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Healthcare Industry Week 2012 Biotechnology and Pharmaceutical Panel 

__________________________________________________________________________________________________ Jorge Conde Jorge Conde is the founding CEO of Knome, the leading human genome interpretation company. He has spent his entire professional career in the biotechnology industry, working in finance, business development, marketing and operations. Prior to Knome, Mr. Conde worked in strategic marketing and operations at MedImmune, Inc. He has also worked in business development at Helicos Biosciences Corporation, a DNA sequencing company, and in the life sciences group at Flagship Ventures, a venture capital firm. Previously, Mr. Conde was an investment banker at Morgan Stanley & Co., specializing in the biotechnology and genomics industries. Mr. Conde has been named one of the top 35 innovators under 35 by MIT Technology Review and is an Overseer at the Boston Museum of Science. He holds an MBA from Harvard Business School, an MS from the Harvard‐MIT Division of Health Sciences and Technology (HST) and a Bachelor’s degree in Biology from The Johns Hopkins University  Knome, Inc. Since launching in 2007, we have focused on helping our clients interpret whole human genomes for biological relevance. Along the way, we’ve built ground‐breaking informatics technologies and human genome interpretation tools. Further, in working on well over 100 interpretation projects, we we’ve gained deep experience in the methods and challenges of interpreting vast quantities of whole genome data.   Our clients typically seek to identify the variants, genes, and gene sets that are likely to govern a specific disease or drug response. These clients include medical, pharmaceutical, and academic researchers in two dozen countries. __________________________________________________________________________________________________ Scott Greenberg Scott B. Greenberg is currently Senior Director, Project Leadership at Celgene Corporation.  Scott leads a cross functional team responsible for Celgene’s development efforts in the lymphoma disease area.  Scott has been with Celgene since 2006 and has held a number of positions during his tenure.  He started as a Manager with the Business Development Group where he evaluated external licensing and acquisition opportunities.  In November 2007, Scott accepted a strategic planning role within Celgene’s clinical R&D organization.  In 2010, Scott served as Principal to the CEO and supported Celgene’s Chief Executive Officer across a number of projects and initiatives.  Prior to accepting the role of Project Leader in September 2012, Scott acted as a District Sales Manager in the Sales organization.  Prior to his time at Celgene, Scott worked in Goldman Sach’s investment banking division, specializing in financial transactions in the healthcare field.  He received B.A. and B.S. degrees from the University of Pennsylvania in 2001 and an M.B.A. from Harvard Business School in 2006.  Scott lives in South Orange, NJ with his wife, Kelly and his two children, Abigail (4) and Aaron (1).  Celgene Celgene is a global biopharmaceutical company committed to improving the lives of patients worldwide.  At Celgene, we seek to deliver truly innovative and life‐changing drugs for our patients. Our mission as a company is to build a major global biopharmaceutical corporation while focusing on the discovery, the development, and the commercialization of products for the treatment of cancer and other severe, immune, inflammatory conditions.  There are more than 300 clinical trials at major medical centers using compounds from Celgene.   Investigational compounds are being studied for patients with incurable hematological and solid tumor cancers, including multiple myeloma, myelodysplastic syndromes, 

chronic lymphocyte leukemia (CLL), non‐Hodgkin's lymphoma (NHL), myelofibrosis, small cell lung cancer and prostate cancer.  As committed as we are to clinical accomplishment, we are equally committed to patient support, which is a guiding principle at Celgene. We believe all who can benefit from our discoveries should have the opportunity to do so. Celgene puts patients first with industry‐leading programs that provide information, support and access to our innovative therapies. __________________________________________________________________________________________________ Kouki Harasaki Healthcare has been the driving passion of Kouki’s life. Since winning a UK national biotech competition in 2003, he has been focused on developing technologies that impact patients. After earning his PhD, Kouki spent three years as a Research Investigator at Novartis, where he led segments of six cardiovascular and metabolism drug programs. He has since held positions at Sofinnova Ventures, Genentech, GlaxoSmithKline, Dr. Reddy’s Laboratories, and iPierian.  Kouki is currently Director/Head of Finance in Business Development & Licensing at Novartis Vaccines & Diagnostics.    Kouki earned a BA (cum laude)  in Molecular/Cell Biology and Asian Studies from Cornell University, a PhD in Clinical Biochemistry (Wellcome Trust and Cambridge Overseas Trust fellow) from Cambridge University, and an MBA from Harvard Business School (Robert S. Kaplan Life Science fellow).   Novartis 

We want to discover, develop and successfully market innovative products to prevent and cure diseases, to ease suffering and to enhance the quality of life. 

We believe our portfolio best meets the varied and often complex needs of patients and societies. Novartis is positioned to lead in innovation, partner with others and offer solutions to patients across a broad healthcare spectrum.  

Our unique portfolio focuses on science‐based healthcare sectors that are growing rapidly, reward innovation, and enhance the lives of patients. Novartis is the only company with leading positions in each of these key areas: Pharmaceuticals, Alcon, Sandoz, Consumer Health, and Vaccines and Diagnostics. 

