Siemens Healthcare Consulting Siemens Healthcare Consulting Customer benefit

Siemens. Healthcare Consulting Siemens Healthcare Consulting Customer benefit of Siemens Healthcare profitability analyses Copyright © Siemens AG 2012. All rights reserved. Siemens Healthcare Consulting

1. Presentation of Siemens Healthcare Consulting 2. Business planning, master planning & profitability analysis 3. Project process of the profitability analysis page 2 Profitability analyses Siemens Healthcare Consulting

Our portfolio contains solutions that address all relevant topics regarding the health care system Three essential categories … Strategy and sustainability Clinical processes Infrastructure page 3 … with an explicit focus … Competence leader for sustainable service provision in the health care system § Business- und master planning § Performance indicators and benchmarking § Sustainability assessments and consulting Setting trends for clinical process optimization § Process optimization § Clinical pathways Development of innovative concepts of technology and infrastructure § Process optimized equipment concepts § Technology and investment planning Profitability analyses Siemens Healthcare Consulting

An interdisciplinary team with an exclusive focus on health care topics Our strengths Our consultants focus only on health care topics: § 50% of our consultants have previously worked in hospitals and surrounding fields § Extensive experience in: health care system, consultancy and investment banking § Consultants with multiple degrees and doctorates (MD, Ph. D, etc. ) § We have a high international experience in combination with a strong local presence Managing excellence Clinical excellence Technological excellence § Experienced experts in: Hospital management, investment banking and health economics § Physicians specialized in: Radiology, cardiology, oncology and neurosurgery § Physicists, engineers and computer scientists page 4 § Postgraduate qualifications in management and health economics Profitability analyses § Long-time experience in the IT- and technology industry Siemens Healthcare Consulting

Our customers and references (extract) Strategy Infrastructure Clinical processes page 5 Profitability analyses Siemens Healthcare Consulting

Our interdisciplinary experienced team Clinical Competence Centers Siemens Healthcare Consulting Cardiology A. Aisenbrey Business Administration S. Gager Health Economics M. Haseneyer Computer Science B. Helm Business Administration Dr. J. Höllthaler Medicine O. Ekinci Cardiology Dr. S. Dietrich Dentistry T. Hopmeier Business Administration H. Kirschbaum Computer Science Dr. J. Kirschbaum Medicine Dr. E. Klein Medicine S. Koos Business Administration Dr. M. Koschnike Business Administration I. Rebmann Psychology C. Schmieder Care Management J. Schneider Business Administration C. Windpassinger Computer Science V. Ziebandt Business Administration Dr. J. Kirsten Business Adm. & Biology Dr. P. Fischer Cardiology Neurology Dr. B. Hofmann Neurosurgery Dr. U. Zikeli Neurology Oncology Dr. W. Voigt Oncology page 6 Dr. C. Förtsch Oncology Dr. D. Seidel Health Management C. Wild Industrial Engineer Profitability analyses Siemens Healthcare Consulting

1. Presentation of Siemens Healthcare Consulting 2. Business planning, master planning & profitability analysis 3. Project process of the profitability analysis page 7 Profitability analyses Siemens Healthcare Consulting

Profitability analyses offer benefits for external customers and Siemens Healthcare sales organisation Perspective of executive board § Initial situation: The executive board is firmly convinced of the medical benefits and technical capability of Siemens modalities § Questions: page 8 Siemens sales organisation identifies customer’s potential for a new or additional modality § Questions: § Is the investments worthwhile for my company? § Can we financially afford such an investment? § Do we have an adequate number of potential patients in our catchment area? Conclusio n Sales perspective (directors and representatives) § How can we convince the customer of the benefits? § What kind of economic arguments will the customer need? § How can we support our customer? Essential aspects § Number of relevant patients § Trends in epidemiology, demography and medical technology § Competition in the catchment area § Reimbursement possibilities for the hospital § Required investment and running costs A hospital can use such an analysis to convince the supervisory board, health insurance companies and the public funding organisations. Profitability analyses Siemens Healthcare Consulting

Business planning, master planning and profitability analyses - focus … with a different focus Three essential categories … Master planning Business planning One medical division/ department Profitability analysis page 9 One hospital or other health care provider One technology/ medical device Profitability analyses Siemens Healthcare Consulting

Business planning, master planning and profitability analysis – scope of services Three essential categories … … with different scopes of services Master planning § Political and legal topics § Functional design and space planning § Implementation planning Business planning § Idea creation/ strategic planning § Sales concept/ marketing § Personnel resource planning Profitability analysis § § page 10 Market and competition analysis Prediction of performance development Analysis of the required resources Calculation of predicted revenues and costs Profitability analyses Siemens Healthcare Consulting

1. Presentation of Siemens Healthcare Consulting 2. Business planning, master planning & profitability analysis 3. Project process of the profitability analysis page 11 Profitability analyses Siemens Healthcare Consulting

Profitability analysis: project example Hybrid OR Customer situation § German hospital for specialized medical services with approx. 700 hospital beds Project goal § Profitability analysis for the investment decision (Hybrid OR) Approach § Planning of the installation of a modern Hybrid OR for different medical departments § Difficult market position of the hospital in an area with a high number of competitors § Limited options to enhance the catchment area due to the number of customers § Constant number of inhabitants in the existing catchment area Outcome § Projected performance volume in the new Hybrid OR § Statement on profitability of the investment page 12 Profitability analyses Siemens Healthcare Consulting

Module 2 Market- and competition analysis Description Examples § Market overview: Market analysis Description § Demographical und epidemiological analysis of the catchment area § Identification of existing facilities in the relevant region Additional market potential § Competition analysis Outcome Methods § Interviews § Data acquisition § Analyses and calculations Projected development of case numbers § Estimation of additional market potential page 13 Profitability analyses Siemens Healthcare Consulting

Module 3 Required resources Description Examples § Visualization of the required resources: § Spatial requirements § Description of the technical equipment § Personnel requirements § Level of competence of the required Process of a emergency-intervention personnel Outcome Methods § Interviews § Analyses and calculations 1 Spatial situation and patients’ pathways § Detailed description of required resources 1 depending page 14 on available data Profitability analyses Siemens Healthcare Consulting

Modules 4 and 5 Revenue and cost calculation and final evaluation Description Examples § Revenue and cost calculation: § Identify reimbursement options § Calculation of investment- and running Financial model costs § Determine of break-even point § SWOT-analysis Outcome Methods Break-even- and sensitivity analysis § Data acquisition § Forecast model 1 § Revenue and cost determination § Profitability analysis § Final documentation § Presentation 1 depending page 15 on available data Profitability analyses Siemens Healthcare Consulting

Contact details Siemens AG Siemens Healthcare Consulting Allee am Röthelheimpark 3 A 91052 Erlangen Phone Fax page 16 Profitability analyses +49 9131 84 -7199 +49 9131 84 -3758 Siemens Healthcare Consulting © Siemens AG 2012. All rights reserved.