DEPUY SYNTHES COMPANIES ANNOUNCES NEW STRATEGIC ALLIANCE
WITH EXPERTS IN BUNDLED PAYMENTS
Part of DePuy Synthes Companies’ Broader Effort to ‘Go Beyond the Implant’
ORLANDO, FL –March 2, 2016 – DePuy Synthes Companies* announced today a new exclusive strategic alliance with Value Stream Partners, LLC, experts in design, development and implementation of bundled payment programs for hip and knee replacements. The announcement was made here at the American Academy of Orthopaedic Surgeons (AAOS) 2016 Annual Meeting.
“This exclusive arrangement with VSP will further enable us to help providers, healthcare systems, and governments face new challenges in healthcare delivery and achieve the Triple Aim of improving clinical outcomes,increasingpatient satisfaction and lowering 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.”
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 standards. 
“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 Juan-José Gonzalez. “VSP has a solid 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 VSP to help provide our customers with tools to effectively address the new requirements under the bundled payment model and provide the best care possible for 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.1
In addition to the bundled payment initiative, DePuy Synthes Companies offer DePuy Synthes Advantage™, a program of more than 20 customized, measureable solutions that help healthcare providers achieve Triple Aim performance in orthopaedics. Solutions span patient and professional education, instruments and training to help improve efficiencies, and tools to measure performance.
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 Companies 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 .
Cautions Concerning Forward-Looking Statements
(This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 related to a strategic alliance to provide healthcare delivery solutions. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the DePuy Synthes Companies or Johnson & Johnson. Risks and uncertainties include, but are not limited to: the potential that the expected benefits and opportunities related to the alliance may not be realized; competition, including technological advances attained by competitors; and health care reforms, including reforms that could decrease demand for the solutions offered. A further list and description of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended January 3, 2016, including in Exhibit 99 thereto, and the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The DePuy Synthes Companies and Johnson & Johnson do not undertake to update any forward-looking statement as a result of new information or future events or developments).