Enabling improved healthcare outcomes through IT: Insights from TBR’s 2Q13 Healthcare IT Services Vendor Benchmark

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TECHNOLOGY BUSINESS RESEARCH, INC.

Enabling improved healthcare outcomes through IT: Insights from TBR’s 2Q13 Healthcare IT Services Vendor Benchmark

Technology Business Research Quarterly Webinar Series

Oct. 9, 2013

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2 TBR Quarterly Webinar Series | 10.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.

Healthcare IT Services Quarterly Benchmark Highlights and Outlook: Webinar Presenters

Joseph WalentLead Analyst, Healthcare IT ServicesProfessional Services [email protected] @JDWalent

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TBR’s Healthcare IT Services reports deliver unique insight and value through in-depth analysis in a concise, consumable format

Healthcare IT Services Quarterly Benchmark Highlights and Outlook: Webinar Overview

Clients are gaining advantages and better understanding revenue opportunities through our reports and their personal relationships with TBR

• The Professional Services Practice continually covers 18 vendors in our Healthcare IT Services Vendor Benchmark.

• Of those vendors, 12 are covered directly with quarterly and semiannual reports.

• In addition, we publish five Healthcare IT Services company reports, focusing the healthcare IT services business of Accenture, CSC, Dell Services, HP Services and IBM Global Services.o TBR reports are unique due to their deep, holistic analysis of

leading vendor businesses.o Financial modeling and TBR insights help customers build a

better understanding of vendor business models.o TBR reports and webinars are designed to be responsive to

client timelines, clear and concise, and to provide insights across multiple layers of an organization.

o TBR’s strategic assessment provides an impartial reality check on how vendors are performing in their strategic objectives and the overall market.

TBR’s Healthcare IT Services Benchmark covers:

Accenture Allscripts

Cerner CGI

Cognizant CPSI

CSC Dell

General Dynamics Harris

HCLT HP

IBM Infosys

McKesson NextGen

SAIC Xerox

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Healthcare IT Services Quarterly Benchmark Highlights and Outlook: Key Trends

Healthcare IT Services Vendor Trends for 2Q13

Technology: Providers and payers are realizing the efficiency inherent in telemedicine practices for remote healthcare service delivery.

Regulatory: Implementation of the 10th revision of the International Statistical Classification of Diseases and Related Health Problems

Geographic: Developing regions’ focus on improvement of healthcare systems is generating additional growth avenues.

Emerging markets, telemedicine and a shrinking window for ICD-10transition present HITS vendors with opportunities

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Geographic: Developing regions’ focus on improvement of healthcare systems is generating additional growth avenues.


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Healthcare IT Services Quarterly Benchmark Highlights and Outlook: Geographic

Increased demand for healthcare IT services in emerging markets will help stem HITS revenue growth deceleration

Healthcare IT Services Vendor Trends for 2Q13 — Emerging Markets

10.1%

9.3%

12.7%

10.3%

9.8%9.3%

12.2%

10.6%11.0% 10.6% 10.5% 10.5%

8%

9%

10%

11%

12%

13%

14%

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 Est.

Gro

wth

%

Calendar Quarter

Average Growth (YTY TTM Revenue & YTY Quarterly Revenue) for HITS Vendors

Average YTY Growth Average TTM YTY Growth

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SOURCE: TBR ESTIMATES AND COMPANY DATA

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Many of the larger players are broadening their capabilities to serve the fast growing economies of the MENA and APAC regions


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Capturing market share in developing economies will position HITS vendors to continue historic growth trends


Vendor Opportunity: Gaining thought leadership positioning in emerging markets that are instituting healthcare infrastructure and delivery capabilities reflective of mature economies will provide needed market reach to extend the run of healthcare IT services market growth.

$2,407

$1,289

$881

$816

$715

$1,757 IBM

HP

CSC

Accenture

Xerox

All Others

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SOURCE: COMPANY DATA AND TBR ESTIMATES

Vendor 2Q13 Trailing 12-month Non-U.S. Healthcare IT Service Revenue


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Geographic: Developing regions’ focus around improvement of healthcare systems is generating additional growth avenues.


