2021_1q_omron_e

27/37 - Remote Medicine Service Business Model

This slide shows the overall framework for the remote diagnostic service, depicting the interactions between patients and their physician. I will explain the five steps of the process in order, as shown on the slide. We start on the right with step 1, in which patients use BPMs, ECGs and other devices to capture vital sign readings which are automatically transmitted to the patient’s smart phone. In step 2, the OMRON connect app makes it possible to directly transmit the collected vital sign data to the patient's electronic patient records. In step 3, the collected data is analyzed using OMRON's algorithms and the results presented to the doctor in a format that facilitates the diagnostic process. In step 4, the results of the analysis in step 3 are displayed on the physician's PC, indicating the available treatment options. The vertical integration of steps 1 through 4 as a single service is a key strength for OMRON. In step 5, the service also provides support to patients based on the analysis to ensure they continue with the treatment plan and to encourage beneficial lifestyle changes. The service is already in use, using this model. In June, we launched a trial of the remote diagnostic service targeting hypertension patients at Mount Sinai Hospital, a top-class hospital based in New York. The service has already been approved for Medicare. Medical institutions using this model where physicians remotely monitor hypertension patients’ blood pressure home readings will receive $64 per month per patient. OMRON will receive a share of this revenue. The service will be officially launched in the US in August. We will accelerate the rollout of this remote diagnostic service based on this business model going forward, to not only other locations in the US but Europe and Japan as well.