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CVG Upcoming Events Boardroom Series 7:30 AM 9:00 AM April 12 M&A: Tax Considerations Glastonbury Second Thursday 4:30 PM 7:00 PM May 9 Financial Services Stamford June 13 BioTech/Pharma Hartford July 11 Funding New Haven April 17 Employment and Immigration Issues Hartford May 1 Crowdfunding Stamford April 8 Investment by Strategics New Haven
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Page 1: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

CVG Upcoming Events

Boardroom Series 7:30 AM – 9:00 AM

April 12

M&A: Tax Considerations

Glastonbury

Second Thursday 4:30 PM – 7:00 PM

May 9 Financial Services

Stamford

June 13

BioTech/Pharma

Hartford

July 11

Funding

New Haven

April 17

Employment and Immigration Issues

Hartford

May 1

Crowdfunding

Stamford

April 8

Investment by Strategics

New Haven

Page 2: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Marketing at the Speed of Light Welcome

Paul E. Knag

Chair, Health Law Group Murtha Cullina LLP, Attorneys at Law

Page 3: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Three Minute Pitches

Matthew Meier

Jolinda Lambert

David Engelhardt

Yann Beaullan

Page 4: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Marketing at the Speed of Light Electronic Health Records A Look at the Industry and Its Future

Panelists

Daniel J. Barchi SVP and CIO

Yale New Haven Health System,

Yale School of Medicine

Ludwig “Lud” Johnson Vice President, Information Services

Middlesex Hospital

Edward "Ted" M. Kennedy, Jr. Attorney, co-founder and President

Marwood Group

Moderator

Dave Menard Partner

Murtha Cullina LLP

Attorneys at Law

Page 5: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

New York • Washington, D.C. • London

Tel. 212 • 532 • 3651

www.marwoodgroup.com

Electronic Health Records: A Look At The Industry And Its Future Ted Kennedy, Jr.

Crossroads Venture Group

April 11, 2013

Page 6: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

General Themes for Presentation

Healthcare Information Technology (HCIT) Industry Update

Drivers and Barriers to EHR Adoption

– Regulatory and Market Dynamics

Regulatory Issues on the Horizon

– Meaningful Use Stage 3 Criteria and Others

HCIT Investment Opportunities

– Near and Long Term

Select HCIT Transactions

– Understanding the Theories and Assumptions Behind the Investment

Page 7: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

Marwood Group Introduction

Founded in 2000, the Marwood Group is a leading healthcare-focused advisory and financial

services firm with offices in New York City, Washington, D.C. and London

– Professional staff of more than 100 employees including staff of former legislators, regulators and

healthcare operators

– Nationally recognized provider of research and advisory services to institutional investors and

corporations

Provides in-depth healthcare focused research to mutual funds and other investment managers

Completed over 600 advisory engagements for financial sponsors and healthcare companies

Marwood provides advisory services across seven different practice areas:

● Identify areas of

risk for fraud and

abuse

● Assess provider

performance

through review of

regulatory surveys

Financial

Analysis

Market

Analysis

Federal

Analysis

● Competitive

landscape

analysis

● Process

benchmarking

● Market sizing

● Valuation

● Financial

modeling and

projections

● Pro forma

analysis

● Legislative

● Regulatory

● Medicare

reimbursement

● Medicare

coverage

● FDA regulation

Clinical &

Compliance

Diligence

Provider

Research

● Decision making

process mapping

● Purchasing

dynamics

● Product selection

criteria

● Product clinical

differentiation

State

Analysis

● Legislative

● Regulatory

● Medicaid

reimbursement

● Medicaid coverage

● Workers

compensation

Private

Payor

Research

● Reimbursement

outlook

● Coverage outlook

● Medical policy

review

● Clinical

differentiation

Integrated Analysis Provides Holistic Market Perspective

7

Page 8: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

Marwood has advised clients in over 85 sub-sectors across healthcare services and products

Rehabilitation Managed Care Health IT Pharmaceuticals/Biotechnology

● Inpatient Rehab Facilities

(IRFs)

