Sutherland insights healthcare news flash oct 16, 2014

HEALTHCARE NEWS FLASH October 16, 2014

Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 9 Technology .......................................................................................................................... 12 Strategy .............................................................................................................................. 19

2|Sutherland Insights Healthcare News Flash Oct 16, 2014

Sales & Marketing The Hanover Expands Its Healthcare Capabilities, Providing More Opportunities For Its Partners To Sell Value October 14, 2014 |InsuranceNewsNet.com http://insurancenewsnet.com/oarticle/2014/10/14/the-hanover-expands-its-healthcarecapabilities-providing-more-opportunities-fo-a-567396.html The Hanover Insurance Group, Inc. (NYSE: THG), a leading provider of property and casualty insurance countrywide through its member companies, today announced that it has expanded its healthcare business appetite into more medical facilities and is broadening its coverage forms, which is creating opportunities for its distribution partners to grow in the healthcare market.

"The healthcare industry is constantly changing and evolving, making it important for a healthcare professional to work with a knowledgeable, licensed independent agent to help guide their insurance buying decisions," said Matthew S. Mitchell, president of healthcare at The Hanover. "As a leading carrier in the industry, we understand that the best agents want to work with a carrier that offers robust, specialized products and services to meet the growing insurance needs of their customers."

The Hanover has introduced several new classes of healthcare medical facilities that have been added to its already broad and distinctive portfolio. These new classes will allow The Hanover's agents to grow their healthcare business, and feature medical facilities such as: •

Ambulatory Surgery Centers

•

Behavioral Health

•

Clinics

•

Community Health Centers

•

Dialysis Facilities

•

Eye Banks

•

Health Departments

•

Hospice Homes

•

Hyperbaric

•

Lithotripsy

•

Medical Diagnostic Laboratories

3|Sutherland Insights Healthcare News Flash Oct 16, 2014

•

Medical Imaging

•

Oncology

•

Optical Goods and Services

•

Rehabilitation Facilities

•

Sleep Study Facilities

The company, through its licensed member companies, has also expanded its specialized coverages to include patient property and administrative defense. The Hanover's healthcare agents now have the ability to add coverages for physicians and other advanced professionals to their coverage offerings.

In addition, the company provides appointed agents with a broad professional liability form for their healthcare professional clients which includes coverage for healthcare services, administrative services, and proctoring, as well as Good Samaritan coverage.

The Hanover has invested in its healthcare team over the last year, including the hiring of experienced underwriters in the healthcare industry, as well as leaders to focus exclusively on the rapidly growing healthcare segment. Eric Paynter recently joined The Hanover as Assistant Vice President of Allied Healthcare and he brings more than 20 years' experience underwriting professional liability including hospitals, allied healthcare facilities, and physicians.

The Hanover's healthcare products are underwritten by AIX Specialty Insurance Company. For more information about The Hanover and its healthcare capabilities, please visit hanover.com and speak to an appointed agent of The Hanover. Agents can contact their local regional vice president for more information.

Accenture and Salesforce.com Collaborate to Help the Healthcare Industry Improve Customer and Patient Outcomes October 13, 2014 |SYS-CON MEDIA http://www.sys-con.com/node/3209046 Accenture (NYSE:ACN) today announced that it has created its first solution in a suite of solutions to help life sciences companies improve customer and patient engagement leveraging cloud, social and mobile technologies. An example of Accenture’s commitment to developing industry-solutions for Salesforce, this collaboration will play a critical role in helping life sciences companies make the move from a product orientation to a patient outcome orientation.

The first solution, the Accenture Connected Physician Solution, offers physicians an efficient way to access disease, treatment and product information. It provides doctors with training and gives them the opportunity to collaborate in real time with fellow doctors and medically trained pharmaceutical experts. Built on the Salesforce1 Platform, the Accenture Connected Physician Solution is mobileenabled across multiple platforms, providing health care professionals access to the information they need on any device, anytime. It also gives life sciences companies the opportunity to build customer loyalty while capturing additional information that enables them to better understand how to provide physicians with the data they need to best serve their patients.

4|Sutherland Insights Healthcare News Flash Oct 16, 2014

“Remarkable changes are taking place today that are reshaping the life sciences landscape, and the entire industry is beginning to galvanize around delivering better patient outcomes in cost-effective ways,” said Anne O’Riordan, global industry managing director for Accenture’s Life Sciences practice.

“Cloud platforms like Salesforce are providing an opportunity to link companies, physicians and patients in an ecosystem dedicated to improving health results.”

Dan Streetman, senior vice president, partner program, salesforce.com, said, “This new solution is yet another example of how Accenture is leading the way in developing industry-specific solutions for our joint clients that deliver strong and compelling business value. Accenture continues to play an important role in enabling businesses to create deeper connections with their customers with social, mobile and cloud technologies.”

As a reflection of Accenture’s proven track record and unique ability to offer differentiated solutions -- and in recognition of its Salesforce implementation expertise and demonstrated sales and delivery success -- the Accenture Connected Physician Solution has been certified as a Salesforce Fullforce Industry Solution. In addition to the healthcare and life sciences industry, Accenture has achieved Fullforce Master Certifications in the communications and financial services industries, as well as in the Sales Cloud, Service Cloud and Salesforce1 Platform for a total of six Fullforce Master Certifications in salesforce.com’s leading industries and clouds.

The Accenture Connected Physician Solution builds on Accenture’s portfolio of Salesforce industrybased solutions, which includes offerings for the communications and consumer goods and services industries. The Accenture SaaS Reference Architecture for Communications Service Providers helps to enhance or completely replace legacy business support systems through migration to the cloud, enabling quicker speed to market, cost optimization, and faster, more compelling and more personalized customer experiences. Accenture Perfect Consumer Engagement is an end-to-end marketing and commerce service that leverages digital and social technologies and captures data across the business to provide a cohesive view of the consumer.