__________________________________________________________________________________________________ Kerry Need Kerry is currently a brand manager at Eli Lilly in the US Neuroscience organization where he has been supporting the Cymbalta brand. Prior to rejoining Lilly in 2010, Kerry worked for a small oncology‐focused biotech in California with brand, sales, operations, and business development responsibilities where he helped build the company’s commercial infrastructure, launch the company’s first commercialized drug, and relaunch an in‐licensed asset.  Prior to HBS, Kerry worked for Eli Lilly & Company in various manufacturing roles.  He holds a B.S. in Chemical Engineering from Purdue University  Eli Lilly A global leader in innovation and research, Lilly has grown over the last 130+ years to become a global pharmaceutical company. We started as a small Indianapolis lab in 1867 under the guidance of Colonel Eli Lilly. Committed to innovation from the beginning, we have always been pioneers in the realm of pharmaceuticals; from the development of the first gelatin‐coated pills, to our breakthroughs in insulin and anti‐depressants.  Our goal is to create and develop pharmaceutical products that solve medical issues that today are unmet. We strive to save and improve lives through innovation in all aspects of the pharmaceutical industry.  As a leading innovation‐driven pharmaceutical corporation we are constantly developing our portfolio pharmaceutical products. We have approximately 40,000 employees in over 143 countries devoted to applying the latest research from our own worldwide laboratories, collaborating with eminent scientific organizations, making use of the most up‐to‐date technological tools, and by providing exceptional service to our customers. With over $21.8 billion in sales and over $4 billion dedicated to research and development, we drive for improved outcomes for individual patients.  

Rachel Sha Rachel Sha is currently Head of Global Marketing and Strategy for the Surgical Franchise at Sanofi Biosurgery where she is responsible for marketing, product strategy, and lifecycle management for a portfolio of surgical products.  Previously, she headed up Biosurgery Business Development and was responsible for identification, due diligence, valuation, and negotiations of licensing, partnering, and acquisition opportunities as well as portfolio strategy for the business unit.  She has been at Sanofi / Genzyme since graduating from HBS in 2005 and has held roles of increasing responsibility within business development and corporate development.  Previous to HBS, Rachel worked at Accenture where she was a manager in their Electronics & High Tech consulting group.  She holds a BS in Chemistry from MIT.    Sanofi We work to protect the health of the earth’s 7 billion inhabitants, improve their quality of life and respond to their potential needs. We are creating new approaches to our activities and work sectors, and are mobilized for our priority goal of bringing medicines and vaccines to patients.  Innovating: to make tomorrow’s therapeutic solutions real, we seek to innovate with our partners, who, like us, aim for excellence and efficiency. Dedicating: in all of our activities, we commit our energy and expertise to patients and address the veritable needs and realities of each market. Our passion is a cornerstone of what we do, because health matters. Standing together: we are a company committed to the cause of health. Acting with ethics and responsibility is weaved into the very fabric of who we are.  Helping, be it during emergencies or in daily life, means going beyond our obligations to protect and serve the greatest possible number of people.  

M BA C A R E E R & P RO F ES S I O N A L D EV E LO P M E N T  H E A L T H C A R E I N I T I A T I V E  

Healthcare Industry Week 2012 Venture Capital and Entrepreneurship Panel

Ambar Bhattacharyya  Ambar Bhattacharyya is a vice president in BVP’s Cambridge, MA office.  He focuses on investments in early‐ and growth‐stage healthcare and education companies and has been closely involved in Bessemer's investments in Verastem (IPO), OvaScience, Liazon, Fractyl Laboratories, and Accuvein. He is also actively involved in BVP’s investments in Cerulean and Oxagen. Prior to joining Bessemer, Ambar worked as an associate at Bain Capital Ventures. There, he helped make investments in companies such as Ameritox, Accelecare, LinkedIn (IPO), iPay Technologies (acq. by Jack Henry), TargetSpot, and VMLogix (acq. by Citrix). Before Bain Capital, Ambar was the assistant to the CEO at MinuteClinic, a company that runs health clinics staffed by nurse practitioners inside retail settings and was acquired by CVS.  He began his career at Bain & Co. where he worked on projects across various industries, including healthcare, business services and technology, as well as for non‐profit clients at The Bridgespan Group.  After attending business school, Ambar interned with the City of Fremont, CA, where he helped the city develop its clean‐tech strategy. 

Ambar holds an MBA with distinction from Harvard Business School and a B.S. in economics and a B.A. in psychology from the University of Pennsylvania, where he graduated magna cum laude.  He currently serves on the steering committee of the New England Venture Network (NEVN) and leads their healthcare group.  Ambar also serves on the Board of UP Academy, an in‐district turnaround charter school in Boston. Ambar regularly blogs on his own site and at The Healthcare Breakfast Club. 

Bessemer Venture Partners At Bessemer, we spend a lot of time mapping out the industries most fertile for disruption by startups. With a deep focus in our practice areas, we can quickly evaluate new investment opportunities, and, more importantly, bring our knowledge, track record and rolodex to the boards of our portfolio companies.   Every year we re‐assess and refresh our investment hypotheses (“road maps”), re‐organizing our practices appropriately. So we do have additional practice areas in development, plus others that we just haven’t yet had time to profile here.   And of course we try to remain keenly aware of areas where innovation meets market need. We use our roadmaps as guides, not limits, and stay open to the next revolutionary idea.    

