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Progress in Healthcare IT
Stan Smits
Medical ITPhilips Medical Systems
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2Medical Systems
Agenda
• The Healthcare IT market
• IT embedded in PMS products
• Philips is a leader in PACS
• Alliance with Epic for Enterprise Software
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3Medical Systems
Challenges in HealthcarePlant Administration Pharmacy
$1,433Foodservices
Lab$3,233
About that BillRadiology$1,290
Cardiology$3,943
Billing
Intensive Care$17,664
Operating Room$36,127
... Drives the need for better IT utilization ...
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4Medical Systems
IT in Healthcare Market 2003
IT in Healthcare:• Internal IT• Outsourced IT• Admin / Office• Infrastructure• Healthcare IT
Healthcare IT:• “Best of breed”:
1200 companies in the US
• Enterprise systems based on EPR
• PACS• Clinical Applications• Embedded IT
Total over $100 Billion
Extremely fragmented market
52
15
78
IT in HC Best of Breed
EPR PACS
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5Medical Systems
Healthcare IT – double digit growth
Large geographical differences
Healthcare IT $B
16
42
NA Europe Asia
CAGR 14%CAGR 10%
CAGR 12%
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6Medical Systems
Healthcare IT market trends
Healthcare IT is mature technologyin an immature market
North America• PACS market continues to growth,
but at a slower rate (6%)• Enterprise Healthcare IT market
continues to grow double digit– Expansion of market– Move to integrated systems
• Electronic Patient Record is required to improve quality of Healthcare
Europe and Japan• PACS market growth slowed to 4%
in Europe, remains high at 7% in Japan
• Enterprise Healthcare IT market lagging behind North America and country specific
• Political awareness for need of Electronic Patient Record growing
• Aggressive approach to modernize Healthcare IT in the UK
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7Medical Systems
Healthcare IT throughout the enterprise
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8Medical Systems
Vequion is Philips’ next generation family of Healthcare IT products, solutions and professional services.
Vequion competent products are:• Customizable
so there are no boundaries to how you configure your virtual work environment to meet your needs
• Fluid so there are no boundaries to the locations from which you can access your information – within a secure environment
• Open and standards-basedso there are no boundaries to the equipment you can integrate – including legacy systems
• Future-safeso there are no boundaries to growth
Vequion is a commitment for the future
Philips’ commitment to Healthcare IT
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9Medical Systems
Vequion stands for
Products across PMS have a ConsistentUser Interface Standard:
• To enhance ease of use• Reduce training
Re-use of software components, resulting in• A more transparant product portfolio• Higher quality products• Easier to solve technical problems
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10Medical Systems
Agenda
• The Healthcare IT market
• IT embedded in PMS products
• Philips is a leader in PACS
• Alliance with Epic for Enterprise Software
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11Medical Systems
Organized for reuseCommon Architecture & Software Components:
• Already before the acquisitions various product groups in Medical Systems were duplicating effort on generic functionality in each product– In 1998 a program was started to stimulate reuse and lower costs– Initial focus on creating the architecture that enables reuse– Create generic software component once, reuse in all products
• Organic and focused growth from a core team of 25 in 1998 to thecurrent dedicated team of 100+ professionals in Netherlands and India
• Interoperability and UI Harmonization Services support across Medical Systems
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12Medical Systems
Architecture & Software Components
• Benefits– Reduce risk: common architecture, higher volume– Reduce cost: developed only once, with more product quality– Better training and support: similarity in GUI, common remote service, etc– Better Time-to-market: due to shorter testing period, proven interoperability
• Current state– Since 2001 first modalities released based on components– In 2005 60% of all new products using standard components, 100% in 2007
Our approach: open architecture, systems composed of commoncomponents, organic growth and driven by business needs
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13Medical Systems
PL-Specific3 MLOC
PL-Specific1 MLOC
PL-Specific1 MLOC
PL-Specific1 MLOC
PL-Specific1.5 MLOC
PL-Specific1.5 MLOC
PL-Specific1.5 MLOC
PL-Specific3 MLOC
PL-Specific3 MLOC
Product Specificn MLOC