● Outpatient Rehab

● Physical Therapy

● Occupational Therapy

● Commercial Health Plans

● Medicare Advantage

● Specialty Benefit Managers

● Special Needs Plans

● Disease Management

● E-Claims Disability Processing

● Medicaid Management

Information Systems

● Pharmacy Benefits Administration

● Teleradiology

● Biologics

● Branded/Generic Drugs

● Nuclear Pharmacy

● Pharmaceutical Compounding

● Specialty Pharmacy

Post Acute Care Behavioral Health Care Hospitals Diagnostics

● Adult Day Care

● Home Health

● Hospice

● Long Term Care Pharmacy

● Skilled Nursing Facilities (SNFs)

● Assisted Living Facilities (ALFs)

● At-Risk Youth

● Care Management

● Autism

● MR/DD

● Residential Treatment Centers

● Acute Care Hospitals

● Long Term Care Hospitals (LTCHs)

● Specialty Surgical Hospitals

● Psychiatric Hospitals

● Hospital Outsourced Services

● In Vitro Diagnostic Multivariate

Index Assays (IVDMIA)

● Clinical Laboratory Improvement

Amendments Labs (CLIA)

Ancillary Care Durable Medical Equipment Other Medical Products

● Enteral Therapy

● Infusion Therapy

● Inhalation Therapy

● Diabetic Testing Supplies

● Power/Complex Wheelchairs

● Diabetic Footwear

● Home Oxygen

● Medical Supply Distribution

● Group Purchasing (GPOs)

● Revenue Cycle Management

● Workers’ Compensation

● Clinical Staffing

● Transportation Services

● Hospitalists

● Pharmacy Benefit Managers

● MSAs/HSAs

● Program Integrity

● Health & Wellness

● Intraoperative Neuromonitoring

● Prison healthcare

● Patient Satisfaction

● Medical Education

● Implantable Devices

● Single Use Devices (SUDs)

● Physician Preference Items

● Capital Equipment

● Other Surgical Instrumentation

● Medical/Surgical Supplies

● Contract Manufacturing

● Durable Medical Equipment

● Blood Monitoring

● Contact Lenses

● Cosmetic Laser Surgery

● Negative Pressure Wound Therapy

● Leg compression Pumps & Sleeves

● Orthotics & Prosthetics

● Precision Guidewire

Physician/Medical Laboratory/Radiology/Dialysis

● Anesthesiology Groups

● Dental Groups

● Dermatology/Dermapathology

● Emergency Medicine

● Ambulatory Surgery (ASCs)

● Pain Management

● Wound Care

● Clinical Labs

● Dialysis Clinics

● Diagnostic Imaging (MRI, CT, PET)

● Pathology Labs

● Radiation Therapy (IGRT, IMRT)

● Sleep Centers/CPAP

● Urine Drug Testing

Healthcare Products Healthcare Services

Broad Healthcare Sector Expertise

Page 9: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

State of HCIT Industry: Tremendous Growth

Healthcare providers continue to adopt EHR technology, driving tremendous growth in the

HCIT industry

– VC HCIT investment has increased significantly, rising to more than $765 million in 2011, according to

the National Venture Capital Association

Much of the growth has been driven by Government programs (CMS Meaningful Use) and

various market dynamics

– CMS reports that 80% of hospitals and 70% of professionals eligible for the Meaningful Use program

have registered

– As of February 2013, $12.69 billion in Meaningful Use incentive payments has been allocated

Basic EHR Adoption Rate Among Providers

Source: The Office of the National Coordinator for Health Information Technology

10%

15%

20%

25%

30%

35%

40%

2008 2009 2010 2011

Office-

Based

Provider

Hospital

HCIT Industry Revenue & Market Capitalization

$3.99 $4.69

$5.46

$6.23

$7.01

$7.82

$17.0 $18.4

$21.7 $22.4

$26.9

Marwood selected publicly traded company HCIT index, Source: CapIQ

$ in B $ in B

Page 10: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

Publicly Traded HCIT Revenue Growth & EBITA Multiples Remain Strong With EBITDA Margins Above 25%

AH

ATHN

QSII

CPSI MDRX

CERN

MDAS

EM

0%

5%

10%

15%

20%

25%

30%

35%

8.0x 10.0x 12.0x 14.0x 16.0x 18.0x 20.0x

Revenue Cycle Management EBITDA Multiples Versus Growth

20

12

Re

ve

nu

e G

row

th

2012 EBITDA Multiple

Stock % of Diluted Diluted Enterprise Value as a Multiple of EBITDA Long-Term

Price 52-Wk Equity Ent. Revenue EBITDA Margin 2012E Growth EPS

Company Name Ticker 6/24/11 High Value Value 2011E 2012E 2011E 2012E 2011E Revenue EBITDA Growth

