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DEPUY SYNTHES COMPANIES ANNOUNCES NEW PROGRAMS TO HELP
HEALTHCARE PROVIDERS WITH BUNDLED PAYMENTS AND SUPPLY CHAIN MANAGEMENT

DePuy Synthes Enters into Two New Business Alliances as
Part of Strategy to Go ‘Beyond the Implant’ for its Customers

ORLANDO, FL –March 2, 2016 – DePuy Synthes Companies announced two new exclusive strategic alliances today, one aimed at helping hospitals and physicians implement effective bundled payment strategies, and the other, to help improve hospital supply chain efficiencies in surgery. The announcement was made here at the American Academy of Orthopaedic Surgeons (AAOS) 2016 Annual Meeting.

DePuy Synthes Companies will offer design, development and implementation of bundled payment programs through an alliance with Value Stream Partners (VSP), and will offer SurgiTrack®, an advanced operating room (OR) procedural delivery service for orthopaedics through a co-promotion agreement with Owens & Minor (O&M), a leading provider of healthcare supply chain management solutions.

“Both of these exclusive arrangements with innovators in their respective fields will better enable us to help providers, healthcare systems, and governments face new challenges in healthcare delivery and meet the Triple Aim of improved clinical outcomes, increased patient satisfaction and lower overall costs,” said Juan-José Gonzalez, President, DePuy Synthes, U.S. “We’re focused on innovation and offering total solutions that go beyond the implant and make a real difference both inside and outside of the operating room.”

Bundled Payments – DePuy Synthes Companies and VSP

Beginning April 1, 2016, the Centers for Medicare & Medicaid Services (CMS) is requiring acute care hospitals in 67 regions to participate in its Comprehensive Care for Joint Replacement (CJR) Model, which compensates hospital providers for an entire episode of care – from the time of the hip or knee replacement through 90 days after discharge, rather than just for the surgery itself. Through this bundled payment model, hospitals will receive additional payments for strong quality and spending performance or potentially have to repay CMS for a portion of the spending for care if performance does not meet set standards1.

“There are great clinical and economic incentives for hospitals, physicians, and post-acute care providers to put in place the processes, procedures and alignment strategies necessary to better coordinate care,” said John Friend, JD, founder and managing member, VSP and a former CEO of an Accountable Care Organization (ACO) in Arizona. “At VSP we are a diverse group with a track record in designing, implementing and administering bundled payment programs with the necessary collaborative, alignment and balanced incentive strategies to be successful. We look forward to working with DePuy Synthes Companies in helping its customers effectively address the new requirements under the bundled payment model so they can provide the best care possible for their patients.”

According to the U.S. Department of Health and Human Services (HHS), in 2014, more than 400,000 Medicare beneficiaries received a hip or knee replacement, costing more than $7 billion for the hospitalizations alone, with quality and costs of these procedures varying greatly among providers1.

Supply Chain Management – DePuy Synthes Companies and O&M

DePuy Synthes Companies has an exclusive agreement to co-promote SurgiTrack for orthopaedic procedures. This highly flexible, advanced OR procedural delivery service helps hospitals refine surgical case management for maximum savings and improved OR and supply chain efficiency. Supplies are grouped according to procedural requirements and physician preferences and SurgiTrack’s individualized procedural kits are delivered daily from local distribution centers directly to ORs, freeing up staff time and storage space. DePuy Synthes sales teams will now offer SurgiTrack as part of their portfolio offering.

O&M’s proprietary technology platform and state-of-the-art tools enable customers to track key performance indicators within the OR and transform information into actionable intelligence. Surgeon-specific SurgiTrack ensures the capture of all patient-chargeable items and devices the hospital uses in surgery and generates a clean, current procedural supply cost-per-case using real-time hospital contract pricing. The goal of SurgiTrack is to match purchases to consumption, thereby reducing the potential for waste.

About DePuy Synthes Companies

DePuy Synthes Companies of Johnson & Johnson provides one of the most comprehensive portfolios of orthopaedic and neurological solutions in the world. DePuy Synthes solutions, in specialties including joint reconstruction, trauma, neurological, craniomaxillofacial, spinal surgery and sports medicine, are designed to advance patient care while delivering clinical and economic value to health care systems worldwide. For more information visit www.depuysynthes.com .

©DePuy Synthes 2016. All rights reserved. The third party trademarks used herein are trademarks of their respective owners.

1 http://www.hhs.gov/about/news/2015/11/16/cms-finalizes-bundled-payment-initiative-hip-and-knee-replacements.html ; accessed Feb. 2016.


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