The document summarizes a presentation about how RFID technology can help address challenges in the healthcare industry. It discusses how RFID can enable a "connected hospital" with real-time visibility of assets and inventory. The presentation includes details on RFID solutions from Impinj and Terso, including case studies of hospitals and medical organizations that implemented RFID to track high-value inventory, reduce costs, and improve patient safety and regulatory compliance. It concludes that RFID is delivering proven benefits in healthcare and will continue enabling healthcare transformation.

1. Featuring:
September 2013
RFID and the Connected Hospital

2. September 2013
Today’s Presenters & Agenda
Tracy Hillstrom
Sr. Product Marketing Manager
Impinj, Inc.
Joe Pleshek
President & CEO
Terso Solutions, Inc.
Impinj
• Healthcare Provider Woes
• The Connected Hospital
• RFID Technology
• About Impinj
Terso Solutions
• Introduction to Terso Solutions
• Key Challenges in Healthcare
• How Can RFID Help?
• What Is the ROI?
Question & Answer Session

3. September 2013
Current levels
of revenue and
profit are not
sustainable
Health spending in the US has grown nearly 5
times that of GDP since 1960.1
Delivery of
quality care is
hindered by
overloaded
humans
“We found that 25% of clinical staff’s time is spent
looking for things, and 10-15% of their time in the
OR is spent looking for instruments.”2
Inventories
have grown out
of control
“…the healthcare industry has half a trillion dollars
tied up in inventory.”2
“Product recalls, now occur about 15 times per
week in medical devices and 20 times per week in
pharmaceuticals in the U.S. alone”2
Healthcare Provider Woes
1. March 12, 2013, Time Magazine, “The Bitter Pill”
2. October, 2012, McKinsey & Company, “Strength in unity: The promise of
global standards in healthcare.”

4. September 2013
The Connected Hospital
• The Connected Hospital allows for automated data
collection and real-time access to information at
point-of-service
– Asset Tracking, Surgical Instrument Tracking
– Patient Workflow Optimization
– Inventory Optimization
– Pharmacy
– Compliance (5 Rights, Hygiene)
– Patient Safety (infants, eldercare)
– Temperature Monitoring
– Equipment Maintenance
• Key requirements
– Data collection without human intervention
– Item identification

5. September 2013
RFID Technology

6. September 2013
About Impinj, Inc.
Leading provider of UHF RFID
solutions for identifying, locating, and
authenticating items
• Innovative product portfolio
– Tag chips
– Reader chips
– Readers & antennas
• Enabling numerous industries
– Retail
– Pharmaceutical
– Food and beverage
– Consumer electronics
– Manufacturing
– Logistics

7. September 2013
Terso Background
Terso’s inventory management solution integrates RFID
enabled cabinets, refrigerators, and freezers with a
RFID data platform and 24/7 support services to
effectively monitor product inventory any time of the
day or night.
• Formed in 2005 by Promega
• Headquartered in Madison, Wisconsin
• European facility in Mannheim, Germany
Commercially-proven
• Fifteen patents secured for Terso RFID solutions
• 12 years of continuous use
• Over 1,400 implementations worldwide
• Over 12,000,000 operational hours

8. September 2013
RFID Solutions for Healthcare and Life
Sciences
RFID Storage RFID Store Rooms Platforms/Applications

9. September 2013
How the Solution Works
Place Internet
enabled
RFID cabinet at
the point of use
Pre-authorized
users access the
cabinet with
RFID cards
Users add and/or
remove RFID tagged
inventory from the
cabinet
Access the web-based,
system for global
visibility, 24/7 operation,
and remote access to
individual units

10. September 2013
Over 1,400 RFID Implementations World-wide

11. September 2013
Key Drivers in Healthcare
• Aging population
• Expenditures increase significantly with age
• Customization in treatment – innovation is driving costs
up
• Decreasing reimbursement
• Hospital employed MD’s
• Healthcare legislation
• Regulatory requirements
11

12. September 2013
Key Drivers in Healthcare
• Strong growth in emerging markets
• Increasing supply chain complexity
• Increased need for cold chain storage and
transportation
• Growing need to capture data tying patient,
procedure and outcome together
12

