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Big Data Could Generate $450 Billion For Healthcare System

Here’s some information that should give all of us something to chew on  this week, courtesy of the always-interesting Jane Sarasohn-Kahn at the HealthPopuli blog.  In a recent piece, Sarasohn-Kahn pulls data from McKinsey & Company suggesting that if big data is properly harnessed, it can produce nearly — wait for it — $450 billion in value for the healthcare system.

As always, however, there’s a catch. This value explosion can’t happen, McKinsey says, unless big data is leveraged across five dimensions of care. These dimensions, which McKinsey calls “new value pathways,” offer opportunities for better efficiencies and economies of scale for the health system, HealthPopuli notes.

The five dimensions include:

Right living, in which big data is used to help patients take an  active role in staying healthy, by such mechanisms as daily health reminders and getting patients to seek care early when problems do arise.

Right care, in which big data tools, particularly coordination of data across providers and settings, make sure that patients get the right care at the right time.

*  Right provider, in which data analytics matches patients with the ideal provider for their situation, sometimes to lower-cost providers that can provide appropriate care.

*  Right value, which uses big data analysis to reward providers who produce the best outcomes.

*  Right innovation, a pathway in which big data is mined to promote continuous improvement and productivity in healthcare processes as well as R&D.

Sounds great, doesn’t it?  Well, maybe not so much given what has to change. To travel down these pathways, McKinsey notes, it will take re-aligning several key forces in the healthcare system, including privacy and data security, a shift to  value-based reimbursement, partnerships across industry segments currently found in deep silos (such as payors and providers), and data analysis capabilities current lacking in the health IT workforce. Sigh. And  I was feeling hopeful there for a bit.

As Sarasohn-Kahn notes, one way McKinsey sees to meet some of these goals more quickly would be to promote transparency as a cultural norm. But honestly, the silos we see today exist for important institutional and competitive reasons. If we want key partners in the big data effort to cooperate, it’ll probably take a governmental club to that head. Hey, ONC, are you ready to get rough with those who don’t want to play in the same data sandbox?

April 16, 2013 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies.

Healthcare Big Data vs Skinny Data

I have heard a number of people talk about healthcare big data was all the buzz in the healthcare IT world. There’s little doubt that there’s a lot of conversation happening around big data and analytics in healthcare. While I think there’s tremendous value to be found in healthcare big data, I’ve been more intrigued by what Encore Health Resources calls skinny data.

You can read more about the Encore Health Resources CoreANALYTICS announcement, but the approach is what I find really interesting. Instead of trying to create a huge enterprise data warehouse that can be all healthcare data for everything, they instead decided to focus on created a smaller solution that just focused on one major problem: meaningful use.

Encore Health Resources was open about the reason why they chose to go with a skinny data model as opposed to a full enterprise data warehouse model, time and budget constraints. They basically were asked to produce a result with a limited budget and so there wasn’t time or money to do anything but achieve the desired results. One of the architects of the system said, “If you can give me the extra data for free, then give it to me. If it costs [time or money] more to get that data, then don’t do it. Although, if you don’t give me these other data elements, then I’m going to have issues.”

It seems like a pretty simple concept to me that makes me wonder why I haven’t seen more of it in healthcare. Encore has taken these concepts and started to expand beyond meaningful use and into other areas like at-risk populations, clinical analytics for care coordination, and financial analytics.

I asked them if CoreANALYTICS would eventually grow into what essentially becomes an enterprise data warehouse. They suggested that it wouldn’t likely ever get that large, but I can see a path to that type of result.

What I do love about skinny data is that it’s user the information a hospital has available and creating actual results. It’s one thing to have the data, but it’s what you do with that data that really matters.

April 2, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 5000 articles with John having written over 2000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 9.3 million times. John also recently launched two new companies: InfluentialNetworks.com and Physia.com, and is an advisor to docBeat. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Healthcare Big Data Trends Leading To Analytics Spending

Ready to exploit big data? So are your competitors, and they’re preparing to spend big bucks in areas where they’ve historically been weak, such as predictive analytics and data discovery, reports  HealthcareITNews.

Technology vendor Lavastorm Analytics recently surveyed more than 600 technology professionals in healtlhcare and other industries about their IT investment plans for this ear.

Right now, researchers found, three-quarters of respondents still routinely use Excel for self-service analytics processes, and 35 percent use the R programming language.  Of the remaining 24 self-service analytics tools listed by the survey, 17 of them were used by less than 10 percent of the audience. In other words, once you get past R and Excel for analytics, there’s little agreement as to what works best.

