While digital technologies are transforming many industries, traditional healthcare still has a long way to catch up.

1. Healthcare 2015
Digital breakout & panel discussion 1, 10.45
Stockholm, Sweden
October 1, 2015

2. McKinsey & Company 2| 2|
Contents
▪ Introduction: How digital
creates value
▪ Panel discussion: Challenges to
implementation
▪ Wrap up

3. McKinsey & Company 3| 3|
The hospital of the future is being shaped by the non-linear convergence of
disruptive, “digital technologies”
3D printing
Advanced
materials
Cloud
technology
The
“Internet of
Things”
Big data and
predictive
analytics
Mobile and
social web
Next-generation
genomics
Interactive, gesture-based
computing

4. McKinsey & Company 4| 4|
Digital technology creates value in healthcare in five ways
Automating manual tasks to improve quality of care
and consistency of care and support clinical staff to
be more efficient
1
Enabling patients and carers to play a bigger role,
which has been shown to improve health, quality of
care and reduce costs
2
Allowing real time management of assets and flow to
improve operational performance3
Reducing variation: enabling/supporting/ endorsing
delivery of best practice care and reduction in errors4
Enhancing connectivity so clinicians and patients no
longer need to be co-located, enabling better self
care and adherence
5

5. McKinsey & Company 5| 5|
Digital solutions can help address several sources of inefficiency and value
leakage in hospitals
1 “Challenging bureaucracy”, NHS Confederation report 2013
2 “Medical Errors, Lack Of Coordination, And Poor Physician-Patient Communication Are Pervasive In Health Systems Of Five Nations (Australia,
Canada, New Zealand, UK and US), 2003
Clinical staff spend up to 25% of their time collect-
ing, recording or validating data (from all sources)1…
…but clinicians report that only 65% of the data they
collect is useful and relevant to patient care1
~16% of healthcare spend is administrative
30% of medical spend is wasteful, for instance
13 - 22% of medical tests are duplicative2

6. McKinsey & Company 6| 6|
Consumer and physician use of digital technology is starting to approach a
tipping point and will be a key catalyst for adoption
SOURCE: eMarketer, Journal of the American Medical Informatics Association, QuantiaMD, Pew Internet: Mobile 2013, Family Care-
givers Online 2013, Health Online 2013; Kantar Media 2013 MARS OTC/DTC Study and Online Behavior Study 2013, Google
Searching for health
info online
Engaging in social
media on health
Using mobile devices
for health
Using health-related
apps
Patients/
Caregivers Physicians
59% 98%
26% 67%
50% 84%
18% 51%

7. McKinsey & Company 7| 7|
Significant value at stake
Evolution
Accelerate performance
Revolution
Reimagine care delivery
Comprehensively applying
existing, proven technologies
15-20%
25-30%
End-to-end digitization of
clinical processes
Spend

8. McKinsey & Company 8| 8|
What does the journey look like?
High
Low
Organizational
level of ‘digital
excellence’
Low High
IT level of ‘digital excellence’
BU-IT alignment on high
value decisions enabled
through advanced analytics
(service-line specific)
I
IV
Launching a few proofs of
concept across service lines to
prove value and understanding
scale constraints
II
Addressing
incentives, culture,
workflow integration
and other enablers to
ensure sustainability
Analytics automation –
scaling up IT, org and
operational capabilitiesIII
Identify
the value
Prove the
value
Scale
capabilities
Establish/
sustain
culture

9. McKinsey & Company 9| 9|
Key pilot: What if you would digitalize the maternity pathway?
SOURCE: Client interviews
1 England, nulliparous women (no previous delivery > 23 weeks)
Self-booking
▪ Select provider and
book first
appointment via
portal
Increased participation
Self-input of data Booking reminder
Self-monitoring at
home
▪ Video or telephone
consultation
Increased provider efficiency
Early dischargeOptimize working
time and staffing
▪ Digitize and link
patient records,
reduce admin tasks
▪ Track patient flow
and adapt staffing Effective com-
munity midwifery
▪ Record available on
mobile device
▪ Automatic route
mapping for home
visits
Impact estimate
Up to 60% of routine, face-to-face antenatal visits
to be replaced by self-care +/- remote consultations
7 - 13% reduction in department spend
Increased convenience and satisfaction
Automated orders
for tests
▪ Enter medical history
online into shared
digital record
▪ Algorithm identifies
high risk patients
and adjusts time to
first appointment
▪ Orders for blood test and scans
automatically prepared
▪ Provide equipment and instructions
to undertake own tests
▪ Digitize discharge
planning and ward
rounds
▪ Reminder via
email
▪ Do own BP, urine
and SPH tests at
home, enter results
into shared digital
record
Remote consult-
ation
EXAMPLE

10. McKinsey & Company 10| 10|
Contents
▪ Introduction: How digital creates
value
▪ Panel discussion: Challenges
to implementation
▪ Wrap up

11. McKinsey & Company 11| 11|
Our panelists
Shantanu Dholakia
Ivana Schnur
Jaap Maljers
Andrew Pumerantz

12. McKinsey & Company 12| 12|
Contents
▪ Introduction: How digital creates
value
▪ Panel discussion: Challenges to
implementation
▪ Wrap up

13. McKinsey & Company 13| 13|
What it can do
Control objects with your
thoughts
Increase productivity by
eliminating paper
Detect arrhythmias and improve
diagnosis
Enable remote diagnosis and
management
Have a look at the examples of digital technology around the room
Invite children to improve motoric
coordination
Monitor patients hearts easily
during their normal routine
Provide accessible mental health
service and early intervention
Motivate chronically ill to
adherence to treatment plansMyTherapy
Enable integrated care by patient-
controlled records
Continuously monitor and
proactively alert using tele-ICU
Use a gaming sensor to create a
human movement laboratory
Monitor your heart health at home
Support self-management and
promote shared decision making
Connect providers and patients
with up-to-the-minute information
Continuously measure vital signs
and provide it whenever needed
Book an appointment and much
more
Example What it can doExample

14. McKinsey & Company 14| 14|
What operational changes will I
need to make to integrate this technol-
ogy into my delivery model and effect-
tively capture its value?
Who will reap the rewards of potential
value created?
Is my current environment ready for it?
Could this drive a true revolution in
care delivery and a step-change in my
cost curve, or a minor improvement to
the status quo?
As you experience the solutions at each station,
keep a few critical questions in mind