specialization show the way forward

Transcription

1 Click to edit Master title styledigitalization and specialization show the way forward Capio Annual General Meeting 2018 Thomas Berglund, President and CEO

2 Content Key events 2017 operational and financial development The strategy a well defined strategy and a proven operating model The future digitalization the next game changer for healthcare Q solid start considering calendar effects and a temporary severe flu impact in Germany

3 Key events 2017 Operational and financial development Digitalization Specialization Turn-around in France

4 Digitalization enters the primary care market Number of consultations online Consultations week Going rate increased from 30,000 visits/year to 40,000 visits/year in only three months and will quickly give better tools also for more advanced healthcare

5 A strong digi-physical offering 800,000 listed patients - 8% of Swedish inhabitants are listed with a Capio primary care center 2,5 million patient visits per year in Capio s Swedish primary care operations An extensive network of physical units supporting online consultations 93 primary care centers and 45 locations for specialist care Digital when possible, physical when needed 650,000 listed patients now have access to the new digital services. Full roll-out completed during Q Recurring patients and entry-point for specialist care

6 Re-organizations to drive specialization and growth Practice and high skills to achieve the best results Specialized clinics with high volumes In 2017, all Swedish orthopedic activity was combined into one business area France is now being transformed from a geographical to a specialized organization First hip/knee replacement in day surgery in Norway Know-how exchange increases speed of change

7 France turn around and specialization France EBITDA and margin (RTM) Time for the next step in Capio France From geographical to specialized organization will attract doctors and patients Five largest hospitals >50% of French net sales organized under one management to focus core activities and processes Smaller hospitals will focus on fewer specialties to drive quality, productivity and patient volumes Specialization will support growth and productivity in Capio France

8 Building for the future new hospitals will support growth Toulouse region Capio La Croix du Sud Lyon region Médipôle Lyon-Villeurbanne Merger of two Capio hospitals into one Relocation/transfer of activities in October 2018 Joint project with Mutualité Française Merger of two Capio hospitals into one Relocation/transfer of activities during Christmas/New Year period 2018 In 2010, Capio decided on an investment plan to accelerate the development and implementation of Modern Medicine Last two major projects completed in H Designed to support efficient patient flows and new working methods (Modern Medicine and Rapid Recovery) Focus on core specialties. Replacing old and inadequate facilities Increase capacity and specialization in Toulouse and Lyon Will attract more patients and doctors, supporting future sales and result growth

9 The long-term trend - Group financial development MSEK. Net sales & organic sales growth 1 EBITDA and margin 1 EBITA and margin 1 10, , ,069 13,486 12, , ,114 1, , Net sales Organic sales growth, % EBITDA Margin, % EBITA Margin, % 1 Development adjusted for structural changes made in See Note 33 and 34 in Capio Annual Report 2016 for a description of these events and reported comparative figures for

10 Strategy A well defined strategy and a proven operating model

11 Drivers for increased need of healthcare the demographic development The population structure develops towards a larger share being elderly Healthcare cost per inhabitant and age in Sweden Most healthcare is needed at % 23% 36% Aging population give an increasing medical needs

12 Healthcare costs continue to rise If nothing is done healthcare expenditures will continue to increase Total healthcare expenditures as share of GDP, % The demographic squeeze and new possibilities to treat patients drive increasing needs and costs of healthcare The share of working people financing healthcare is expected to decrease Constrained public healthcare budgets Swedish annual welfare gap estimated to BSEK -200 in Future development based on extrapolation of historic OECD average CAGR from Source: OECD Health data 2014 Pressure to provide high quality healthcare with higher productivity to reduce cost

13 Modern Medicine ensures outcomes of high quality Modern Medicine and the link to financials Illustrative effects Capio France hip and knee prosthesis surgery A structured medical process improves quality and frees up capacity- no queues!

14 The effect of Modern Medicine and Rapid Recovery % Share of total number of surgeries in Capio France Number of outpatients operated on, % Number of inpatients operated on, % Time From 50/50 to significantly more day surgery to (70/30) in less than ten years Significant shift from in- to outpatient care, but new measures needed

15 The future Digitalization the next game changer for healthcare

16 The Swedish challenge - higher quality and productivity with digital tools In 1975 a Swedish doctor was seeing 9 patients/day. Today that figure is less than 4, indicating a large loss of efficiency (Source: Den sjuka vården 2.0 by Stefan Fölster and Monica Renstig) In Sweden and the Nordics doctors are seeing fewer patients and waiting times are longer

17 More staff than ever! Swedish development of population, patients and resources Indexed development 2006= Population Inpatient visits Outpatient visits Doctors Nurses Help nurses Too much administration and too little time for the patient 5/3/ Source: SKL. The classification system for staff that is used in public statistics changed in 2008 and 2014, which can effect comparability over time.

18 Digital tool will fundamentaly change healthcare provision just more money does not help Easy access and distance care for patients reduce waiting time and increase capacity to treat more patients both digitally and physically Reducing administrative work for medical staff increases time for the patient - driving quality and productivity Power to the people Responsibility and authority to the people closest to the patient Put patient need first - organize healthcare bottom up and lead by empowerment rather than top down management Everything has a financial consequence but not always a financial solution!

19 In a few years from now Digitalization will have given: One entry-point to Capio s healthcare services Digital tools supporting seamless care chains and the patient s healthcare journey Artificial Intelligence tools supporting decisionmaking and more precise diagnosis High degree of patient empowerment the patient is well informed, involved in treatment and demanding accessibility and rapid recovery Possibility to provide personalized and preventive healthcare based on the individuals needs and conditions Digitalization gives more time for patients in need of physical consultations

20 Interim report January March 2018 Click to edit Master title style

21 Solid start considering calendar effects and a temporary severe flu impact in Germany HIGHLIGHTS Capio France continued the positive result development Result improvement despite -1 working day and 4 extra days of school holidays H staff and cost reduction program generated expected results Performance of the big five hospitals improved Lower price reduction 2018 political signals of a continued ease of price pressure Capio Nordic continued the strong development from 2017 Result improvement despite Easter effect Strong growth of emergency volumes An overall positive listing trend in primary care, now also in the Stockholm centers Capio Go continued fast expansion of consultations online Going rate from 30,000 to 40,000 visits/year in three months Reimbursement to start in May 2018, SEK 570/visit Capio Germany impacted by severe flu season Productivity improvements delayed corrective actions now being implemented during Q

22 Final slide THANK YOU! Ort, datum