This year Denise Amrich predicted that the Health Care Analytics market would grow to $10B in the next few years. Of course we know that spending on analytics in is growing like crazy in every industry – we’re all looking for the opportunities that are hiding in our data, but Health Care is a special case.
Health Care is a hot growth industry that is expected to create more than 5.5M jobs by 2020; a boom over the next decade. 2010 saw American’s spend 10x what we spent on Health Care in 1980 (that’s 17% of the US GDP). Considering that the fastest growing occupations in Health Care are in management, we can see why analytics is growing at 24% annually.
Health Care data, accessed and utilized in the right
way, can do a lot of good for the industry, the
community and the individual.
The Changing of an Established Pattern
For the longest time, health providers kept their data on paper that was stored in file cabinets. This didn’t lend to analytics, reporting or market comparisons – and so a culture of local care became ingrained. Now however, consumer and industry requirements demand access to real-time data and reporting. Government regulations mandate it as well.
This leaves these data-rich providers with the challenges of
- digitizing their data
- integrating reporting & analytics into their processes
- protecting the privacy of their patients
Some of the driving indicators that support Ms. Amrich’s $10B prediction for Health Care Industry Analytics include:
The industry is getting more competitive
There are many reasons for this, but being forced is probably a key factor. The Federal Trade Commission has a website set up to promote competition between health providers.
Proof of Improving Care
Capturing some of Medicare’s performance-based bonuses is mighty alluring, says BusinessWeek, but providers must prove that they are meeting the requirements.
Some of the incentives are as follows:
- The federal Medicare program for the elderly is withholding more than 1 percent of payments and awarding the pool of money to those that meet the federal government’s expectations.
- A projected $964 million in fiscal year 2013 will be withheld from more than 3,000 hospitals.
- $300 million will be awarded based on patient surveys and the remaining sum of money will be awarded based on clinical measures. 
ROI on Spending
The Health Care Management and System Society http://www.himss.org/ has health care centric suggestions for determining the value of the IT spend in this sector. IT is just one example of project costs, but this type of data (regardless of department) is being required more and more by governance boards.
Improved Operational Efficiencies
Companies in any industry benefit from streamlining their operations. This is also true of health service providers. Treating more patients, requiring less training for administrative workers and spending less time on ineffective practices saves on the bottom line, improves patient goodwill and ensures beneficial negotiations with insurance companies.
State & Federal Requirements
State and federal regulations require hospitals to report a large amount of clinical information. This includes admissions, readmissions, emergency room visits, wait times, mortality rates and much more
Efficiency Reports in Practice
Score Card reports are an example of this data being put to use.
Providers can track and score departmental and individual key performance indicators (KPIs). Tracking ‘length of stay’ or ‘on time starts’ provides valuable insight. Process improvement and maintenance programs can then be put into place.
What about the Cost?
Score card reports are a fantastic example of the analytics in practice. Utilizing the everyday data collected by providers during the course of operations and improving based these metrics.Priceless…or is it?
One provider employs 8 data analysts in a new data and analytics department. They are dedicated to serving the whole of the institution with these types of reports. Consider that trained data analysts can make more than $110K annually. Multiply that by 8 and you have quite a new expense – not to mention a new bottleneck that has been created.
Health Care Providers store a host of data (much of it personal and private). They are challenged to access, control, analyze and report this data.
Those that do it well will be more competitive and
lead the industry.
Keep Twitter tabs on #healthcareanalytics – it’s going to be a fast-growing discussion.