Transcript KI - worKIng for you

Welcome
Smart Ideas.
Solution Based.
Working for You.
Healthcare Market
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Recap 2004 – Plan 2005
Market Share
GTM Segmentation
Business Issues
GPO Updates
Design Issues
AAHID
Success Stories
Recap 2004
Incoming - Record year
- $27.4M - 93% of plan
- 17% growth over 2003
Shipments – Record year
- $25M – 85% of plan
- 6% growth over 2003
Region 1 Recap
District
Plan
Actual
% of Plan
Corbett
NY
Maloney
Hinman
Corb (NY)
Strack
Rier
Al/TN
N FL
S FL
1.4
1.5
0.8
1.9
0.3
0.8
0.5
0.9
0.7
0.4
1.9
1.3
0.6
1.0
0.2
1.0
1.0
1.2
0.7
0.5
142.0%
87.0%
66.0%
51.0%
53.0%
125.0%
206.0%
141.0%
103.0%
111.0%
Total
9.4
9.4
100.0%
Region 2 Recap
District
Plan
Actual
% of Plan
Neid/Mah
Fairburn
Binford
Kashwer
St. Germain
Thomason
Turner
Lowe
Jones
Healy
Sliger
2.6
2.2
0.7
0.3
0.8
1.4
1.2
1.2
0.8
1.0
1.0
3.5
2.0
1.2
0.0
1.2
1.0
1.2
0.6
1.2
1.5
0.5
134.0%
93.0%
169.0%
5.0%
147.0%
74.0%
103.0%
47.0%
150.0%
145.0%
52.0%
13.2
13.9
106.0%
Total
Region 3 Recap
District
Plan
Actual
% of Plan
Arnold
Zimmerman
Frantz
Matusow
Canter
1.0
1.5
1.8
0.7
1.4
0.5
0.7
1.4
0.1
0.8
53.0%
49.0%
82.0%
20.0%
59.0%
Total
6.3
3.6
58.0%
Top Selling Products
Incoming
1. Perth
2. Flex
3. Daybed
4. Briar
5. Versa
6. Engage
$2.5M
$2.3M
$2.2M
$1.6M
$1.5M
$1.4M
Market Share
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Herman Miller
Hill-Rom
Steelcase
Nemschoff
HON
KI
Contract Magazine
KI ranked #2 in Healthcare Furniture
1. Nemschoff
2. KI
3. Brayton
4. Kimball
5. Herman Miller
6. Wieland
7. Brandrud
8. Steelcase
9. Hill-Rom
10. Softcare
Plan 2005
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$26.9M
8.0% growth over 2004
Market Segmentation
Continued Curriculum
NeoCon
Healthcare Symposium
Healthcare Design
GPO Conferences
AAHID
Market Segmentation
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Focus on Tier 1 and Tier 2
Leverage KI strength in education
market and existing relationships
Identify GPO – emphasis on
Novation and MedAssets
Key growth states – CA, CO, TX, FL,
VA, GA
Business Issues
Top 3 Issues Facing Hospital CEO’s
1. Financial challenges – “Biggest
worry is the budget!”
2. Uninsured – 45 Million (16%)
3. Workforce shortage
Source: American College of
Healthcare Executives
Financial Challenges
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Supply Chain
One Source
GTM – client’s choice
Standardization
Knowledge and commitment
GPO
Capital Expenditure
Hospital CFO’s - increase capital spending
average of 14% per year over the next 5
years
 Emphasis on technology
 8 out 10 projects involve expanding capacity
1. Increase ED capacity 51%
2. Increase OR capacity 50%
3. Add specialty units 38%
4. Increase lab capacity 35%
5. Increase bed capacity 35%
6. Add new outpatient center 35%
7. Expand outpatient facilities 34%
8. Build a new hospital 23%
Source: Healthcare Financial Management and
Price Waterhouse Coopers.
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Construction Outlook
2005 - $26.3 billion – 5.2% increase
2006 – $27.9 billion – 6.0% increase
2007 - $29.9 billion - 7.2% increase
2008 - $31.7 billion – 6.0% increase
2009 - $33.4 billion – 5.4% increase
2010 - $35.1 billion – 5.1% increase
Source: Centers for Medicare and
Medicaid
GPO Updates
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Novation and MedAssets – market
against Nemschoff (Lifetime
warranty)
Premier – RFP Q1
Broadlane – new contract
Design Issues
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Private Room – Acuity Adaptable – Point
of Care – Patient/Family Centered
Bariatrics
Paperless/Wireless
Healthcare Practitioners
Females of household key decision
makers for healthcare
Design catering to the “boomer”
mindset
Emphasis on education
Luxury Units
Infection Control (Cyrpton/Gore)
Bariatrics
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CDC estimates 65% of American
adults are overweight. BMI > 25
31% are obese. BMI > 30
15% of children are overweight
BMI = (Weight lbs./ (ht inches) (ht.
Inches)) x 703
Nurses Health Study – 60% of nurses
overweight
10% lobby
20% in Cardiac units
Solutions: AGI and KI Heroic
Private Room
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2001 Guidelines for Design and
Construction of Hospital and
Healthcare Facilities (New edition
2006)
Patient preference – privacy
Reduced noise, ambarrassment
Improved quality of sleep
Opportunity for family members to
stay and participate in the healing
process
Reduced rate of medical errors, falls
Infection control
AAHID
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American Academy of Healthcare
Interior Designers
Houston-based nonprofit – July 2004
Vision – Certification Board of choice in
assessing and qualifying the knowledge,
skills and abilities of healthcare interior
designers
Specialists in field of healthcare design.
NCIDQ support
Advisory Council
50 founding members – April 2005
www.aahid.org
Success Stories
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Karla Boles – Baylor University
Medical Center
Dayla Nelligan – Inova Health
System
Deb Morris – Lakeland Regional
Medical Center
Susan Binford – St. Francis Hospital
and Health Centers
JJ Reis – William Beaumont Hospital
Karla Boles
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Baylor University Medical Center
Tier 1 – 948 beds
$700K
Timeline: 1 year
A&D: In-house
Fulfillment: Dealer
GPO: Novation
Competiton: Hill-Rom, Carolina,
Brandrud
Decision Criteria: Aesthetics,
design, function
Dayla Nelligan
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Inova Health System
Tier 1 – 820 beds
$700K
Timeline: 2 years
A&D: Wilmot Sans
Fulfillment: Dealer
Competition: Herman Miller, David
Edwards, Hill-Rom, Carolina, Nemschoff,
Brandrud
Products: AGI/KI
GPO: MedAssets
Decision Criteria: Family of products,
ease of maintenance, field replacability
Deb Morris
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Lakeland Regional Medical Center
Tier 1 – 655 beds
$500K
Briar patient room
Timeline: 1 year
A&D – HML Design
Fulfillment: Direct through DR
Competition: Carolina and Stryker
GPO: Novation
Decision Criteria: Function, Design,
Finish and Family of Product
Susan Binford
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St. Francis Hospital and Health
Center
Tier 1 – 434 beds
$600K
Timeline: 2 years
A&D Firm: Lohr Design
Fulfillment: Direct through DR
Product: AGI and KI
Competiton: None
Decision Criteria: Relationship,
Budget
JJ Reis
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William Beaumont Hospital
Tier 1 – 967 beds
$500K
Timeline: 2 years
Product: Sleepchair –special Perth
arm
Competition: Brayton, Patrician,
Wieland
Fulfillment: Dealer
Decision Criteria: function, price,
customization
Thank You
WORKING FOR YOU