Charles Huang  Charles Huang is a Vice President of Equity Healthcare, within Blackstone’s Private Equity Operations Group.  Prior to joining Blackstone in 2012, Mr. Huang worked in venture capital, focusing on health technology investing and actively supporting healthcare portfolio companies of Spark Capital.  Prior to Spark Capital, while completing a dual Master’s degree program in Business and Public Administration, he helped contribute to the growth of a number of VC/PE‐backed healthcare companies in the areas of strategy, operations, and clinical informatics/reporting, including 

Generation Health and Accelecare Wound Centers.  He also served as an entrepreneur in Highland Capital Partners’ Summer@Highland program.  Before graduate school, Charles was a Manager in the Strategic Financial Planning Group at Harvard Pilgrim Health Care and had also worked previously in the health consulting practice at Towers Perrin.  Mr. Huang has co‐authored several Harvard Business School cases and notes on healthcare innovation, payment, and policy.  In addition to his M.B.A. and M.P.A. from Harvard, Mr. Huang holds a B.A. in Public Health from Johns Hopkins University.  Blackstone Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long‐term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit‐oriented funds and closed‐end funds. The Blackstone Group also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com. Follow us on Twitter @Blackstone.   

Jon Puz  Jon Puz is the Vice President for Shields Specialty Pharmacy.  Shields Specialty Pharmacy partners with hospitals to provide specialty pharmacy services for complex patients.  In Jon’s role as Vice President, he has two focuses.  In a business development capacity, Jon develops partnerships with companies ranging from early stage startups to large enterprises, such as payors and providers.  In an operational capacity, Jon built, opened, and co‐leads UMass Memorial Shields Specialty Pharmacy, which involves serving as a general manager across finance, operations, IT, analytics, team building, and patient service.    Prior to joining Shields Specialty Pharmacy, Jon served as a key leader in several healthcare startups.  For example, Jon served as the interim General Manager for a health services startup and as the Director of Sales and Business Development for a health IT startup focused on predictive analytics.  Jon also co‐wrote the business plan for Diagnostics For All, which won both the HBS Business Plan Contest and the MIT $100K, and helped launch the organization.    Jon earned his Bachelor of Science from Miami University and his MBA from Harvard Business School.  At HBS, Jon served as Co‐President of the Healthcare Club and was one of six students to receive the Dean’s Award.  Currently, Jon serves on the Board of Directors for the HBS Health Industry Alumni Association.  He is an active marathoner and Ironman triathlete, and lives in Cambridge, MA.  www.linkedin.com/in/jonpuz   Shields Specialty Pharmacy The care of complex patients often includes high‐cost, outpatient prescription medications classified as "specialty pharmaceuticals". Not only do these drugs present significant financial challenges to patients and insurers, but they also present significant complexity to the clinicians who are striving to manage a comprehensive therapy plan for these complex patients.  Given the significant role that specialty medications play in both the outcomes and the cost of caring for complex patients, hospitals are partnering with Shields Pharmacy to help patients who require specialty drugs.      

Michael Schrader  Michael Schrader is the CEO and co‐founder of Vaxess Technologies, a company revolutionizing global health by creating heat‐stable vaccines. Vaxess strives to not only lower the cost of vaccine distribution, but also increase access to life‐saving products for people around the world. The company was the winner of the 2012 Harvard Business Plan Competition and The 2012 Harvard President's Challenge for Social Entrepreneurship. Prior to founding Vaxess, Michael worked at Google, Honda, and Toyota. He holds a BSME from Purdue University and an MBA from Harvard Business School.   Vaxess Vaxess Technologies uses silk fibroin to create heat‐stable vaccines.  Fibroin, one of silk’s fundamental proteins, has unique properties which enable stabilization of a wide range of biological products. When bulk vaccine is added to a pure silk fibroin solution, mixed, and dried, the result is a thermostable vaccine which can be stored and shipped around the world without refrigeration. Upon delivery to the end health care worker, the vaccine can be reconstituted and delivered to the patient in the traditional manner.  

Meridith Unger  Meridith Unger is a Principal with the Technology Development Fund (TDF) at Children’s Hospital Boston. TDF is a seed stage catalyst fund fueling translational research in priority research projects developed at Boston Children’s Hospital. Each year, TDF invests up to $1.5M in 8‐12 projects ranging from therapeutics and diagnostics to devices and healthcare IT, ultimately leading to the creation of NewCos or out‐licensing opportunities.  Meridith previously worked closely with several venture firms (Third Rock Ventures, Atlas Venture, Lux Capital and Oxford Bioscience Partners) and biotech startups in both investment and operational roles, and is an avid supporter of the creation model in venture capital. Meridith currently holds Business Development roles with Lumos Catheter Systems, Inc. and AviTx, Inc. and sits on the screening committee of the HBS Alumni Angels.  Meridith was the co‐founder and CEO of Aukera Therapeutics, developing a protein therapeutic for ALS (commonly known as Lou Gehrig’s disease). Aukera was the winner of the Life Sciences track of the 2010 MIT $100K Competition as well as the Audience Choice Award and was a finalist in MassChallenge in 2010.   Meridith is a graduate of Bryn Mawr College and Harvard Business School, and of the Kauffman Fellows Program (Class 15).   Boston Children’s Hospital Nearly 20 years ago, Boston Children’s Hospital was among the first academic medical centers in the country to expand the traditional missions of clinical care, teaching and research to embrace a fourth core mission: community health.   Our approach to improving the health and well‐being of children and families in our local community has evolved and matured over time. Today, we concentrate our community efforts in the areas where we have the expertise, resources and partnerships to improve child health outcomes, address significant health needs in our community and contribute to the changing health care environment. 

