Issues in Remote Health

Lack of access to medical care Decreased workforce productivity

Delayed diagnosis and treatment of preventable disease

Increased public health expenditure treating preventable disease

Current Solutions

GE Healthlink
Core Product (Retail Price A$500) Electronic Vital Signs monitor ($110) Electronic Stethoscope ($60) Electronic Thermometer ($10) HD Audio/Visual Console ($110) Additional Features

Features and Component Cost

Benefits
Reducing the long term cost of care Bridging geographical barriers to healthcare Early detection increases prevention rates care Optimise the limited resources available for the remote areas Increase revenue and make GE Health an rural health care in Australia

Cloud Storage of Patient Data

Optional Add-ons Remote ultrasound (GE vScan) Urine Test Machine ($300)

Existing GE Infrastructure
GE Quietcare Home health monitoring GE/Intel Health Guide GE Healthcare vScan GE Health Patient Management Software

Health Expenditure Savings

Disease
Diabetes CVD3 Hospitalisation Chronic Renal Failure
COPD4 Hospitalisation

Incidence Reduction1
15% 21% 55%
71%

Health Cost Savings2

$1,123m. 1,240m. $745m. - 826m. $350m. - 400m.
$198m. - 220m.

Total Saving

$2416m. - $2686m.

1. 2. 3. 4.

Disease incidence reduction in remote and very remote Australia within 25 years of implementation of the proposed solution. See notes for calculation methodology. Cumulative health cost savings to be realised within the first 25 years of implementation of the proposed solution expressed in 2013 values. See notes for calculation methodology. Cardiovascular disease (includes, but not limited to, myocardial infarction, stroke, CABG surgery, etc.) Chronic Obstructive Pulmonary Disease

NPV of GE Healthlink
Cumulative PV of GE Healthlink
1400 1200

Cumulative NPV (A$m)

1033.375933

1000 800 600 400 200 0 0 5 10 15 20 25 30 35 40 45 50 845.4893996 939.4326662

Years after Project Implementation

(During first 25 years of project implementation)

Total Revenue

A$1440m. 1760m. A$845m. 1033m.

(During first 25 years of project implementation)

Net Present Value of GE Healthlink

Figures expressed are discounted to 2013 values Cash reserves of GE are more than sufficient to support investment in this project (US$77b., 2012 Annual Report) GE R&D expenditure (2008) = US$4.3b. Is sufficient to support investment in this project

GE Healthlink Selling Plan

$500 device cost Recurring $300 fee per annum per user
Revenue Doctor

Patient

Target Customers
Government
Reduction in health expenditure Healthier population equates to a stronger workforce and economy Inexpensive solution to rural heath issues

Health Insurers
Reduced liability as a result of reduction in incidence of chronic disease Insurers already allow claims for medical devices

Employers
Increased workforce productivity Reduction in sick leave

Patients
No longer need to travel long distances to access medical care, saving time and money

Risks
Market Risks
Rapidly growing market creates increased competition Room for growth in an unsaturated market

Multi-speed market with premium and value demands

Remote areas require technology upgrade Different pricing packages drives profitability an efficiency

Regulatory Risks
Approval for government funding through MBS1 Insurance claim policies

Strategic Imperatives
Build scalable cloud-based system Improve cost competitiveness Focus on specialised care

Raising awareness to increase uptake

1. Medicare Benefits Schedule

Planning for the future

Market Opportunities
Providing a new platform for the medical care Telehealth industry predicted to grow annum over the next five years Increase in government subsidies for service providers Telehealth Market Size
US$6.28B

GEs Role in Future Healthcare

Ability to tap into international markets with pressing healthcare needs

Drastically improving the quality and efficiency of healthcare

Becoming a global leader in redefining the health

GE Healthlink will provide the infrastructure for GE to capitalise on the shift of the industry towards technologies
Goodwill from the community through the provision of the GE Healthlink

2010

US$183M

2013

US$700M

2020F

Of all the forms of inequality, injustice in health care is the most shocking and inhumane. Martin Luther King