Harnessing the Potential of Healthcare Data Analytics
“I would assert that what steam was to the 18th century, electricity to the 19th, and hydrocarbons to the 20th, data will be to the 21st century.” Ginni Rometty Chairman, President, and CEO IBM
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Introduction
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Data: A Driving Force
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Mining the “Gold Nuggets”
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A Market That’s Hot—and Getting Hotter
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An Online MS in Healthcare Data Analytics
Introduction Healthcare organizations in the U.S. and around the world face unprecedented pressure to improve the quality of care and lower the cost of healthcare. With decades of progress in digitizing medical records, payers and patients alike expect providers to find ways to operate more efficiently and effectively—to share information, reduce redundancies, and above all, improve outcomes. In recent years, most healthcare organizations have made significant progress in capturing data. The challenge, now, is twofold: To mine that data for meaningful information. To use that information to drive change. By better understanding the patterns and trends within data, healthcare data analytics has the potential to improve patient care, lower healthcare costs, and ultimately save lives. Although there’s a growing demand for analytic talent in the healthcare industry, qualified job candidates (or IT professionals with healthcare understanding) are difficult to find.
Implementation
Data Collection
Data can be collected to maximize efficiencies, once a course of action is agreed upon, data can be collected to maximize efficiencies
Data doesn’t just need to be collected, it also needs to be properly categorized, sorted and stored
THE DATA ANALYTICS PROCESS Strategic Insight
Evaluation & Analysis
Based on trends, opportunities can be identified, and actions can be recommended
Once data is partitioned and cleansed, trends can be extracted
CLARKSON UNIVERSITY CAPITAL REGION CAMPUS • HARNESSING THE POTENTIAL OF HEALTHCARE DATA ANALYTICS
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Data: A Driving Force The healthcare industry is shifting away from volume-based care to value-based care. Patients, too, are zeroing in on quality, in part because they are being asked to cover a larger share of their healthcare costs. “Everybody is asking us to provide more value for their healthcare dollars. That will affect every aspect of our business,” says Veronica Ziac, Director of Information Technology at Ellis Medicine in Schenectady, N.Y. Although discussions about value are not new, they have taken on new meaning—and urgency—now that data is available to inform decision-making. The healthcare industry defines value as cost divided by outcomes. Until recently, however, it was difficult to obtain accurate measurements for either component of the equation. Clinical data collection began in earnest about a decade ago and accelerated in the past three years because of the emphasis on electronic medical records (EMR). For the first time, healthcare organizations have access to extensive clinical and cost-related data.
16,000
HOSPITALS WORLDWIDE
COLLECT DATA ON ALL PATIENTS
IN 2009, DATA COLLECTED BY THE HEALTHCARE INDUSTRY TOTALED
434
PETABYTES IT WOULD TAKE 96,782,000 DVDS TO HOLD ALL THAT DATA
DATA COLLECTION IS ON THE RISE
1.8
ZETTABYTES COLLECTED LAST YEAR
A LITTLE MORE ABOUT BYTES
1,099,511,627,776
1,048,576
1,024
1
GIGABYTES = PETABYTES = EXABYTES = ZETTABYTE CLARKSON UNIVERSITY CAPITAL REGION CAMPUS • HARNESSING THE POTENTIAL OF HEALTHCARE DATA ANALYTICS
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“It really is a historic time,” says Dominick Bizzarro, Managing Director of Business Development for InterSystems, a data management and analytical firm headquartered in Cambridge, Ma. “We’re starting to see a merging of the clinical and administrative worlds and, with that, a huge interest in healthcare analytics.”