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Healthcare Industry Week 2012 Payor and Provider Panel

_____________________________________________________________________________________ Elise Duke I worked as a strategy consultant for Monitor Group for five years, with a focus on pharmaceutical projects – where I found my passion for healthcare. I spent my MBA internship as an operations intern for the Hospital for Special Surgery in New York.  I joined DaVita in 2005 after graduating from HBS. I spent the first eight months in the Redwood rotational program – where I worked on corporate projects and ran a dialysis unit. I took on regional director responsibilities in Connecticut, where I managed fourteen programs – both outpatient clinics and hospital programs. After the birth of our first child, I took over a region closer to home. I now oversee dialysis treatments for over 1000 patients in Westchester and the Bronx and a $50M P&L.  DaVita DaVita Inc., a FORTUNE 500® company, is a leading provider of kidney care in the United States, delivering dialysis services to patients with chronic kidney failure and end stage renal disease. DaVita strives to improve patients’ quality of life by innovating clinical care, and by offering integrated treatment plans, personalized care teams and convenient health‐management services. As of June 30, 2012, DaVita operated or provided administrative services at 1,884 outpatient dialysis centers located in the United States, serving approximately 149,000 patients. The company also operated 19 outpatient dialysis centers located in four countries outside the United States. DaVita supports numerous programs dedicated to creating positive, sustainable change in communities around the world. The company’s leadership development initiatives and social responsibility efforts have been recognized by Fortune, Modern Healthcare, Newsweek and WorldBlu. _____________________________________________________________________________________ Dave Fielding Dave Fielding is currently the Vice President of Finance at Steward Health Care System, a $2.1 billion fully integrated community care organization that operates the largest community hospital system in New England. Steward Health Care has 17,000 employees, over 2,000 hospital beds across 11 hospitals, and serves more than 150 communities. Dave centralized the finance and accounting functions at Steward and has secured a $200 million line of credit for the company.  He has also restructured revenue cycle operations.  Dave joined Steward from its private equity investor, Cerberus Capital Management, where he was an Operating Executive working with several portfolio companies across a wide range of industries, including two healthcare companies. Prior to HBS, Dave worked in finance roles at ViaCell, which he helped take public in 2005, and at Rational Software.  Steward Health Care Steward Health Care System is a community‐based accountable care organization and community hospital network with more than 17,000 employees serving more than one million patients annually in more than 150 communities.

Each hospital and facility within the Steward family, while part of an extensive network of health care providers, has its own rich history of providing outstanding, compassionate care right in the communities where patients need it most. _____________________________________________________________________________________ Jennifer Rentas Jennifer Rentas is a Director in the Service Lines department at Hospital for Special Surgery in New York, NY, where she works with the Orthopedic Service Lines to align and execute hospital strategy while also working to cultivate strong primary‐care referral relationships in the local and regional marketplaces. Prior to joining HSS, Jennifer was Special Assistant to the Executive Vice President at the Henry J. Kaiser Family Foundation, and a Senior Policy Analyst for the Kaiser Commission on Medicaid and the Uninsured in Washington, D.C. Jennifer holds a Master’s of Public Policy from the Harvard Kennedy School and an M.B.A. from the Harvard Business School. Prior to HBS, she was Manager of Special Projects in the Office of the Executive Vice President and COO, and in the Office of the CNO, at NewYork‐Presbyterian Hospital in New York, NY.  She began her career at Saint Barnabas Medical Center in Livingston, NJ, as an analyst to the executive team. Jennifer holds a B.A. in social studies from Harvard College.  Hospital for Special Surgery Founded in 1863, Hospital for Special Surgery (HSS) is an academic medical center specializing in musculoskeletal medicine – including orthopedic surgery, rheumatology, and rehabilitation – and is affiliated with New York‐Presbyterian Healthcare System and Weill Cornell Medical College.  Our mission is to improve the mobility and enhance the quality of life of patients, while advancing the science and profession of orthopedics and rheumatology through clinical research and medical education.  HSS is ranked #2 in Orthopedics and #3 in Rheumatology by U.S. News and World Report in its 2009 “America’s Best Hospitals” survey.  HSS has 277 active medical staff, 85 full‐time scientists, 29 operating rooms, and 172 beds.  The hospital performed over 24,000 surgeries in 2009.  HSS is currently undergoing an expansion project which will add further bed and operating room capacity. _____________________________________________________________________________________ Justin Silver Justin Silver works in the Business Development organization for Emerging Businesses where he focuses on sourcing, evaluating and executing transactions which provide strategic diversification for Aetna. Prior to joining Aetna, Justin was a Vice President at Radius Ventures where he invested in both development and growth stage companies within the life sciences, medical technology, healthcare IT and services sectors. Justin has also spent time with Ferghana Partners where he specialized in healthcare private placement and corporate partnering transactions and has also worked for New Enterprise Associates where he concentrated on healthcare venture capital financings and strategic advisory work for its portfolio companies.   Justin received a B.S. in Business Administration from Washington University in St. Louis and a M.S. in Biochemistry and Molecular Biology from Georgetown University where he graduated first in his class. Justin is a graduate of the Harvard Business School where he received the Dean's Award and where he served as Co‐President of the Harvard Business School Healthcare Club.  He currently serves on the Board of Directors of the Harvard Business School Healthcare Alumni Association and is a Mentor with Blueprint Health.  Aetna Aetna is one of the nation's leaders in health care, dental, pharmacy, group life, and disability insurance, and employee benefits. Dedicated to helping people achieve health and financial security, Aetna puts information and helpful resources to work for its members to help them make better‐informed decisions about their health care.

