Cisco and Connected HeaIth:

Leading the HeaIthcare Experience

Cisco ConfidentiaI BSG - 1 Copyright 2006 Cisco Systems, nc. All rights reserved.
Jeff Rideout, M.D., M.A.,
Vice President, IBSG HeaIthcare and
Cisco Corporate MedicaI Director
September 2006
Cisco is riding a wave of IT spending in heaIthcare
What wiII ensure Cisco's continued growth in
heaIthcare?
Can Cisco truIy transform heaIthcare?
Cisco's Continued Growth
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Can Cisco truIy transform heaIthcare?
Key decision:
Cisco needs to decide if it wants to be in the healthcare
business or be a supplier to others that are
Key decision:
Cisco needs to decide if it wants to be in the healthcare
business or be a supplier to others that are
For individuaIs: patients around
the gIobe report medicaI errors
and concerns regarding quaIity
For governments: heaIthcare
accounts for 7-16% of GDP in
deveIoped countries; negative
State of HeaIthcare
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deveIoped countries; negative
productivity contributor
For companies: #1 concern of
American CEOs is heaIthcare
costs and quaIity
Aging populations are driving the crisis throughout the world
Current deIivery system is
marginaIIy functionaI, under
pressure to change
Labor shortages and waste
necessitate IT soIutions
InteroperabiIity issues contribute
Emerging HeaIthcare Trends
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InteroperabiIity issues contribute
to compIexity of technoIogy
adoption
Medicare reimbursement poIicies
determine industry's pace of
change, innovation uptake
Market disruption, due to consumer
demand, is on the horizon
Cisco Is Entering the Fray
Cisco's HeaIthcare Mission:
Cisco wiII serve as a transforming
and unifying agent for Connected
HeaIth throughout the worId
Cisco wiII cataIyze the depIoyment
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It's about health information,
not information technology
Cisco wiII cataIyze the depIoyment
and adoption of interoperabIe
networks to improve citizen heaIth
and weIIness, safety, access,
productivity, affordabiIity, and the
overaII quaIity of heaIthcare
Customer ExampIe:
Kaiser's Own Commitments
Mission:
Integration, Integrity, Innovation, IT
Functions of technoIogy in care deIivery:
Mission:
Integration, Integrity, Innovation, IT
Functions of technoIogy in care deIivery:
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Functions of technoIogy in care deIivery:
Comprehensive, Continuity, Connected,
Convenient
HighIy compIex Cisco/KP reIationship
required
Functions of technoIogy in care deIivery:
Comprehensive, Continuity, Connected,
Convenient
HighIy compIex Cisco/KP reIationship
required
FY06 FY06
Revenue Revenue
FY05/06 FY05/06
Y/Y Growth Y/Y Growth
FY06 FY06
% of Theater % of Theater
Revenue Revenue
FY07 FY07
Target Growth Target Growth
US/CAN US/CAN
11
$985M $985M 39% 39%
44
6.9% 6.9% 18% 18%
Cisco: Riding a Good Wave
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EUR EUR
22
$133M $133M --13% 13% 2.6% 2.6% 24% 24%
APAC/ANZ APAC/ANZ $38M $38M 40% 40% 1.5% 1.5% 30% 30%
EM EM
22
$8M $8M
33
186% 186% 0.3% 0.3% NA NA
1
Products and services
2
Enterprise onIy; excIudes pharma
3
MiddIe East onIy
4
Product onIy
BuiIding for Cisco's Growth
AcceIerate HeaIth IT Adoption AcceIerate HeaIth IT Adoption
Change How
Care Is
Change How
Care Is
Change How
Care Is
Change How
Care Is
Change How
Consumers
Change How
Consumers
Lead Industry
PoIicy and
Lead Industry
PoIicy and
Change How
Care Information
Change How
Care Information
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AcceIerate HeaIth IT Adoption AcceIerate HeaIth IT Adoption
Change How
Care Is
Purchased
Change How
Care Is
Purchased
Change How
Care Is
Provided
Change How
Care Is
Provided
Change How
Consumers
Experience Care
Change How
Consumers
Experience Care
PoIicy and
Thought
Leadership
PoIicy and
Thought
Leadership
Change How
Care Information
Is Shared/Used
Change How
Care Information
Is Shared/Used
Coordinate and Iead a uniform go-to-market
Objective #1
AcceIerate HeaIth IT Adoption AcceIerate HeaIth IT Adoption
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Coordinate and Iead a uniform go-to-market
strategy in each theater, based on customer needs
Secure heaIthcare partners
DeveIop MedicaI-Grade Network (MGN), heaIthcare-
specific soIutions, MGN testing Iabs
Commit to commerciaI opportunities
HeaIthcare Interpreter Network Video
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HeaIthcare Provider TechnoIogies
SoIutions traveI predictabIe curve of adoption
VisibiIity
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Time
TechnoIogy
Trigger
Peak of
InfIated
Expectations
Trough of
DisiIIusionment
SIope of EnIightenment
PIateau of
Productivity
Source: Gartner (2006)
Objective #2: Lead Industry PoIicy,
Thought Leadership
Connected Health series
Ministries of HeaIth around the
worId
President Bush executive order
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President Bush executive order