Revenue Cycle Management

Accretive Health AH $24.54 80.1% $2,572 $2,416 2.87x 2.18x 29.4x 18.5x 9.8% 32.0% 58.8% 34.0%

athenahealth ATHN 41.01 81.1% 1,483 1,376 4.43x 3.49x 20.9x 15.6x 21.2% 26.8% 33.4% 35.0%

EMR / Diversified Provider HCIT

Quality Systems QSII 82.49 90.1% 2,420 2,302 5.68x 4.74x 16.8x 13.6x 33.8% 19.7% 23.1% 18.3%

Comp Prog. & Sys. CPSI 58.98 89.4% 648 631 3.63x 3.23x 15.4x 13.2x 23.6% 12.2% 16.3% 16.6%

Allscripts MDRX 18.75 81.1% 3,699 4,058 2.82x 2.55x 12.4x 10.4x 22.7% 10.4% 19.4% 19.9%

Cerner CERN 115.97 92.1% 10,260 9,517 4.58x 4.07x 14.0x 11.6x 32.6% 12.5% 20.6% 18.2%

Diversified

MedAssets MDAS 13.18 52.6% 815 1,738 2.91x 2.66x 9.3x 8.1x 31.2% 9.5% 15.2% 24.1%

Emdeon EM 13.40 79.6% 1,572 2,419 2.35x 2.12x 8.5x 7.8x 27.8% 10.7% 8.5% 14.3%

Mean 3.66x 3.13x 15.8x 12.4x 25.3% 16.7% 24.4% 22.5%

Median 3.27x 2.95x 14.7x 12.4x 25.7% 12.3% 20.0% 19.1%

Page 11: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

Drivers For EHR Adoption: Regulatory & Market

Market Drivers

ACOs As ACOs come into formation, participating providers will need to adopt

sophisticated HCIT platforms based off EHR data in order to drive savings and

enhanced care

Acquisitions

As large health systems continue to acquire smaller physician practices, such

practices are able to utilize the larger systems EHR platforms

– One of the reasons why physician practices agree to be acquired in the first place

Efficiency & Quality EHRs are a essential tool required to drive operational efficiency, including

maximization of reimbursement, and clinical quality

Regulatory Drivers

Financial Incentives

Medicare incentives include up to $44,000 per year per qualified physician over

5 years

Medicare incentives for hospitals are based on discharges over a 4 year

timeframe

Financial Penalties

Physician penalties are dependent on the total number of physicians that adopt

EHRs as of 2018

– Physicians who do not comply will be cut between 3-5% by 2019 through adjustments to

the physician fee schedule (PFS)

Medicare penalties for hospitals include an increasing market basket reduction

starting at -0.25% in 2015 going as high as -0.75% market basket reduction if

not compliant by 2017

Page 12: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

Barriers To EHR Adoption

Barriers To EHR Adoption

Up front

Cost

While the Meaningful Use program provides financial incentives to providers, payments are

made in increments over a 5 year period, leaving much of the costs associated with

converting paper records the responsibility of the physician practice

– Companies such as EClinicalWorks, a EHR practice management company, hosts clients EHRs for a fee

reducing up-front costs of computerizing provider EHRs

Purchasing and licensing of software remains a big issue for smaller practices, as systems

typically cost can be $30,000 or more per doctor

EHR

“Learning

Curve”

Even after hospitals implement an EHR system, it often takes considerable time for both

clinicians and administrators to learn how to use the new software

– Physician productivity can drop by 30% as physicians learn how to use the new systems

Physician

Acceptance

Lack of new technology acceptance, especially for older physicians and physicians

practicing in rural areas

– It is estimated that over 25% of the physician workforce is 60 or older

– National Bureau of Economic Research suggests that EHR adoption can be more costly in rural areas

Connectivity The ability for healthcare providers to exchange EHR information across different

healthcare systems and settings of care remains limited

Product

Offering

Currently EHR product offerings remain fragmented, including sub-sectors and health

system specific products, fueling connectivity issues

– Specialized EHR products range from clinical laboratories to wound care-focused products

– In addition, large hospital systems continue to design system-specific specialized platforms