But the coming months should bring some big changes in this landscape, Lavastorm’s research suggests. As the desire to exploit big data grows, providers are planning investments that will allow them to exploit it. Nearly 60 percent of respondents plan to increase their investments in areas where their capacity is limited.

Those areas include gleaning insights from data (25 percent), accessing data (22 percent) and having the ability to integrate and manipulate data (19 percent), HealthcareITNews says.

To meet those goals, providers intend to invest in predictive analytics (51 percent), big data (35 percent), dashboards (32 percent), reporting (31 percent) and data exploration and discovery (30 percent). At the same time, 27 percent said that they’d invest in advanced visualization tools and 24 percent self-service analytics tools for business users.

All this being said, my hunch that providers probably aren’t particularly sure where they’re headed with this technology yet.  I’d like to have seen Lavastorm ask which clinical or business goals, specifically, they hoped to meet by making these investments, wouldn’t you?

March 26, 2013 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies.

DoD, VA Plan To Streamline EMR Integration Effort

The Department of Defense and VA have decided to change the way they integrate their two EMRs, in an effort they say will lower the cost and speed the pace of interoperating.  The new approach is expected to offer at least partial functionality by 2014, rather than forcing the two agencies to wait until 2017, reports FederalNewsRadio.com.

Rather than sticking to their current course, which involves a massive effort to integrate their respective EMRs into a single system, health IT leaders will attempt to make more short term  progress.

To date, the DoD and VA have been working on common requirements and data standards and developing a shared enterprise service bus, all in the service of creating a single system. Agency leaders had estimated that the existing project would cost $4 billion.

The new plan, while keeping the larger goal of integrating by 2017, will include efforts to use existing solutions to get to interoperability quickly. Leaders expect their new direction to be considerably cheaper.

By the end of this year, the two departments will begin sharing a common UI, with the rollout beginning in seven DoD and VA wounded warrior polytrauma centers. Then, by  2014, the VA and DoD expect to be exchanging seven types of critical data, including lab results, clinical notes and allergies. The VA and DoD will accomplish this by standardizing the day their systems currently use, the VA’s chief information officer told FederalNewsRadio.com.

Another key component of the two agencies’ efforts is establishing a common system for identity management.  The identity management system is drawing on the massive Defense Manpower Data Center storehouse of personnel informaton operated by the DoD.

February 12, 2013 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies.

New Hospital Rockets To Top Of HIMSS EMR Adoption Scale

Here’s a story of what can happen when a hospital starts out from scratch with the latest in EMR knowledge, rather than having to integrate its system bit by bit.

Texas Health Alliance, a 50-bed acute-care hospital based in north Fort Worth, has been named as achieving the rarely-seen Stage 7 in HIMSS Analytics EMR Adoption Model. At present, only 103 U.S. hospitals, or 1.9 percent, are currently at Stage 7.

Some of the outstanding features of the rollout include:

* Over 95 percent utilization of CPOE (driven predominately by well-designed order set content, HIMSS says)
* Advanced clinical decision support alerts that support best practice protocols
* Smart use of an enterprise data warehouse used to monitor best practice alerts and core measures
* Closed-loop medication administration environment

This award is interesting given that small hospitals have been well behind the curve in Meaningful Use and meeting the HIMSS standards.  But there’s some obvious reasons why it’s been so successful.

For one thing, THA has been open only since September. I’ll bet many readers would kill for the clean slate that offers the IT people there. No need for expensive integration projects to bring the new EMR on board; no having to switch staffers from one technology to another; no major transition from paper to digital; and the list of benefits goes on.

Another major factor working in its favor is that THA is part of nonprofit hospital system Texas Health Resources.

A tiny hospital backed by a sizeable IDN is in a different position entirely than an independent critical access hospital, so it’s not exactly astonishing that it zoomed ahead. And when the parent chain already has its own (Epic) install well under way — and an engaged community of users — that knowledge goes a long way.

Too bad most hospitals can’t start out fresh the way THA did. Innovation always comes easier if it isn’t competing with the stuff you’ve already got.

December 26, 2012 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies.

Expanding HIEs Taking Role As Backbone For Reform Efforts

It looks like we may be seeing a tipping point for HIEs, which for many years have seen only isolated successes. According to a new report from the eHealth Initiative, the number of HIEs has grown meaningfully between last year and this year, and this year should see many new HIE organizations form.  Perhaps more importantly, it looks like HIEs are taking their place as the backbone for up and coming reform efforts.

