Preparing for the Coming Change: An Overview of the Healthcare Analytics Market

Jim Adams, Executive Director, The Advisory Board, discusses the two market forces in particular, population health management and the retail revolution, that are driving the need for new applications of analytics and business intelligence (BI).

Attendees will learn:

The role of analytics in population health and the growing retail market
The key challenges provider organizations are facing in developing analytics capabilities
The pros and cons of the core strategies providers are utilizing to develop analytics capabilities and the vendors that map to those strategies

Bring your most pressing healthcare problems and spend an hour listening to one of the most seasoned industry analysts talking through the top forces shifting the landscape of the healthcare market in 2015.

We hope you'll come away with some insight and refined thinking about solutions that will drive your work forward. Please do join us.

Published in: Healthcare

Preparing for the Coming Change: An Overview of the Healthcare Analytics Market from Health Catalyst

Transcript

• 1. Overview of the Health Care Analytics Market BI Needs Outpace Vendor Tools and Health-Care Organizations’ Capabilities Health Care IT Advisor
• 2. ©2014TheAdvisoryBoardCompany•28068C Poll #1 - Primary Role 2 What is your primary role? – 262 respondents A. Finance – 10% B. Clinical/Quality – 25% C. IT – 25% D. Executive – 25% E. Operational – 14%
• 3. ©2014TheAdvisoryBoardCompany•28068C 2 3 1 Road Map 3 The Ever-Changing BI Marketplace BI Requirements and Challenges Beyond Population Health Management – The Coming Retail Revolution
• 4. ©2014TheAdvisoryBoardCompany•28068C Staying Afloat Through Cross-Subsidization Source: American Hospital Association, “Trendwatch Chartbook 2014,” available at: www.aha.org; Health Care Advisory Board interviews and analysis. Our Existing Business Model Hospital Payment-to-Cost Ratio, Private Payer, 2012 149% Hospital Payment-to-Cost Ratio, Medicare, 2012 86% • Above-cost pricing • Robust fee-for-service volume growth • Steady price growth • Only one component of our total business Commercial Insurance Public Payers Below CostAbove Cost Traditional Hospital Cross-Subsidy 4
• 5. ©2014TheAdvisoryBoardCompany•28068C Roles of Payers, Providers, Patients Traditionally Stable Source: Health Care Advisory Board interviews and analysis. A Strategy Dependent on Well-Worn Channels Established Provider • Expect steady public- payer, commercial price growth • In-network for most plans Entrenched Payer • Maintain broad provider networks • Pass excess cost growth on to employers through brokers Price-Insulated Patient • Open access to broad provider network • Seek care with little concern for out-of- pocket payment Assumptions Underlying Provider Growth Strategy 5
• 6. ©2014TheAdvisoryBoardCompany•28068C Nearing the Limits of Extractive Growth Strategies 6 Legacy Growth Levers Increasingly Time-Limited Source: Health Care Advisory Board interviews and analysis. Traditional Hospital Growth Strategies Scale and Pricing Power Demand Price Increases Emerging Limitations: • Shrinking population of commercially insured patients • Rise of stealth and contingent rate cuts • Activist purchasers refusing price increases Consolidate Market Position Emerging Limitations: • High degree of existing consolidation in major markets • Heightened scrutiny of hospital mergers • Limited capital available for acquisitions Lock Up Referral Streams Emerging Limitations: • Fewer physicians remain unaffiliated • Increased scrutiny of practice acquisitions • Elevated competition from other health systems, physician aggregators