athenahealth — Investor Day (December 2012)
163 slides from athenahealth's investor day presentation, Dec 6, 2012
Slide 1: 5th Annual Investor Summit
5th Annual Investor Summit December 6, 2012 ~ “Jathenahealtth nahealth, Inc.
Slide 2: Investor Relations introduction
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 2 Dana Quattrochi Director, Investor Relations
Slide 3: Agenda
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 1. Opening Remarks: Jonathan Bush, President, Chairman & CEO 2. Financial Discussion: Tim Adams, SVP, Chief Financial Officer 3. “Jedi” Discussion: Ed Park, SVP, Chief Operating Officer David Tassoni, SVP, Operations Dr. Todd Rothenhau
Slide 4: Forward-looking statements
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 4 This presentation contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements reflecting athenahealth, Inc. (the “Company”)
Slide 5: Non-GAAP financial measures
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 In the Company’s earnings releases, conference calls, slide presentations, or webcasts, the Company may use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to e
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Slide 7: Jonathan Bush, Chairman, President & CEO
Jonathan Bush Chairman, President & CEO
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athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 10
Slide 11: Complete control, visibility and care coordination within a closed network
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Complete control, visibility and care coordination within a closed network. 11
Slide 12: You can't own everything
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 You can’t own everything. Patient 12
Slide 13: 6, 2012 Source: The Institute of Medicine of the National Academies, Best Care at
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Source: The Institute of Medicine of the National Academies, Best Care at Lower Cost: The Path to Continuously Learning Health Care in America, 2012 http://www.iom.edu/Reports/2012/Best-Care-at-Lower-Cost-The- Path-to-Continuously-Lear
Slide 14: 6, 2012 Source: The Institute of Medicine of the National Academies, Best Care at
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Source: The Institute of Medicine of the National Academies, Best Care at Lower Cost: The Path to Continuously Learning Health Care in America, 2012 http://www.iom.edu/Reports/2012/Best-Care-at-Lower-Cost-The- Path-to-Continuously-Lear
Slide 15: 6, 2012 Source: The Institute of Medicine of the National Academies, Best Care at
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Source: The Institute of Medicine of the National Academies, Best Care at Lower Cost: The Path to Continuously Learning Health Care in America, 2012 http://www.iom.edu/Reports/2012/Best-Care-at-Lower-Cost-The- Path-to-Continuously-Lear
Slide 16: 6, 2012 Source: The Institute of Medicine of the National Academies, Best Care at
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Source: The Institute of Medicine of the National Academies, Best Care at Lower Cost: The Path to Continuously Learning Health Care in America, 2012 http://www.iom.edu/Reports/2012/Best-Care-at-Lower-Cost-The- Path-to-Continuously-Lear
Slide 17: 6, 2012 Source: The Institute of Medicine of the National Academies, Best Care at
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Source: The Institute of Medicine of the National Academies, Best Care at Lower Cost: The Path to Continuously Learning Health Care in America, 2012 http://www.iom.edu/Reports/2012/Best-Care-at-Lower-Cost-The- Path-to-Continuously-Lear
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Slide 19: 6, 2012 Patient
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Patient 19
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athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Patient 20
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Slide 27: 6, 2012 Hospital-based physician Office-based physician Mid-level provider Support staff Patient
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 27 Hospital-based physician Office-based physician Mid-level provider Support staff Patient
Slide 28: 6, 2012 Source: athenahealth’s 2012 Physician Sentiment IndexTM (http://www. athenahealth.com/PSI/meaningful-use-ince…
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Source: athenahealth’s 2012 Physician Sentiment IndexTM (http://www. athenahealth.com/PSI/meaningful-use-incentives.php).