Working together for more than a decade, Accenture and salesforce.com are helping organizations develop and execute comprehensive cloud strategies to achieve the full potential of enterprise cloud computing at speed. Accenture is recognized by an independent industry analyst firm as the global leader in Salesforce implementation services and is the leading service provider on many of salesforce.com’s largest transformational projects. Accenture has more than 4,100 people skilled in Salesforce and has more than twice as many people certified than any other company.

HIMSS and AVIA launch HX360 to improve healthcare delivery through emerging technologies October 08, 2014 |mHealthNews http://www.mhealthnews.com/press-release/himss-and-avia-launch-hx360-improve-healthcaredelivery-through-emerging-technologies Today, Healthcare Information and Management Systems Society (HIMSS) and AVIA announced HX360™, a new co-developed initiative. HX360 was created to improve the way that health care is delivered by both inspiring and facilitating the adoption and use of next generation (non-EHR Platform) technologies by provider organizations, in areas where health system executives are passionate to combine the right mix of resources, processes and technologies.

5|Sutherland Insights Healthcare News Flash Oct 16, 2014

HX360 will provide a series of solutions and services to support health systems adoption of next generation technologies. This includes identifying key Contemporary Provider Challenges, which are areas of health care delivery identified in partnership with health systems that could immediately benefit from these new technologies. HX360 is also developing the HX360 Index, a new tool to help health system leaders calibrate their preparedness for tackling current challenges in health care delivery using new technologies. HX360 is partnering with related member organizations to serve as a content resource.

“Globally, health system leaders are looking to reinvent care delivery to not just treat illness, but manage the overall health of entire populations,” said Dr. Roy Smythe, chief executive officer, HX360. “HX360 seeks to close the gaps that exist between the needs of health care leaders and the new technologies that have been created and will continue to evolve, or what we are referring to as next generation technologies.”

“While platform technologies such as the electronic medical record have set the stage for improving health care delivery via more effective data collection, these technologies have also not substantially changed the way that clinical care is delivered. HX360 was created to help bring about meaningful change in clinical care delivery is using next generation technology” Smythe said.

In addition to the proprietary HX360 Index™ and identification of current Contemporary Provider Challenges, HX360 will offer exclusive, ongoing forums for health system executives to promote and test the actions and initiatives necessary to bring changes to health care delivery, including HX360’s inaugural event, April 12-15, 2015 in Chicago.

Walmart Announces Ambitious Goal: 'To Be The Number One Healthcare Provider In The Industry' October 06, 2014 |Forbes http://www.forbes.com/sites/dandiamond/2014/10/06/walmart-announces-ambitious-goal-tobe-the-number-one-healthcare-provider/ Walmart doesn’t settle for second place: The nation’s #1 retailer just said it wants to be the #1 health care provider in the retail industry, too.

The company’s statement came on Monday, alongside an announcement about Walmart’s new health insurance initiative.

Under Walmart’s new partnership with DirectHealth.com, about half of 4,300 Walmart’s stores will feature DirectHealth.com licensed agents, who will help consumers shop for health insurance and navigate Obamacare’s health insurance exchanges.

The program, known as Healthcare Begins Here, begins on Friday Oct. 10 and will run for two months. Not coincidentally, the Medicare open enrollment period begins next week, and the open enrollment period for the Affordable Care Act’s health insurance exchanges begins in November.

6|Sutherland Insights Healthcare News Flash Oct 16, 2014

“This approach is similar to what we saw with Walmart’s retail clinic strategy, where they leased space in their stores to local health systems rather than operating their own clinics,” my colleague Alicia Daugherty told me. (Daugherty leads the Advisory Board Company's marketing and planning research.)

“That strategy allowed Walmart to test market receptivity to retail care and observe patient traffic patterns and clinic operations,” Daugherty points out, before launching their own primary care clinics this summer.

And partnering with DirectHealth.com for two months offers another benefit, Daugherty noted. “It also helps Walmart study how consumers shop for health plans – useful if they [end up] rolling out their own health plan,” she concluded.

By offering to help consumers shop for health insurance, Walmart’s picked a segment of the health care industry that’s ripe for disruption.

According to Labeed Diab, senior vice president and president of Health & Wellness for Walmart, almost two-thirds of people have problems understanding how to pick the right insurance plan, and nearly 4 out of 10 people have buyer’s remorse — after purchasing a plan, they believe they chose poorly.

While Walmart’s latest move may be eye-catching, it isn’t shocking.

Walmart’s spent several years positioning to move into the health care space — launching a generic drug program, testing out retail clinics, even speaking at health care conferences — although the company has walked back a number of stories about its ambitious plans.

For instance, a company official in 2013 said that Walmart was planning to launch “full primary care services in five to seven years.” Walmart quickly denied that report.

But on Monday, they weren’t hiding their ambitions.

“Our goal is to be the number one health-care provider in the industry,” Diab told the Washington Post‘s Sarah Halzack. “And the more we broaden our assortment, the more we broaden our offering, the more we educate the customer Walmart is a great place to create a one-stop shop.”

Although for many Americans, Walmart’s already a one-stop shop. Consider this: There are 130 million visits to U.S. hospital emergency departments — per year.

Walmart stores get 150 million visitors — per week.

After Stalemate, Anthem and Hartford HealthCare Reach Agreement October 02, 2014 |NBC Connecticut http://www.nbcconnecticut.com/news/local/Anthem-and-Hartford-HealthCare-ReachAgreement-277975211.html

7|Sutherland Insights Healthcare News Flash Oct 16, 2014

A stalemate between Anthem and Hartford HealthCare left Blue Cross Blue Shield patients out-ofnetwork at five Connecticut hospitals, but just one day after the missed contract renewal deadline, the hospital group announced it had reached a “multi-year agreement” with the state’s largest health insurer.

As a result, Hartford HealthCare’s five hospitals will rejoin the Anthem network and patients will continue receiving uninterrupted coverage. The deal is retroactive to Oct. 1, so patients will not be affected by the impasse.