(Million Lines Of Code) Reusablecomponents(0.5n MLOC)
Standard SW
Product Specific0.6n MLOC
Standard SW
Reusablecomponents(0.9n MLOC)
Product Specific0.3n MLOC
Standard SW
XP, MFC, C++p x n MLOC
XP, .NET(p x 0.6n) + 0.5n MLOC
Longhorn(p x 0.3n) + 0.9n MLOC
Previously Currently Next phase
P = number of Product families
Continuous increase in price/performance and functional scope of COTS SW as used
Continuous increase in functionality of generic reusablesoftware components
10 MLOC 6.5 MLOC 3.9 MLOCExample with p=10, n=1
Reuse: reduces lines of code by 60%
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14Medical Systems
Paradigm shift: InnerSource
Extending the Software Component program in 2004:• InnerSource (Open Source community within Medical Systems)
– Natural next step for the Software Component model– Leverages the enormous experience in the complete PMS software developers
community worldwide, with extensions to 3rd parties (research, institutions)
– Allows redistribution of core-competences over all groups, integrating the company even further in the important domain of software engineering
• Benefits– Further efficiency improvements– Faster TTM
Creating a global community of clinical- and software professionals, working seamlessly together
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15Medical Systems
Agenda
• The Healthcare IT market
• IT embedded in PMS products
• Philips is a leader in PACS
• Alliance with Epic forEnterprise Software
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16Medical Systems
Healthcare IT in Radiology/Cardiology
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17Medical Systems
Philips Market share %
Market for PACS• Modality Vendors• Healthcare IT vendors• Niche vendors
• Philips in solid third place, growing 12%/year
• Hardly regional differences in PACS requirements
• PACS Integration with Modalities and Healthcare IT solutions will become key driver
• Typical PACS project:-35% HW-35% SW-30% Professional Services
0
200
400
600
800
1000
1200
1400
1600
1800
2002 2003 2004 2005 2006 2007
Global Market (M €)
CAGR 2004-07
6%
PACS Market and Market Share Evolution
0%
5%
10%
15%
20%
25%
2002 2003 2004 Target
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18Medical Systems
PACS: Picture Archiving and Communication SystemMulti-vendor, multi-department
MR Scanner
CT Scanner
X-ray
Radiology
Web Distribution
Orthopedics
EmergencyDepartment
OperatingRoom
NuclearMedicine
FilmDigitizer
UltraSound
Vie
win
g &
dis
trib
utio
n
Mod
aliti
es Storage & Archive
Internet/IntranetInternet/IntranetWardReferring PhysicianPatient
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19Medical Systems
Registration Scheduling Image acquisition
Archiving Report creationViewing Image distribution
Quality control
Workflow in a Digital Radiology Department
Diagnose
...010011......010011......010011...
...010011... ...010011... ...010011...
Digital Radiology
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20Medical Systems
PACS makes radiology filmless
Films need to be:• Printed
– requires film and chemicals• Archived
– requires space and logistics• Viewed
– requires light box and manual hanging
• Distributed– Physical delivery – copies required for referring
physicians
Benefits of filmless• Save costs, be faster:
– No film or chemicals– Images instantly available
• Better use of image data– Integrate with speech recognition– Increase diagnosis quality– Reduce medical errors– Integrate with clinical applications
• Instant available:– Referring physicians, patients– At any location (no physical
limitation to one location)– At any time– Images never get lost
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21Medical Systems
PACS worldwide presence and installed base
“London LSP” win with BT:
60 hospitals!
China: Joint
venture with Neusoft
Over 1300 PACS systems for Radiology and/or Cardiology installed worldwide!Dots give indication of installation of one or more Radio and/or Cardio PACS system
North America, Europe and
Japan Account for 80% of the total market
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22Medical Systems
Hospital Information Systems PACS
Advanced Viewing incombination with
clinical applications: e.g. 3D Colonoscopy
• Market trend towards advanced and seamless integration of Hospital Information Systems with PACS and advanced (3D/4D) viewing and clinical applications
• Clinical advanced use of data requires portability from modality to PACS to workstation: Philips Medical Systems can provide the whole image acquisition, distribution and advanced applications chain
Image distribution
Hospitals require integrated solutions
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23Medical SystemsPACS
Advanced Viewing in combination with clinical applications helps physician with computerized 3D detection and analysis
tools in making early and better diagnosis!