When eHI reached out to survey HIEs, it found 322 organizations to survey, up from 255 last year.  Of that group, 88 HIE initiatives are at the highest stages of development on eHIs HIE development scale, an increase of 13 from last year.  As researchers see it, we’ll see even more growth and maturing technologies in 2013.

Over the last several years, the HIEs which have stayed on their feet and matured have almost all been propped up by federal dollars. Twenty-seven of the advanced HIEs surveyed said that the single most substantial source of funding they had was from the federal government; also, 22 of these HIEs were classified as state designated entities.

Unlike the past, however, it seems that HIEs believe they can survive without grant money from the government.  Of 39 state-designated entities responding to the study, 37 said they believe it is ‘very likely’ or ‘likely’ that they will remain operational after the HITECH dollars stop flowing.  An additional 31 of the SDEs said t hat it is ‘very likely’ or ‘likely’ that they will be financially sustainable three years from now even without additional federal dollars.

Now, here’s where it gets really interesting (to me at least). As part of the study, the eHealth Initiative asked some questions about how HIEs were playing into preparations for the full rolllout of health reform.

What they found out is that HIEs are increasingly playing a major role in health reform-related efforts such as ACOs and/or Patient-Centered Medical Homes.  More than half (109) of the HIE respondents said that they are supporting ACOs or PCMHs.

The HIEs aren’t just dumb pipes either;  not only are they offering technical infrastructure, they’re providing data analytics services around cost efficiencies and quality improvement.

Looks like 2013 should be a pivotal year for HIEs. I for one am excited to see what HIE organizations will be able to accomplish over the next 12 months prior to full rollout of health reform.  Go team HIE!

December 3, 2012 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies.

UPMC Sinks $100MM Into Big Data

The University of Pittsburgh Medical Center has announced plans to spend $100 million over five years to create a massive data warehouse, a move which puts it well at the forefront of hospital “big data” efforts.

According to Information Week, UPMC’s data warehouse will bring together clinical, financial, administrative, genomic  and other information. The health system has targeted more than 200 data sources across the Medical Center, UPMC Health Plan and other affiliates.

I’ll let Information Week describe the technical set-up:

To collect, store, manage, and analyze the information maintained in the data warehouse, UPMC will use the Oracle Exadata Database Machine, a high-performance database platform; IBM’s Cognos software for business intelligence and financial management; Informatica’s data integration platform; and dbMotion’s SOA-based interoperability platform that integrates patient records from healthcare organizations and health information exchanges. These tools will manage the 3.2 petabytes of data that flows across UPMC’s business divisions.

As to how UPMC plans to use these tools, they’re hoping to do all of the things you might imagine, including genomically-tailored prescribing, population analytics and sophisticated tracking of individual patient data to make predictions about possible risks.

As I see it, UPMC’s efforts highlight both the importance of big data efforts and the downside in making the investment.

On the one hand, you’ve got the benefits. For example, patients will clearly see better outcomes if doctors can use top-drawer analytical tools to predict how treatments will work or know well in advance if a patient’s condition is about to go south.  And hospitals will clearly run better if execs get insights into issues that cross clinical and administrative boundaries, such as ED or OR utilization.

On the other, you’ve got the reality that big data projects are prohibitively expensive for all but the best-funded of healthcare organizations, and probably won’t produce returns on investment for several years at best.  Average community hospitals won’t be consolidating and analyzing their data this way anytime soon.

November 6, 2012 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies.

Private Payers Don’t Want To Play Meaningful Use Games

Today, health IT writer Neil Versel tweeted an interesting observation:

It is indeed interesting to note that while private payers have encouraged physicians to engage in some forms of electronic communication (notably electronic claims adjudication), they’re not setting up their own mini-Meaningful-Use programs.

Now, they are pushing for business models, such as ACOs and the medical home, which require smart use of EMRs. But to my knowledge, few if any health plans have gotten into a tug of war with with providers as to how they use their EMRs, or offered incentives for using an EMR in any specific way.

There’s clearly a reason for that. So what conclusion can we draw from the lack of Meaningful Use-style demands by payers?

Just this — that payers feel their money is better spent on rewarding positive care outcomes and efficiency.

Pay for performance programs have been in place for quite some time now, and evidence is accumulating that they’re effective. According to the Health Care Incentives Improvement Institute, its Bridges To Excellence-recognized physicians have been found to:

  • Outperform non-recognized physicians on process measures of quality.
  • Have fewer episodes per patient and lower resource use per episode.
  • Have lower average costs per patient and per episode.

Clearly, payers have gotten interested in HIEs; data in the aggregate definitely serves their needs. But when it comes to EMRs, they don’t get as excited. So far, the evidence that EMRs can achieve these kind of quality improvements are scattered at best, though there are some promising signs emerging.