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10 TBR Quarterly Webinar Series | 10.9.13 | www.tbri.com | ©2013 Technology Business Research Inc. SOURCE: TBR

Healthcare IT Services Quarterly Benchmark Highlights and Outlook: Technology

The shift to outcome-based remuneration in the U.S. generated increased acceptance and demand for telehealth solutions

2012 2017

Low

High

# of U.S. Citizens receiving healthcare services via telemedicine

Use of telemedicine is

expected to grow to six times its

present size in the next five years.

Healthcare IT Services Vendor Trends for 2Q13 — Telemedicine

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11 TBR Quarterly Webinar Series | 10.9.13 | www.tbri.com | ©2013 Technology Business Research Inc. SOURCE: AMERICAN TELEMEDICINE ASSOCIATION

Healthcare IT Services Quarterly Benchmark Highlights and Outlook: Technology

Providers and payers will increasingly demand telemedicine delivery solutions coupled with legal and licensing expertise

Healthcare IT Services Vendor Trends for 2Q13 — Telemedicine

U.S. States Mandating Telemedicine coverage by Private Health Insurance Companies

States mandating coverage of telemedicine, also includes Hawaii

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Healthcare IT Services Quarterly Benchmark Highlights and Outlook: Regulatory

Overextended in-house healthcare IT staffs at providers and payers will be looking to HITS vendors to manage the transition to ICD-10

Healthcare IT Services Vendor Trends for 2Q13 — ICD-10

Add-on ICD-10 change services for HITS Vendors

Training on coding changes Employee performance metrics

Revenue cycle management (RCM)

Business Process Transformation (BPT)

Adoption of Accountable Care Organization (ACO) Model

Auditing to identify possible fraud and abuse

SOURCE: ONC AND TBR

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Healthcare IT Services Quarterly Benchmark Highlights and Outlook: Regulatory

Much like Y2K, ICD-10 conversion provides opportunities for India-centric healthcare IT service players to raise their market profiles in the U.S.

ICD-10 Transition-specific Services for India–centric Healthcare IT Service Vendors

Infosys iTransform

HCL Technologies iCRM

Cognizant Financial Integrity tools

TCS Computer Assisted Coding

Wipro Assessment, Remediation & TestingSOURCE: COMPANY DATA

Healthcare IT Services Vendor Trends for 2Q13 — ICD-10

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Healthcare IT Services Research

Current Topics 3Q13 Report Key Themes

• HITS Vendor Reports:o IBM Global Services o HP Services o CSCo Accenture o Dell Services

• Vendor Reportso CGIo HCLTo Cognizanto General Dynamicso Infosyso Xerox Services

• Vendor Benchmarks• Benchmark Webinar

• Analyze leading vendors’ go-to-market strategies for development and deployment of healthcare-specific mobility solutions.

• Examine awareness and adoption rates of mobility solutions from healthcare providers in their pursuit to enhance quality care.

• Examine opportunities for healthcare IT services providers to expand and enhance Medicaid Management Information Systems.

• Analyze the expected continued shifts in government versus private payers as the Affordable Care Act is implemented, and the role HITS vendors are playing.

• Analyze leading vendors’ go-to-market strategies for development and deployment of HIXs.

• Assess the adoption rates of HIX from providers as well as the effect of pure-play entrants on the market, in the government and private markets.

mHealth

Expansion of

Medicaid

Health Insurance Exchanges

Healthcare IT Services Quarterly Benchmark Highlights and Outlook: 3Q13 Key Topics

Healthcare IT services vendors are building mHealth and HIX solutions for improved patient care and to comply with regulatory requirements

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Questions?

Healthcare IT Services Quarterly Benchmark Highlights and Outlook

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For further information, please contact:

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

Twitter: @TBRincSlideShare: www.slideshare.net/TBR_Market_InsightYouTube: www.youtube.com/user/TBRIChannel

Joseph WalentLead Analyst, Healthcare IT ServicesProfessional Services [email protected] @JDWalent

TBR

TECHNOLOGY BUSINESS RESEARCH, INC.

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Health & Medicine

Enabling improved healthcare outcomes through IT: Insights from TBR’s 2Q13 Healthcare IT Services Vendor Benchmark