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athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012
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Slide 31: Equip care givers to win in a global risk market
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 31 Equip care givers to win in a global risk market
Slide 32: 6, 2012 Comparative Advantage Protect Art of Medicine Open Information Exchange
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 32 Comparative Advantage Protect Art of Medicine Open Information Exchange
Slide 33: 6, 2012 Comparative Advantage Protect Art of Medicine Open Information Exchange
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 33 Comparative Advantage Protect Art of Medicine Open Information Exchange
Slide 34: 6, 2012 athenaNation • athenahealth employees and clients are activated to expand the network
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 athenaNation • athenahealth employees and clients are activated to expand the network athenaNet • athenaNet is transformed into an open platform via ecosystem, etc. • Coordinator goes viral • One patient, one chart, everywhere – incl
Slide 35: Tim Adams, SVP, Chief Financial Officer
Tim Adams SVP, Chief Financial Officer
Slide 36: 6, 2012 Massive market opportunity with a small, but steadily growing, piece of
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Massive market opportunity with a small, but steadily growing, piece of the pie today Continued investment in growth and innovation yields a healthy, recurring revenue stream Proven track record of 30% revenue growth since incept
Slide 37: 6, 2012 Physician & Clinical Services ~$500 Billion1 Service Market Opportunity2 athenaCollector® $17b athenaClinicals®
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Physician & Clinical Services ~$500 Billion1 Service Market Opportunity2 athenaCollector® $17b athenaClinicals® $7b athenaCommunicator® $5b athenaCoordinator® $5b athena BI $2b 37 $36 Billion 1 Centers for Medicare & Medicaid Services,
Slide 38: 6, 2012 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2007
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2007 2008 2009 2010 2011 2012 Est. Tota l Reven u e ($M ) 38
Slide 39: 6, 2012 Cost Position from Offshoring Automation across all services ICD-10 athenaCoordinator Implementation Scalability
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 39 Cost Position from Offshoring Automation across all services ICD-10 athenaCoordinator Implementation Scalability Meaningful Use athenaCare Expanded services
Slide 40: 6, 2012 Paid Media Quota carrying reps Channel Partners Live Events Content Development Intelligence
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Paid Media 40 Quota carrying reps Channel Partners Live Events Content Development Intelligence from the cloud
Slide 41: 6, 2012 C1 - STABILITY C2 - PRODUCTIVITY/GM C3 - SERVICE ENHANCEMENT C4 –
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 41 C1 - STABILITY C2 - PRODUCTIVITY/GM C3 - SERVICE ENHANCEMENT C4 – NEW SERVICE DEVELOPMENT
Slide 42: 6, 2012 C-1 Stability C-2 Productivity/ GM C-3 Service Enhancement C-4 New Service Development
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 42 C-1 Stability C-2 Productivity/ GM C-3 Service Enhancement C-4 New Service Development 0% 20% 40% 60% 80% 100% 2009 2010 2011 2012 2013 % of R&D Spen d C4 C3 C2 C1 39% 41% 50% 52% 54%
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Slide 44: 6, 2012 74% 12% 14% Existing Client Base (as of 09/11), less attrition At
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 74% 12% 14% Existing Client Base (as of 09/11), less attrition At Risk - To be implemented in Q4 2011 and FY 2012 At Risk - To be sold in Q4 2011 and FY 2012 44 76% 11% 13% Existing Client Base (as of 09/12), less attrition At Risk - T
Slide 45: Fiscal year 2012 expectations
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 45 1 See non-GAAP reconciliation tables in the 12/5/12 press release Note: These estimates reflect the Company’s current operating plan as of December 6, 2012, and are subject to change as future events and opportunities arise. FISCAL
Slide 46: Fiscal year 2013 expectations
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 46 1 See non-GAAP reconciliation tables in the 12/5/12 press release Note: These estimates reflect the Company’s current operating plan as of December 6, 2012, and are subject to change as future events and opportunities arise. FISCAL
Slide 47: Non-GAAP financial measures
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 In the Company’s earnings releases, conference calls, slide presentations, or webcasts, the Company may use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to e
Slide 48: 6, 2012 Please note that the figures presented above may not sum exactly due
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 48 Please note that the figures presented above may not sum exactly due to rounding. LOW HIGH Total revenue 420.0$ 425.0$ Direct operating expense 168.2 165.9 Total revenue less direct operating expense 251.8$ 259.1$ Add: Stock-based c
Slide 49: 6, 2012 Please note that the figures presented above may not sum exactly due
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 49 Please note that the figures presented above may not sum exactly due to rounding. LOW HIGH Total revenue 420.0$ 425.0$ GAAP net income 16.4 18.5 Add: Provision for income taxes 13.5 15.5 Add (less): Total other (income) expense (0.3
Slide 50: 6, 2012 Please note that the figures presented above may not sum exactly due
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 50 Please note that the figures presented above may not sum exactly due to rounding. LOW HIGH GAAP net income 16.4$ 18.5$ Add: Stock-based compensation expense 28.4 28.4 Add: Amortization of purchased intangibles 3.0 3.0 Sub-total of t
Slide 51: 6, 2012 Please note that the figures presented above may not sum exactly due
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 51 Please note that the figures presented above may not sum exactly due to rounding. LOW HIGH GAAP net income per share - diluted 0.44$ 0.50$ Add: Stock-based compensation expense 0.76 0.76 Add: Amortization of purchased intangibles 0.
