Platforms and Partnerships: The Building Blocks for Digital Innovation

1. Platforms and Partnerships The Building Blocks for Digital Innovation Ryan Smith SVP & Executive Advisor Ryan.Smith@HealthCatalyst.com

2. • Digital transformation and consumer expectations • Technology barriers • Five key recommendations • Case study • Q&A Outline

5. © 2018 Health Catalyst Digital Healthcare Lags Other Industries Portals; EHR centric Mobile first; cloud-based Healthcare Other Service Industries Fragmented experience; Vendor approach to apps Limited customer value Difficult to use; non-intuitive Insufficient context to make informed decisions Cohesive; brand-driven User-centered design Use of analytics to personalize the digital experience Substantial value 5

6. © 2018 Health Catalyst On a scale of 1-5, how would you rate your organization’s effectiveness in meeting consumer expectations for digital interactions? 1. Not at all effective 2. Somewhat effective 3. Moderately effective 4. Extremely effective 5. Unsure or not applicable Poll Question #1 6

7. © 2018 Health Catalyst The Digital Health Journey 1 2 3 0 45 6 7 8 Digital Health Vision Aggregated DataEngagement Adopt EHRs Make them interoperable and secure Aggregate and normalize data, including patient reported, text data, biometric, socio-economic, genomic, epigenetic... Analyze data to find what works best, uniquely Innovate digital- clinical products Engage patients, providers, community Use innovations for health improvement Measure quality and outcomes Foundational Systems Value-BasedCare &HealthOutcomes Evidence-Based Medicine Source: Circle Square – Digital Health Trends; December 20187

8. © 2018 Health Catalyst Connecting Digital to Transformation Goals ENGAGE HEALTHCARE CONSUMERS in their overall health and wellness. ENABLE CARE TEAMS to effectively collaborate and provide excellent care. IMPROVE CLINICAL & OPERATIONAL OUTCOMES to facilitate optimized and cost-effective care. GROW THE ORGANIZATION through partnerships, organic growth, diversification and innovation. Provide an engaging, self-service experience, giving consumers full access to the necessary data and services to promote healing, health, wellness, and brand loyalty. Connect care team members together with patients to enhance patient safety, productivity, and working together more efficiently. Leverage data and analytics to create embedded insights and decision support to improve business and clinical outcomes at the frontline. Harness the power of strategic partnerships, platforms, tools, and data to keep pace with rapidly changing business needs. 8

9. © 2018 Health Catalyst Technology Investment Framework Overall buy vs. build strategy based on strategic partnerships. Investment strategy is based on having fewer, but fully integrated, Systems of Record as our foundation. With a philosophy approach to innovate around the edges. Identify opportunities to differentiate & maintain leadership. 9

10. © 2018 Health Catalyst Digital Enablement Framework IT Infrastructure Layer (Cloud, Networking, Directories, Data Centers, etc.) Hundreds of Other Data Sources (Internal & External) Systems of Record (EHR, CRM, ER …) IoT (Sensors, monitors, consumer devices, embedded…) Data Processing Layer (Data ingestion, data lake, EDW, machine learning, AI, Terminology, NLP, real-time streaming, APIs, neural networks, automation processes, algorithms…) Digital Process Layer Business process logic and workflows enabling customer self-service transactions (e.g. find a doctor, schedule appointments, virtual care, pay bill, receive alerts, chat bots, contact support, Rx refills, research a condition…) Application Interface Layer Presentation layer consumers engage with to learn, purchase, communicate, and transact. Supports smartphones, tablets, computers, virtual assistants, kiosks, digital watches… Systems of Differentiation and Innovation 10

14. #1 Define Digital in Your Organization

15. © 2018 Health Catalyst If your organization defines digital as any new technology investment and defines IT as the continued investment needed to maintain and support your legacy technology, then tech leaders should be worried about their future in the organization. Go on the offensive and manage these terms! 15

16. © 2018 Health Catalyst The innovative meshing of new technologies, data intelligence, re-imagined workflows, and organizational leadership–all aligned to achieve a “sticky” and optimal experience–inviting end users to virtually access all relevant information while offering a breadth of interactive, self-service capabilities available anytime, day or night, using any preferred device, from any connected location. My Definition of Digital 16

