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All other marks contained herein are the property of their respective owners.

2. Can mHealth be a profitable
business?
Perspectives from a leading carrier
Chris Hill, VP
AT&T Mobility Enterprise Solutions
Feb 14, 2011
2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T
Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners

3. US healthcare costs are rising
US healthcare costs
As percent of US GDP
17.6
16.2 16.6 • Global healthcare
costs expected to
13.8
13 8 reach ~$6T
>3x 12.3
• Out of all countries,
US spends the
9.1
91 most, at $2.5T
$2 5T
7.2 • Peer countries
spend less as a %
5.2 of GDP:
– Germany, 10.5%
– Canada, 10%
– France, 11.2%
1960 1970 1980 1990 2000 2007 2008 2009
SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics
Group; U.S. Department of Commerce, Bureau of Economic Analysis
3 2011 AT&T Intellectual Property. All rights rights reserved. AT&T, the AT&T and all otherother AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
© 2010 AT&T Intellectual Property. All reserved. AT&T, the AT&T logo logo and all AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other
marks contained herein are the property the property of their respective owners.
All other marks contained herein are of their respective owners

4. Excessive costs can be addressed by
mHealth
Pain points Possible mHealth solutions
Overutilization • Care payments based on • Remote care monitoring
of care procedures, not outcomes Replace high-cost services (face-to-
high cost (face to
face physician visits) with lower
• Incomplete access to patient
cost mHealth monitoring
medical records
• Limited incentives to curb the use
of care
Inefficiency of • Lack of comparative data to
the system benchmark provider performance • Mobile EMRs
• I h
Inherent expense of multiple-
t f lti l Mobilize patient medical records for
payor system easy data access
• High provider bad debt • Healthcare communications
• Low hospital efficiencies (e.g. Improve co-ordination of care
poor ER throughput) through mobile healthcare
communications
• Unequal geographical distribution
of top physicians
Patient • Hi h i id
High incidence of unhealthy
f h lth
• mHealth Disease
behavior behavior (e.g., smoking, diet)
Management, Medication
• Ineffective wellness care and Adherence, Wellness
disease management Utilize mobility tools/ technologies
to provide on-demand always-on
on-demand,
clinical coaching
4 2011 AT&T Intellectual Property. All rights rights reserved. AT&T, the AT&T and all otherother AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
© 2010 AT&T Intellectual Property. All reserved. AT&T, the AT&T logo logo and all AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other
marks contained herein are the property the property of their respective owners.
All other marks contained herein are of their respective owners

5. Industry watchers believe mHealth could
grow significantly
Estimated size of US market for mHealth
$B Opportunity areas CAGR (2009-2014)
>$4.7B
>$4 7B
Health and fitness 62%
~$0.5B software
~$0.5B Mobile health info/
62%
~$0.2B
$0 2B
EMR
Mobile medical
~$0.5B 30%
equipment
~$1.1B In-Hospital RFID
p 17%
Telemedicine 35%
>$1.1B ~$0.5B
mPERS 10%
~$1.2B
Remote monitoring 28%
services
2009 2014
Industry watchers expect significant growth, but so far, mHealth
take-off has yet to occur
SOURCE: Information compiled from Juniper Research 2010, CSMG research 2010, Mobihealth news 2010, California Healthcare Foundation 2010
5 © 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
All other marks contained herein are the property of their respective owners.

6. mHealth market “take-off” limited by
a number of challenges
Example
• >6,000 healthcare and fitness apps – of which only 200+ are
Profusion of “enterprise” backed
products • Difficult for healthcare enterprise customers (providers, payors) to
distinguish winners from “me too’s”
• Current solutions are not plug-and-play; each has their own
Fragmented proprietary “back-end”/ platform
solutions • Do not cover the full extent of care (linking patient, device, wireless
application, d t algorithms, clinical i t
li ti data l ith li i l interventions)
ti )
• Unclear which standard will prevail (e.g., Zigbee vs. LP Bluetooth,
Competing
ANT+ etc.)
standards
Unclear • Current solutions targeted at providers (hospitals/ physicians) who
business
b i are slow adopters due to reimbursement issues or direct-to-
issues,
consumers (patients) who have low appetite for out-of-pocket
models expenses
6
© 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
All other marks contained herein are the property of their respective owners.

7. Deliberate AT&T mHealth product
strategy to address these challenges
Current challenges AT&T mHealth strategic guiding principles
• Scan industry for “best of breed” solutions/ vendors to
Profusion of scale-up and bring to market
products
• Develop end-to-end turn-key solutions that include clinical
Fragmented
software/ algorithms, hosting, security, care, billing etc.
solutions • Go beyond smartphones with cross-carrier solutions that
cross carrier
work on 70-80% of installed phonebase
• Create mHealth platform for common plug-and-play
Competing solutions that will work with a variety of connectivity
standards standards (e.g. Zigbee, ANT, Bluetooth) and legacy devices
(e.g. USB-enabled blood-pressure cuffs)
Unclear • Run validation pilots where we work with marquee
customers to jointly test for outcomes
business
• Focus on Medical Value with solutions chosen to drive
models
medical cost reduction, not to drive d t / voice traffic
di l t d ti tt d i data/ i t ffi
© 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
All other marks contained herein are the property of their respective owners.

8. AT&T mHealth priority areas
Priority
AT&T
Mobility mobility healthcare
AT&T Enabled Healthcare
Solutions
1 E2E mobile patient care
Disease Management, Medication Adherence, Remote Care, Wellness, Tools for Clinical Trials
2 mHealth infrastructure
mHealth platform, Mobileize EMRs, Healthcare Communications, Secure tablets etc.
AT&T assets
Security, Hosting, Connectivity, Connected Devices , Provisioning, Billing, Care, Kitting, Deployment
© 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
8 All other marks contained herein are the property of their respective owners.

9. 9
© 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
All other marks contained herein are the property of their respective owners.

10. © 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
All other marks contained herein are the property of their respective owners.

11. © 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
All other marks contained herein are the property of their respective owners.

12. © 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
All other marks contained herein are the property of their respective owners.