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Health IT Summit Miami 2015 - Case Study "Consolidation: Greasing the Skids With Interoperability"

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Health IT Conference – iHT2
Health IT Conference – iHT2

Health IT Summit Miami 2015 - Case Study "Consolidation: Greasing the Skids With Interoperability"

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Qi Li, MD, MBA Director, Product Innovation InterSystems consolidation: greasing the skids with interoperability
© 2014 InterSystems Corporation. All Rights Reserved. goal
© 2014 InterSystems Corporation. All Rights Reserved. agenda •  background •  current state of interoperability •  how can interoperability help?
© 2014 InterSystems Corporation. All Rights Reserved. what’s going on? from 2007 to June 2013: 607 hospitals involved in M&A activity (American Hospital Association)
© 2014 InterSystems Corporation. All Rights Reserved. who? •  large •  Ascension Health ($15 B) •  Trinity Health ($12 B) •  Tenet ($11 B) •  small (avg. acquisition 1.7 hospitals) •  inpatient and ambulatory •  for-profit and not-for-profit (roughly 50/50) •  acute and sub-acute (Kindred-Gentiva-Centerre)
© 2014 InterSystems Corporation. All Rights Reserved. an  interes)ng  trend   provider   payor  
© 2014 InterSystems Corporation. All Rights Reserved. why? •  capitalization •  economies of scale •  increase market power •  optimize service lines •  defensive
© 2014 InterSystems Corporation. All Rights Reserved. how  can  we  succeed?   complementary  offerings   interoperability   cultural  fit  
© 2014 InterSystems Corporation. All Rights Reserved. interoperability  is  a  big  deal   Royal Philips, “The New Healthcare Enterprise”
© 2014 InterSystems Corporation. All Rights Reserved. where do we fall short?
© 2014 InterSystems Corporation. All Rights Reserved. where do we fall short?
© 2014 InterSystems Corporation. All Rights Reserved. where do we fall short?
© 2014 InterSystems Corporation. All Rights Reserved. where do we fall short?
© 2014 InterSystems Corporation. All Rights Reserved. is  it  any  surprise?   within two years of consolidation: •  roughly 1 in 5 hospitals start to lose money •  59% fail to outperform market peers
© 2014 InterSystems Corporation. All Rights Reserved. how  can  interoperability  help?   • op,mize  current  opera,ons   • reduce  onboarding/transi,on  ,me   • keep  pa,ents  and  providers  engaged  
© 2014 InterSystems Corporation. All Rights Reserved. how  can  interoperability  help?   • op,mize  current  opera,ons   • reduce  onboarding/transi,on  ,me   • keep  pa,ents  and  providers  engaged   stronger   quicker   happier  
© 2014 InterSystems Corporation. All Rights Reserved. stronger
© 2014 InterSystems Corporation. All Rights Reserved. • 178  beds   • $225  million  annual  revenue   • problem:  lab  tests  performed  out  of  network   stronger
© 2014 InterSystems Corporation. All Rights Reserved. stronger
© 2014 InterSystems Corporation. All Rights Reserved. quicker
© 2014 InterSystems Corporation. All Rights Reserved. quicker
© 2014 InterSystems Corporation. All Rights Reserved. quicker
© 2014 InterSystems Corporation. All Rights Reserved. happier
© 2014 InterSystems Corporation. All Rights Reserved. happier
© 2014 InterSystems Corporation. All Rights Reserved. happier
© 2014 InterSystems Corporation. All Rights Reserved. how  can  interoperability  help?   • op,mize  current  opera,ons   • reduce  onboarding/transi,on  ,me   • keep  pa,ents  and  providers  engaged   stronger   quicker   happier  
© 2014 InterSystems Corporation. All Rights Reserved. wrap-up •  background •  current state of interoperability •  how can interoperability help?
© 2014 InterSystems Corporation. All Rights Reserved. Qi Li, MD, MBA qi.li@intersystems.com @drqili questions

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Health IT Summit Miami 2015 - Case Study "Consolidation: Greasing the Skids With Interoperability"