Both Hartford HealthCare and Anthem announced the failed negotiations on Wednesday and warned Blue Cross patients of higher costs at the Hospital of Central Connecticut’s New Britain campus, MidState Medical Center, William W. Backus Hospital, Windham Hospital and Hartford Hospital’s Institute of Living and the Jefferson House.

But now patients don’t need to worry. Instead of being denied coverage, they now have access to even more in-network providers than before.

“Under the new agreement, Hartford HealthCare and Anthem will broaden their existing accountable care arrangement, currently covering over 40,000 Anthem members, to include specialists and hospitals, creating a tighter integration across their network that will promote more proactive and coordinated management of their patients across the care continuum,” Hartford HealthCare officials said in a statement released Thursday night.

“In addition, Anthem and HHC will work jointly to expand the current model by implementing a chronic care program focused on the special needs of individuals with complex conditions. The goal of the model will be to provide a comprehensive approach to improve health, quality of life and lower overall health care costs for this population,” the statement continues.

Hartford HealthCare and Anthem are also considering ways to integrate behavioral health needs into primary care coverage.

The presidents of both companies said they are “pleased” by the agreement and pledge to continue providing high-quality care to thousands of patients around the state.

“Anthem would like to thank state, federal and municipal government officials, for encouraging the parties to stay at the table and continue negotiations. We also acknowledge our largest customer, the State of Connecticut, for strongly supporting the continued evolution of Anthem’s current valuebased arrangement with HHC,” said Anthem Blue Cross and Blue Shield president Jill R. Hummel.

“This ground breaking partnership will benefit our members through meaningful changes in how care is delivered in Connecticut.”

Gov. Dannel Malloy, Lt. Gov. Nancy Wyman and Comptroller Kevin Lembo released a joint statement following the announcement commending Anthem and Hartford HealthCare for working together.

“The issue of providing good and decent healthcare is too important to let profit margins get in the way, and by working to reach an agreement, both Anthem and Hartford Healthcare have made it clear that wouldn’t allow that to happen,” Malloy said in the statement.

8|Sutherland Insights Healthcare News Flash Oct 16, 2014

Finance Moody's assigns 'A3' rating to Central Florida Health Alliance's bonds October 14, 2014 |Becker's Hospital Review http://www.beckershospitalreview.com/finance/moody-s-assigns-a3-rating-to-central-floridahealth-alliance-s-bonds.html Moody's Investors Service has assigned an "A3" long-term rating to $39.9 million of series 2014B fixed rate revenue bonds issued on behalf of Central Florida Health Alliance in Leesburg, Fla., which is the sole member of 322-bed Leesburg (Fla.) Regional Medical Center.

Moody's has also upgraded the long-term ratings on $76 million of CFHA's outstanding revenue bonds from "Baa1" to "A3."

The rating assignment and upgrade were supported by a number of factors, including CFHA's leading market share. The system has a 70 percent market share, which is the leading share in its primary service area.

The rating assignment and upgrade were also supported by CFHA's improved operating performance. The system's operating cash flow margins have been in double digits for the last four years, with a 13 percent operating cash flow margin in fiscal year 2014.

CFHA also faces a number of challenges, which were considered for the rating assignment and upgrade, such as being heavily reliant on Medicare, which represented 73 percent of its gross patient revenue in FY 2014.

Fitch assigns 'AA-' rating to IU Health's series 2014A revenue bonds October 13, 2014 |Becker's Hospital Review http://www.beckershospitalreview.com/finance/fitch-assigns-aa-rating-to-iu-health-s-series2014a-revenue-bonds.html Fitch Ratings has assigned an "AA-" rating to $70.76 million of series 2014A revenue bonds issued on behalf of Indianapolis-based Indiana University Health by the Indiana Finance Authority and upgraded IU Health's outlook from stable to positive.

The 2014A bonds are expected to be issued as fixed rate bonds, and the proceeds will be used to refund the series 2006 and 2009A bonds that were issued on behalf of Ball Memorial Hospital in Muncie, Ind., which was acquired by IU Health in 2008.

The rating assignment and outlook revision were supported by a number of factors, including IU Health's strong market position. The system has a 27.8 percent market share, which is the leading share in its primary service area.

9|Sutherland Insights Healthcare News Flash Oct 16, 2014

The rating assignment was also supported by IU Health's improved liquidity. The system's unrestricted cash and investments have increased 27 percent since fiscal year 2012 to $3.3 billion as of June 30.

Moody's revises Adena Health System's outlook to stable October 10, 2014 |Becker's Hospital Review http://www.beckershospitalreview.com/finance/moody-s-revises-adena-health-system-soutlook-to-stable.html Moody's Investors Service has affirmed the "A3" bond rating assigned to Chillicothe, Ohio-based Adena Health System's outstanding bonds and revised its outlook to stable from negative.

The outlook change was supported by the health system's improved margins and investment position growth. Adena maintained solid revenue growth and improved operating margins in fiscal year 2013 and through eight months of FY 2014.

The rating affirmation was based on a number of factors, including the health system's dominant market position. Adena has little hospital and physician competition, as it is the only acute-care provider in Ross County, Ohio.

The system also faces some challenges, which were considered for the outlook change and the rating affirmation, such as experiencing a decline in inpatient volume.

Moody's assigns 'Baa2' rating to Cooper Health System's bonds October 01, 2014 |Becker's Hospital Review http://www.beckershospitalreview.com/finance/moody-s-assigns-baa2-rating-to-cooper-healthsystem-s-bonds.html Moody's Investors Service has assigned a "Baa2" rating to Camden, N.J.-based Cooper Health System's $150 million of series 2014A revenue refunding bonds.

