Partnerships in Healthcare Pushing the Boundaries

1. Partnerships in HealthcarePushing the Boundaries Heather Chalmers GM, Healthcare Systems October 26th, 2012

2. Our Challenge: Healthcare Sustainability Reduce % of federal funding transfer payments Drummond: growth cap on healthcare spend Regulatory, reimbursement impacts Activity Based models for funding GPO procurement process Alternative care delivery models Patient-centered care System efficiency Demand for connectivity Accountability & sustainability • Implications for Canadian Healthcare • Unsustainable – spend growing 3x GDP, no appetite for compromised service • Time of profound change – structural, $$$, accountability, new metrics • Strategic and operational impacts – innovation agenda gaining traction

3. GE Healthcare Landscape Strategy: healthymagination Program: Cancer Initiative Integrate imaging, diagnostics, pathology, health IT, data. partnerships Committing to deliver better care to 10 million patients by 2020Three pillars: - Open innovation - New technologies - Improving access Initial partnerships established in Wyoming, China, Saudi Arabia Reduce the cost of health procedures and practices through GE technologies and services Improve quality by simplifying ways of driving best standards of care Increase access to better health for more people through low-cost innovation, education and financing $6 billion commitment $1 billion commitment

4. Governments Current Focus – Energy, Mining, Healthcare, Remote Communities CDN Co-laboratory Clinical/ Research GE/GEHC Aligned Agencies The Canadian ‘collaboratory’ model Unique: fertile ground for GE & Partners Flexible: connected to local needs GE MOUs XXX XXX XXX XXX What Canada can deliver What Canada needs • Single payor, regional systems • Globally recognized institutions • Funding aligned w/ healthymagination = GEHC Petrie Dish • Commercial & research together • Product innovation • Economic development = local market responsiveness

5. Picking the right partner • Partnerships are a different beast and require support … can you focus and properly resource the activity? • Alignment is critical … have you assessed and tested the complementarity of desired outcomes and expectations? • Operating culture has undone many partnerships … do you have a plan to make the cultures fit? • Internal realities are often overlooked … have you been careful to “line up your ducks”?

6. Pathology Innovation Centre of Excellence 1650s - Today Tomorrow Improves… • Pathologist Productivity • Specialization • Collaboration • Accuracy • Speed of Result • Health Record • Advanced Diagnostics Tissue on glass slides viewed and diagnosed under microscope Pathologist diagnoses via digital image Joint venture fostering diagnostics innovation

7. New partner models for sustainability Managed Equipment Services: Tech & services for patient care Virtual Care Management: Care closer to home CareInnovations PerformanceSolutions VCM HCIT eHealth / Caradigm

8. What does this mean for you? • Do you have alignment of public policy all the way to the provider? Is there public and private sector alignment? • What is your innovation agenda and clear value proposition, your “hook”? • Do you have a framework to identify attractive innovations and expedite their adoption? • Are you easy to do business with? • Is your investment strategy aligned to attract investment?

9. "If you do not seek out allies and helpers, then you will be isolated and weak."Sun Tzu, "The Art of War" Questions?

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11. GE in Quebec • Approximately 2,000 employees • Several major manufacturing plants: Aviation, Illumination, Cabling, Transformers • Head office of GE Capital Solutions and GEHCs Life Science business • Significant business relationships: Air Canada, Bombardier, CN Rail, Hydro Quebec, SNC Lavalin • GE Healthcare office, 50+ employees, ~ 20% of revenue