Data-Driven Healthcare Transformation

It’s well recognized that the healthcare industry is poised for innovative disruption.  Hospital leadership across the country has therefore been in preparation for some time developing strategies for how to best approach this transformative process.

A prevailing objective among healthcare systems is to increase market share or volume, while also reducing costs in the delivery of high-quality care.  There is general consensus that a value-based payment model system is imminent and initiatives that preserve or expand the operating margin are therefore imperative during the transition from fee for service.  

Operating margins for the largest health systems in the US decreased on average from 3.98% in 2016 to 3.69% in 2017, and are projected to decrease further by the end of 2018. Historical efforts for reducing costs focus on labor and supply chain expenses and the standardization of care. However, by harnessing the vast data that are now able to be captured, there exists a clear opportunity to be more strategic in our effort to both improve the quality and reduce the overall cost of healthcare through analytics. We have never been better equipped to integrate real-time data visualization for the creation and measurement of key performance improvement initiatives.

The solution isn’t necessarily to standardize care, but rather to become more agile in our ability to adapt and make data-driven decisions.  In a climate of increasingly unsustainable healthcare costs, the likelihood of a tectonic shift toward a value-based system continues to rise, and efforts that leverage innovation and the digital transformation of healthcare will be paramount.

Source:

H2C Perspectives. Survey: Success in a Transformative Environment Depends on Health Systems’ Ability to Navigate Change. Strategic Survey Summary 2016-2017. November 2018.