The rating assignment was supported by a number of factors, including Cooper's improved financial performance. Through eight months of fiscal year 2014, the health system had an operating cash flow margin of 9.2 percent, up from 7.2 percent at the end of FY 2013. In addition, Cooper's unrestricted cash and investments increased to $272 million, or 120 days cash on hand, as of the end of FY 2013, up from $264 million, or 124 days cash on hand, at the end of 2012.

The health system also faces some challenges, which were considered for the rating assignment, including Cooper's challenging payer mix made up of 20 percent Medicaid.

10 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

Fitch upgrades South Nassau Communities Hospital's rating to 'A-' October 01, 2014 |Becker's Hospital Review http://www.beckershospitalreview.com/finance/fitch-upgrades-south-nassau-communitieshospital-s-rating-to-a.html Fitch Ratings has upgraded the rating to "A-" from "BBB+" on approximately $92.7 million of series 2012 bonds issued on behalf of 435-bed South Nassau Communities Hospital in Oceanside, N.Y. The rating upgrade was supported by a number of factors, including the hospital's significant reduction in leverage. South Nassau paid off all of its leases in December 2013 with a line of credit, which was then repaid in March 2014 from a grant from the New York State Department of Health, which resulted in the hospital's maximum annual debt coverage being cut in half.

The rating upgrade was also supported by South Nassau's purchase of 162-bed Long Beach (N.Y.) Medical Center's assets. Long Beach sustained heavy flooding damage from Hurricane Sandy in October 2012. In February, Long Beach filed for Chapter 11 bankruptcy, and that same month South Nassau signed a purchase agreement to acquire the physical assets and up to $1 million of unpaid employee obligations from Long Beach. The purchase of the assets has made South Nassau eligible to receive between $160-175 million of Federal Emergency Management Agency funds for the damages Long Beach sustained.

11 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

Technology Google Testing Search-Based Telehealth Program for Consumers October 14, 2014 |iHealthBeat http://www.ihealthbeat.org/articles/2014/10/14/google-testing-search-based-telehealthprogram-for-consumers?view=print Google has partnered with several providers to test a program that allows consumers to video chat with a physician, the Washington Post's "The Switch" reports (Tsukayama, "The Switch," Washington Post, 10/13).

Program Details For the program, Google has partnered with several providers and start-ups, including: •

Scripps Health; and

•

One Medical Group (Tahir, Modern Healthcare, 10/13).

The pilot program is being hosted on Google's Helpouts platform, which allows users to have live video chats with experts about a variety of topics, and is currently available to users at no-cost (McCann, Health IT News, 10/13).

Under the program, consumers who use Google's search engine to look up information on a particular symptom will be able to select an option to "talk with a doctor now" (Modern Healthcare, 10/13).

However, not every medical search will result in a video chat option, according to "The Switch." In addition, some consumers could be asked to schedule a chat rather than immediately talk with a physician ("The Switch," Washington Post, 10/13).

According to VentureBeat, the pilot program is HIPPA-compliant (Novet, VentureBeat, 10/12).

A Google spokesperson said that the company's goal is to provide people who are "searching for basic health information -- from conditions like insomnia or food poisoning" -- with "the most helpful information available" ("The Switch," Washington Post, 10/13).

The spokesperson declined to specify a timeframe for the pilot program or comment on any licensing issues (Modern Healthcare, 10/13).

Pittsburgh Mercy rolls out mobile health care October 13, 2014 |InsuranceNewsNet.com http://insurancenewsnet.com/oarticle/2014/10/13/pittsburgh-mercy-rolls-out-mobile-healthcare-a-566848.html

12 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

Sometime this month, Pittsburgh Mercy Health System will begin taking its new, $310,000 mobile medical vehicle out on the region's streets to bring health care to underserved populations, including the homeless through its organization Operation Safety Net. The 38-foot-long vehicle was custom-built in Ohio after consultation with the doctors and staff who will use it. It features two examination rooms, two small refrigerators for pharmaceuticals and blood samples, infection-resistant surfaces, a dental chair, Wi-Fi and a wheelchair lift among other amenities.

Todd Wahrenberger, medical director of Pittsburgh Mercy Family Health Center, which also will use the vehicle, presented a tour of the vehicle last week.

There are so many other extra features that "it's almost too many gadgets, and I'm a gadget person," he said.

While the gadgets make the vehicle fairly novel, such vehicles are becoming a more common way to provide health care than they were when Operation Safety Net first began using an old, retrofitted bread truck to help it serve the homeless almost 22 years ago.

The Mobile Health Clinics Association estimates that 1,500 to 2,000 mobile medical vehicles such as Mercy's provide some form of medical care to people across the country by bringing doctors, nurses, nurse practitioners or community health workers to them.

They range from that old bread truck -- Operation Safety Net long ago gave it to a similar organization in Chicago, and it is somehow still operating -- to large trailers pulled by trucks, to customized recreational vehicles that provide dental care, or mammograms, primary care and other services.

Some people in the field believe that the Affordable Care Act's emphasis on prevention and outreach to underserved populations could encourage growth in the use of mobile medical vehicles.

"The Affordable Care Act encourages health care organizations to get out of their buildings and reach more people," said Elizabeth Wallace, executive director of the Mobile Health Care Association.

Jennifer Bennett, executive director of Mobile Health Map, an organization that conducts research on the mobile medical field, said the Affordable Care Act could encourage organizations to add mobile medical units if only because "in the past there was never reimbursement for education and prevention, and now there is."

The Affordable Care Act allows for reimbursement in at least two areas that could benefit mobile medical operations: by providing reimbursement for education sessions with patients who were never reimbursable before, and by paying for the services of community health workers, nondoctors or nurses who weren't previously able to be paid by government or private insurance.

At least three other mobile medical vehicles are operating in the Pittsburgh area besides Mercy Health's: Squirrel Hill Health Center has a mobile unit, and UPMC operates a mobile dental vehicle and a Ronald McDonald Care Mobile through Children's Hospital of Pittsburgh of UPMC.