Slide 52: 6, 2012 Please note that the figures presented above may not sum exactly due
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 52 Please note that the figures presented above may not sum exactly due to rounding. LOW HIGH Total revenue 525.0$ 550.0$ Direct operating expense 210.5 214.5 Total revenue less direct operating expense 314.5$ 335.5$ Add: Stock-based c
Slide 53: 6, 2012 Please note that the figures presented above may not sum exactly due
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 53 Please note that the figures presented above may not sum exactly due to rounding. LOW HIGH Total revenue 525.0$ 550.0$ GAAP net income 19.9 23.6 Add: Provision for income taxes 15.6 18.9 Add (less): Total other (income) expense (0.2
Slide 54: 6, 2012 Please note that the figures presented above may not sum exactly due
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 54 Please note that the figures presented above may not sum exactly due to rounding. LOW HIGH GAAP net income 19.9$ 23.6$ Add: Stock-based compensation expense 35.9 35.9 Add: Amortization of purchased intangibles 3.9 3.9 Sub-total of t
Slide 55: 6, 2012 Please note that the figures presented above may not sum exactly due
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 55 Please note that the figures presented above may not sum exactly due to rounding. LOW HIGH GAAP net income per share - diluted 0.52$ 0.62$ Add: Stock-based compensation expense 0.95 0.95 Add: Amortization of purchased intangibles 0.
Slide 56: 6, 2012 Our expected FY 2013 GAAP effective tax rate is 43-44%
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 56 Our expected FY 2013 GAAP effective tax rate is 43-44% Our expected FY 2013 weighted average diluted share count is approximately 38 million Our estimated FY 2013 FAS123R expense is approximately $36 million It is best to as
Slide 57: 6, 2012 Massive market opportunity with a small, but steadily growing, piece of
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Massive market opportunity with a small, but steadily growing, piece of the pie today Continued investment in growth and innovation yields a healthy, recurring revenue stream Proven track record of 30% revenue growth since incept
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Slide 60: Ed Park, Chief Operating Officer
Ed Park EVP, Chief Operating Officer
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Slide 62: 6, 2012 -Schedule visit -Run eligibility inquiry -Send reminder call -Collect co-pay via credit
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 62 -Schedule visit -Run eligibility inquiry -Send reminder call -Collect co-pay via credit card or e-check transaction -Ask about P4P-related clinical protocol measure -Document visit -Order prescription -Order lab order -Send referral
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Slide 64: David Tassoni, SVP, Operations
David Tassoni SVP, Operations
Slide 65: 6, 2012 Hospital-based physician Office-based physician Mid-level provider Support staff Patient
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 65 Hospital-based physician Office-based physician Mid-level provider Support staff Patient
Slide 66: 6, 2012 million claims paper checks deposits million charge lines
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 66 million claims paper checks deposits million charge lines million clinical documents million orders (prescriptions, labs, radiology) million lab results million patient statements million automated patient messages
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Slide 68: 6, 2012 Clinical Document Processing Provider Credentialing Claims Processing
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 68 Clinical Document Processing Provider Credentialing Claims Processing
Slide 69: 6, 2012 LEARNING PHASE (2008-2009) Manual workflows Document categorization MANUAL REDESIGN (2011-2012)
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 69 LEARNING PHASE (2008-2009) Manual workflows Document categorization MANUAL REDESIGN (2011-2012) Transaction segmentation Templates AUTOMATION DRIVE (2010-2011) Lab interfaces (75%+) Imaging documents Bar-coding/OCR
Slide 70: 6, 2012 This year, we took on simplifying credentialing, which is critical to
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 This year, we took on simplifying credentialing, which is critical to accelerating and streamlining onboarding of clients and ensuring our clients are paid for their work 70
Slide 71: 6, 2012 LEARNING PHASE (2012) Document classification workflows Develop expiry management rules
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 71 LEARNING PHASE (2012) Document classification workflows Develop expiry management rules STANDARDIZE PHASE (2013-2014) Task management system Offshore migration Provider profiles AUTOMATION DRIVE (2014+) Payer interfaces
Slide 72: Todd Rothenhaus, Chief Medical Information Officer
Todd Rothenhaus Chief Medical Information Officer
Slide 73: 6, 2012 While we excel at getting care givers paid, clinical knowledge is the
