Across the healthcare continuum “Big Data” is demonstrating its value to the bottom line of providers, payors, therapeutic and diagnostic providers and consumers. This trend will accelerate as more companies come forward with commercial solutions. Simply put, “Big Data” refers to anything involving the analysis of extremely large datasets. 2012 will be the year where the industry begins to see the benefits of “Big Data” on their bottom line, with the full-scale deployment of platforms from companies like IBM, EMC, Oracle, Humedica, SeeChange Health, Castlight Health, among others.
With the massive subsidies being provided by the Federal Government for Electronic Health Records (EHRs), the healthcare system has become more data intensive than ever. While many physicians are just getting used to the basic features of these EHRs, companies/organizations large and small are developing analytics that utilize this information to do “comparative effectiveness” on therapeutics and diagnostics to understand the best practices and treatment paradigms. For instance, does a 30 year old Asian female with high triglycerides do better on Lipitor or Crestor?
Some are using analytics to find “appropriate” patients for clinical trials – something that has been hard to do in a paper-based world. A clinician can now query their panel of patients to determine whether he has any patients with non-Hodgkin lymphoma for a study being done by a colleague.
Others are determined to provide transparency of healthcare pricing – something that is very attractive to self-insured corporations and their employees. Studies have found within a one block area of Chicago, the cost of a CT scan can vary by three fold. Wouldn’t it be nice to have the option to go to the lowest-cost provider – particularly if you had a high-deductible plan?
While fee-for-service models will reside in parallel with global payment systems into the near future, those organizations choosing global payment systems see “Big Data” and analytics as competitive differentiators in their fight to increase quality and profitability. Improved care coordination takes better analytics and more comprehensive financial systems to balance quality with the most cost-effective approach to treatment. Knowing your total cost for a patient is not enough – rather, understanding the cost of care and quality for each “hand-off” in the care continuum, enable providers to understand where there are efficiencies to be gained and how to properly compensate the team members in the provision of care. Cost and quality matter today, but will be even more important going forward as payment models evolve.
Of course “Big Data” is also paying off for therapeutic companies who want to better segment patients. As many of the “blockbuster” drugs go off patent in the next year or two, understanding the sub-populations that may have not responded well to these drugs is leading to developments in therapeutics that are more tailored to these individuals. Personalized Medicine is becoming a reality for many.
“Big Data” is here. Turning the “data” into actionable information – particularly at the Point of Care (POC) is becoming a competitive advantage for providers, payors, therapeutic/diagnostic providers and consumers. Whether you choose a “build” or “buy” approach to obtain these capabilities, 2012 will be an important year to make the investment to maintain or build a strategic advantage in the healthcare marketplace.
Please feel free to send your comments or questions to Rick Lifsitz, Principal, Scientia Advisors at rlifsitz@scientiaadv.com.
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Tags: Big Data, EHR, Electronic Health Records, Lifsitz, POC, Point of Care, therapeutic
