Healthcare Transformation 2016 ACO Summit Charlie Lougheed President & Cofounder, Explorys, an IBM Company.

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Healthcare Transformation 2016 ACO Summit Charlie Lougheed President & Cofounder, Explorys, an IBM Company charlielougheed@us.ibm.com

A Frightening Journey For Healthcare Systems Value Capable + Risk Capable + Margin Capable Fee for service Reduced ER visits Reduce re admissions Reduce admissions Reduced specialty visits Reduced procedures /1000 Revenue Value based Capitated risk Gainshare contracting Care coordination/patient engagement Patient Care Medical Home/Primary Care Physician engagement Electronic Medical Record/Central Data Repository Grow marketshare Improve margin

$765Billion -------------------------------------------------------- In Avoidable Costs Source: Kaiser Family Fund

High Deductible Health Plans on the Rise

Life sciences partners Consumer patients Your enterprise Community practices Hyper- Convergence Commercial payers Healthcare Data is the baddest of Big Data Skilled nursing facilities CMS Volume Long term care Partner IDNs of Healthcare Big Data Employers TPAs Medicaid Velocity Variety Veracity Copyright IBM, 2016

Exogenous data (Behavioral, socioeconomic environmental / weather, behaviors, habits, family history, education, living situation, access, satisfaction) 1100 TB generated per lifetime 60% of data Genomics data 6 TB generated per lifetime 30% of data Clinical & claims data 10% of data 0.4 TB generated per lifetime Copyright IBM, 2016

Hello, my name is Watson

The Growth of Watson Health IBM Steps Up to the Challenge of Transformation Truven Health Analytics, implementing and maintaining SSAE 16 certified data aggregation, provides warehousing and analytic services on 4 Petabytes of data impacting decisions for 1 in 3 Americans. Phytel, enabling the delivery of a Best-in-KLAS suite of population health management tools, leverages evidencebased chronic and preventive care protocols that address the entire spectrum of timely, coordinated, and provider-led care directly to your members. The Weather Channel, generating differentiating insights from proprietary Weather Company models and air quality and pollen data, receives 26 billion daily requests from a growing mobile device network of 40 million current users. Explorys, housing the most powerful clinical and claims dataset in the world, applies powerful analytics to a broad range of clinical data to drive provider-led solutions for population health management, value-based care delivery, and benchmarking across 55 million patients. Merge Healthcare, bringing 30 billion processed images from 7,500 facilities in the United States, helps imagingintensive provider specialists reduce cost, increase efficiency, and improve quality. Copyright IBM, 2016

Benchmark Network Net-New Knowledge Through a Learning Network UNIQUE LIVES 55MILLION PROVIDERS 317THOUSAND LIVE CONNECTORS 4,000+ U.S. POPULATION 15% HOSPITALS 360 COMBINED COST OF CARE $69BILLION HEALTHCARE NETWORKS 28 LONGITUDINAL DATA POINTS 315BILLION PRE BUILT ANALYTICS 1,000+ Copyright IBM, 2016

LEARN & ACT TRANSFORM Explorys Analytics & Reporting Apps BIG DATA Data Curation Patient Matching Data Governance Explorys SuperMart Risk & Prediction Measure and Gap Benchmark Phytel Population Health Management Apps Smart List Search Data Publishing Healthcare Big Data Platform ACQUIRE Health Data Gateway Ambulatory EHRs Inpatient EHRs Laboratory Exogenous Data Pharmacy Satisfaction Surveys Claims & Health Plans Billing & Accounting IBM Enterprise Data Warehouse Data Warehouses HIE/HL7 Patient Portal Care Mgmt. Systems Copyright IBM, 2016

IBM Watson: A Cognitive System Generates and Evaluates Watson searches, extracts candidate recommendations scores and ranks decisions Understands Natural Language Watson can read and understand millions and millions of documents. Medical Texts Evidence-Based Guidelines Peer-reviewed Articles Clinical records Watson and Me Learns and Adapts Decisions being made by leading Physicians feed the engine Copyright IBM, 2016 Understands and engages me Learns and improves over time Helps me discover Establishes trust Has endless capacity for insight Operates in a timely fashion

Healthcare and the economy are in the midst of historical realignments. Organizations that leverage their clinical data to improve care, speed innovation, and reduce delivery costs will shape the future of medicine. Toby Cosgrove, MD President and CEO Cleveland Clinic