| Copyright © 2014 Allscripts Healthcare Solutions, Inc.A Connected Community of HealthCopyright © 2014 Allscripts Healthcare Solutions, Inc.
Allscripts
Executive Briefing
CONFIDENTIAL & PROPRIETARY Life Sciences
| Copyright © 2014 Allscripts Healthcare Solutions, Inc.A Connected Community of HealthCopyright © 2014 Allscripts Healthcare Solutions, Inc.
Health Information Technology
Where we were
Where we are
Where we are going
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It's an investment that will take the long overdue step of computerizing
America's medical records, to reduce the duplication and waste that costs
billions of healthcare dollars and medical errors that cost
thousands of lives each year
— President Barack Obama, February 17, 2009
American Recovery and Reinvestment Act of
2009 (ARRA) and the HITECH ACT
• $59B+ In Hospital and Provider Incentives for MU of EHRs
• Health Information Technology for Economic and Clinical
Health Act, abbreviated HITECH Act the HHS is spending ~$30
billion to promote and expand the adoption of HIT
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Stage of MU by first payment year
First Payment
Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2011 1 1 1 2 2 3 3 TBD TBD TBD TBD
2012 1 1 2 2 3 3 TBD TBD TBD TBD
2013 1 1 2 2 3 3 TBD TBD TBD
2014 1 1 2 2 3 3 TBD TBD
2015 1 1 2 2 3 3 TBD
2016 1 1 2 2 3 3
2017 1 1 2 2 3
4
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• Allscripts clients $1billion in MU so far
• KLAS score
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Value-driven healthcare has begun
• Congress and the Administration are united on the need to
reshape our healthcare payment system
• Must reduce our outlay on fee for service expenditures that
reward quantity and not quality in healthcare delivery
• HITECH was first large Federal investment in widespread health
IT adoption
• Laid groundwork for or coincides with programs such as Patient Centered
Medical Home, Accountable Care Organizations, general move to
outcomes- or quality-based payment schemas
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VBC
ID a target population and assess their risk
Attribute a provider to the patient(s)
Develop and share a care plan
Engage the patient & manage their status
Alert care team of status changes, and
coordinate updates to plan
Measure Outcomes
Why Value Based Care? Why Now?
Allscripts recognizes that the move to value based care is transforming the way providers practice,
both at the management level and directly at the point of care
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Market Movement: We see two market movements
beginning to take hold as organizations look for ways to
break current
1
Rise of patient-centered population health
management• New generation of players redefine care delivery and patient experience around clinical
and financial outcomes
• Paving way for new population-based care models, ecosystems, businesses, and profit
models
• Creating demand for new data, analytics, and team-based solutions
2Rise of consumer powered health and markets• Consumers expectations bar is rising – new convenient, personalized, community-
based, simple and intuitive solutions help consumers engage in their health
• Value hungry adjacent players and capital markets see pure growth runway, fueling
innovation; incumbents get wake up call and start building bridges to consumer market
• New marketplaces are created to sell health products and reward healthy choices
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How Far How Fast in Population Health?
We have seen an explosion of ACO activity, with strong
indications the growth will continue.
0
50
100
150
200
250
300
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Nu
mb
er
of
AC
Os
ACO Adoption by Organizing Entity630 Total ACOs
Notes:. An ACO is an Accountable Care Organization.
Source: Leavitt Partners, OW Market Scan and Analysis.
>140 ACOs In
Preparatory
Activity
+
Physician Led, 268
Hospital Led, 250
Insurer Led, 60
Other, 53
2011 2012 2013 2014
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Payment Structures are Changing Quickly…
Between 50% and 70% of UnitedHealth's 26 million
commercially insured members could be covered by value-
based contracts by 2015
10
Sam Ho, the insurer's chief clinical
officer, says the plan "is not just an
exercise or a pilot," noting that it
"represents a significant change in the
architecture of our compensation
models for doctors and hospitals."
Nation’s Largest Private Insurer:
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Our ‘Open’ strategy differentiates
us in the VBC market
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“Clinical outcomes is the name of the game in
ACOs… this is an area where we believe Allscripts
holds a market lead.”
- The Advisory Board Company
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Clinical Drivers
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Clinical Drivers
• Chronic disease growth outpacing population growth
• From ↑ 2003-2023:
• 19% increase in population
• Stroke ↑29%
• Pulmonary ↑31%
• Hypertension ↑39%
• Heart disease ↑41%
• Diabetes ↑53%
• Cancer ↑62%
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Interoperability: Critical for “Big Data”
"Interoperability is the way we can get information where it
needs to go in an effective fashion…How else could you
expect to take reams of fragmented data from disparate
systems and transform it into meaningful information used
to make clinical decisions? Short answer: you can't.”C. Martin Harris, CIO, Cleveland Clinic
Healthcare IT News, Nov. 3
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Allscripts
EHR Landscape
CONFIDENTIAL & PROPRIETARY Life Sciences
| Copyright © 2014 Allscripts Healthcare Solutions, Inc.A Connected Community of Health
ePrescribing Deployment
• Generally, ePrescribing deployment is defined by the
ability to manage: – Medication history
– Prescription benefit design/status
– Prescription transmission and response
• According to Surescripts, in 2014, 85% of office based
physicians are actively using e-Prescribing – 4% increase from 2012
• Additionally in 2013, more than 1.04 billion
prescriptions were e-prescribed, a 32% increase from
2012.
• 95% off all pharmacies have adopted ePrescribing– 98% of chains, 88% of independents
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“The Flow”A 360 Degree view of the Prescription Process
Pharmacy
Prescription Process
eRx Data Entry
Process
The “Flow”
of EMR
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Medscape 2014 EHR Report
Physicians Rate Top EHR
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Leading EHR Market Share by Practice Size
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Top Features Used in EHRs by HCPs
Patient educationmaterial
Coupons/productvouchers forpatients
Drug samples
Patient assistanceprograms
Source: Taking the Pulse U.S. 2014, Manhattan Research
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EHR effect on physician practice
Medscape 2014 EHR Report
Physicians Rate Top EHR
63%
39%
34%
32%
0% 20% 40% 60% 80%
Improves Documentation
Improves Collections
Improves Clinical Operations
Improves Patient Service
Respondents could chose more than one answer
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Medscape 2014 EHR Report
Physicians Rate Top EHR
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Allscripts
Executive Briefing
CONFIDENTIAL & PROPRIETARY Life Sciences
| Copyright © 2014 Allscripts Healthcare Solutions, Inc.A Connected Community of Health
23KREFERRALS MANAGED
THROUGH OUR SOLUTIONS
EACH DAY
PRESCRIBING
PHYSICIANS
100K
Our Connected Community
180,000PHYSICAN USERS
(US)
PHYSICIAN
PRACTICES
50,000
40,000CLINICIANS DELIVERING
IN-HOME CARE EVERY
DAY
1in4HOSPITALS
USE
ALLSCRIPTS
(US)
POST-ACUTE
FACILITIES
13,000
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Connecting the Care Community
| Copyright © 2014 Allscripts Healthcare Solutions, Inc.A Connected Community of Health | Copyright © 2010 Allscripts Healthcare Solutions, Inc.A Connected Community of Health
HospitalsHositals
Physician Practices
Hospitals
Physician Practices
Post Acute Facilities & Agencies
Differentiation: The Largest Connected Community
5