We believe we can help create a better health care system. This belief drives our daily decisions as one of the nation's leading health care benefits companies. We work hard to provide our members with information and resources to help them make informed decisions about their health. We help people achieve health and financial security by providing easy access to cost‐effective, high‐quality health care. And we continue to be a leader in building a stronger, more effective health care system by working with doctors, hospitals, employers, patients, public officials and others. _____________________________________________________________________________________ Ruby Woo Ruby joined UnitedHealth Group in 2003 and has held various positions in Finance, Operations, Sales, and Product Development. Ruby is currently a Vice President, Strategy for United HealthCare National Accounts (employer groups >3K lives). Prior to joining UnitedHealth Group, Ruby was a consultant with McKinsey & Company in New York and Johannesburg. Post McKinsey, she was an associate in a New York‐based private equity firm that made control investments in small to middle market companies in basic industries such as manufacturing, distribution and retail. Ruby holds an MBA from Harvard Business School and received her BA in economics from Columbia College in New York, NY. Ruby is a mother of three children aged 8, 6 and 3.  UnitedHealth Group Since its inception, UnitedHealth Group and its affiliated companies have led the marketplace by introducing key innovations that make health care services more accessible and affordable for customers, improve the quality and coordination of health care services, and help individuals and their physicians make more informed health care decisions. At UnitedHealth Group, our mission is to help people live healthier lives. To achieve this goal, we are focused on building a modern, adaptable, innovative and inclusive system of health care services. Our scale and potential to improve health makes us one of the most visible stewards of America’s vast health care system.  

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Healthcare Industry Week 2012

Trends and the Future of Healthcare IT  ___________________________________________________________________________________ Dan Pelino  Dan Pelino serves as General Manager for IBM’s global Health Care and Life Sciences business.  In this worldwide role, he leads the corporation in helping clients create smarter, more connected health care systems, working closely with public and private health care providers and payers, biotech and pharmaceutical companies, and medical device and instrument companies.  Dan is a recognized expert in the areas of health care transformation and health IT. He has advised numerous countries and states on health care IT‐related issues. Under his leadership, IBM has been involved in helping transform and digitize health systems worldwide. He has formed numerous partnerships with many of the largest health systems focusing on new care models, analytic solutions and unique approaches to the optimization and cost challenges of technology infrastructure.  IBM’s health care and life sciences business is a significant contributor to the company’s Public Sector organization. Pelino leads the company’s strategic direction in this area and has helped consistently grow the business through IBM’s expertise in managing vast amounts of information, in‐depth understanding of the industry and thousands of industry consultants, as well IBM’s hardware and software offerings.   Prior to serving in this role, Dan served in numerous leadership positions within IBM including Vice President Corporate Marketing and Strategy, Vice President, Global Distribution Channels Management, Vice President, Americas, for the Central Region where he was responsible for customer relationships, revenue, profit, and market share for 15 mid‐western states; and Group Vice President of Global Sales, Marketing and Support, Technology Group.     Dan received his Master’s Degree in Organizational Communications and his Bachelor of Science undergraduate degree in Business Administration and Public Relations from Western Kentucky University.  He joined IBM in 1980.        IBM IBM's healthcare solutions, technology and consulting enable organizations to achieve greater efficiency within their operations; collaborate to improve outcomes; and integrate with new partners for a more sustainable, personalized and patient‐centric system focused on value. 

Smarter Healthcare and Life SciencesPoint of view

Redefining Value and Success in HealthcareCharting the path to the future

Transformation of the healthcare industry is finally happening, and with dramatic energy, driven by a fundamental shift in the expectations of all stakeholders: patients, governments, payers, employers and providers. Today the market is rejecting the three major structural deficiencies that have resulted in the industry’s systemic challenges: 1.) an over-emphasis on expensive advances in medical technology that yield incremental improvements in outcomes with inadequate consideration to cost; 2.) the myopic focus on capacity for acute care to the detriment of wellness, prevention and population health strategies; and 3.) the use of volume-based reimbursement models.

