywhere

Infusion Pumps, Respirators, and other equipment capable of adjusting therapy based on patient health.

Track medical devices and other resources through the

entire supply chain. Implants, supplies, capital equipment.

From OEM, to distributor, to hospital, and reprocessing..

Support for aging in place. Providing patients and their loved

ones the ability to track health metrics.

11

Connected Health 2020- Augmented Reality Surgery

Insert Pin HereIn

Ligament Damage

Bone FracturedAvoid Artery

12

Custom Implant

3D Printer

Connected Health 2020- Custom Implants

Unique Patient

Custom Implant

3D Imaging

13

Connected Health 2020- Health Enabled Vehicles

•Emergency alerts

and patient history

sent to hospital

ahead of arrival.

•In vehicle alerts

including: allergy,

blood sugar, fatigue.

•Automatic vehicle

take over and

stabilization in event

of distress.

•Connectivity to in

home wellness and

monitoring devices.

•OnStar like

connectivity to live

network of health

professionals to

discuss various

mental and

physical health

needs.