  • 1. Qi Li, MD, MBA Director, Product Innovation InterSystems consolidation: greasing the skids with interoperability
  • 2. © 2014 InterSystems Corporation. All Rights Reserved. goal
  • 3. © 2014 InterSystems Corporation. All Rights Reserved. agenda •  background •  current state of interoperability •  how can interoperability help?
  • 4. © 2014 InterSystems Corporation. All Rights Reserved. what’s going on? from 2007 to June 2013: 607 hospitals involved in M&A activity (American Hospital Association)
  • 5. © 2014 InterSystems Corporation. All Rights Reserved. who? •  large •  Ascension Health ($15 B) •  Trinity Health ($12 B) •  Tenet ($11 B) •  small (avg. acquisition 1.7 hospitals) •  inpatient and ambulatory •  for-profit and not-for-profit (roughly 50/50) •  acute and sub-acute (Kindred-Gentiva-Centerre)
  • 6. © 2014 InterSystems Corporation. All Rights Reserved. an  interes)ng  trend   provider   payor  
  • 7. © 2014 InterSystems Corporation. All Rights Reserved. why? •  capitalization •  economies of scale •  increase market power •  optimize service lines •  defensive
  • 8. © 2014 InterSystems Corporation. All Rights Reserved. how  can  we  succeed?   complementary  offerings   interoperability   cultural  fit  
  • 9. © 2014 InterSystems Corporation. All Rights Reserved. interoperability  is  a  big  deal   Royal Philips, “The New Healthcare Enterprise”
  • 10. © 2014 InterSystems Corporation. All Rights Reserved. where do we fall short?
  • 11. © 2014 InterSystems Corporation. All Rights Reserved. where do we fall short?
  • 12. © 2014 InterSystems Corporation. All Rights Reserved. where do we fall short?
  • 13. © 2014 InterSystems Corporation. All Rights Reserved. where do we fall short?
  • 14. © 2014 InterSystems Corporation. All Rights Reserved. is  it  any  surprise?   within two years of consolidation: •  roughly 1 in 5 hospitals start to lose money •  59% fail to outperform market peers
  • 15. © 2014 InterSystems Corporation. All Rights Reserved. how  can  interoperability  help?   • op,mize  current  opera,ons   • reduce  onboarding/transi,on  ,me   • keep  pa,ents  and  providers  engaged  
  • 16. © 2014 InterSystems Corporation. All Rights Reserved. how  can  interoperability  help?   • op,mize  current  opera,ons   • reduce  onboarding/transi,on  ,me   • keep  pa,ents  and  providers  engaged   stronger   quicker   happier  
  • 17. © 2014 InterSystems Corporation. All Rights Reserved. stronger
  • 18. © 2014 InterSystems Corporation. All Rights Reserved. • 178  beds   • $225  million  annual  revenue   • problem:  lab  tests  performed  out  of  network   stronger
  • 19. © 2014 InterSystems Corporation. All Rights Reserved. stronger
  • 20. © 2014 InterSystems Corporation. All Rights Reserved. quicker
  • 21. © 2014 InterSystems Corporation. All Rights Reserved. quicker
  • 22. © 2014 InterSystems Corporation. All Rights Reserved. quicker
  • 23. © 2014 InterSystems Corporation. All Rights Reserved. happier
  • 24. © 2014 InterSystems Corporation. All Rights Reserved. happier
  • 25. © 2014 InterSystems Corporation. All Rights Reserved. happier
  • 26. © 2014 InterSystems Corporation. All Rights Reserved. how  can  interoperability  help?   • op,mize  current  opera,ons   • reduce  onboarding/transi,on  ,me   • keep  pa,ents  and  providers  engaged   stronger   quicker   happier  
  • 27. © 2014 InterSystems Corporation. All Rights Reserved. wrap-up •  background •  current state of interoperability •  how can interoperability help?
  • 28. © 2014 InterSystems Corporation. All Rights Reserved. Qi Li, MD, MBA qi.li@intersystems.com @drqili questions