13 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

"Mobile units do increase access with pretty low overhead," said Susan Friedberg Kalson, CEO of the Squirrel Hill Health Center, which began using its mobile vehicle in 2010. "It's not a panacea [to access problems], but it's a tool that does work."

The mobile units cost about $330,000 to $500,000 a year to operate, depending on how they are staffed. That isn't considered expensive, but experts say mobile medical vehicles are probably never going to be bottom-line profit centers, largely because of the populations they serve: the uninsured or underinsured.

There is evidence that their larger impact in preventing more expensive emergency care makes them profitable in the larger sense.

Ms. Bennett, who is also executive director of The Family Van, a mobile medical vehicle that Harvard Medical School in Boston operates, said Mobile Health Map also has been collecting data and found that, on average, mobile medical vehicles have a return on investment of $17 in preventive medical care for every $1 spent operating them.

Mercy Health says it will begin collecting data on the expanded use of its new vehicle to see what kind of impact it will have on health care costs here.

Operation Safety Net founder Jim Withers said his organization still makes visits under bridges, in alleys and in parks, where people who are homeless live, but he knew early on that a vehicle to examine and talk with them would be a big addition.

"Many of the people on the street appreciate the extra privacy they get compared to us working with them on the street, and, with this new unit, I see it as a real vehicle -- if you pardon the expression -- to really facilitate health care for those who need it on the street," he said.

Predixion Software Joins New Salesforce Analytics Cloud Ecosystem Enabling Health Care Organizations to Proactively Manage High-Risk Patient Populations October 13, 2014 |Market Wired http://www.marketwired.com/press-release/predixion-software-joins-new-salesforce-analyticscloud-ecosystem-enabling-health-care-1956805.htm Wave, the Salesforce Analytics Cloud, Is the First Cloud Analytics Platform Designed for Every Business User, Making It Easier Than Ever for Anyone to Explore Data, Uncover New Insights and Take Action Instantly From Any Device Salesforce Analytics Cloud With Predixion Insight to Be Demonstrated at Booth W25 in the Cloud Expo West at Dreamforce 2014, the World's Largest Software Conference Predixion Software today announced it has joined the Salesforce Analytics Cloud ecosystem to help health care organizations leverage predictive analytics for population health management.

14 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

Wave, the Salesforce Analytics Cloud, is the first cloud analytics platform designed for every business user, making it easier than ever for anyone to explore data, uncover new insights and take action instantly from any device.

Today more than 80 percent of the costs of health care come from one segment of the patient population, those with chronic diseases such as diabetes.1 Early intervention and control of chronic disease progression can control health care costs as well as improve patient outcomes. Predixion Insight, in the Salesforce Analytics Cloud ecosystem, can provide analytics to predict when and how additional care is needed for patients suffering from chronic diseases -- reducing hospital visits and even preventing deaths.

By leveraging existing data with the Salesforce Analytics Cloud and Predixion, health care providers and payors can: •

Identify patient population segments that are at high risk

•

Predict an individual patient's risk for chronic disease progression

•

Present targeted, personalized interventions to reduce risk and promote wellness

Comments on the News "Predixion Software is committed to broad adoption of predictive analytics at the 'point of decision' in order to create a smarter, safer and healthier world," said Simon Arkell, CEO at Predixion Software. "One of the ways we deliver on that promise is by empowering health care teams with the real-time predictive analytics they need to predict and intervene on behalf of patients at high risk of chronic disease progression. We are thrilled to partner with Salesforce.com on bringing this unique solution to market."

"The convergence of mobile, social and cloud computing has sparked a data revolution, and companies today must leverage data-driven insights to connect with their customers in a whole new way," said Keith Bigelow, senior vice president & general manager, Salesforce Analytics Cloud, salesforce.com. "Salesforce Analytics Cloud is the first cloud analytics platform designed for every business user. With partners such as Predixion Software joining the Analytics Cloud ecosystem, companies can benefit from best practices and industry expertise to extend analytics for every business need, making it easier than ever for anyone to explore and share data instantly, uncover new insights and take action from anywhere."

Predixion Software and Salesforce Analytics Cloud Empowers Customers to Transform Data into Business Insight Predixion Software released the first cloud-based predictive analytics platform in 2010. Since then, the company has been committed to enabling broader adoption of predictive analytics across every industry and geography. The company's flagship offering, Predixion Insight, speeds the deployment of predictive analytics so all organizations can make better decisions and improve outcomes.

Amongst other industries, the company has significant traction in health care, where its solution is being used at the point of care to predict and intervene on major healthcare challenges such as hospital readmissions, length of stay management and population health management.

15 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

Come See the Power of Predixion Software and Salesforce Analytics Cloud in Action this Week at Dreamforce 2014, the World's Largest Software Conference Predixion Software will be exhibiting its new Salesforce Analytics Cloud application in booth #W25 in the Cloud Expo West section of the Exhibit Hall. Predixion will also be giving a theater presentation in the Cloud Analytics Zone on Monday at 10:30am. At the booth, you can also see how the Predixion Insight platform can be used to solve a variety of other uses cases across industries, such as Marketing Optimization, Fraud Detection, Preventative Maintenance and more.

Wave Opens Up Insights From Every Data Source -- Now Anyone Can Build and Deploy Analytics for Any Business Need Wave, the Salesforce Analytics Cloud, is the first cloud analytics platform that enables admins, IT and developers to work closely with business leaders to empower everyone to make smarter, datadriven decisions in seconds. Natively integrated with Salesforce1 Platform, Salesforce Analytics Cloud benefits from the trusted platform and enables admins to quickly drag and drop Salesforce data to deploy sales, service and marketing analytics apps. In addition, developers and IT can use new Wave APIs and other data connectors to easily connect to any other data sources to build any custom analytics app for any business function, or embed analytics into an entirely new generation of analytics apps and connected products for customers.

