Moving from a fee-for-service model to a value-based model will profoundly affect the economics of health care. Data analytics will become more focused on predicting the future in this new environment, according to an expert in that field.
Health care organizations have collected data for decades, but most of the information was used to create reports that showed leaders what happened in the past 30 or 90 days. To succeed in the value model, leaders will need a more sophisticated understanding of the data that point to future opportunities for savings and revenue, according to a presentation at the Healthcare Financial Management Association’s 2015 National Institute.
“As you move out of fee-for-service and into a value model, you get something that looks more like other businesses that take on risk,” said Graham Hughes, MD, chief medical officer of the SAS Center for Health Analytics & Insights. “With the value model, money is at risk based on both quality and costs of care. You are dealing with a much more complex situation. As soon you start working with risk, you can’t work it out on the back of a napkin.”
To help health care organizations take advantage of data analysis, those working in the field are creating systems that can analyze more data, create more information from those data, and do it all more quickly, Hughes said.
Hughes’ presentation was titled “Taking Analytics to the Next Level — Five Key Strategies.” The strategies, which he called “pillars,” are as follows:
Most health care organizations already have some of the infrastructure needed for each of the five strategies, Hughes said. “The challenge is that it is now separate instruments playing different tunes.”
— Source: Healthcare Financial Management Association