Hospitals Seek Analytics Tools In Rush To Meet Mandates
Health analytics adoption will hit 50% by 2016, reports Frost & Sullivan.
11 Healthcare-Focused Business Intelligence Tools
(click image for larger view and for slideshow)
Hospitals will soon see a significant increase in the use of analytics tools, according to new research from Frost & Sullivan. In fact, new figures show that only 10% of U.S. hospitals implemented health data analytics tools in 2011. That number will grow to approximately 50% adoption in 2016, representing a 37.9% compound annual growth rate (CAGR).
The report, "U.S. Hospital Health Data Analytics Market," makes the assertion that investments in analytics software will closely follow the implementation of electronic health records (EHRs). As of 2011, approximately 35% of U.S. hospitals had implemented either a basic or comprehensive EHR. By 2016, Frost & Sullivan forecasts that 95% of U.S. hospitals will have EHR systems in place, representing a 22.1% CAGR.
Legislative mandates, specifically, the Health Information Technology for Economic and Clinical Health Act (HITECH) of 2009 and the Patient Protection and Affordable Care Act (PPACA) of 2010, are driving the shift toward investments in analytics tools soon after the implementation of EHRs. These laws call for U.S. hospitals to implement and use technology, including data analytics, to improve quality measures and patient outcomes.
Health data analytics, which the report describes as "advanced analytics techniques applied to clinical, financial, and administrative data that is used to improve the quality and efficiency of patient care," will become more ubiquitous over the next three to five years.
As the nation modernizes its health information infrastructure, the report notes that historically, healthcare delivery organizations have implemented business analytics that focused on financial and administrative systems. During the last five years, however, implementing clinical IT systems such as EHRs has raced to the top of the priority charts.
Still, the report asserted that the majority of providers have not yet applied advanced data analytics tools that can access information from EHRs to gain actionable insights from this information. The report also noted that providers have yet to integrate clinical information with financial and administrative data--a process that must occur if hospitals want to implement a comprehensive data analytics strategy.
"To transform healthcare, all data have to come together in order to get a clear picture of what is happening with individual patients and patient populations in terms of clinical treatment and outcomes, costs and reimbursement, and resource utilization," said Nancy Fabozzi, principal analyst covering Healthcare at Frost & Sullivan, the author of the report. "Hospital executives will increasingly view these data [elements] as a core asset that must be leveraged to support every organizational goal, including financing, reimbursement, recruiting, and--most importantly--patient care."
The good news is that hospital CEOs, CFOs, and CIOs are fully aware that they need to elevate their analytics capabilities, which means channeling additional investments toward a new technology infrastructure to support that function, as well as establishing new processes and workflows around data governance and oversight of this critical asset, Fabozzi said in an interview with InformationWeek Healthcare.
So what will it take to build and leverage a hospital's data assets?
"Integration is the first hurdle," Fabozzi declared. "Some hospitals, mostly larger integrated delivery network (IDNs), and/or academic medical centers, are building data warehouses to integrate data from numerous disparate systems within the enterprise so that the data is amenable to robust analytics."
The second big task is getting hospitals to agree on basic key performance indicators (KPIs). As the health industry enters an era of more government regulations, government will determine many KPIs.
This inaugural episode of Business Matters explores the subject of leadership with former Air Force Brigadier General John Michel, the Chief Strategy & Innovation Officer and President of MV International.