Merge Healthcare Introduces Electronic Referral and Online Order Management for iConnect(R) Network October 07, 2014 |NASDAQ http://www.nasdaq.com/press-release/merge-healthcare-introduces-electronic-referral-andonline-order-management-for-iconnectr-network-20141007-00117 Expansion Enables Electronic Patient Referrals and Online Ordering for Streamlining Workflow, Reducing Costs, Strengthening Referral Networks and Meeting Regulatory Requirements Merge Healthcare Incorporated (Nasdaq:MRGE), a leading provider of clinical systems and innovations that seek to transform healthcare, today announced the launch of electronic referrals and online order management for iConnect速 Network. The expanded service offering adds to Merge's advanced interoperability network for the exchange of clinical data, which integrates with existing electronic health records (EHRs) and health information exchanges (HIE), allowing healthcare organizations to further streamline workflow, reduce costs, increase referrals and meet Meaningful Use (MU) requirements.

"As one of the largest freestanding imaging centers in North Texas, we were looking for a solution that would provide us with mobility and instant access," said Philip Collins, Director of Business Services at Southwest Diagnostic Imaging Center (SWDIC). "We've been leveraging iConnect Network since early 2014, and the new features for electronic patient referrals and online ordering that we're currently testing for implementation will really push our practice to the next level.

Removing the manual process for physician requests with input directly into the radiology information system (RIS) is key for us to cost effectively streamline workflow and improve patient care."

16 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

Interoperability continues to play a large role in enabling healthcare organizations to communicate within a network to enhance quality patient care. In addition, MU requirements are top of mind and EHR adoption rates at an all-time high. iConnect Network brings electronic order processing and patient referrals into the existing data exchange network, delivering orders directly into imaging center sites and automatically pushing results back into the physician's EHR. "We're excited to introduce the newest version of iConnect Network to our customers. By collaborating with Southwest Diagnostic Imaging Center, we've been able to ensure that the electronic order processing and referral enhancement technology we're offering to our customers meet true industry needs for advanced interoperability," said Justin Dearborn, CEO at Merge. "In addition, with the trends of value-based purchasing and narrow networks on the rise as a result of accountable care, it is more important than ever for healthcare providers to be able to deliver more collaborative care. These advancements to iConnect Network enable our customers to prepare for these fundamental changes that will inevitably impact their business, further allowing them to optimize their referral networks and maximize their reimbursements."

Ascom launches a new solution for integrated workflow intelligence in healthcare - the Ascom Myco smartphone October 01, 2014 |HealthTech Wire http://www.healthtechwire.com/ascom-uk-ltd/ascom-launches-a-new-solution-for-integratedworkflow-intelligence-in-healthcare-the-ascom-myco-smartphone-3841/ Ascom Wireless Solutions, a global provider of mission critical communication systems, has announced the launch of its ground-breaking mobile device, the Ascom Myco. It combines the capabilities of a smartphone with a set of features specifically designed for the healthcare environment, and especially for nurse communications and efficient management of clinical workflows.

Robust, reliable and made to last The Ascom Myco has all the standard features of a smartphone, such as a touch screen, 3G and WiFi, but in addition it has a robust design for withstanding knocks and drops, and also moisture and dust for maintaining hygiene. It has a long battery life as well as a rapid battery swap feature to keep the phone powered up without waiting for recharging. The size and weight are optimized so it can be operated with one hand and is comfortable to carry around on long nursing shifts.

Its range of communications capabilities make it a truly ground breaking product. Ascom’s long experience with voice over WiFi gives it a superior VoWiFi performance. A barcode reader enables patient and medicines identification for improved safety using current and coming technologies.

Uniquely, the device has a top display that can show scrolling messages and a colored LED to show the priority of the message.

Integrated workflow intelligence in the palm of your hand

17 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

The integration software, Ascom Unite, connects with hospital information systems, patient monitors and nurse call systems. The user interface is designed to be easy to use and patient-centric.

Nurses can be assigned to patients on their own device by simple ‘drag-and-drop’, giving them access to the patients’ records and lab reports and to receive automated messages, alerts and alarms for their allocated patients.

The interface makes it easy to filter and prioritize alerts, forward and escalate them, thus reducing the demand on the nurses. The nurse can see on the device what type of alert or alarm it is, the severity of the alarm, and which patient it is for, even when the device is in her breast pocket, as all necessary information is visible on the top display.

Truly purpose-built for clinical workflows and healthcare environments Claes Ödman, General Manager, Ascom Wireless Solutions, says, “When developing Ascom Myco, our vision was to contribute to give nurses a chance to spend more time with their patients and thereby increase patient safety and satisfaction. To fulfill our vision we focused on three important areas: to reduce alarm fatigue, mobilize the information to the point of care and improve clinical workflows. I am proud to say that we have managed to come very far within all three areas. By collaborating with healthcare facilities, “shadowing” nurses during entire shifts and applying usercentric design methods, we have developed Ascom Myco with the whole healthcare team in mind.

Ascom Myco has an attractive total cost of ownership since it is built to last in the demanding healthcare environments. It is flexible and designed to easily integrate into the IT architecture of a hospital or a care facility.

Superior communication capabilities for mission-critical information Stefan Brämberg, Vice President Global Product Line Mobility, Ascom Wireless Solutions, concludes “Ascom Myco is a truly purpose-built smartphone for healthcare, targeted at caregivers and clinicians, which provides them with the information they need where it matters the most — at the heart of care. In addition, our middleware solution Ascom Unite, makes it a complete concept, creating a very powerful solution for mission-critical communication. We think that nurses are the heroes in healthcare and that they deserve their very own companion to assist them in their jobs, that’s why we named the smartphone Ascom Myco, where Myco stands for “My companion”.

18 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

Strategy Kaiser conducting ambitious restructuring of its supply chain October 12, 2014 |Healthcare DIVE http://www.healthcaredive.com/news/kaiser-conducting-ambitious-restructuring-of-its-supplychain/320086/ Dive Brief: •

Kaiser Permanente is making a major effort to streamline its supply chain, using new software which assigns each supply item a master number used throughout the Kaiser system. Healthcare staffers can then scan each item's master number as it is used.