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 While we excel at getting care givers paid, clinical knowledge is the key to success under emerging payment and delivery models Leakage, Utilization, Quality & Risk Stratification Decision-Making, P4P, Guidelines Care Team: Medical Ass
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Slide 75: 6, 2012 Provider “medical mindshare” Provider presence Complexity of digitizing data capture Impact on
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Provider “medical mindshare” Provider presence Complexity of digitizing data capture Impact on patient interaction W o rk fl o w Rev cycle impact of data capture Impact on meaningful use Admin cost-saving potential F in a n c ia l 75 L
Slide 76: 6, 2012 Provider “medical mindshare” Provider presence Complexity of digitizing data capture Impact on
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Provider “medical mindshare” Provider presence Complexity of digitizing data capture Impact on patient interaction W o rk fl o w Rev cycle impact of data capture Impact on meaningful use Admin cost-saving potential F in a n c ia l 76 T
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Slide 79: Meaningful Use dashboard
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 1 79 1 athenahealth’s Meaningful Use dashboard; http://www.athenahealth.com/meaninful-use.php
Slide 80: 6, 2012 athenahealth’s Meaningful Use dashboard; http://www.athenahealth.com/meaninful-use.php For Stage 1 Year 2, 94…
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 1 80 1 athenahealth’s Meaningful Use dashboard; http://www.athenahealth.com/meaninful-use.php For Stage 1 Year 2, 94% are on track to attest or are 2 measures away1
Slide 81: 6, 2012 million athenaNet: total quality program incentive dollars collected on behalf of our
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 million 1 81 1 athenaNet: total quality program incentive dollars collected on behalf of our clients year-to-date 2012. 2 athenaNet: for year-to-date 2012, total quality program incentive dollars collected on behalf of our clients divi
Slide 82: 6, 2012 million athenaNet: total quality program incentive dollars collected on behalf of our
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 million 1 82 1 athenaNet: total quality program incentive dollars collected on behalf of our clients year-to-date 2012. 2 athenaNet: for year-to-date 2012, total quality program incentive dollars collected on behalf of our clients divi
Slide 83: 6, 2012 We excel at getting care givers paid, but sources of revenue and
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 We excel at getting care givers paid, but sources of revenue and provider models are changing CARE MODEL TRADITIONAL PCMH ACO Payment Model Fee for Service (FFS) FFS+P4P Shared Savings Global Payment Provider Model Solo Physician Pract
Slide 84: 6, 2012 PAYER DATA Medical Pharmacy Eligibility BILLING DATA Charges
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 PAYER DATA Medical Pharmacy Eligibility BILLING DATA Charges Payments Edits EHR DATA Encounter Lab/Vital Etc… OTHER DATA Lab Formulary Etc… 84
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Slide 86: Jeremy Delinsky, SVP, Chief Technology Officer
Jeremy Delinsky SVP, Chief Technology Officer
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Slide 88: 6, 2012 Technology should enable intimate time between care giver and receiver
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Technology should enable intimate time between care giver and receiver Doctors should only be given—and ask for—the information that supports the moment of care 88
Slide 89: 6, 2012 Simple Eliminate work first. Simplify the work that remains. Elegant Focus on
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 89 Simple Eliminate work first. Simplify the work that remains. Elegant Focus on the essential, presented eloquently. Provide direct, economical, natural ways to interact with it. Purposeful Drive relentlessly to achieve our vision, mi
Slide 90: 6, 2012 Expanding athenaNet use to select mobile platforms/devices and to a broader base
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 90 Expanding athenaNet use to select mobile platforms/devices and to a broader base of browsers Envisioning a radically more intuitive, elegant, and purposeful physician experience Launching More Disruption Please, an Ecosystem with he
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Slide 93: 6, 2012 of our athenaClinicls provider base are using our mobile offering
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 of our athenaClinicls provider base are using our mobile offering System Usability Score (SUS) Frequent users have lower inbox stock 93
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Slide 96: 6, 2012 athenaClinicals • Open Beta began in Nov, both for desktop and
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 athenaClinicals • Open Beta began in Nov, both for desktop and mobile Safari GA for all athenaNet in Q1 2013 Chrome, Firefox in mid 2013 96