Page 13: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

What’s Hot In Healthcare IT: Regulatory Concerns and Potential Opportunities For HCIT Providers

15%

16%

21%

21%

22%

24%

24%

26%

29%

45%

0% 10% 20% 30% 40% 50%

Consolidating All IT Functions Using Common

Applications

Adopt/Extend Ambulatory Clinical IT Systems

Enabling Patient Access To Selected Data Via

The Internet

Clinical Communications Infrastructure/Links

to Physicians

Data Privacy & Security

Electronic Health Records

Developing Data Warehouses

Adopt/Upgrade Financial & Clinical Systems For

ACO or Medical Home Readiness

Achieve Stage 1 Meaningful-Use Criteria

Achieve ICD-10 Readiness

Ranked by % of respondents, based on 110 responses (Source: Modern Healthcare, March 4, 2013)

Regulatory Issues

Near Term Opportunities

Long Term Opportunities

Page 14: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

Regulatory Issues On The Horizon: Meaningful Use Criteria Stage 3 Definition

“Meaningful Use” is a series of functional benchmarks which need to be met in order to be compliant

under the Health Information Technology for Economic and Clinical Health (HITECH) Act

Key “Meaningful Use” questions for providers:

– What new criteria/requirements will Stage 3 mandate?

– Will the implementation of Stage 3 be delayed, similar to Stage 2 delays?

– Will Congress, specifically House Republican members, continue to support the program?

Recent studies suggest that EHRs may not be as successful in reducing costs, such as reducing unnecessary diagnostic tests, as

previously predicted

Meaningful Use Criteria By Stage

Stage Description Regulation

Finalized Implementation Criteria Examples

1 Basic HIT structure

and foundation 2010 2011

Recode demographics, vital signs, smoking status and

medication list

2

Focus on information

exchange quality of

care

2012

Planned

Implementation in

2014

Generate patient lists for quality improvements, send

reminders to patients on follow-up care, provide

electronic clinical summary for each office visit

3

Promote further

improvements in

quality, safety and

efficiency

Possibly

mid-2014 Possibly in 2016

Proposed: Identify possible medication allergies, provide

decision support regarding medication requirements and

diagnostic testing, electronically submit information to

other entities, such as HIEs or ACOs*

* Stage 3 criteria examples are based off proposed criteria from the Health IT Policy Committee which have not been finalized in regulation

Page 15: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

Other Regulatory Issues On The Horizon

Issue Description

Privacy &

Security (HIPPA

Compliance)

HHS continues to release additional privacy and security regulations, including

limitations on the disclosure of personal health information (PHI)

Increased privacy safeguards may inhibit innovative HCIT companies’ ability to

analyze EHR data

– On January 17, 2013, HHS issued additional rules adding numerous new privacy and

security requirements

EHRs: A

Tool For

Upcoding?

HHS continues to investigate EHRs’ role in enabling hospitals to “upcode” for

greater reimbursement

– Examples include “cloning” medical records and upcoding the intensity of care in order

to inflate provider reimbursement

On September 24, 2012, HHS sent a letter to 4 major hospital associations voicing the agency's concern such practices

FDA

Regulation

While the FDA has largely refrained from enforcing its regulatory authority over

medical software, regulators continue to investigate the agency’s jurisdiction

over EHRs

ACA Device

Tax

Under ACA, all devices registered by the FDA are subject to the device tax,

which recently went into effect earlier this year

– It remains unclear how many EHR companies are registered with the FDA

– Potential for device tax repeal, although would need $29B in offsets

Page 16: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

Outsourcing day-to-day services:

HCIT Opportunities

Marwood has identified the following near and long term opportunities

though our own proprietary industry surveys focused on the HCIT space

Registration/

Eligibility

Data Center Server

Management

Claims Coding,

Including ICD-10

Transition

Disaster

Recovery/Back-up

Processes

Travel And Expense

Reimbursement

EHR System

Implementation

Collections/

Bill Scrubbing/

Quality Assurance

Data Warehouse

Development/

Maintenance

Long Term Opportunities

While there was little directly related to

HCIT in healthcare reform (ACA), advanced

data analytics will play a critical role in

delivering higher quality and lower cost

care.

