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Trendy to Intelligent Healthcare NetworkConnected Hospital, Connected Healthcare

Kwek Ser WeeMarket Development ManagerEmbedded Communication GroupIntelSeptember 2011Intel Confidential1Intel is a technology leaders and is driving the pace of the computing industry innovation.

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Healthcare Delivery Challenges in China

Quality of Care Cost Access

Healthcare Resource Intel ConfidentialThe top challenges that we have all observed in the healthcare industry are common to all healthcare systems and hospitals worldwide very similar in china : access to quality healthcare at affordable prices , the efficiency of healthcare resource utilization is a little bit china specific. 1. AccessCurrently access to healthcare in the rural areas is a major issue in China because 80% of healthcare is delivered in the cities while 80% of the population live in rural areas. Majority of people will go the tier 3 hospital rather that community hospital so that the cities in urban even feel it s very hard to see the doctor. So the access is the key challenge to China government know.

means it s very hard to see the doctor especially in the rural areas.

2. CostUS spends 15% of GDP on healthcare currently and Greenspan calculates that if current patterns continue by 2050 it could be 25% - this is unaffordable. In most developed countries the current spend of GDP on healthcare is 9% in china it is 6%. Still 30% of China population without health insurance plan coverage now. The healthcare cost continue rising , not matter government , individual and employer can not afford it. as Population Trends suggest that in 45 years, the majority of the world will be 65+ Increase in healthcare needs occur as people age. People of 65+ years old become the most expensive patients increase in chronic diseases as people age; studies show that patients over 65 tend to use 3-6 times more healthcare resources than younger patients, over 60M elder in China now. Still 30% of China population without health insurance plan coverage now

means the patient can not afford the healthcare expense now.

3. Quality of CareHealthcare is missing many of the systems that are in place in other industries to ensure patients receive effective diagnosis, the best treatment selection more attention needs to be paid to patient compliance and reduction in errors. One could say there are less checks in place in the administration of medication than there is in buying a book on 86% reduction in errors can be achieved by electronic ordering important bearing in mind there are deaths and costs associated with medication errors.

( 3 long 1 short) means the bad experience of paticient to see the doctor , long registration time, long waiting time, long check up time , just see the doctor in 3-4 minute that s very typical scenario in China .

4. Efficiency of healthcare resource utilization

Unbalance healthcare resource allocation between urban and rural, tier 1,2 city and tier 3,4,5 city. Shortage of doctors and nurses wont meet demand of aging population and general population there is a need to become more efficient and improve workflow productivity

Problems facing the U.S. Healthcare system1 $2.3 Trillion Spent on Health Care in 2008, The Associated Press, January 5, 20102 An Older and More Diverse Nation by Midcentury, US Census Bureau News, August 14, 20083 U.S. Centers for Disease Control and Prevention, EE Times, October 13, 20084 The Cost Conundrum, The New Yorker, June 1, 20095 ANSR May 2007 Consensus Document6 The Price of Excess: Identifying Waste in Healthcare Spending PriceWaterhouseCoopers, 2009Actual health care costs amounted to $2.3 trillion in 2008, 16.2% of GDP, and an average of $7,681 per person.1

Unsustainably high costsIn 2030, when all of the baby boomers will be 65 and older, nearly one in five U.S. residents is expected to be 65 and older.2

Aging populationAlmost half the U.S. population has at least one chronic disease and spending on chronic diseases accounts for 75% of the nations medical bill.3

Epidemic of chronic conditionsSome hundred thousand people die each year from complications of surgery-far more than die in car crashes4

Poor quality of careThe shortage of nurses is expected to reach 340,000 by 2020 in the U.S.5

Limited access to health servicesWasteful spending in the health system has been calculated at up to $1.2 trillion of the $2.2 trillion spent nationally, more than half of all health spending6

System inefficiencyIntel Confidential55So, that's kind of the background and framework for what's going on. And if you jump to the next slide, this is another, really, way to look at it. This is very U.S. centric and it's, again, it's about the high costs. It's about the aging population. It's about the epidemic of chronic disease. It's about quality access to service and how to improve efficiency.So there are proof points to suggest what we need to do, moving forward, to control each of these points which were addressed by the headlines previously.

Solving the problems facing the U.S. Healthcare system:Unsustainably high costs: Actual health care costs amounted to $2.3 trillion in 2008, 16.2% of GDP, and an average of $7,681 per person[i]. Spending on doctors, hospitals, drugs and the like now consumes more than one of every six dollars we earn.[ii] The average increase in national health expenditures is expected to be 6.2% per year, while the GDP is expected to increase only 4.1% per year.[iii] The Congressional Budget Office has estimated that job-based health insurance could


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