17. #2 Develop Guiding Principles for Enabling Digital

18. © 2018 Health Catalyst 10 Guiding Principles to Support Digital 1. Agility, timeliness, and flexibility enable business value. 2. Create fully integrated platforms that are modern, open, standards-based, scalable, secure, and cost effective. 3. Pursue a “cloud first” strategy. 4. Buy technology vs. building it (whenever possible). 5. Develop a core set of deep, strategic vendor partnerships committed to your success. 6. Pursue a cross-partner integration strategy. 7. Massively rationalize non-integrated vendors and apps. 8. Keep security and privacy top of mind. 9. Elevate internal team skills to innovate at the edges. 10. Plan for PARMS (Performance, Availability, Reliability, Maintainability, Scalability). 18

19. © 2018 Health Catalyst On a scale of 1-5, how well is your IT infrastructure, systems, data, and technology architecture positioned for enabling full digital capabilities in the near future (e.g., in the next 12 to 36 months)? 1. Not at all positioned 2. Somewhat positioned 3. Moderately positioned 4. Well positioned 5. Unsure or not applicable Poll Question #2 19

20. #3 Position Around Portfolios (and govern accordingly)

21. © 2018 Health Catalyst Divide Technology into Ten (or so) Portfolios 21 Clinical Suite Revenue Cycle Suite Data Mgmt & Analytics Suite Business / Admin Suite Desktop Productivity Suite Payer Suite Information Security Suite Consumer Digital Suite Service Management Suite IT Infrastructure Suite

22. © 2018 Health Catalyst Dyad model • Strong business/clinical champion (Batman) partnered with IT champion. • Co-responsible for developing and communicating strategies, planning, and strategy execution. • Dyad model applied to each major technology initiative. Business driven IT governance structure • Business champion typically serves as committee chairperson. • IT champion serves as co-chair. • Dyad oversees sub-committees. Dyad ensures participation of all key stakeholders • Enterprise Project Management Office (PMO). • Change Management. • Finance, Operations, etc. Business / IT Partnership Model 22

23. #4 Develop an Analogy

24. © 2018 Health Catalyst Core IT Partner Fully Integrated Suite Strategic partner’s integrated suite provides 60% to 80% of required business capabilities; Secondary partner’s certified integration provides >90% of overall business capabilities. Secondary IT Partner #1 (integrated partner of core partner) Non-Strategic Vendors (e.g., standalone and/or interfaced only) Secondary IT Partner #2 (integrated partner of core partner) Non-Strategic Vendors (e.g., standalone and/or interfaced only) Integrated Portfolio Approach 24

25. Clinical Apps Suite Revenue Cycle Suite Business/ERP Suite Enterprise Analytics Suite Desktop Productivity Suite Payer Suite Consumer Digital Suite Information Security Suite IT Service Mgmt Suite IT Infrastructure Suite Ten Primary IT Portfolios

26. #5 Strategically Select Vendor Partners

27. © 2018 Health Catalyst Vendor vs. Partner – Comparing Behaviors • “Us” vs. “them” mentality • One-and-done sales mindset • Quarterly/year-end focused • Looks out for “#1” • Results in a winner and a loser • Short-term focus • Devolves to “letter” of contract • Low/no executive sponsorship • “We win/lose together” mindset • Built on trust and respect • Long-term focus; not sales focused • Mutual risk sharing • Both businesses grow • Pursue co-development initiatives • Abides by “spirit” of contract • High levels of executive sponsorship Vendor Strategic Vendor Partner 27

28. © 2018 Health Catalyst Taking the Integrated Partner Approach… • Supports quest for digital enablement and innovation • Provides significant cost savings over time • Simplifies IT architecture and data management • Dramatically increases integrated capabilities • Aligns with business objectives and demands • More eggs in fewer baskets • Greater reliance on partners • Impact to existing job roles, # of FTEs, and types of skills needed • Impact to end users if change management not well-executed • Requires short-term increase to technology investments (but significant long-term savings) Benefits Potential Risks 28