American HeaIth Information
Community
Governor Schwarzenegger
executive order
Broadband poIicy efforts
Expand Cisco's focus beyond heaIthcare vendor to
heaIthcare purchaser
Invest in Cisco empIoyees' heaIth-HeaIth
Connections, smart benefit purchasing
Pay for Performance
Objective #3: Change How Care
Is Purchased
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Pay for Performance
Secure Messaging
Onsite cIinic
87% reported spending Iess time away from
work; strong preference for communicating in
this way
Speedy direct access to physician perceived
as major benefit
EmpIoyees avoided office visits, reducing
Cisco employees
Secure Messaging Works
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EmpIoyees avoided office visits, reducing
company's benefit costs by $14,536
Secure messaging had positive impact on
empIoyee productivity, saving company
$126,704
ROI estimated to be greater than 4:1
Cisco employees
The Onsite CIinic: Creating a New
ModeI of Care DeIivery
Changing the heaIthcare
experience for Cisco empIoyees
OnIine appointment scheduIing
PaperIess records
Convenient onsite pharmacy, Iab
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Convenient onsite pharmacy, Iab
Providing a powerfuI
demonstration for Cisco
customers
Improving the bottom Iine for
Cisco
Objective #4:
Change How Care Is Provided
AppIication Oriented Network
for heaIthcare
Device interoperabiIity-Continua
MediPod
AppIication Oriented Network
for heaIthcare
Device interoperabiIity-Continua
MediPod
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MediPod MediPod
RetaiI Stores,
Corporate Offices,
and PubIic Spaces
MD
CaII
Center
Provider CaII
Centers
MediPod:
HeaIthcare-EnabIed TeIePresence
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HospitaIs
and
Support
Centers
Your
MD
Home
Objective #5: Change How Care
Information Is Shared
Nationwide HeaIth
Information Network
architecture
Hosted EHR modeI for
smaII-office physicians
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smaII-office physicians
RHIOs: OneCIeveIand
exampIe
Objective #6: Change How
Consumers Experience Care
"Common e-medicaI record"
is the initiative:
PersonaI HeaIth Records
CIinicaI Care Records
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FY07 Connected HeaIth Report Card
Change How
Care Is
Change How
Care Is
Change How
Care Is
Change How
Care Is
Change How
Consumers
Change How
Consumers
Lead Industry
PoIicy and
Lead Industry
PoIicy and
Change How
Care Information
Change How
Care Information
AcceIerate HeaIth IT Adoption AcceIerate HeaIth IT Adoption
Cisco ConfidentiaI BSG - 20 Copyright 2006 Cisco Systems, nc. All rights reserved.
Care Is
Purchased
Care Is
Purchased
Care Is
Provided
Care Is
Provided
Consumers
Experience Care
Consumers
Experience Care
PoIicy and
Thought
Leadership
PoIicy and
Thought
Leadership
Care Information
Is Shared/Used
Care Information
Is Shared/Used
AcceIerate HeaIth IT Adoption AcceIerate HeaIth IT Adoption
Recommendations: Ensuring Growth
AcceIerate verticaIization in aII theaters-it works
Increase fieId focus and expertise in heaIthcare
Commit to fuII press on commerciaI and key non-provider
segments
AcceIerate and expand heaIthcare partner commitment
AcceIerate verticaIization in aII theaters-it works
Increase fieId focus and expertise in heaIthcare
Commit to fuII press on commerciaI and key non-provider
segments
AcceIerate and expand heaIthcare partner commitment
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AcceIerate and expand heaIthcare partner commitment
DeveIop heaIthcare-specific architecture, incIuding testing
and vaIidation
Commit to cIinicaI soIution deveIopment from concept to
production/manufacturing
AcceIerate and expand heaIthcare partner commitment
DeveIop heaIthcare-specific architecture, incIuding testing
and vaIidation
Commit to cIinicaI soIution deveIopment from concept to
production/manufacturing
Recommendations:
Industry Transformation
AcceIerate "best of breed" approach to empIoyee heaIth and
provider innovation
Promote a poIicy, interoperabiIity, and reimbursement
environment that encourages IT adoption
Commit to a predictabIe heaIthcare-specific product innovation
AcceIerate "best of breed" approach to empIoyee heaIth and
provider innovation
Promote a poIicy, interoperabiIity, and reimbursement
environment that encourages IT adoption
Commit to a predictabIe heaIthcare-specific product innovation
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Commit to a predictabIe heaIthcare-specific product innovation
process that cuts across current organization Iines
Commit to new market business deveIopment-recognize now
heaIthcare is heading to nontraditionaI segments (SP, retaiI)
Commit to a predictabIe heaIthcare-specific product innovation
process that cuts across current organization Iines
Commit to new market business deveIopment-recognize now
heaIthcare is heading to nontraditionaI segments (SP, retaiI)
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