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Slide 99: 6, 2012 Activate the care team Nurture better behavior Uphold the sanctity of the
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 99 Activate the care team Nurture better behavior Uphold the sanctity of the doctor-patient relationship Encourage achievement, not effort Inspire insights through trusted curation 99
Slide 100: 6, 2012 ▶ Documenting to communicate ▶ Optimizing the dynamic care team ▶ Augmenting
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 100 ▶ Documenting to communicate ▶ Optimizing the dynamic care team ▶ Augmenting real-time decision making ▶ Illuminating the big picture ▶ Facilitating a rewarding care experience ▶ Encouraging patient accountability ▶ Enabling care b
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athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 102
Slide 103: 6, 2012 Oracle vs. Box, Concur, Cornerstone OnDemand, DocuSign, Eloqua, FuzeBox, NetSuite, SugarCRM,
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Oracle vs. Box, Concur, Cornerstone OnDemand, DocuSign, Eloqua, FuzeBox, NetSuite, SugarCRM, Zendesk Vertical Integration vs. Horizontal Integration Single platforms vs. Best-in-Breed Solutions 103 Source: The New York Times, Ope
Slide 104: 6, 2012 “You’re crazy if you think you’ll never have to sell to a
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 104 “You’re crazy if you think you’ll never have to sell to a C.I.O. now,” Mr. Levie said. As the cloud takes over more of business computing, the information managers “have to be supported in security, compliance and regulatory functi
Slide 105: athenahealth vs. The Biosphere
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 athenahealth vs. The Biosphere “Imagine a world effectively split into two systems of care – a system comprised of today’s large medical systems, build upon the Epic platform, and a second system that explores the use of truly disr
Slide 106: 6, 2012 “Disruptive change in clinical practice would be led not by academic physicians
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 106 “Disruptive change in clinical practice would be led not by academic physicians treating patients out of university medical centers, but rather a motley collection of concierge doctors, involved patients, and savvy technologists.”
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Slide 108: 6, 2012 We want to help connect you to our customer base in a
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 We want to help connect you to our customer base in a more seamless way – so long as you are helping to: Ethically support our mission Increase efficiencies inside the provider/patient workflow Enable a disruptive, new product feature/
Slide 109: 6, 2012 www.athenahealth.com/disruption
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 www.athenahealth.com/disruption 109
Slide 110: Rob Cosinuke, SVP, Chief Marketing Officer
Rob Cosinuke SVP, Chief Marketing Officer
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Slide 112: 6, 2012 Source: athenahealth’s addressable market (physicians) based on athenahealth analysis using SK&A, HIMSS,
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 112 Source: athenahealth’s addressable market (physicians) based on athenahealth analysis using SK&A, HIMSS, and self- collected data
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Slide 115: 6, 2012 Epic/Cerner 1”Physician Utilization: The State of Research about Physicians’ Practice Patterns”, John
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 115 Epic/Cerner 1”Physician Utilization: The State of Research about Physicians’ Practice Patterns”, John M. Eisenberg, 1985 http://www.jstor.org/stable/3764984 1Deloitte Center for Health Solutions, “The Physician Workforce: Opportuni
Slide 116: 6, 2012 Epic/Cerner 1”Physician Utilization: The State of Research about Physicians’ Practice Patterns”, John
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 116 Epic/Cerner 1”Physician Utilization: The State of Research about Physicians’ Practice Patterns”, John M. Eisenberg, 1985 http://www.jstor.org/stable/3764984 1Deloitte Center for Health Solutions, “The Physician Workforce: Opportuni
Slide 117: 6, 2012 Epic/Cerner 1”Physician Utilization: The State of Research about Physicians’ Practice Patterns”, John
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 117 Epic/Cerner 1”Physician Utilization: The State of Research about Physicians’ Practice Patterns”, John M. Eisenberg, 1985 http://www.jstor.org/stable/3764984 1Deloitte Center for Health Solutions, “The Physician Workforce: Opportuni
Slide 118: 6, 2012 Epic/Cerner 1”Physician Utilization: The State of Research about Physicians’ Practice Patterns”, John
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 118 Epic/Cerner 1”Physician Utilization: The State of Research about Physicians’ Practice Patterns”, John M. Eisenberg, 1985 http://www.jstor.org/stable/3764984 1Deloitte Center for Health Solutions, “The Physician Workforce: Opportuni