Bottom line, payers don’t seem to care much just how engaged providers are in using EMRs, as long as the provider does enough to make entities like medical homes work. The specifics of how providers use EMRs don’t seem like something they’re worrying about.

I’m not suggesting that Meaningful Use programs are a bad idea — it often takes government to do needful things that the private sector can’t or won’t touch — but the fact that payers aren’t pushing something similar does make you think, doesn’t it?

October 19, 2012 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies.

Population Health Management Is No Fad

I have a bone to pick with you, Mr. Paul Cerrato of InformationWeek. Your recent column suggesting that population health management is a fad is well-argued, true. But I think you’re missing the forest for the trees.

In his column, Cerrato argues that population health management (PHM) is a trendy concept which is being pushed down physicians’ throats without docs having the tools to pull it off.

He relies partly on a report from the Institute for Health Technology Transformation, which argues that providers need not only EMRs, but also telehealth platforms, electronic registries, data management software and analytics systems to conduct PHM. There’s some truth to that.

And he notes that even existing tools, like the increasingly ubiquitous EHR, don’t have the ability to interoperate with other systems and so don’t have any information about care outside of a given provider’s practice. Again, that’s true.

But Cerrato seems to think that we’re putting the cart ahead of the horse to engage in PHM until all of that tech is in place.

Here’s where he loses me:

Physicians have been trained to provide individual care, not population care, and while PHM proponents might counter that population care is simply individual care multiplied by X, it’s more complicated than that. Many of the interventions needed to improve the health of a large population fall more into the realm of education and public safety than they do into medical practice.

While physicians may indeed have been trained to provide individual care, it’s time they embrace PHM basics. Simply screening the chronically ill patients get preventive care, if nothing else, isn’t beyond the reach of any practice with an EMR.

And as for fobbing off the population health improvement on public education, well, just tell me this: just how successful was Nancy Reagan’s “Just say no to drugs” campaign? (That one was about as hip as your grandmother’s nightgown, wasn’t it?)  While some interventions may work from a governmental level, there’s a graveyard of others that never even enter the consciousness of individuals.

No, I refuse to believe that doctors can’t look at their patients as a population until they can do big-time data aggregation and the like. They need to think about their patients as a population now, especially PCPs, not only because it’s the right thing to do, but because it feeds back into daily practice to know what common patterns emerge.

The new, emerging emphasis on population health may challenge physicians, but I think they’re up to it, especially if hospitals support them in their efforts. Even if what we do now is a pale shadow of what we can do over time, there’s no excuse not to get started.  PHM will be a critical part of medicine’s future, so let’s step to it.

August 6, 2012 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies.

Oracle: Healthcare Providers Lose 15% Of Revenue On Missed Data Opps

Here’s some stats from Oracle regarding productive use of data which I’d guess are if anything understated.  The database giant’s new study has concluded that healthcare providers lose $70.2 million per year, or 15 percent of additional revenue per hospital, because they’re not able to take full advantage of the data they already have.

To draw this conclusion, Oracle surveyed 333 C-level executives at enterprises cutting across 11 industries, 30 of which were healthcare-related businesses.  All of the execs across the industries said they were collecting and managing more data than they were two years ago. The average increase was a hefty 85 percent. (My bet is that healthcare numbers, if isolated, would be even higher.)

Forty-seven percent of healthcare execs told Oracle that their organization couldn’t do much to generate actionable insight from the flood of new data. Worse, 40 percent said their current systems simply weren’t up to the job, reports Information Week.

To address the problem, 50 percent of healthcare execs are implementing standard tools for BI analysis, while 47 percent are looking into customized systems and applications.

Of course, Oracle has a vested interest in claiming we’re all yahoos when it comes to business intelligence, since they want you to buy their BI products. But that being said, it’s hard to argue that potentially actionable data is slipping through hospitals’ fingers; there’s simply too much new data coming in through EMRs, if nothing else.

Small wonder, then, that hospitals are hot to improve their BI capabilities. According to a recent KLAS study (see bottom of this page), 50 percent of healthcare organizations surveyed plan to buy or replace new BI systems over the next three years.  One-third said they were buying new BI tools and 19 percent are replacing BI systems.

According to the Information Week piece on the subject, hospitals are most interested in 1) enterprise analytics; 2) predictive analytics; 3) ACO analytics; 4) healthcare data integration/data warehousing; and 5) population health.  But I think we’re looking at five years at least before hospitals really get their arms around any of these, other than perhaps analytics within their own house.

July 26, 2012 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies.