Revealing Healthcare Barriers and Opportunities

1. REVEALING HEALTHCARE BARRIERS AND OPPORTUNITIES STATE OF HEALTHCARE REPORT HIMMS 2021 marketing@ismnet.com www.ismnet.com

2. Revealing Healthcare Barriers and Opportunities HIMSS, Accenture, The Chartis Group, and ZS conducted a study that included a series of SMEs from all scopes within the health network to reveal the most pressing healthcare barriers the public faces today and provide insight into opportunities to address these challenges. The four areas HIMSS and their Trust partners focused on to design their quantitative approach and offer critical takeaways included artificial intelligence (AI), digital health, and machine learning (L) ad financial health. The information gathered from the market profile covered March – April of this year and represented a cross-section of 309 clinicians, 225 health systems workers, 147 payers, and 2,062 patients, total- ling 2,743 respondents. The survey included questions on artificial intelligence, digital health, machine learn- ing, and financial health; the questions focus on access to healthcare, availability of data, and healthcare costs. The HIMSS - Healthcare Information and Management Systems Society -is a thought leader, global advisor, and member association committed to transmuting the health care ecosystem. marketing@ismnet.com www.ismnet.com

3. Members and healthcare professionals from all walks of life, CEOs, Senior Executives, Entrepreneurs, IT Consultants, and others have been attending the HIMSS Conference, one of the industry's most influential conferences and trade shows, for almost 60 years. HIMSS and the trust partners examine the various types of financial and non-financial barriers that a significant segment of the population must deal with, along with opportunities that have introduced new proposals for addressing these barriers The increasingly digital nature in healthcare has created novel opportunities. Companies are developing new products and approaches to overcoming obstacles; successful collaboration among all parties is vital. Strategic planning will be essential in these areas. Innovative new products transform industries daily; the pace of change has accelerated due to vast technological developments such as the internet, wireless technology, and smartphones. The healthcare stakeholder groups represented within the HIMSS21 report— clinicians, health systems, patients, and payers—all expect considerable changes to impact healthcare over the next five years. The complexity of the healthcare sector and the medical care delivery ecosystem is under increasing pressure due to chang- es in patient expectations and rising costs. The inherent nature of the industry combined with those pressures makes innovation in healthcare more complicated than in other sectors. marketing@ismnet.com www.ismnet.com

4. Digital Health Annually, over 3.6 million Americans don't get medical care, and 4% of Ameri- can children miss their medical appointments due to transportation issues. One of the biggest and fastest initiatives to be deployed during the pandemic was Telehealth. Healthcare leaders sought new ways to bring healthcare to the patient, introducing Telehealth to the public., making it accessible to anyone with a Smartphone, laptop, or computer. Telehealth technology is easing the healthcare disparity gap for those affected, helping provide better access to healthcare. Telehealth is showing promise for equitable healthcare access. Though telemedicine won't solve all healthcare delivery, it equalizes some of the disparities in access among the vulnerable and underserved. Here we examine and how telemedicine can help address some of the critical barriers to healthcare access. The pandemic propelled digital health utilization to new heights, creating challenges throughout healthcare and promising last- ing impacts. By keeping close tabs on digital health trends, healthcare leaders can unearth future opportunities for innovation and proactively invest in the necessary tools and technology. marketing@ismnet.com www.ismnet.com

5. Health Systems Generally Believe in AI/ML Benefits But There Is Also a Need for Greater Understanding On a scale from 1-5, how much do you agree with the following statements about AI/ML now? Top Positive Perceptions Increases Jobs Focuses Workload Mitigates Health Disparities Reduces Cost Usage Applications are Transparent 0 0.5 1 1.5 2 2.5 3 3.5 4 marketing@ismnet.com www.ismnet.com

6. Stakeholder Perceptions Consumer Understanding Executive Understanding 0 0.5 1 1.5 2 2.5 3 3.5 4 Top Negative Perceptions Reduces Employees Creates Risk Increases Healthcare Inequity 0 0.5 1 1.5 2 2.5 3 3.5 4 marketing@ismnet.com www.ismnet.com

7. Although health caregivers were expeditious in implementing telehealth, the most significant barrier to implementing this technology was not lack in patient demand—52% of providers indicated that the hesitancy to utilize telehealth was caused by uncertainty regarding regula- tory reimbursement and internal management. In addition, the lack of interoperability between systems presents a challenge. In this digitally-expanded post-pandemic environment, clinicians are now shifting their focus to gain a competitive edge; tracking such things as KPIs and outcomes has become significantly more critical. Telehealth can also bridge geography by providing remote access to specialists and other services. Additionally, telemedicine services don't require insurance—many telehealth platforms offer telemedicine at no addition- al cost to the uninsured. The consensus is that the pandemic has inspired the use and acceptance of virtual healthcare. Eighty percent (80%) of healthcare providers trust that their patient's health information is well-protected. However, concerns continue as cybersecurity attacks continue. The most significant concern expressed by those in the Payer group was that there would have to be substantial changes made to govern- ment regulations and payment structure. Additional concerns of interoperability (60%), privacy and security (40%) were also identified as top concerns. 71% of Gen Z, millennials and Gen X patients stated that they prefer Telehealth because of convenience—avoiding in-person care. 44% said that if Telehealth is not offered, they may look for a new healthcare provider marketing@ismnet.com www.ismnet.com

8. AI (Artificial Intelligence ) and ML (Machine Learning) Integrating innovative informatics, eHealth tools, and resources into health- care education, certification, practice, and research is vital to providing the global health workforce with an inclusive, intergenerational, interdisciplinary approach. Everyone has a role in the healthcare delivery process—it is only through collaboration and by combining each participant's respective strengths that we can surmount these barriers and deliver incomparable healthcare. marketing@ismnet.com www.ismnet.com

9. Only 30% of healthcare systems have implemented AI/ML strategies—yet 68% believe they must grow AI/ML investment to achieve enterprise goals. Concerns ranking high- est in this category included cybersecurity, insur- ance, and fraud prevention. Many respondents remained concerned that AI/ML might create risks and increase healthcare inequity. When patient responses were analyzed, some of the most significant concerns was access to their health data, with a large segment citing "big brother" sentiment. However, over 75% of the respondents were eager to share health data for the enhanced benefits of a more accurate diagnosis, early detection, and more timely treat- ment. 62% of Payers cited reported that the most substantial challenges to innovation are technol- ogy-related. They also stated that AI/ML capabil- ities need improvement and that more payers should adopt AI/ML. Over 77% of Clinicians stated that they are now/ are interested in using AI/ML. Opportuni- ties for training clinicians abound; ONLY one in five have received formal training thus far. One of the top-most benefits cited (52%) was better diagnosis with AI. marketing@ismnet.com www.ismnet.com

10. Clinicians Appreciate Digital Health Tools and Recommend Use But Adoption Barriers Exist 78% 92% 57% TO WHAT EXTENT DO YOU AGREE WITH THE HAVE YOU RECOMMENDED THE USE OF TO WHAT EXTENT DO YOU AGREE WITH FOLLOWING STATEMENTS REGARDING ANY OF THE FOLLOWING DIGITAL THE FOLLOWING STATEMENTS REGARDING DIGITAL HEALTH TOOLS THAT WERE HEALTH TOOLS TO YOUR PATIENTS? YOUR PROFESSION AND RECENT INTRODUCED TO YOU DURING THE PANDEMIC? PANDEMIC IMPACTS? 92%have recommended digital health tools to patients 78%Strongly agreed and that the pandemic resulted in helpful changes like adoption of virtual care, telehealth, etc 57%Strongly agreed and agreed that digital health tools were user-friendly and easy to learn marketing@ismnet.com www.ismnet.com

11. WHAT HINDERS YOU FROM ADOPTING NEW DIGITAL HEALTH TOOLS IN GENERAL? Top barriers for digital health tools 61% 41% 39% LACK OF LACK OF INTEGRATION SECURITY CONCERNS INTEROPERABILITY Respondents emphasize lack of interoperability between different IT systems Respondents have concers over security of patient data Respondents point out that digital health tools do not fit in their clinical workflows marketing@ismnet.com www.ismnet.com

12. Financial Health Perceptions of financial health are mixed at this time. The current financial health is questionable as they struggle to pull themselves out of the pandemic's financial devastation. The good news is that the economy is flattening out, and the jobless rate is declining. But we are not out of the woods yet as new strains of the virus continue to cause havoc globally. The ageing population also has made a considerable impact. The challenges to the bottom line can help leaders identify opportunities to create greater effi- ciencies in healthcare. Partnerships and cost efficiencies contribute significantly to a health system's revenue stream, improving its financial posi- tion—a hospital's primary revenue contender is another hospital. Although a health system's direct revenue stream is primarily fee-for-service, value-based care now contributes a more sizeable share of revenue dollars to the bottom line. marketing@ismnet.com www.ismnet.com