Empowers the Physician with Advanced 3D Viewing and Clinical Solutions
3D VirtualColonoscopy
3D VirtualInspection
3D Surface Shading& Volume Rendering
Reporting
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24Medical Systems
Why customers buy PACS?
Management of radiology:• Cost reduction • More examinations per modality• Better service to referring
physicians• Standardization of work processes• Control of workflow• Automated billing• Management information
Radiologist:• Increase productivity • More accurate diagnostics• Less disturbance by referring
physicians• Handling of MR and
CT examinations• Tele-consult colleagues• Work from home
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25Medical Systems
Why customers choose Philips for PACS?
Philips is committed to the success of our customers!
• Most scalable and customizable PACS solutions in the market
• Integration with modalities and Hospital Information Systems
• Partnership approach focused on business result• Radiology, Cardiology and PACS Experience
– 75 years Radiology, 15 years in PACS– 1300 PACS installed world wide
• World wide Service Support Organization• Commitment to industry Standards
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26Medical Systems
Agenda
• The Healthcare IT market
• IT embedded in PMS products
• Philips is a leader in PACS
• Alliance with Epic forEnterprise Software
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27Medical Systems
Healthcare IT throughout the enterprise
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28Medical Systems
Why Philips entered the Healthcare IT market?• Our customers are asking for total integration• EPR-based systems need clinical information• Clinical equipment need access to patient information
At home
Patient haspain on chest.
His familydoctor contacts
the hospital
At the ER
Patient isexpected,
hospital staffis preparedand patient
gets examined
In the Cath Lab
Patient gets Coronary Angio Graphy (CAG).No coronary
problems found
In CCUPatient is
monitored for24 hours andsend home
with medicationand new
appointment
At homePatient can track
his life-style changesand has access to his appointment
schedule viahis personal
webportal
The data is following the patient….
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29Medical Systems
• Founded in 1979• Based in Madison, Wisconsin, US• 1,200 Employees• Privately owned HealthCare
IT company • Growth approximately 30% per year• Website: www.epicsystems.com• Epic has a complete Integrated Enterprise Healthcare IT system • Received again (9th time in a row), the #1 customer satisfaction
ranking by KLAS• 28 M Patient Records in use in the US
November 2004: Philips announced alliance in the Healthcare IT domain with Epic
HealthCare’s premium award winning technology vendor
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30Medical Systems
We are on-track…• World-wide announcement previous
analyst meeting November 4th
• Partnership introduction for Cardiologists (AHA) and Radiologists (RSNA) in November 2003
• Major launch at major US Healthcare IT event (HIMSS) in February 2004
• Highly qualified Philips Healthcare IT team currently being trained by Epic
• This will allow Philips also to benefit from the award winning Epic processes
• Philips selected as Vendor of Choicefor first project
• Major announcements planned for RSNA 2004 and HIMSS 2005
• By mid 2005 fully operational Healthcare IT practice in North America
Medical Systems
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31Medical Systems
Vequion
...to offer a complete portfolio
Xcelera
DepartmentalSolutions
Intgris Allura
Imaging Modalities,Monitoring
ABC - A
Enterprise IT“Powered by Epic”
Guaranteeing a consistent UI and full interoperatibility
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32Medical Systems
Martin Harris, CIO Cleveland Clinic Foundation“ The partnership between Epic and Philips really brings anopportunity to improve the overall quality in the practice of medicineby delivering information to clinicians when they need it and wherethey need it. That ability will connect the clinical specialty departmentswith their colleagues across the institution,” said Martin Harris, CIO,Cleveland Clinic Foundation
Cleveland Clinic is #1 cardiovascular Hospital
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33Medical Systems
• On-track in aggressively gaining market share in PACS and establishing Medical Systems as a Healthcare IT total solution provider
• Common architecture, uniform user experience and embeddedsoftware components in modalities, monitors and PACS products
• Further partnerships and/or acquisitions to strengthen the overall IT offering are being investigated
Summary
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