Healthcare Informatics. Oran Muduroglu CEO of Healthcare Informatics May 31 st 2007

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1 Healthcare Informatics Oran Muduroglu CEO of Healthcare Informatics May 31 st 2007

2 Agenda Healthcare Informatics Key Clinical Strategy Enabling improved outcomes 2

3 Update in 2007 continuing the journey 2006 Demonstrate clear differentiation in the market Define the common IT infrastructure for our modalities Become a leading business in PMS 2007 Care Cycle driven focus on Clinical Expand Common Informatics Infrastructure and drive interoperability with external EIT vendors Joint development with the modality and monitoring BGs and expand geographically 3

4 Philips Healthcare Informatics Prevention Screening Diagnosis Treatment Management Surveillance which together deliver a full set of Care to a patient with a medical condition 4

5 Philips isite PACS Market Share update 25% 20% 15% 10% 5% Philips Share Comp Sales Market North America: ~ 1 billion, and represents ~2/3 of the global market. CAGR:10% Market Position North America: Philips occupies #2 KLAS Enterprises position in North America in 2006 KLAS Apr 07: Philips is the PACS vendor most often considered for purchase from a field of 17 vendors. Led the pack as the vendor most likely to be considered for purchase over all market segments; Large, Community and Ambulatory. Microsoft MS HUG Technology Leadership Award HIMSS % Source: Frost & Sullivan 2006 Philips own research Market position Rest of World In 2007 localized isite products are widely being introduced in the European market First orders and installations in East Asia in

6 Philips PACS worldwide installed base North America, Europe and Japan Account for 80% of the total market Over 1800 PACS systems for Radiology and/or Cardiology installed worldwide! Dots give indication of installation of one or more Radio and/or Cardio PACS system 6

7 Agenda Healthcare Informatics Key Clinical Strategy Enabling improved outcomes 7

8 Healthcare IT is becoming more complex Pharmacy/Medication Safety Physician Clinical Practice Clinical Documentation Increasing utilization of Clinical Decision Support Increased clinical interactions Genomic and Proteomic data Departmental Enterprise Patient Access Complex data models Core Information Management Larger data sets - volumetric data Health Information Management Care Management Clinical Decision Support Chart 2004 by Capgemini U.S. LLC. All rights reserved. 8

9 Challenges in Effective delivery of Care Cardiology $3,943 Cardiology $1,290 Billing plant Administration Pharmacy $1,433 Food services Lab $3,233 About that Bill Intensive Care $17,664 Operating Room $36, Drives the need for better IT utilization... 9

10 A market shift From Modality centric to Patient centric Historically Medical IT at Philips was supporting the Modalities Clinical applications were developed tactically to support modality sales Value did not follow disease line as clinician Today Healthcare Informatics will differentiate with Clinical Focus and building solutions to improve patient care Focusing on patient centric clinical applications will improve outcomes 10

11 Three Tiers of software in current healthcare providers Key Clinical Physicians/Care givers Rich structured content At the point of care/intervention Best of suite solutions Administrative/clinical (Enterprise IT) EMR, ADT, general CPOE etc Administrative Facilities Accounts receivable Human Resources etc 11

12 Episode of Care Stakeholders Admin/HR Admin/Clinical Key Clinical 12

13 Trend towards Advanced Image Processing in the Workflow US Market ($ Mln.) 3D Imaging Applications CAD Clinical image processing applications historically used close to the imaging equipment Multi modality applications requiring image fusion and workflow support Over 60% of all clinical applications will be sold integrated with PACS by Source: Frost and Sullivan, Philips own market intelligence, 2004 Computer Aided Detection (CAD) is a new class of application: Mammography: Breast Lesions Lung Imaging: Nodules Virtual Colonoscopy: Polyps CAGR ~10% 13

14 Agenda Healthcare Informatics Key Clinical Strategy Enabling improved outcomes 14

15 Clinical Applications Fragmented and Disconnected No common Infrastructure Products historically sold separately Independent applications with no common infrastructure Philips Informatics Infrastructure Creates platform for key Clinical Applications Provides lower cost of delivery for our customers Provides a single infrastructure for best of suite solutions Platform for Interoperability with 3 rd party vendors 15

16 isyntax unique enabling technology for distributing 3D volumetric data Philips unique isyntax technology enables fast and scalable distribution of 2D and 3D volumetric data 2d isyntax isite s Advanced Visualization tools: Truly integrated 3D capabilities Speeds-up the reading process for large and complex CT and MR cases, helping to manage the data explosion Enables enterprise wide use of clinical advanced applications. Supporting decision support and CAD 16

17 isite the platform for Advanced Clinical Applications across the Care Cycle isite isite Advanced Visualization CT Colonoscopy Cardiac MR Analysis Coronary MR Vascular MR MR Breast PET-CT Fusion 17

18 Philips Healthcare Informatics uniquely positioned to enable improved outcomes Philips Healthcare Informatics Technology Driven Innovation Time to market Reliability Service Capture Lower cost structure Better diagnosis isite enable the enterprise Platform for delivery of clinical applications at point of care Care Cycles - Developing Best of Suite clinical applications Information Driven Data Information Knowledge Decision making Results Improved outcomes 18

19 Direction for 2007 and 2008 Deployment of Key Clinical Strategy Globally USA Stable and mature enterprise-wide IT Focus on Key Clinical and create interfaces with leading enterprise players Europe Enterprise-wide IT is not yet mature Expand Key Clinical portfolio with enterprise-enabled clinical suites Rest of the World Just starting with IT in healthcare Look for low cost entry points into the enterprise leveraging clinical assets 19

20 Philips Healthcare Informatics: Taking the complexity out of healthcare Thank you 20

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