13. Clinicians report the pandemic's financial impact as manageable: 70% described their current financial position as stable, with only 12% saying they're somewhat or highly financially unstable. According to payers, more payment reform is necessary, especially since providers are increas- ingly adopting value-based care. An ageing popu- lation increases in healthcare utilization and better safety measures are all driving up health- care costs. Unequivocally, over 79% of patient respondents stated that healthcare costs are excessively high. Alternately, this same group was satisfied with their health insurance (70%). marketing@ismnet.com www.ismnet.com

14. Payers Continue to SeeHealthcare Costs Rise Expected change in healthcare costs and spend: INCREASED UTILIZATION AND SAFETY MEASURESfollow closely, likely as a result of an aging population AGING POPULATIONis the top reason for an increase in costs KEY FACTORS Which of these do you expect will be the drivers influencing an increase in healthcare costs over the next few years? Respondents That Expect No Change 41% 38% 38% Aging Population Increased Utilization Safety Measures 36% 38% 38% Mental Health Issues Future Outbreaks Poor Lifestyle marketing@ismnet.com www.ismnet.com

15. Health Systems It is generally accepted that the COVID-19 crisis necessitated digital health options—and that it's here for the duration, according to Thomas Kiesau, direc- tor and digital leader for The Chartis Group. He states that the pandemic accel- erated the need for those options. As a result of this high interest, 70% of health system respondents said that the position of a chief digital officer is on the horizon for many of them. Others con- firmed that patient portals have already been established but are not delivering the same patient care across the board. Here again, technical issues are not the holdback to the adoption of digital health—it is the overly complicated reimbursement and regulatory systems. Health systems readily acknowledge the opportunities AI/ML delivers but are not persuaded of their worth. Further, the consensus is that operational and technical issues can be resolved. Thomas Kiesau is adamant that health systems should embrace and invest in transitioning to digital health. marketing@ismnet.com www.ismnet.com

16. Clinicians According to Darryl Gibbings-Isaac, MD, Accenture's health strategy, growth and innovation expert, clini- cians have demonstrated copious amounts of resiliency in dealing with the new norm. However, for the past year and a half, most healthcare workers have been continually overworked due to the COVID19 pandemic, so learning and adopting new systems, new methods of care, or new devices has taken a backseat to urgent care. Yet they remain optimistic-- 65% said they'd recommend the profession, 86% said they are generally satisfed with their career, and 92% recommend digital health tools to patients. Digital health cannot be disruptive or clinicians won't use it; issues accessing appropriate data, a lack of integration, security concerns, and a lack of interoperability are all problems, according to Dr. Gibbings-Isaac. However, he antic- ipates those numbers to change and that the number of clinicians using AI/ML will increase in the near future. Payerswant more advanced technology--AI/ML. Legacy systems are a signifcant hurdle, according to Shreesh Tiwari, principal at ZS; technology infrastructure is a massive investment within healthcare. He frmly believes that legacy systems create barriers to innovation. Payers generally agree that most of their barriers to innovation are technological; creating efcient processes to improve ROI is a challenge. An abundance of optimism and forward-thinking drives real innovation and plays a signifcant role in "leveraging technology to improve care." marketing@ismnet.com www.ismnet.com

17. Patients Lauren Goodman, director of market intelligence at HIMSS, believes that although patients describe want- ing to go back to pre-COVID times, it's mostly "pandemic fatigue." 65% of the patients surveyed said they like the convenience and prefer telehealth. About 50% of millennials said they will still choose telehealth even when the pandemic ends; 25% of boomers agreed. Wearable technology is generational and income-related; those with less than $25,000 tend not to own wearable technology. marketing@ismnet.com www.ismnet.com

18. Patients, Perspective on Healthcare 52% Have had at least one telehealth visit in the last 12 months 79% Believe healthcare costs in America are too expensive 37% Use wearable tech to track their health marketing@ismnet.com www.ismnet.com

19. ISM is a global leader in Healthcare IT Solutions driven by passion for innovation; well known as A PARTNER WITH A DIFFERENCE in the Healthcare world! We provide business consulting, digital transformation services and cutting-edge solutions for the entire healthcare eco-system TRUSTED BY INDUSTRY LEADERS marketing@ismnet.com www.ismnet.com