Most healthcare organizations realize their business models are aligned with one or all of these tenets of a legacy system. They recognize they must reconsider the consequences of their value proposition and its impact on the health and economic vitality of their institution and the individuals, communities and nations they serve. The leaders in the industry are already aggressively pushing innovation into the core of their business and service models, not to achieve incremental change, but to change fundamentally their way of thinking about the service they deliver.

To do this, healthcare institutions are developing the competencies to redefine value to their stakeholders. They are thoughtfully assuming and managing risk and focusing on wellness and outcomes in order to remain viable. And as value becomes understood as a measure of health and well-being, organizations that respond are establishing the characteristics for a more coordinated, efficient and purposeful healthcare system to emerge.

Highlights:

Transformation in the industry is being driven by a fundamental shift in expectations of all stakeholders.

Healthcare organizations will need to develop new competencies to redefine value for their stakeholders.

As value becomes understood as a measure of health and well being, organizations that respond to deliver outcomes will succeed.

Smarter Healthcare and Life Sciences

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Point of view

Redefining Value Requires New CompetenciesThough mandatory, the transformation to smarter healthcare is no small undertaking. No longer is the industry making incremental changes. There is dramatic energy to change, of a magnitude never seen before. It is forcing organizations to reconsider their business models, reorient their operations around the patient and re-imagine the future of healthcare. It is also forcing them to develop powerful, new competencies that will allow them to meet the new demands of the market. They will need to collaborate with unfamiliar business partners, attract and retain a different mix of talent, adopt new technologies and, in some cases, abandon traditional sources of revenue.

For healthcare organizations to survive and thrive in this period of transformation, they will need to make hard, thoughtful and informed decisions about every aspect of their operations and their business. Many healthcare organizations have already begun to develop new competencies to support strategic decision making, while also building the organizational agility that will be necessary to adapt to changing market conditions. In working with hundreds of clients across the global healthcare ecosystem, IBM® has identified several essential competencies that are preparing healthcare organizations for the future:

• Collaboration and partnering• Information proficiency• Personalization of health• Talent creation and retention• Technology enablement

Collaboration and Partnering Building the tools and skills for collaborating and partnering is essential for working with patients, payers, providers and other stakeholders across the healthcare ecosystem. How organizations engage with others is critical: sharing ideas and information, engaging relationships with a ‘win-win’ mentality and a willingness to reconsider, redefine and reinvent their role. These skills are the basis of coordinated care delivery. But they also help extend one’s brand into new geographies, and with a flexible business model, allows one to innovate, adapt and collaborate. Many institutions will need to draw upon their heritage to assess and leverage their core values into new partnerships, new ventures and endeavors. Creating more patient-centric, coordinated and accountable care means all service providers must share risks and data, and they must conduct business with partners that cross traditional boundaries.

Information ProficiencyCoordination of processes, use of standard practices and collaboration among stakeholders can only be achieved if you can measure, monitor and analyze performance data and gain actionable clinical and business insight. Organizational innovators are already implementing smarter decision making by using health analytics to publish metrics at point of care, measuring performance and changing behavior to become more “intelligent”. To improve care, healthcare stakeholders will need to coordinate, track and manage performance using new metrics: the health outcomes for the patient measured over a lifetime, and the value of the interventions across the care continuum. To do this requires volumes of reliable health and operational data. It also requires organizations to become exceedingly proficient in information management. How organizations capture, store, use and share information is a critical competency to enable the organization’s strategy. The ability to access the wealth of information across the enterprise is no longer a luxury, but a necessity, required to correlate cost and quality information, and to apply insight back into business processes that can inform action and change behavior.

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Point of view

Personalization of HealthEmpowering patients means developing multi-channel approaches, convenient locations and varied settings to expand access to healthcare services. It means delivering longitudinal and preventative care versus episodic and transactional care. It also means using innovative technologies and data to personalize treatments and engage citizens in their own health management and disease prevention. Regardless of the knowledge we may have of health, medicine and technology, if it doesn’t fit into the patient’s world, it will never be effective. Providers must understand the characteristics and needs of each individual beyond the condition and medical status to really understand the patient’s care needs and barriers, their service preferences, financial circumstances, habits and level of engagement. To empower patients is not simply making healthcare more accessible and patient-centric. It is to create extreme personalization: to understand the critical characteristics that inform the patient’s choices, actions and responses to their own health requirements in order to reach, serve and influence their participation in their own health management.

Talent Creation and RetentionIn an increasingly competitive and resource-constrained industry, establishing programs for talent creation and retention to enable proactive hiring, new skills development and incentives for employees is a strategic necessity. Healthcare organizations must be able to acquire the talent that will enable the enterprise to move into new business models it may design and desire. It also means assessing the culture and value set of the organization to understand and leverage its heritage and values into these new models. How will the organization recognize, communicate and reinforce the attitudes and actions that support the realization of new commitments? Resource managers are finding that talent proficiency no longer can be measured across just one dimension, whether that is people, process or technology.

Real value comes from individuals whose skills can be deployed across different boundaries of the business. Creating agility includes not only the acquisition of valuable talent but also continuous learning, skills expansion and the grooming of future managers and leaders. It embraces recruiting and values primary care providers across the system. Acquiring new skills around partnership building, systems thinking and data analytics will be necessary to compete. Those organizations that build talent bases around these emerging skills will be in a better position to achieve success.

