the us health market opportunity

SCALEit Inspire Århus, 16. August 2013 _________________________________ Keynote indlæg Hans Erik Henriksen Business Development Manager CompuGroup Medical Danmark A/S

19/08/13 SCALEIt Inspire Århus, 16. August 2013 1

Agenda


•  IntroducLon to CompuGroup Medical •  USA market experience

•  The USA healthcare market opportunity

•  What does it take to make it in the U.S. ?

•  What did I learn ?

•  What would I focus on if I started building a company ?

"   Best provider of IT soluDons for higher quality and efficiency in the healthcare system

"   Worldwide market leader in MIT (Medical InformaDon Technology)

"   High profitability and 30% annual growth

CompuGroup Medical: >385,000 customers in 34 countries


Goals

2011 Prel. Results 2012

Customers ca. 385,000 Revenue € 397 M € 451 M EBITDA € 73 M € 105 M Employees ca. 3,600

Key figures

n = 19 countries with own locaLons n = addiLonal 15 countries with customers

Strategy


InternaDonal corporate structure with strong regional presence and unique coverage

of healthcare providers.

Coverage

Therapist Rehab Center

Insurance Hospital

Pharmacy Nursing Service

Intelligent connecDvity of all parDcipants on the basis of

structured medical informaDon.

ConnecLvity

So[ware Assisted Medicine (SAM) for more efficiency,

for greater effecDveness and for best quality.

Decision Support

CGM LIFE eSERVICES based on

vita-‐X technology.

PaLent

The products of CompuGroup Medical help to increase the performance of healthcare systems by approximately 15% to 20%.

USA market experience


B-‐Data IBM Cetrea IBM

•  CEO 2008 - 2012 •  Clinical Logistics •  2008: 7 employees

– 2012: 38 empl. •  80% of the Danish market •  International customers

•  2001 - 2008 •  Healthcare Exec.,

•  North East Europe •  Nordic •  Denmark

•  ACURE due diligence and Executive

•  1996-2001 •  Director, Sales and

delivery •  Project Executive

•  1983 - 1996 •  Healthcare Market

Oppt. Manager •  IBM Consulting Group •  Systems Engineer

•  Avaleo: Chairman of the Board

IBM US project

IBM WW HC strategy

EHR project based on Danish assets

Cetrea US entry 2010-‐2012

The signing of the PaLent ProtecLon and Affordable Care Act (PPACA) of 2010 will drive significant change for the United States healthcare delivery model

Availability of affordable, value based care for the majority of Americans While reducing costs

Access Affordability

Key highlights

•  Establishes health insurance exchanges (new markets that provide economies of scale, product choice, and risk pooling of large firms for individuals and small businesses)

•  Expands coverage through the Medicaid program

•  Provides premium subsidies for persons living below 400% of Federal Poverty Guidelines

•  Assures guaranteed coverage and also prohibits health status premium adjustments

•  Requires most Americans to have health insurance and creates individual and employer penalDes for people without coverage

•  Will be funded through Medicare and Medicaid spending reducLons, addiDonal Federal tax revenue and penalDes

Affordability will require major changes in US care delivery

Increase Health Care Value Improve Quality

Reduce Costs and Spending Accountable Care OrganizaLons

Bundled Payments for

Services

Medical Hom

e

Pay for Performance

(Health exchanges) Electronic Quality ReporDng Electronic Health Records

Electronic Sharing and Exchange of Health InformaDon

Goals

IniDaDves

Health IT

Obama administraLon subsidiaries through EHR Meaningful Use cerLficaLon is a key driver

•  2011-2014: EMR’s and EMR implementation

•  2014-2016: E-health

•  2015- : •  Patient Medical Home •  Wellfare Technology

What does it take to make it in the USA ?


•  The right product

•  Truly innovaDve and unique

•  With the right organizaDon

•  Sales organizaDon in the US is not enough

•  NavigaDng business partners and compeDtors

•  Why will a business partner sell your product ?

•  How will compeDtors react ? ”Me too” ?

•  Patent protecDon strategy

•  Product cerDficaDons

What did I learn ?


•  Investment is not an issue if you have the right product

•  A Danish background is a big advantage

•  Denmark reputaDon

•  Danish Trade Council support and Silicon Valley InnovaDon Center

•  PenetraDng the US market takes Dme

•  The right sales organizaDon is crucial

What would I focus on if I started building a company ?


•  The right team, organizaDon and board

•  Mission, Vision and Strategy

•  Products

•  Markets

•  Company

•  Focus on short Dme objecDves

•  Product referenceability

•  DomesDc market

•  InternaDonal markets

•  Start out in Denmark ?

•  Strong domesDc market for advanced healthcare-‐IT

•  Seed funding

•  EU tender rules

•  Start out in the U.S. ?

•  Investments

•  Early technology adopters

•  Market and culture experience

Agenda


•  IntroducLon to CompuGroup Medical •  USA market experience

•  The USA healthcare market opportunity

•  What does it take to make it in the U.S. ?

•  What did I learn ?

•  What would I focus on if I started building a company ?

the us health market opportunity

Technology

started building

product

make

focus

eciency

americans

learn

performance