•

Not only does the centralized supply chain system assist with making items available to clinicians; it also helps the organization track usage. Each supply scan appears in the patient's EMR, and is also connected to related physicians.

•

Kaiser, which has 38 hospitals, 9.5 million members, 17,000 physicians, and 40,000 nurses, is treading into new waters with the restructuring. Previously, healthcare workers were responsible for tracking down and ordering supplies, which took time away from caring for patients.

Dive Insight: So far, Kaiser doesn't have much hard data on how its supply chain initiative is working out. The system has only piloted its supply chain plan in four hospitals to date. But Kaiser leaders must be pleased with how things are working out; while the provider has yet to report cost data for the experiment, it has already announced that it plans to roll its solution out throughout its California hospitals later this year.

That may be because Kaiser's ambitions for the supply chain project go beyond simply saving money on supplies. The data gathered by the software can help health leaders there show doctors which methods and procedures are more likely to produce good outcomes than others, which may get them to practice more efficiently. The software is also going to look at patterns of supply use in an effort to eliminate variations among physicians.

Prime Healthcare to acquire St. Vincent, St. Francis medical centers October 10, 2014 |Los Angeles Times http://www.latimes.com/business/la-fi-daughters-prime-hospital-sale-20141010-story.html Prime Healthcare Services Inc. has reached a deal to acquire six California hospitals, including St. Vincent and St. Francis medical centers in Los Angeles County, despite strong opposition from organized labor and many politicians statewide..

19 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

Under the deal announced Friday with the Daughters of Charity Health System, Prime said it will keep all six hospitals open and maintain their existing services, including emergency rooms and trauma centers, for at least five years.

However, the sale is subject to approval from the California attorney general's office and opponents are gearing up to defeat Prime's bid.

The Service Employees International Union immediately denounced the deal, saying Prime puts profits ahead of patient care.

The union said it will air TV ads in Sacramento and San Francisco urging California Atty. Gen. Kamala Harris to reject the sale.

"It's disappointing and hard to understand how Daughters of Charity’s current owners could turn their back on 100 years of serving the poor by selling to a company with Prime’s history," said Dave Regan, president of SEIU-United Healthcare Workers West.

“We are not going to roll over and risk watching Prime Healthcare cut services, raise prices and lay off caregivers like they’ve done in so many other communities in California and other states," Regan added.

Looking to appease critics of the deal, Prime vowed Friday to provide quality medical care while protecting jobs and employee pensions.

Prime said it will spend $150 million on capital improvements over a three-year period and "; work to substantially protect 7,600 jobs" at the hospitals.

Ontario-based Prime said it would maintain all collective bargaining agreements in place and assume nearly $300 million in pension liabilities for current and retired workers. Other terms of the deal weren't immediately disclosed.

"We are committed to preserving these hospitals and continuing to deliver the highest quality patient care to the communities they serve," said Prem Reddy, chief executive of Prime Healthcare.

The sale includes St. Vincent Medical Center near downtown L.A. and St. Francis Medical Center in Lynwood.

Daughters of Charity, a nonprofit Catholic chain, is also selling four facilities in the Bay Area: O'Connor Hospital in San Jose, Saint Louise Regional Hospital in Gilroy, Seton Medical Center in Daly City and Seton Coastside in Moss Beach.

Robert Issai, chief executive of Daughters of Charity, said in a statement "we have confidence in Prime Healthcare and their dedication to furthering a mission that preserves and enhances healthcare delivery."

Daughters of Charity began seeking offers in January as the chain struggled financially with tens of millions of dollars in operating losses.

Prime operates 29 hospitals in California and eight other states. It has faced criticism over its billing practices and handling of patient privacy.

20 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

The company has acknowledged that federal investigators have been looking into allegations of improper billing by its hospitals.

Prime said "a thorough review, like the multiple reviews in the past have shown, will demonstrate our hospitals follow all state and federal regulations and laws."

Kindred Healthcare Buying Gentiva in $719.6M Deal October 09, 2014 |abc NEWS http://abcnews.go.com/Business/wireStory/kindred-healthcare-buying-gentiva-7196m-deal26068641 Kindred Healthcare Inc. is buying home health and hospice care provider Gentiva Health Services Inc. in a cash-and-stock deal valued at about $719.6 million, sealing a deal after previous rejections by Gentiva.

Kindred will pay $14.50 per share in cash and $5 of its common stock for each share of Gentiva, whose board approved the deal.

The companies put the transaction's value at $1.8 billion, including the assumption of debt.

Kindred and Gentiva said that the combined company will be the largest operator of long-term acute care hospitals and inpatient rehabilitation facilities in the U.S. and the country's largest provider of rehabilitation, home health and hospice services. It is expected to have annual revenue of approximately $7.1 billion.

Kindred initially went public in May with an offer to buy Gentiva at $14 per share. It later raised its bid to $14.50 per share, but Gentiva rejected both of those offers.

In July Gentiva said that it had received a competing bid from an undisclosed party that valued Gentiva at $17.25 per share, and said that it would review that proposal. That same month Kindred said it would pay $16 per share in cash to buy up to a 14.9 percent stake in Gentiva. That would have made Kindred Gentiva's biggest shareholder, but would have fallen short of the 15 percent limit imposed by a shareholder rights plan, or "poison pill" measure, that Gentiva's board adopted after Kindred started bidding for the company.

It appears that the two companies were able to come to an agreement since that time.

The combined home health and hospice businesses will operate within the Kindred at Home division and be based in Louisville, Kentucky. It will keep a significant regional presence in Atlanta, where Gentiva is based.

Kindred expects the acquisition to immediately add to its earnings, excluding transaction and integration costs.

