IBM acquired Truven Health Analytics to expand its Watson Health business. The acquisition extends IBM's leadership in value-based healthcare solutions by adding over 8,500 clients and expertise in government agencies, employers, health plans, hospitals, and life sciences. It enables new offerings for value-based care solutions, life sciences, and government services in domestic and international markets. Truven provides data, analytics, and consulting services to over 8,500 customers across payers, providers, employers, governments, and life sciences with deep healthcare expertise and relationships of over 13 years on average with top clients.

1. Watson Health Closes
Acquisition of
Truven Health Analytics

2. “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

3. 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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4. Providers EmployersPayersLife
Sciences
Government
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

5. 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

6. Combination of Strengths Makes Truven Health Unique
DEEP
HEALTHCARE
DOMAIN
EXPERTISE
EXTENSIVE DATA
ASSETS
SOPHISTICATED
TECHNOLOGY
INFRASTRUCTURE
8,500 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

7. 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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8. 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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9. 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

10. 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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