THE SHIFT FROM VOLUME TO VALUE Only 5% of the population accounts for 50% of U.S. healthcare spending
For many organizations, the greatest challenge—and the greatest opportunity—lies in identifying and extracting meaningful information and taking advantage of its predictive capabilities. It’s helpful to know, for example, that 5 percent of the population accounts for approximately 50 percent of U.S. healthcare spending,1 but it’s better to be able to use that information to identify those at risk of joining the 5 percent and to intervene with preventive care. “That’s what makes data analytics a game changer,” says Peter Schermerhorn, Regional Director, Northeast, for Beacon Partners Healthcare Management Consultants in Weymouth, Ma. “Many in our industry thought EMR was the disruptive technology, but EMR is just the container for the data. The real power is in the data itself and in the intelligence that we can mine from it. We’re finally going to be able to treat people more effectively as they move through every phase of the healthcare continuum. That’s good for patients and communities.”
EACH
= 10 BILLION DOLLARS
That means 16 million people are spending
$623,000,000,000 or $41,000 per person, each year. And the other 300 million people spend an average of $5.35, each year.
CLARKSON UNIVERSITY CAPITAL REGION CAMPUS • HARNESSING THE POTENTIAL OF HEALTHCARE DATA ANALYTICS
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Mining the “Gold Nuggets” After years of capturing data, many organizations now find themselves data-rich, but information-poor. “It’s not that they lack data; they are overwhelmed with it,” says Dr. Peter Otto, Associate Professor and Chair of the MS in Healthcare Data Analytics program at Clarkson University Capital Region Campus. “Analytics can help organizations dig beneath the surface, find the gold nuggets, and use them to make better decisions.” Experts point to opportunities for healthcare data analytics to make an impact in virtually every arena:
Strategic Planning
Compliance
Data analytics can help identify market needs and opportunities
Data analytics can help detect fraud and abuse
Administration & Operations Data analytics can help organizations maximize reimbursements by standardizing billing and coding practices
Clinical Decision Support Data analytics can be used to determine best practices, reduce testing duplication, improve care coordination, and facilitate population health management
CLARKSON UNIVERSITY CAPITAL REGION CAMPUS • HARNESSING THE POTENTIAL OF HEALTHCARE DATA ANALYTICS
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At Glens Falls Hospital in Glens Falls, N.Y., data analytics is “the bread and butter of health planning,” says Paul Scimeca, the hospital’s Senior Vice President of Strategic Planning and Business Development and an instructor in Clarkson University Capital Region Campus’s MS in Healthcare Data Analytics program. “As data has gotten better and more available, we’ve been able to look at incident rates for chronic and acute diseases, identify areas of need in our community, and develop programs to address those needs.” He cites an example from years ago, when Glens Falls Hospital became concerned about higher death rates among breast cancer patients in the hospital’s service area. After analyzing the data, the hospital realized that many women did not have easy access to mammograms and, therefore, were “Analytics can help not being diagnosed until stage 3 or later. “We developed a breast screening program to increase access,” Scimeca recalls. “Now, more than a decade later, the average stage of detection has dropped, and so has the mortality rate.”
organizations dig beneath the surface, find the gold nuggets, and use them to make better decisions.”
More recently, Glens Falls Hospital Peter Otto, Ph.D. Associate Professor and Chair analyzed data for a multi-county region MS in Healthcare Data Analytics where incidence rates and other Clarkson University key indicators pointed to significant Capital Region Campus disparities in the approach to diagnosis and treatment. The hospital developed a diabetes management program and shared it with local practitioners. Although it’s still early, initial results are promising. At Ellis Medicine, information technology (IT) and data analytics are being deployed to tackle population health management. The health system is scrutinizing claims data, identifying patients at risk for hospitalization, and reaching out to them pro-actively to help them manage their health. Both Ellis Medicine and Glens Falls Hospital acknowledge that they are just beginning to tap the potential of data analytics. Both anticipate increasing reliance on analytics in the years to come.
CLARKSON UNIVERSITY CAPITAL REGION CAMPUS • HARNESSING THE POTENTIAL OF HEALTHCARE DATA ANALYTICS
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A Market That’s Hot—and Getting Hotter Industry experts predict double-digit growth in healthcare analytics as the nation and healthcare organizations continue to transition to a value-based system and tap data’s predictive capabilities.
“Typically those who can perform the analysis are unfamiliar with the public health issues. Those who get the issues don’t know how to mine the data.”