Streamlined

Reporting/Data

Analytics

Data Analytics To

Drive Outcomes

/Clinical Support

Technology

Advanced Cloud

Technology

Integration

Management

Near term Opportunities

Advanced data analytics in order to drive

operational efficiency:

Page 17: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

Select HCIT Transactions: Different Approaches To Enhance Communication Between Payors & Providers

Year Acquisition Strategy Size ($mm)

Aetna 2010 Medicity

At the time, many thought that HIEs were going to be an essential

part of the information flow solution, reflected in the acquisition

purchase price (10x revenue)

Even in 2013, the amount of information actually flowing through

HIEs remains limited, leaving some in the market to question the

value of HIEs

$500

Conifer

(Tenet) 2012 InforMed

InforMed combines both provider claims and EMR, essentially

creating their own self made version of a HIE

– The acquisition supports hospital trends in providing care management

-

TriZetto 2011 Gateway

EDI

Places both provider (Gateway EDI) and payor (TriZetto) RCM

business lines under one corporate umbrella -

Blackstone 2011 Emdeon Emdeon is already entrenched in both provider and payor

markets $3,000

A wide range of strategies have been used to enable providers and payors across

the healthcare spectrum to communicate with each other, including:

– Healthcare Information Exchanges (HIEs)

– Advanced data analytics and care management platforms

– Merging of payor and provider Revenue Cycle Management (RCM) companies

Page 18: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

Other Acquisitions Of Note: Continued Focus On Advanced Data Analytics And IT Infrastructure

Year Acquisition Strategy Size ($mm)

United 2013 Humedica

Provides United’s healthcare services arm (Optum Health) with a

position in the growing health data mining market

– The acquisition follows Optum’s partnership with Mayo Clinic, known as

Optum Labs, a research center that will mine clinical and claims data in order

to enhance the quality of care

-

Athena

Health

2013 Epocrates

Enables Athena to further penetrate the physician market, selling its

cloud-based network technology to Epocrates’s strong network of

physician customers

– Epocrates is primarily know for its point of care mobile applications

Largest acquisition in Athena’s corporate history representing a 22%

premium over Epocrates closing stock price

$293

2012

Healthcare

Data

Services

Expands Athena’s cloud-based services strategy

Expands population-based cost and quality data analysis and

reporting capabilities, essential as value-based payment models are

implemented

$5.8

Recent M&A activity reflects a change in priorities of healthcare executives from

“day-to-day” IT to more advanced data analytics and IT infrastructures

Page 19: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

© Marwood Group Advisory, LLC 2013 Unauthorized reproduction or distribution of this copyrighted work is prohibited

Marwood Group Contact Information

Ian Adler

Senior Managing Director of Healthcare

[email protected]

(212) 532-3651

New York, NY

733 Third Avenue

11th Floor

New York, NY 10017

Washington, DC

1025 Connecticut Ave, N.W.

6th Floor

Washington, D.C., 20036

For additional information, please contact:

19

Page 20: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Healthcare IT Market

User Perspective

Lud Johnson, CIO

Middlesex Health System

April 11, 2013

Page 21: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Middlesex Health System

• Health System - most parts of the continuum

• About the 12 largest Hospital in CT

• Highly Automated

o Most Wired Hospital 2012

o HIMSS Analytics Automation top 10% of Country

• Meaningful Recipient

• ACO Participant

• Actively hooking up the continuum

• IT Operating cost $9.4 Million: 2012

• Capital cost $5 million: 2012

Page 22: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Healthcare IT Market

• Growing much faster than economy

• Fueled by: o Healthcare Transformation

o Government Stimulus

• Complexity of need

• Technology rapid advancements

• Growing demand

• Need to achieve great quality

• Solve the National Economic Fiscal Crisis

Page 23: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Healthcare is in Transformation

• Fee for service

• Volume matters

• Care is local

• Third party payors

• Quality unknown

• Disconnected

providers

• Independent providers

• Independent Clinical

Device

Current State

• Population mgmt.

• Appropriate vol.

• Care is everywhere

• Patient involvement

• Quality discernible

• Seamless

information sharing

• Consolidation

• Smart Connected

Devices

Future State

Page 24: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Opportunities

1. Health management

2. Connecting the providers

3. Intelligent diagnostic support

4. Engaging the patient

5. Point of service devices

6. Work process improvement tools

7. Clinical Intelligence (Pop. mgmt)

8. Mobile computing

9. IT Services and Resources

10.Smart Clinical Devices

Page 25: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Healthcare and EMR Adoption Daniel J. Barchi, SVP & CIO

Yale New Haven Health System

Yale School of Medicine

Page 27: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Yale School of Medicine

Page 28: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Current State of Healthcare

Technology

Page 29: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

National EMR Use

Page 30: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

• Institute of Medicine (1999)

• Preventable medical errors

• 44,000 deaths annually

• Motor vehicle accidents 43,468

• Breast cancer 42,297

• AIDS 16,516

Page 31: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13
Page 32: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Isordil –

Prevents angina

attacks

Plendil –

Calcium channel

blocker

Page 33: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

National Electronic Medical

Records Initiative

Page 34: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

January 8, 2009

Page 35: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

National Electronic Medical

Records Initiative

Aspirational

Page 36: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

May 25, 1961

Page 41: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

January 8, 2009

Page 42: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

2008 EMR Use

Physician Practices

4% had fully functioning EMRs

in their office

Hospitals

1.5% had fully implemented

comprehensive EMRs in all

units

Page 43: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13
Page 44: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13
Page 45: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

American Recovery and

Reinvestment Act

• $19 B Incentive Grant

• $44 K for physicians

• $8 M baseline for hospitals

• Meaningful use on an EMR

• Stage I

• Stage II

• Stage III

Page 46: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Federal Stimulus Program

Year of

AdoptionFY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

2011 100% 75% 50% 25%

2012 100% 75% 50% 25%

2013 100% 75% 50% 25%

2014 75% 50% 25%

2015 50% 25%

None

75% of

percentage

increase

reduced by

33.3%

75% of

percentage

increase

reduced by

66.63%

75% of

annual

increase

reduced by

100%

Page 47: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Stimulus Funding

Bed Days 171,569 Discharges 32,281

Medicare Days 73,862 Charity Care 4.94%

Year 1 $2.88 M

Year 2 $2.16 M

Year 3 $1.44 M

Year 4 $0.72 M

Total $7.21 M

Page 48: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13
Page 49: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13
Page 55: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

875

3M

Coding

Siemens

Invision

Lawson

Sybase

Integration

Engine

125, 135, 219, 223, 245, 760,

594, 676, 765, 1029, 1039, 1093, 1095

780, 805, 808, 814, 816, 830, 837, 842, 844, 849, 856, 858, 860, 862, 864

866, 900, 907, 915, 927, 935, 955, 962, 970, 976, 992, 1000, 1005

840

839

20

Misys

Vision1 of 2

850, 1015

1020

155

864

612, 620

624, 639

641

127, 170

185, 221

695, 866

1026

145,146,147

148,149 150

152,153,154,

155,158,159

160

915

158,

641, 970

962

808

730

390

CPSI2 of 2

95, 126,

154, 220

266, 862

1025 263, 556, 558,

562, 564, 568,

570, 572,

582, 594, 596,

583, 597,604

500

1036

Various

Datasets

PerSe1 of 3

TSG Application Interface Chart

725

1070995950

Financial

Services

Restricted

WebSite

Planning

& Budget

Financial

Support

Softmed2 of 2

873

778

843

925 930

792, 800,

886, 890

825

826

878

McKesson

Horizon(Pathways)

760

762

765

Updated: December 1, 2006

TOTAL Number of Interfaces: 509

75

975

149

842

660, 662

674, 676

682, 666

668, 670

677

810

626

628

161

35, 133

148, 520,

564, 624

670

121, 132,

515, 562

1091

410 402

405

Sovera

PFS1 of 2

632

640

600

960

206

622

689

920

175

Datis

812

1040

1050

HBO

REV3

HBO-CDM

Siemens

Financial

RMHIS

Softwise

530

Dynamedix

Genesys

Hyperion

Trendstar

KRONOS

OneStaff

Sanitas

RescueNet

Medicaid

HQM

SSI 2 of 3

Medicare

MedQuestTranscription

Sovera

HIM2 of 3

Novius

Radiology

PACS

(IMPAX)180

660510, 515,

520

FACS1 of 2

Wellsoft

EDIS

159,263,

189,604,

682,1000,

1027

184

837

Pyxis1 of 2

Eclipsys

EMPI1 of 2

180, 181

183, 184

185, 186

187, 189

147, 201

620, 814

Credit

Card

Payment

Coro-metics

Fetal Mon.