Technology EnablementTechnology plays a critical role in enabling healthcare transformation. It improves operations, supports collaboration and lays the groundwork for data-driven decision making. The ability to capture, integrate and analyze data across different stakeholders, care settings and geography is essential, as is modernizing infrastructure to increase agility. New modalities, diagnostics and innovative medical devices, as well as the use of telemedicine and remote monitoring, add to technological enablement by increasing access and expertise. Technology eliminates current borders of the business by overcoming barriers such as distance, knowledge or practice. It is a key enabler to transformation, and the healthcare industry must now utilize information technology for advantage, as so many other industries have, to innovate their businesses and to eliminate disparities.

Throughout the industry, there are forward-thinking organizations that are developing these and other new competencies and using them to reduce costs, increase access and improve quality and outcomes. They are partnering with unfamiliar allies, focusing on customer service, and integrating information from across their ecosystems to inform decision making with data. These organizations are preparing for the uncertainty that comes with industry-wide transformation. They are positioning themselves for success, and they are defining the future of healthcare.

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Please Recycle

Conclusion Ultimately, the goal is to improve health and well-being for individuals and society. The healthcare industry is now in an unprecedented period of change. For healthcare stakeholders to either stand still or perpetuate only incremental optimization to legacy paradigms will only accelerate an organization’s possible demise. The industry can expect a relentless pursuit to value that is being defined on an entirely new axis. In this age of transparency, realization of value will be recognized, and inability to deliver will be exposed.

As value becomes understood as a measure of health and well-being, organizations that respond to deliver outcomes will succeed. They will do so with a better understanding of clinical evidence and greater clarity to what is needed to improve health: for the specifics of the individual and for their communities, to ultimately promote a more coordinated, aligned and efficient healthcare delivery system of the future. This is a most exciting time for the healthcare industry and many organizations are embracing the opportunity. Change done well has the potential to truly reinvent care, outcomes and cost, providing a great foundation for the future.

IBM brings together two essential bodies of knowledge and resources to help your organization answer these questions and continue the transformation of the healthcare industry: 1.) deep expertise in managing and integrating complex systems that has helped transform the world’s retail, financial and energy industries; and 2.) broad expertise in life sciences, bioinformatics and the full spectrum of healthcare disciplines. With more than 8,000 employees dedicated to healthcare, including more than 60 medical doctors and 350 healthcare professionals, IBM has completed more than 3,000 successful healthcare transformation initiatives, ranging from small hospitals to national healthcare projects. IBM holds more than 600 patents in the life sciences, healthcare and medical device fields. It has been an active participant with governments working to lay the foundations of a 21st century healthcare system. Together with its healthcare clients and partners, IBM is redefining value and success in healthcare and is helping to build a smarter healthcare industry.

For more informationFor more information visit ibm.com/healthcare.

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Healthcare Industry Week 2012 Devices and Diagnostics Panel

__________________________________________________________________________________________________ Michael Coppa  Michael Coppa is a graduate of the MBA Class of 2005 and the United States Military Academy.  Prior to HBS, he served seven years on active duty as an AH‐64 (Apache) helicopter pilot in the US Army, deploying to Afghanistan, Iraq and Albania.  Currently working in the clinical and anatomical laboratory industry, Michael formerly worked as a Director of Operations for DaVita, Inc., managing a  $60 million dollar, multi‐location business unit, responsible for driving organic EBITDA expansion as well as evaluating future capital commitment opportunities, including acquisitions, relocations, refurbishments and other expansion opportunities in wholly‐owned or Joint Venture relationships.  Prior to working with DaVita, Michael worked with Wachovia’s Leveraged Finance Group and as an M&A banker with Edgeview Partners, executing middle market transactions.  Michael currently lives in Charlotte, NC with his wife and their three daughters.  Sonic Healthcare (CBL Path) Sonic Healthcare is one of the world's largest medical diagnostics companies, providing laboratory and radiology services to medical practitioners, hospitals, community health services, and their collective patients.  In 2010, Sonic Healthcare acquired CBL Path.  CBLPath, Inc. is a leading provider of sub‐specialized anatomic pathology and molecular diagnostic laboratory services. We are committed to partnering with our physician‐clients to provide the best possible patient care. Founded in 1988 as Cytopath Biopsy Lab, our landmark laboratory quickly established a reputation for providing definitive diagnoses coupled with extraordinary customer service.  As one of the nation's fastest‐growing providers of specialized anatomic pathology services, CBLPath serves more than 3,900 physician specialists and their patients throughout the U.S., which reflects the tremendous confidence that our physician‐clients have shown in our services. __________________________________________________________________________________________________ Tony Frangie  Tony Frangie graduated Harvard Business School in 2007 (Section B) and for the past five years has worked at OmniGuide, a privately held, early stage medical device company in Cambridge, MA.  OmniGuide delivers advanced surgical solutions to minimally invasive procedures by leveraging its proprietary laser technology developed at MIT.  Currently serving as director of marketing, his experience at the company includes securing both venture and debt financing, the creation and development of a national direct sales force, upstream product development, downstream marketing, and international distribution.  Prior to completing his MBA, Tony built his professional experience working in R&D, sales, and corporate business development, serving as a national account manager at Akzo Nobel Surface Chemistry and as a summer associate in corporate development at Genzyme.  Tony earned his bachelor's degree cum laude from Colby College in Biology with a concentration in cell and molecular biology/biochemistry.  A Boston‐area native, he lives in Stoneham, MA with his wife and two children. 