29. Case Study: Applying the Model (Enterprise Data and Analytics Suite)

30. © 2018 Health Catalyst Digital Enablement Framework IT Infrastructure Layer (Cloud, Networking, Directories, Data Centers, etc.) Hundreds of Other Data Sources (Internal & External) Systems of Record (EHR, CRM, ER…) IoT (Sensors, monitors, consumer devices, embedded…) Data Processing Layer (data ingestion, data lake, EDW, machine learning, AI, Terminology, NLP, real-time streaming, APIs, neural networks, automation processes, algorithms) Digital Process Layer Business process logic and workflows enabling customer self-service transactions (find a doctor, schedule appointments, virtual care, pay bill, chat bots, contact support, Rx refills, research a condition…) Application Interface Layer Presentation layer consumers engage with to learn, purchase, communicate, and transact. Supports smartphones, tablets, computers, virtual assistants, kiosks, and digital watches. Systems of Differentiation and Innovation 30

31. © 2018 Health Catalyst The Healthcare Analytics Adoption Model Improve Health Level 9 Direct-to-Patient Analytics & Artificial Intelligence Putting patient data, analytics, and AI in patients’ hands so they can own more of their health and healthcare decisions. Level 8 Personalized Medicine & Prescriptive Analytics Tailoring patient care based on population outcomes and genetic data. Fee-for-quality rewards health maintenance. Level 7 Clinical Risk Intervention & Predictive Analytics Organizational processes for intervention are supported with predictive risk models. Fee-for-quality includes fixed per-capita payment. Reduce Variation Level 6 Population Health Management & Suggestive Analytics Tailoring patient care based upon population metrics. Fee-for- quality includes bundled per case payment. Level 5 Waste & Care Variability Reduction Reducing variability in care processes. Focusing on internal optimization and waste reduction. Improve Efficiency Level 4 Automated External Reporting Efficient, consistent production of reports & adaptability to changing requirements. Level 3 Automated Internal Reporting Efficient, consistent production of reports & widespread availability in the organization. Level 2 Standardized Vocabulary & Patient Registries Relating and organizing the core data content. Level 1 Enterprise Data Operating System Collecting and integrating the core data content. Level 0 Fragmented Point Solutions Inefficient, inconsistent versions of the truth. Cumbersome internal and external reporting. 31

32. © 2018 Health Catalyst Comprehensive Information Delivery (e.g., pushed reports, self-service analysis, dashboards, scorecards, mobile tools, embedded applications) Comprehensive Data Management (e.g., data ingestion, aggregation, standardization, classification, broad subject area marts, NLP, and machine learning to satisfy ALL current and future analytical purposes) Comprehensive Sources of Data (e.g., EHR, ERP, claims, social determinants of health, genomic, patient contributed, biometric, consumer, devices, IoT, images, video, social media, registries, surveys, logs, marketing, etc.) Analytics Injected Across Enterprise Insights, Algorithms, DSS, Closed Loop Analytics, EHR Embedded Enterprise Improvement Foundation Best Practice Improvement Methodologies, System-Wide Adoption Framework, Information Management Processes and Policies, Enterprise Information Governance The Enterprise Analytics Portfolio 32

33. © 2018 Health Catalyst In Summary 33 #1 Take time to define your organization’s digital vision. The journey is long and requires patience and focus. #2 Develop an innovative approach to fund and enable digital initiatives. #3 Build a business- driven technology governance structure to ensure full business alignment. #4 Integration is core to enabling digital success. Partners will dramatically increase your odds for success.

34. © 2018 Health Catalyst Sept. 10-12, Salt Lake City, Grand America Hotel • National Keynotes • Digital Innovation Showcase • 28 Educational, Case Study, and Technical Breakouts • 24 Analytics Walkabout Projects • Machine Learning Marketplace • Networking (bringing back ”Braindate”) • CME Accreditation for Clinicians • 5-Star Grand America Hotel Experience • 96 Total Presentations Healthcare Analytics Summit 19 34

38. Questions and Answers Ryan Smith Senior Vice President, Executive Advisor, Health Catalyst Ryan.Smith@healthcatalyst.com

Platforms and Partnerships: The Building Blocks for Digital Innovation

Platforms and Partnerships: The Building Blocks for Digital Innovation

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Platforms and Partnerships: The Building Blocks for Digital Innovation