Siemens

Pharmacy1 or 2

CPSI1 of 2

GE

Centricity

Pillbox

CTVision

SSI1 of 3

Antrim MisysLab

Sovera

HIM1 of 3

1030

CoPath

140

560

130. 131

132, 133

134, 135

136, 137

138, 139

141, 142

265

GE Cardiology

MUSE183

755

710

965

971

Rauland Borg -

Nurse Call900

415OASIS

SunTrust

1045

592 MAK

639

955

Siemens

Soarian1 of 2

136

186

596

677

927

1105

1025

1026

1027

207, 210

SCA

735 1035

Internal

Audit846

225

PaWS

1110

Sovera

PFS2 of 2

MEMS

Rosebud

540860

25

702

704

GE

ORIS

NC AVAYA

NC CRMH

720

722

Common

Master Tool Kit

GroupWise

120, 121, 123

124, 125, 126

127, 128

123

Pharmacy

OneSource876

1090

1091

1093

1095

1105

Power

Scribe

674

Delta Dential375

Automated

Mailing

Service100

164

FACS2 of 2

162

Various Clients

& Web212

215

68

Atlas

Labworks

HEDIS

130, 260

556,

134

568

240

Wachovia 401

SHPS400

Sovera HIM

3 of 3

638

OmniCell

685

PerSe2 o f 3672

750

777

Quantum Med

CarePort

120, 131,145

181, 200, 510,

558, 612 662,

780, 1090,1075

Teletracking992

580

VA

Medical680

35

90

95

Intergual

124,849

150

Harford

Decision

Support

PR Dept

377

693

397

399

695

586

Dublin Family

Practice666

Pyxis

2 of 2716

IDS

Carousel

714

HEDIS

DB

Internet

Web

Sites

870, 795,

820, 770,

848, 776

Computrition

Dietary805

IMPAC844

907

65

PaWS2 of 2

708

Anthem

50

55

151

153

858

245

Digisonic170

668

250

Eclipsys

EMPI2 of 2

188

220

221

222

Lab

Outreach

eMPI Helper

260

200

201softmed

1 of 2

187

1029

Health Stream 380

LabPort266

394

SSI3 of 3

505

572

138, 90

128, 139

265, 582

MS4650

678

712

eDischarge

LBS142

583

146

816

Xtend160

1005

137, 935

597, 762

Professional

Research

Professional

Billing

880

882

Soarian2 of 2

1028

1078

VA Dept

Health

1077

1075

1078

Power

Campus

387

PerSe

3 of 3

630

LabCorp

262

156205

217

235

Quantum

Billing141

Various

Websites

Anthem

Centricity

379

374

396

b2b Vision

CASB 616, 618

610

CASB-FS

CCL&PA

NCHS

785

790

865

B2b Optma

230

Interfaces not on diagram: 103, 105, 110, 195, 196, 525, 550, 584,

636, 687, 692, 700, 1041, 1112

223Lawson

2 0f 2

Paitent Keeper

102

MDAssociates152

856

838

223

625

222

1038

Vision

2 or 2997

GE Centricity

Cardiology

218

219

Trendstar

2 of 2

643

Wellsoft

EDIS

2 or 2

1094

642

830

157

Pharmacy2 of 2

761

976

1039

BPI.net101

779

Total

Interfaces: 509

Page 58: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Integrated EMR Benefits

Page 59: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13
Page 60: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13
Page 61: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

ACO Diabetes Program - Dashboard

Page 62: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13
Page 63: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13
Page 64: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13
Page 65: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

Thank you

Daniel Barchi

[email protected]

(o) 203.688.1881

(m) 203.506.7309

Page 66: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

THANK YOU CVG SPONSORS

B Round

A Round

Venture Capital Sponsors Professional Service Firms

Page 67: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

CVG Upcoming Events

Boardroom Series 7:30 AM – 9:00 AM

April 12

M&A: Tax Considerations

Glastonbury

Second Thursday 4:30 PM – 7:00 PM

May 9 Financial Services

Stamford

June 13

BioTech/Pharma

Hartford

July 11

Funding

New Haven

April 17

Employment and Immigration Issues

Hartford

May 1

Crowdfunding

Stamford

April 8

Investment by Strategics

New Haven

Page 68: Electronic Health Records (EHR) - A Look at the Industry and Its Future, A CVG Second Thursday Event, 4/11/13

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