 OmniGuide, Inc. OmniGuide, Inc. is a leader in the development and marketing of precision surgical energy solutions that improve patients’ lives.  By leveraging its proprietary flexible CO2 laser technology, OmniGuide products enhance surgical accuracy, access, and control for minimally invasive surgery, laparoscopy, and robotically assisted surgery.  Sold under the BeamPath® brand in the United States through a direct sales force and through distribution partners in Europe, the company is committed to shaping the future of minimally invasive surgery.  __________________________________________________________________________________________________ Michael Graffeo  Michael is the Director of Marketing for Dune Medical Devices, where he is responsible for global sales and marketing for a novel device used by breast cancer surgeons to help them ensure that they remove the entire tumor during a lumpectomy procedure.  Prior to Dune, he held a number of responsibilities in the GYN Surgical sales and marketing team at Hologic, including surgical sales rep, and upstream marketing manager.  Michael initially joined Cytyc (which was acquired by Hologic) as a part of their Emerging Leadership Program, where he was responsible for various projects including multiple international launch plans.   Previously, Michael was a Senior Engineer at Cordis, a Johnson & Johnson company, responsible for the launch of the Cypher drug‐eluting stent in Europe, the US, and Japan.  He is a graduate of the Harvard Business School (section H), and holds a M.Eng (Mechanical) and BS in Engineering Physics from Cornell University.  He lives in Millbury, MA with his wife and two children.    Dune Medical Devices Founded in 2002, Dune Medical Devices envisions improving the performance and outcomes of a broad range of diagnostic and therapeutic procedures through the application of its tissue characterization technology to providing a real‐time indication of a tissue's pathologic status.  Dune's initial focus has been surgical oncology, where it is engaged in the development and commercialization of intra‐operative systems intended to identify cancerous tissues, thereby enabling immediate removal and cancer‐free surgical results. In June 2006, Dune received CE marking for its first commercial application, the MarginProbe™ system, which is intended for use in breast cancer surgery. __________________________________________________________________________________________________ Theresa Tribble  Theresa Tribble is the Vice President of Commercial Strategy at SynapDx. SynapDx is an early‐stage venture‐backed company that is developing blood‐based diagnostics to aid in the detection of autism spectrum disorders. Her responsibilities cross all aspects of commercial activity including devising SynapDx's go‐to‐market strategy, marketing, developing academic collaborations, securing financing, and business development.  Theresa started her career at Putnam Associates, consulting to the pharmaceutical and medical device industries.  She graduated from Wellesley College and holds an MBA with Distinction from Harvard Business School (Class of 2009).    SynapDx SynapDx is an early stage laboratory services company developing a blood based test to enable earlier detection of Autism Spectrum Disorders (ASDs). ASDs are characterized by impairment in language and socialization as well as restricted and repetitive behaviors. ASDs affect 1 in 110 children according to the Centers for Disease Control.  SynapDx's approach measures RNA gene expression differences, which current research suggests can distinguish between people with ASDs and those without. SynapDx is in the process of conducting additional studies to validate this approach.  

__________________________________________________________________________________________________ Betsy Verrill Betsy Verrill Bullock is Director, Business Development and Strategy in the Advanced Surgical Devices Division of Smith & Nephew in Andover, Massachusetts. She oversees a team responsible for acquisitions, divestitures, and licensing of and distributions agreements for orthopedic, arthroscopic, and gynecologic devices. 

Prior to joining Smith & Nephew in 2010, Betsy was a Manager in Accenture’s Strategy practice with a focus on the healthcare industry.  Her consulting experience included operating model definition, process optimization, new business development, strategic planning, and cost optimization. She assisted in the development of Accenture’s perspective on Cost Optimization as well as Commercial Model Transformation for the Pharmaceutical industry. Betsy also has client experience in the government, consumer packaged goods and retail industries.   

Betsy received her MBA from Harvard Business School in 2008 (section E) and her BS in Business Administration from Georgetown University, where she was a John Carroll Scholar, in 2002. Betsy’s interest in healthcare stems from her experience as an EMT and Director of Training for the Georgetown University Emergency Response Medical Services. 

Betsy lives in Cambridge, MA with her husband, Rick (section H, class of 2014). 

Smith & Nephew Smith & Nephew is a global medical technology business dedicated to helping improve people's lives.  We have leadership positions in Orthopaedic Reconstruction, Advanced Wound Management, Sports Medicine and Trauma. 

 •Orthopaedics Reconstruction ‐ joint replacement systems for knees, hips and shoulders  •Advanced Wound Management ‐ wound care treatment and prevention products used to treat hard‐to‐heal wounds  •Sports Medicine – minimally invasive surgery of the joint  •Trauma – products that help repair broken bones