Both companies' boards unanimously approved the deal, which is targeted to close in 2015's first quarter. It still needs approval from Gentiva stockholders.

21 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

Shares of Gentiva jumped $2.41, or 14.4 percent, to $19.12 in premarket trading shortly before the market open, while Kindred's stock rose 91 cents, or 4.6 percent, to $20.65.

Cognizant Acquires Cadient Group to help Clients Drive Business Transformation Through Digital Technologies October 07, 2014 |Seeking Alpha http://seekingalpha.com/pr/11238945-cognizant-acquires-cadient-group-to-help-clients-drivebusiness-transformation-through-digital-technologies Cognizant (NASDAQ: CTSH) today announced it has acquired Cadient Group, a full-service digital marketing agency that serves a broad spectrum of life sciences companies in the pharmaceutical, biotechnology, consumer health, and medical device industries.

This acquisition further strengthens and expands Cognizant's digital marketing capabilities, enabling brand marketing leaders to transform the way they position their offerings in the digital landscape as they design, develop and introduce multi-channel marketing initiatives, launch brands, build communities, drive insights and analytics, and create a compelling customer experience. The terms of the transaction were not disclosed.

Life sciences companies around the world have significantly increased their emphasis on web, mobile, and social engagement with all of their stakeholders, while increasingly leveraging enterprise-level analytics to drive a customer-centric approach to marketing and sales. Pennsylvaniabased Cadient Group has more than a decade of experience in providing digital strategy, marketing, and technology and analytics solutions to industry leaders and emerging companies in the life sciences industry.

As part of this acquisition, more than 100 digital specialists with expertise across brand strategy and planning, content development, user-centered design, multi-channel analytics, and digital, social and mobile marketing will join Cognizant. This acquisition also brings to Cognizant digital assets and intellectual property including Reveal, an insights and analytics platform; Immerse, an experiential marketing platform; and OneVoice, an advocacy campaign management platform.

"The life sciences industry is undergoing structural disruption as marketing services enable new digital ways for companies to engage with patients and providers and create compelling user experiences," said Shankar Narayanan, Vice President and Global Markets Leader of the Life Sciences practice at Cognizant. "In an increasingly competitive industry with many digitally active stakeholders, the acquisition of Cadient Group will complement Cognizant's digital and interactive solutions capability. It will help brand marketing leaders to innovatively transform their brands, manage customer experience across multiple channels, maintain quality standards and comply with regulations, and achieve greater return on marketing investments. We welcome Cadient's digital specialists to the Cognizant family and are confident that our combined capabilities and digital assets will help both life sciences and broader healthcare companies gain a competitive advantage by managing the information that surrounds organizations, processes, products and people what we call Code Halos."

22 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

"Becoming a part of Cognizant uniquely positions us to deliver integrated solutions to life sciences marketing and sales teams around the world," said Stephen Wray, President and CEO, Cadient Group. "Clients will now have enhanced access to the best creativity and craftsmanship of a design firm combined with the best-in-class management and execution capabilities of a large consulting and technology firm to produce superior customer engagements at the brand and enterprise level.

Together, we are ideally positioned to deliver on this promise."

HCA acquires PatientKeeper, one of the oldest mobile health companies October 02, 2014 |mobi health news http://mobihealthnews.com/37033/hca-acquires-patientkeeper-one-of-the-oldest-mobile-healthcompanies/ Last week, the Hospital Corporation of America (HCA), a company that manages 164 hospitals and 114 freestanding surgery centers in 20 states and England, announced it would be acquiring PatientKeeper, one of the oldest mobile health software companies still in operation, for an undisclosed sum.

HCA will continue to operate PatientKeeper as an independent subsidiary, and the company will retain its Waltham, Massachusetts headquarters and its employees, including CEO Paul Brient.

“With its agreement to acquire PatientKeeper, HCA has taken an important step toward the creation of an exceptional user experience for our clinicians to interact with patients’ electronic health records to provide and document care,” Dr. Jonathan B. Perlin, HCA’s Chief Medical Officer and president of HCA’s Clinical Services Group, said in a statement. “Our combined companies are positioned to provide a unique approach to the electronic health record that will foster the safest and most effective care for our patients.”

PatientKeeper was founded in 1996 and originally made medical software that ran on Palm Pilots and other PDAs before transitioning into modern mobile software. The company’s offerings include computerized physician order entry (CPOE), medication reconciliation, and electronic physician documentation. The company also helps practices transition to the ICD-10 diagnosis coding system.

Crunchbase puts PatientKeeper’s total funding at $86.7 million, though that includes $3 million in debt financing raised in 2011 and 2012. There were other indications that the nearly 20-year-old company was flagging. The company currently boasts 58,000 physician users — just 8,000 more then it reported back in 2012, when it raised its most recent round of equity.

The acquisition puts a cap on a seven-year working relationship between HCA and PatientKeeper and will foster the newly minted subsidiary with a test bed in which to develop new products, as well as helping HCA to streamline its technological workflow, according to the company.

“We have worked closely with HCA for many years and our teams share a passion for technology innovation that promotes continuous quality improvement in a way that truly saves physicians time,” Brient said in a statement. “This is an opportunity to align a software vendor with one of the leading healthcare providers in the world. It gives us a platform that will allow for real-time innovation and the opportunity to improve the delivery of healthcare.”

23 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4

HCA is no stranger to mobile health. In addition to its long-term relationship with PatientKeeper, the hospital system was one of the first adopters of AirStrip Technologies’ remote patient monitoring suite, and has backed a Healthbox class in its native Nashville.

As Modern Healthcare reports, this could be the beginning of a mini-trend in hospital corporations acquiring software companies: Frisco, Texas-based Conifer Health Solutions, a division of the Tenet Healthcare Corporation announced on the same day that it had acquired SPi Healthcare, which provides billing and other practice management tools for small practices, in a $235 million deal.

24 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h O c t 1 6 , 2 0 1 4