Home Healthcare Solutions - · PDF file• Telehealth: Home monitoring • Remote...
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Home Healthcare SolutionsBrent Shafer, CEO Healthcare Home Healthcare Solutions
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Home Healthcare Solutions focus
Accelerating growth in:• Sleep• Respiratory Care• Home Monitoring
International expansion and growth geographies• Positioned to grow above
market rates
Hospital to Home differentiation
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Bringing health care home
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Global impact of chronic disease and aging
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€ 43BSpent on home health care
in the U.S.
€ 30BAnnual health care cost
for COPD in the U.S.
100M+Estimated number of COPD
patients in China
€ 8,400Average cost for a COPD exacerbation in the U.S.
3rdLeading cause of death worldwide
183 Seniors treated in ER each hour due to a fall
7.6MPatients receive home
health services per year
43MPeople in the U.S. suffer from sleep-disordered
breathing
15-20%Of individuals in the U.S. have an undiagnosed sleep disorder
40-70%Prevalence obstructive sleep apnea
in patients with heart failure€ 43B
Projected spending on fall-related injuries in 2020
Our markets continue to experience 6% – 8% growth
Strong market positions • Sleep and Respiratory Care
- Leadership in sleep therapy- Opportunity in patient interface- Leadership in ventilation
• Home Monitoring- North American leadership
International markets and growth geographies• Positioned to grow above
market rates
Current situation
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SleepWe improve the lives of sufferers of obstructive sleep apnea through:
• Diagnostics• Sleep therapy • Patient interface (masks)• Replenishment services
Home MonitoringWe provide valued remote monitoring and social care solutions that serve patients and at-risk seniors through:
• Telecare: Lifeline• Telehealth: Home monitoring• Remote cardiac services
Respiratory CareWe improve the lives of respiratory patients through:
• Ventilation • Oxygen• Drug delivery
Home Healthcare Solutions
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Advancing or maintaining strong positions in large, growing markets
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• #1 in sleep therapy• Many undiagnosed patients
worldwide• Significant co-morbidities• Patient interface market
opportunity• Replenishment services
Home MonitoringSleep Respiratory Care
Market size €1.8BMarket growth 6-8%
Market size (NA) €1.7BMarket growth (NA) 4-6%
Market size €1.5BMarket growth 6-8%
• #1 market position• Global ventilation leadership• Large patient populations• Innovation opportunities• Growth geography
opportunities
• #1 market position in NA• Growth in aging population• Global expansion underway• Hospital to home• PERS1, medication
dispensing, Telehealth
1PERS - personal emergency response systems
We have strengthened our global leadership in sleep therapy systems for obstructive sleep apnea
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System One 2012• Heated tubing• Platform enhancements
Complex sleep disorders• Proprietary AutoSV therapy system• Exceptional growth in all geographies
REMstar SE • Value segment therapy system• Accelerate in growth geographies
EncoreAnywhere• Connects physicians, providers and
patients to better manage compliance and improve outcomes
New products will secure high-end segment leadership positions and enable entry to
new segments
Our Patient Interface product and service portfolio – initial realization of investments
TrueBlue nasal mask launched• Strong customer acceptance• Validation of development direction
Full development pipeline – powered by customer insights• Targeted patient interface launches
in 2012• Leading edge seal, comfort, design
Market replenishment services• Enabling provider customers to realize
revenue and efficiencies
Go-To-Market alignment Q1 2012• NA sales reorganization enables
50% increase in customer touch points9
Oxygen therapy• #2 position• SimplyGo• EverFlo• Strong ambulatory
product portfolio
Home ventilation• #1 in NIV• Trilogy Series• BiPAP A-Series
Airway clearance • #1 position• CoughAssist• Neuromuscular
patient focus
Respiratory drug delivery• #1 position• Nebulizers• I-neb – proprietary
technology
New additions to broad respiratory portfolio will drive continued growth and improved margins
Philips Respiratory Care continues to grow faster than the market
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Home Monitoring – innovating for growth and market expansion
Mobile PERS1 and new communicator• Extends current service outside of the home • Reinforces leadership position• Expands Philips market potential
International expansion • Launch of Philips Telecare service in Japan
Telehealth• Accelerating with U.S. readmission penalties• Enabling care coordination and
patient engagement
Hospital to home• Integrated strategy and solution
development with PCCI
111PERS - personal emergency response systems
Global payer trends• Payment model and care delivery reform• Greater awareness of chronic sleep disorder and respiratory populations• Comparative Effectiveness Reviews (CER): CPAP continues as gold standard therapy for OSA• Evidence supporting telehealth emerging
U.S. market• Greater acceptance of home sleep testing• Competitive bidding expansion• Commercial payers adopting treatment compliance policies• Telehealth in integrated systems – significant impact on readmissions
EU mature geographies• Budget austerity; impacts single-payer health systems• Southern Europe – small impact to Philips Home Healthcare• France – payment categories for sleep and home respiratory undergo revision• UK government rolling out programs to accelerate telehealth adoption
Growth geographies• Most growth geographies (China, India, Russia) have no reimbursement
infrastructure for home medical devices• Brazil and other LATAM health systems developing more rapidly in home health;
home oxygen and ventilation gaining reimbursement
Reimbursement and payer trends
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• Strong growth overall: High single-digit • Strong growth: Mid-twenty percentMature geographies Growth geographies
Our performance outside the U.S. has been strong –delivering on our international expansion strategy
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Japan Market: Double-digit growth‒ We provide products to providers and
services to patients‒ Closely aligned with leading key
opinion leaders and universities‒ Entering market with our Philips
Telecare service
Greater China Market: Mid-twenty percent‒ Driving physician awareness and
education of OSA‒ Establishing sleep labs and patient
experience centers‒ Targeting large population of
respiratory patients‒ Investing in sales and marketing organization
Path to Value: Home Healthcare Solutions
• International expansion• Building platform for the Hospital to
Home opportunity• Increased levels of investment to
refresh product portfolio• Address patient interface portfolio• Commercial and structural
investments in growth geographies
Valu
e
1 as reported, i.e. including restructuring and acquisition related charges
Solid growth Accelerate!• Drive operational excellence through
Accelerate! to improve ROIC• Drive international expansion• Build on Hospital to Home opportunity• Improve patient interface market position• Innovative product and service introductions• Value delivery from past acquisitions
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…20132011 Midterm
PerformanceBox
EBITA 1
Current Performance
BoxGro
wth
EBITA 1
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• Robust innovation pipeline‒ 17 planned product and service
introductions in 2012
• Globalization/growth geographies‒ Positioned to grow above market rates
• Strong market positions driving value creation‒ Leadership in sleep therapy‒ Leadership in ventilation, nebulizers‒ Leadership in NA home monitoring
Key takeaways
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Executing on strategies