Slide 119: 6, 2012 Epic/Cerner 1”Physician Utilization: The State of Research about Physicians’ Practice Patterns”, John
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 119 Epic/Cerner 1”Physician Utilization: The State of Research about Physicians’ Practice Patterns”, John M. Eisenberg, 1985 http://www.jstor.org/stable/3764984 1Deloitte Center for Health Solutions, “The Physician Workforce: Opportuni
Slide 120: 6, 2012 “Ultimately, health systems that build a high performance medical group can position
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 “Ultimately, health systems that build a high performance medical group can position themselves both to capture short-term returns around increasing quality and market share, and to succeed against emerging imperatives for care managem
Slide 121: 6, 2012 Traditional: Head-on Marketing + Direct Sales 1 Cross Sell: Expand share of
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 121 Traditional: Head-on Marketing + Direct Sales 1 Cross Sell: Expand share of wallet Network Driven: Growing virally through clients 2 3
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Slide 124: 6, 2012 KLAS, etc Articles “Overall scores for athenahealth's EMR, athenaClinicals, (out of 100),
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 KLAS, etc Articles “Overall scores for athenahealth's EMR, athenaClinicals, (out of 100), up nearly 4 points over last year. Scores are buoyed up by successful implementation services and meaningful product enhancements. This is in sta
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Slide 131: We expanded our Channel Partnerships
a f athenahealtli We expanded our Channel Partnerships >. 8 oe & New 2012 Partners UZ + emer: IR | 22.282 fS cig ° f raccoy | Transworld Systems” B- MSDC iy seomfP2 - OMS MEDICAL SOOETY OF THE DISTRICT OF COLUMBIA « O oe Stericycle’ -KCAPELLA North Carolina (#2) Medical Society Cad he Ac Me a HEALTH
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Slide 133: 6, 2012 19% 13% 21% 12% 29% 16% 31% 22% 28% 35% 18% %
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 133 19% 13% 21% 12% 29% 16% 31% 22% 28% 35% 18% 17% 23%
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athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 134 *
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Slide 137: Leads from…
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 137 LEADS FROM…
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Slide 141: 6, 2012 orders sent to in July 2012 surgery order detail July 2012 orders
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 orders sent to in July 2012 surgery order detail July 2012 orders in July 2012 141
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Slide 143: The Great Coordinate launch in 2012
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Launched athenaCoordinator 143 Re-priced athenaClinicals Activated via Marketing athenahealth launched the “Great Coordinate” in 2012
Slide 144: athenaClinicals Client
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 athenaClinicals Client 144
Slide 145: athenaClinicals Client
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 athenaClinicals Client 145
Slide 146: athenaClinicals Client
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 athenaClinicals Client 146
Slide 147: 6, 2012 Higher close rates Alternative to Epic for independent providers
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 Higher close rates Alternative to Epic for independent providers Scalable, tested programs Leverages athenaCoordinator and clinical interfaces Supports development of ACOs 147
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Slide 152: Steve Kahane, SVP & President, Enterprise Division
Steve Kahane, M.D., M.S. SVP & President, Enterprise Division
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Slide 155: 6, 2012 INSOURCE FULL OUTSOURCING CLOUD-BASED SES VALUE DRIVER Upfront capital expense Client Work
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 INSOURCE FULL OUTSOURCING CLOUD-BASED SES VALUE DRIVER Upfront capital expense Client Work (People) Vendor risk relative to outcomes Scalability potential Visibility / Transparency Total cost of ownership Influence on process/behavior
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Slide 159: Client panel
athenahealth, Inc. 5th Annual Investor Summit – December 6, 2012 159 Steve Kahane, M.D., M.S. SVP, President, Enterprise Division Patrick Easterling President, Health Management Physician Network John Donahue President & CEO, Cogent HMG John Briggs, M.D. President, Unified Women’s Healthcare, LLC &
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Slide 161: Jonathan Bush, Chairman, President & CEO
Jonathan Bush Chairman, President & CEO
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Slide 163: 5th Annual Investor Summit
5th Annual Investor Summit December 6, 2012 ~ “Jathenahealtth nahealth, Inc.