13. September 2013
Supply Chain Challenges in Healthcare
• Significant amount of high value inventory in the healthcare
supply chain (stock rooms, trunk stock, etc.)
• 7 – 10% inventory expiration/obsolescence rates/year
• Hospital staff spend 10 – 30% of their time tracking inventory
• Lost inventory / shrinkage – items are not property charged to
the patient
• Little “point of use” data is shared between hospitals and
providers in real time
• Regulator audits are increasing creating additional
documentation and training
13
Source data: 2008 Gartner/AMR, primary market research with multiple MD&D companies and
Medical Device Supply Chain Council

14. September 2013
Key Needs
Providers
• Visibility and control of product purchases
• Improved charge capture of products used in procedures
• Reduced labor managing inventory
• Consignment inventory
• Robust compliance practices
Suppliers
• Demand visibility as “real time” as possible
• Lower inventory levels leading to less obsolescence
• Reduced labor managing inventory
• New supply chain and service models
• Robust compliance practices

15. September 2013
Case Study -
15
Business Challenge
A large teaching hospital and primary care center needed a system to
store, track, and manage the use of high cost items, such as heart valves.
Their goal was to improve workflow by eliminating manual transactions
for heart valve inventory, reduce operating costs, and improve patient
safety.
Solution
Implemented Terso's RFID enabled inventory management solution to:
• Provide complete visibility to the heart valves at any time
• Ensure patient safety by sending proactive alerts for products close to expiration
• Acknowledge and monitor all products without requiring a direct line of sight
Results
• Increased time spent on patient care
• Reduced amount of time nurses spent tracking movement of heart valves
• Doctors and nurses more prepared for scheduled cases
• Reduced number of lost heart valves
• Ensured patients are properly charged for products consumed

16. September 2013
Case Study -
16
Business Challenge
A leading medical device company needs a solution to automate the inventory
reconciliation process for human tissue implants.
To meet regulatory compliance the company would manually record inventory
at hospitals and distributors each month consuming valuable time.
Solution
• Implemented RFID enabled inventory management solution
• Automatically record the activity of each tissue implant and temperature
• Provide real-time visibility of current inventory levels
• Send proactive alerts for products close to expiration
Results
• Eliminated 15,000 hours reconciliation time per year
• Improved regulatory compliance with automated temperatures
• Increased revenue from accounts with this value added service
• RFID cabinets enabled on-line replenishment processing

17. September 2013
Case Study -
17
Business Challenge
A leading provider of software to hospitals use to track valuable inventory including
all implantable devices and tissue graphs
• The software enables hospitals to optimize inventory levels and meet regulatory
compliance requirements
• To move inventory from one location to another (central supply to operating room)
users have to manually transfer the item
Solution
Integrated Terso’s RFID enabled enclosures including -80 degree freezers into
Champion software via Terso’s RFID data platform
Results
• Reduced manual inventory tracking by over 40%
• Reduced data entry errors into the system
• More timely point-of-use data for inventory is integrated with EMR systems

18. September 2013
Case Study – Stowers Institute for Medical Research
• Eliminated the need for data entry and reduced the checkout time to mere
seconds rather than minutes. Average total checkout time for a researcher
is 15 seconds.
• 70% reduction in shrinkage and expired product write offs.
• Eliminated hundreds of hours of work in tracking down missing products and
reconciling missing inventory.
• Gave the researchers more hands-on opportunities to consider new products
Business Problem
• Lack of customer service from solution provider.
Current system lacked functionality they require
• System able to be ‘tricked’ once opened; no item
level tracking
• Many manual processes to reconcile transactions
• Significant shrinkage; more than 6 items per week
Results
Solution
• RFID enabled Smart Stockroom with self check-out
• Doorway RFID portals integrated with video cameras ensure all
products are tracked entering and leaving the stockroom

19. September 2013
Jetstream
Devices
Device
Management
Inventory Applications
Data Services
ERP

20. September 2013
What Can We Conclude?
RFID can help enable the connected hospital!
• Bring “real time” visibility to high value inventory
• Connect product usage to patient record via integrated
systems
• Reduce labor costs by automating inventory management
• Enhance patient safety and regulatory compliance
• Track consignment and better manage vendor trunk stock
• Enable improved collaboration between providers and
suppliers
• Data analytics
• Inventory optimization and control
20
RFID is delivering proven benefits in healthcare today and will be an enabling
technology for healthcare transformation in the future.

21. September 2013
Questions & Answers
Joe Pleshek
President and CEO
joe.pleshek@tersosolutions.com
Tracy Hillstrom
Sr. Product Marketing Manager
tracy.hillstrom@impinj.com