In a December 2013 report, the research firm MarketsandMarkets forecast that the global healthcare analytics market would increase from $4.4 million in 2013 to Paul Scimeca Senior Vice President of Strategic $21.3 million by 2020. That’s a compound Planning and Business Development annual growth rate (CAGR) of 25.2%. Glens Falls Hospital A similar report, “Global Healthcare Data Analytics Market 2012-2016,” from the technology research and advisory company TechNavio, projects a CAGR of 22.3% from 2012 through 2016. Ziac and Scimeca see increased demand for individuals whose background includes both data analysis and healthcare.
MarketsandMarkets forecasts that the global healthcare analytics market will increase from 4.4 million in 2013 to $21.3 million by 2020
ANNUAL SPENDING ON HEALTHCARE ANALYTICS (IN MILLIONS)
$20 THAT EQUATES TO A
25.2%
$15
ANNUAL GROWTH RATE
$10
$5 2013 2014 2015 2016 2017 2018 2019 2020
CLARKSON UNIVERSITY CAPITAL REGION CAMPUS • HARNESSING THE POTENTIAL OF HEALTHCARE DATA ANALYTICS
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“What we really need are people who understand the entire picture—people who can look beyond the numbers and use them to drive improvements,” Ziac says. “Finding people who are really skilled at this is nearly impossible,” Scimeca says. “Typically those who can perform the analysis are unfamiliar with the public health issues. Those who get the issues don’t know how to mine the data.” According to Bizzarro, this situation exists largely because healthcare has trailed other industries in investing in IT infrastructure—and is still playing catch up. Although healthcare organizations have made considerable inroads in collecting and sharing information, many are struggling with interoperability.
“What we really need is people who understand the entire picture— people who can look beyond the numbers and use them to drive improvements.”
The goal is to get different systems Veronica Ziac not just to share and exchange large Director of Information Technology amounts of data but also to interpret that Ellis Medicine information and use it to benefit individual patients and entire populations. Therefore, organizations are focusing on both structured and unstructured data. Instead of capturing just the dates and results of lab work, for example, organizations also want to know why the tests were ordered. “We have huge volumes of data coming in,” Bizzarro says, “and we want to manage it in a patient-centric, population-based way. It’s a challenge and an opportunity—and it will be a burgeoning field for years to come.”
Sources U.S. Department of Health and Human Services, Agency for Healthcare Research and Quality, “Statistical Brief #354: The Concentration and Persistence in the Level of Health Expenditures over Time: Estimates for the U.S. Population, 2008-2009,” January 2012. MarketsandMarkets, “Healthcare Analytics/Medical Analytics Market by Application (Clinical, Financial, & Operational), Type (Predictive, & Prescriptive), End-user (Payer, Provider, HIE, ACO), Delivery Mode (On-premise, Web, & Cloud) - Trends & Global Forecasts to 2020,” December 2013. KPMG International, “Accelerating innovation: the power of the crowd—Global lessons in eHealth implementation,” 2012.
CLARKSON UNIVERSITY CAPITAL REGION CAMPUS • HARNESSING THE POTENTIAL OF HEALTHCARE DATA ANALYTICS
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BIG DATA = BIG OPPORTUNITIES IN HEALTHCARE Earn an MS in Healthcare Data Analytics.
Clarkson University Capital Region Campus 80 Nott Terrace Schenectady, NY 12308 Tel: 518.631.9910
graduate.clarkson.edu CLARKSON UNIVERSITY CAPITAL REGION CAMPUS • HARNESSING THE POTENTIAL OF HEALTHCARE DATA ANALYTICS
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CREATIVE COMMUNICATION ASSOCIATES 3/16
To help meet the demand for healthcare analytics professionals, Clarkson University Capital Region Campus offers a Master of Science in Healthcare Data Analytics. The online degree program provides the skills needed to interpret data and inform strategic decision-making in healthcare. Courses are offered online, with two on-site residency sessions of three days each at the beginning and end of the program. For more information about the program, admission requirements, or to schedule a visit, click here.