John Crawford, Healthcare Industry Leader Europe, IBM Healthcare & Life Sciences 'Redefining Value in Healthcare'

1. IBM Healthcare & Life Sciences
John Crawford, Healthcare Industry Leader, Europe
© 2012 IBM Corporation

2. IBM’s involvement in Healthcare
 Buyer of healthcare services in the US
– 450,000 lives; $1.5B in investment
– Partner to promote innovation and value
 Change agent
– Founder of Patient-Centred Primary Care Collaborative
– Healthcare standards - IHE, HL7, Continua etc.
– National level reform and eHealth
– IBM Research and whole systems thinking
– Over 600 patents
 Solution provider across the continuum
– Payers / Providers / Life Sciences / Medical Devices
– Infrastructure build and optimization
– Safe and secure transaction processing
– Big Data, information management and analytics
– Horizontal systems integration
– Solutions that intersect business and technology
© 2012 IBM Corporation
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3. Healthcare system transformation is full swing
Expectations for better
Escalating incidence
quality, outcomes and
and cost of chronic
value
disease
Changing
Industry demographics and
Advances in
technologies and
challenges lifestyles
treatments and
opportunities
Globalization of
Increased competition health care
and new entrants
Critical resource shortages
Source: IBM HCLS, IBM GBS Institute for Business Value
© 2012 IBM Corporation
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4. Current business models within healthcare are derived from
a historical approach to providing medical care
Core Principles of Tomorrow’s
Current System Healthcare System
• Over-emphasis on expensive treatments • Focus is on value, coordinated around the
and incremental improvement patient and integrated into communities
• Myopic focus on capacity for acute care • Emphasis is on proactive care to meet
health needs
• Use of volume-based reimbursement
models • Payment is based upon value and
outcomes
• Patients are responsible for coordinating
their own care • Care is standardized according to
evidence-based guidelines
• Care varies by venue and clinician
• We measure quality and make rapid
• Quality is determined by the provider changes to improve it
• Knowledge is translated into practice
© 2012 IBM Corporation
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5. To redefine value and success in healthcare, we need to
build sustainable, collaborative and equitable services
BUILD SUSTAINABLE COLLABORATE TO
HEALTHCARE SYSTEMS IMPROVE CARE AND
Build an efficient, flexible OUTCOMES
system that proactively Improve the quality and
manages cost and efficiency of care, engaging
regulatory requirements, the service user to
and enables greater EVIDENCE AND PATIENT personalise their healthcare
transparency and CENTRIC HEALTHCARE experience, based on their
accountability. preferences
INCREASE ACCESS TO HEALTHCARE
Reduce disparities in access and influence
individuals to become advocates for their own health.
© 2012 IBM Corporation
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6. Our payer and provider clients are adopting five emerging
care models
Increasing clinical risk and severity
 20+ PCPs
Evolution of Care Delivery (20% of total) care
Accountable
5
care model1
organizations
Increasing provider integration
Speciality
Episodes
of care
Convergence of Payer Pro-active primary
2 PCMH
and Provider care provision
4
3
Movement to the 1 Clinical service factories
Individual
Healthy, Early Complex Acute
at-risk chronic chronic episodic
Source: McKinsey Center for U.S. Health System Reform
© 2012 IBM Corporation
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7. Service users are empowered and expect flawless
interactions with health service care providers
“Listen to me”
 More than half “Know me”
of “connected”
service users state  Personalize “Serve me”
internet and social offerings
media interactions  Personalize  Top area for
influence decisions
experience health system
 Personalize innovation – self
services service, convenience
and ease of access
© 2012 IBM Corporation
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8. Redefining value requires new competencies
 Collaboration and partnering
 Information proficiency
 Personalization of health
 Talent creation and retention
 Technology enablement
© 2012 IBM Corporation
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9. Our vision and commitment for IT-enabled change
THESIS: The industry is moving towards evidence-based medicine, change management and informed
policy making to drive healthcare transformation and yield lower costs and improved outcomes
Evidence Evidence
Generation Delivery
Coordinated
care and
Incentives Evidence + Improved
Incentives Outcomes
9 © 2012 IBM Corporation
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10. We apply our systems and solution focus to help reform
healthcare systems and transform healthcare providers
He
alth
Personalized
Access Healthcare
and
Value
Ec
on
Retrospective Reporting
om
to
Predictive Analytics
ic V
Quality
alu
Collaboration and Automation
eO
utc
Integration / Compliance, Resilience,
om
Interoperability Privacy, and Security
Sustainability
es
Structured and Unstructured Data Generation and
Aggregation
Health Integration Framework
Dynamic Infrastructure
© 2012 IBM Corporation
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11. ibm.com/healthcare
© 2012 IBM Corporation
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