Watson Health Closes Acquisition of Truven Health Analytics

“Watson Health Closes Acquisition of Truven Health Analytics, Extending Its Leadership in Value-Based Care Solutions”

With this acquisition, IBM will have invested more than $4B to acquire and

build an unparalleled array of cognitive healthcare capabilities intended to

help professionals improve health outcomes, control costs, and advance

value-based care solutions

• Expands IBM Watson Health’s leadership as a high-value industry solutions provider of cognitive

cloud-based healthcare data, analytics and insights

• Expands market coverage by adding over 8,500 clients and expertise across government agencies,

employers, health plans, hospitals, clinicians and life sciences

• Enables new offerings for Value Based Care Solutions, Life Sciences, and Government service

organizations in domestic and international markets

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Truven Acquisition Press Release

Watson Health Data – Insights – Solutions

Data Insights as a Service Solutions

Standards based,

extremely scalable,

open repository of

data on all

dimensions of

healthcare &

research

Knowledge and

actionable information

through advanced

analytics and

cognitive capabilities

From IBM and an

ecosystem of partners,

helps improve the

overall experience, and

helps to increase the

quality of outcomes

Watson Health is bringing insights to the marketplace to help reduce costs, improve outcomes and help increase value

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Providers EmployersPayersLife

SciencesGovernment

With the acquisition of Truven, Watson Health can deliver previously

unavailable capabilities across the health continuum to help improve

the customer experience

Oncology

Imaging

Value Based Care & Reimbursement Models

Population Health Management

Life Sciences

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Consumer / Patient

Watson Health Data – Insights – Solutions

Truven Health Overview

Employers

Consumers

Former Healthcare division of

Thomson Reuters

Acquired by Veritas in 2012 and

rebranded as Truven Health

Backed by independent data assets

and 40+ years of industry expertise

Employs ~2,500, with headquarters in

Ann Arbor, MI and offices in 13 US states

and 20 countries.

Deep, long-term relationships and

recurring revenue business model

Provides healthcare analytics

solutions and services for all

constituents across healthcare

Over 8,500 customers across Payers and

Employers, Providers, Governments and Life

Science companies.

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Life Sciences

Providers

Payers

Government

Combination of Strengths Makes Truven Health Unique

DEEP

HEALTHCARE

DOMAIN

EXPERTISE

EXTENSIVE DATA

ASSETS

SOPHISTICATED

TECHNOLOGY

INFRASTRUCTURE8,500 customers

across all key

healthcare

stakeholders

Algorithms, tools and

methodologies enrich

data and inform and

shape solutions and

services

Large scale solutions

integrate client data with

our analytics and dynamic

benchmarks through our

secure, HIPAA-enabled

cloud

Customers value

independence and

objectivity, which

differentiate Truven

from competitors

Value of data assets

increases as each client

refreshes data, creating

a powerful network

effect

200 researchers

and experts and

700 consulting

and other client-

facing staff

including

clinicians,

epidemiologists,

statisticians

and IT

professionals with

healthcare domain

expertise

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Analytics

Data

Solutions

Services

INDEPENDENCE

AND CUSTOMER

LOYALTY

ROBUST ANALYTICS CAPABILITIES

BROAD FOOTPRINT

Truven Health Helps Enable Better Decision Making Across

the Patient Lifecycle

Engagement Treatment Measurement Management Aggregation

Plan comparison

Cost transparency

Benefit design

Provider education

Clinical decision

support for diagnosis

and treatment

Real-time surveillance

Quality Metrics

Trend Analysis

Benchmark Comparison

Payment Integrity

Population health

Performance

Improvement

Regulatory reporting

Policy decisions

Health economics and

outcomes research

Health system services

research

Diagnoses

Procedures

Clinicians, staffing

Clinical data

Labor/supply costs

Financial performance

Quality measurement

Clinical outcomes

Provider care patterns

Care pathways

Performance

measurement data

Population risk

measurement and

stratification

Quality reporting

State discharge data

All payer claims data

Patient-level

longitudinal health

records

Help Enable Better Decision Making By Collecting and Analyzing Data in Every Step of the Patient Lifecycle

Eligibility

Payer/plan type

Demographics

Health Risk

Appraisal

Data

Generated

Analytic

Needs

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Truven Health Differentiated Value Proposition

One of the most sophisticated analytics technology

platforms, combining Truven Health data assets,

analytic capabilities, proprietary methods and services

Using data-driven enterprise transformation, Truven Health partners with clients

across the healthcare ecosystem to help reduce costs and improve quality

Data Analytics Services

Define path to improvement

Advisory, analytic consulting,

research, and coaching services

Gold standard methodology for

process improvement

6,000+ data sources securely

managed

Proven ability to standardize

healthcare data from multiple

sources and formats

Market leading analytics capabilities

Deep expertise in

Longitudinal patient-level analysis

Payment reform

Benchmark comparisons

Predictive modeling

Cross continuum care

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Truven Health Has Long-Standing Customer Relationships Across the

Healthcare Industry

• Broad and rich relationships across the entire healthcare industry

• The average length of relationship with top 20 clients is 13 years

• 2014 annual retention rate for top 1,000 clients was 98 percent

Providers

Over 4,000 U.S.

hospitals

Clinicians in 5,800

facilities across

80+ countries

Employers

Over 60% of the

Fortune 100

companies

Over 30% of the

Fortune 500

Life Sciences

All of the top 25

pharmaceutical

companies

Government

37 states

Medicaid agencies

covering ~50% US

beneficiaries

Major federal

agencies including

CMS, AHRQ and VA

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Payers

125+ health plans

9 out of top 10

health plans are

clients

Truven Health Has High Impact in Improving Health and Cost

Affect Health Benefit Decisions for 1 in 3 Americans

$2B in Customer Cost Savings through Lean Since 2011

Operational and Financial Data on 750+ Hospitals

Operating Healthcare Information Exchanges (HIE) for four states, supporting around 30 million individuals

Published one-of-a-kind 100 Top Hospitals Study for more than 20 years

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